Document:

Supplemental Deed

 

EXHIBIT
4.8

DATED
AS OF 30 SEPTEMBER 2005

NCL CORPORATION LTD.

(as borrower)

NORWEGIAN SPIRIT LIMITED

NORWEGIAN STAR LIMITED

PRIDE OF ALOHA, INC.

(as guarantors)

DnB NOR BANK ASA

(as agent)

 

FIRST SUPPLEMENTAL DEED TO

USD800,000,000 SECURED LOAN FACILITY AGREEMENT

dated 7 July 2004 (among other things)

 

STEPHENSON HARWOOD

One St Paul’s Churchyard

London EC4M 8SH

Tel: +44 (0)20 7329 4422

Fax: + 44 (0)20 7329 7100

Ref: 1253/43-00372/44-01581

 

 

CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1

	 	Definitions and Construction
	 	 	1	 
	 
	 	 	 	 	 	 
	2

	 	Amendment of Original Facility Agreement,
Original Guarantees, Original Mortgages and
Security Documents
	 	 	2	 
	 
	 	 	 	 	 	 
	3

	 	Conditions Precedent
	 	 	3	 
	 
	 	 	 	 	 	 
	4

	 	Representations and Warranties
	 	 	5	 
	 
	 	 	 	 	 	 
	5

	 	Expenses
	 	 	6	 
	 
	 	 	 	 	 	 
	6

	 	Further Assurance
	 	 	6	 
	 
	 	 	 	 	 	 
	7

	 	Counterparts
	 	 	6	 
	 
	 	 	 	 	 	 
	8

	 	Notices
	 	 	6	 
	 
	 	 	 	 	 	 
	9

	 	Governing Law
	 	 	7	 
	 
	 	 	 	 	 	 
	10

	 	Jurisdiction
	 	 	7	 
	 
	 	 	 	 	 	 
	Schedule 1

	 	Amendment of Original Facility Agreement
	 	 	10	 
	 
	 	 	 	 	 	 
	Schedule 2

	 	Amendment of Original Guarantees
	 	 	13	 
	 
	 	 	 	 	 	 
	Schedule 3

	 	Amendment of Original Mortgages — m.v.s “NORWEGIAN SPIRIT” and
“NORWEGIAN STAR”
	 	 	14	 
	 
	 	 	 	 	 	 
	Schedule 4

	 	Amendment of Original Mortgage — m.v. “PRIDE OF ALOHA”
	 	 	16	 
	 
	 	 	 	 	 	 
	Schedule 5

	 	Quarterly Statement of Financial Covenants
	 	 	18	 

 

 

FIRST SUPPLEMENTAL DEED

DATED                                                             2005

BETWEEN:

	(1)	 	NCL CORPORATION LTD. of Milner House, 18 Parliament Street, Hamilton HM 12, Bermuda as
borrower (the “Borrower”);
	 
	(2)	 	NORWEGIAN SPIRIT, LTD., a company incorporated under the laws of Bermuda and having its
registered office at Milner House, 18 Parliament Street, Hamilton HM 12, Bermuda (“Norwegian
Spirit”);
	 
	(3)	 	NORWEGIAN STAR LIMITED, a company incorporated under the laws of the Isle of Man and having
its registered office at International House, Castle Hill, Victoria Road, Douglas, Isle of Man
IM2 4RB, British Isles (“Norwegian Star”);
	 
	(4)	 	PRIDE OF ALOHA, INC., a corporation organised under the laws of the State of Delaware, United
States of America and having its registered office at Corporation Trust Center, 1209 Orange
Street, Wilmington, Delaware 19801, United States of America “Pride of Aloha” and together
with Norwegian Spirit and Norwegian Star the “Guarantors”); and
	 
	(5)	 	DnB NOR BANK ASA of Stranden 21, NO-0021 Oslo, Norway as agent for itself and the Lenders
(the “Agent”).

WHEREAS:

	(A)	 	By a secured loan facility agreement dated 7 July 2004 (hereinafter as the same may from time
to time be amended, varied, supplemented and/or novated called the “Original Facility
Agreement”) made between (among others) (1) the Borrower as borrower (2) the banks whose names
and Lending Branches appear in schedule 1 to the Facility Agreement as lenders (the “Lenders”)
and (3) the Agent, the Lenders agreed to make available to the Borrower a loan facility of up
to eight hundred million Dollars (USD800,000,000) (the “Facility”). The repayment of the
Facility by the Borrower has been secured by (among other things) guarantees and indemnities
dated 16 July 2004 granted by the Guarantors (the “Original Guarantees”) and mortgages dated
16 July 2004 granted by the Guarantors respectively over m.v.s “NORWEGIAN SPIRIT”, “NORWEGIAN
STAR” and “PRIDE OF ALOHA” (the “Original Mortgages”).
	 
	(B)	 	The Borrower has requested the consent of the Lenders and the Agent to the amendment of
certain provisions of the Original Facility Agreement, the Original Guarantees and the
Original Mortgages to conform such provisions to similar provisions in other loan
documentation to which the Borrower and/or other members of the NCLC Group are party. This
Deed shall be executed as a deed.

NOW THIS DEED WITNESSES as follows:

	1	 	Definitions and Construction

	 	1.1	 	In this Deed including the preamble and recitals hereto (unless the context
otherwise requires) any term or expression defined in the preamble or the recitals
shall have the meaning ascribed to it therein and terms and expressions not

 

 

	 	 	 	defined herein but whose meanings are defined in the Facility Agreement shall have
the meanings set out therein. In addition, the following terms and expressions
shall have the meanings set out below:
	 
	 	 	 	“Facility Agreement” means the Original Facility Agreement as amended by this Deed;
	 
	 	 	 	“Guarantee” means an Original Guarantee as amended by this Deed; and
	 
	 	 	 	“Mortgage” means an Original Mortgage as amended by this Deed.
	 
	 	1.2	 	The provisions of Clauses 1.2 and 1.3 of the Facility Agreement shall apply
hereto (mutatis mutandis).

	2	 	Amendment of Original Facility Agreement, Original Guarantees, Original Mortgages and
Security Documents

	 	2.1	 	Subject to Clause 3, the parties hereto agree that from the date of this Deed
the Original Facility Agreement shall be read and construed as if:

	 	2.1.1	 	the clauses referred to in the first column of Schedule 1 had
been amended to read as set out in the second column of Schedule 1;
	 
	 	2.1.2	 	the following definition had been inserted in clause 1.1:
	 
	 	 	 	“Free Liquidity” means, at any date of determination, the aggregate of the
Cash Balance and any amounts freely available for drawing under the Facility
or any other revolving or other credit facilities of the NCLC Group, which
remain undrawn, could be drawn for general working capital purposes or other
general corporate purposes and would not, if drawn, be repayable within six
(6) months;”; and
	 
	 	2.1.3	 	schedule 6 had been deleted and substituted with Schedule 5.

	 	2.2	 	Subject to Clause 3, the parties hereto agree that from the date of this Deed
each of the Original Guarantees shall be read and construed as if the clauses referred
to in the first column of Schedule 2 had been amended to read as set out in the second
column of Schedule 2.
	 
	 	2.3	 	Subject to Clause 3, the parties hereto agree that from the date of this Deed
the deeds of covenants forming part of the Original Mortgages granted by Norwegian
Spirit and Norwegian Star over their Vessels shall be read and construed as if the
clauses referred to in the first column of Schedule 3 had been amended to read as set
out in the second column of Schedule 3.
	 
	 	2.4	 	Subject to Clause 3, the parties hereto agree that from the date of this Deed
the Original Mortgage granted by Pride of Aloha over its Vessel shall be read and
construed as if the clauses referred to in the first column of Schedule 4 had been
amended to read as set out in the second column of Schedule 4.
	 
	 	2.5	 	The Borrower and each of the Guarantors hereby confirms to the Agent that with
effect from the date of this Deed:

2

 

	 	2.5.1	 	all references to the Original Facility Agreement in the
Security Documents to which it is a party shall be construed as references to
the Facility Agreement and all terms used in such Security Documents whose
meanings are defined by reference to the Original Facility Agreement shall be
defined by reference to the Facility Agreement;
	 
	 	2.5.2	 	the Security Documents to which it is a party shall apply to,
and extend to secure, the whole of the Outstanding Indebtedness as defined in
clause 1.1 of the Facility Agreement;
	 
	 	2.5.3	 	its obligations under the Security Documents to which it is a
party shall not be discharged, impaired or otherwise affected by reason of the
execution of this Deed or of any of the documents or transactions contemplated
hereby; and
	 
	 	2.5.4	 	its obligations under the Security Documents to which it is a
party shall remain in full force and effect as security for the obligations of
the Borrower under the Facility Agreement and the other Security Documents as
amended by this Deed.

	 	2.6	 	Except as expressly amended hereby or pursuant hereto the Original Facility
Agreement and the Security Documents shall remain in full force and effect and nothing
herein contained shall relieve the Borrower or any other Obligor from any of its
respective obligations under any such documents.

	3	 	Conditions Precedent

	 	3.1	 	The consent of the Agent to the variation of the provisions of the Original
Facility Agreement, the Original Guarantees and the Original Mortgages is conditional
upon and shall not be effective unless and until the Agent has received the following
in form and substance satisfactory to it:

	 	3.1.1	 	on the date of this Deed, one (1) counterpart of this Deed
duly executed by the Borrower and the Guarantors;
	 
	 	3.1.2	 	a written confirmation from the Process Agent that it will act
for the Borrower and the Guarantors as agent for service of process in England
in respect of this Deed;
	 
	 	3.1.3	 	the following corporate documents in respect of each of the
Borrower and the Guarantors (together the “Relevant Parties”):

	 	(a)	 	Certified Copies of any consents required from
any ministry, governmental, financial or other authority for the
execution of and performance by the respective Relevant Party of its
obligations under this Deed or if no such consents are required a
certificate from a duly appointed officer of the Relevant Party to this
effect confirming that no such consents are required;
	 
	 	(b)	 	notarially attested secretary’s certificate of
each of the Relevant Parties:

3

 

	 	(i)	 	attaching a copy of its
Certificate of Incorporation and Memorandum of Association and
Bye-Laws (or equivalent constitutional documents) evidencing
power to enter into the transactions contemplated in this Deed;
	 
	 	(ii)	 	giving the names of its present
officers and directors;
	 
	 	(iii)	 	setting out specimen
signatures of such officers and directors as are authorised by
the Relevant Party to sign documents or otherwise undertake the
performance of that Relevant Party’s obligations under this
Deed;
	 
	 	(iv)	 	giving the legal owner of its shares and the number of such shares held;
	 
	 	(v)	 	attaching copies of resolutions
passed at duly convened meetings of the directors and, if
required by the Agent, the shareholders or members of each of
the Relevant Parties authorising (as applicable) the execution
of this Deed, in the case of Pride of Aloha, the amendment to
the Original Mortgage over m.v. “PRIDE OF ALOHA” and the issue
of any power of attorney to execute the same; and
	 
	 	(vi)	 	containing a declaration of
solvency as at the date of the certificate of the duly
appointed officer of the Relevant Party;

	 	3.1.4	 	the original powers of attorney, if any, issued pursuant to
the resolutions referred to above and notarially attested;
	 
	 	3.1.5	 	a first amendment to the Mortgage over m.v. “PRIDE OF ALOHA”
duly executed and lodged for recordation at the United States Coast Guard
National Vessel Documentation Center; and
	 
	 	3.1.6	 	the issue of such favourable written legal opinions including
in respect of the United States of America and Bermuda in such form as the
Agent may require relating to all aspects of the transactions contemplated
hereby governed by any applicable law,

	 	 	 	PROVIDED THAT no Event of Default and no Possible Event of Default has occurred and
is continuing on the date on which the conditions precedent set out in this Clause
3.1 have been satisfied (subject to Clause 3.2).
	 
	 	3.2	 	If the Agent in accordance with clause 22 of the Original Facility Agreement
decides to permit the amendment of the Original Facility Agreement, the Original
Guarantees and the Original Mortgages hereby without having received all of the
documents or evidence referred to in Clause 3.1, the Borrower will nevertheless deliver
the remaining documents or evidence to the Agent within fourteen (14) days of the date
of this Deed (or such other period as the Agent may stipulate) and the amendment of the
Original Facility Agreement, the Original Guarantees and the Original Mortgages as
aforesaid shall not be construed as a waiver of the Agent’s right to receive the
documents or evidence as aforesaid nor shall this

4

 

	 	 	 	provision impose on the Agent or the Lenders any obligation to permit the amendment
in the absence of such documents or evidence.

	4	 	Representations and Warranties

	 	4.1	 	The Borrower and each of the Guarantors represents and warrants to the Agent
that:

	 	4.1.1	 	it has the power to enter into and perform this Deed and the
transactions and documents contemplated hereby and has taken all necessary
action to authorise the entry into and performance of this Deed and such
transactions and documents;
	 
	 	4.1.2	 	this Deed constitutes its legal, valid and binding obligations
enforceable in accordance with its terms;
	 
	 	4.1.3	 	its entry into and performance of this Deed and the
transactions contemplated hereby do not and will not conflict with:

	 	(a)	 	any law or regulation or any official or judicial order; or
	 
	 	(b)	 	its constitutional documents; or
	 
	 	(c)	 	any agreement or document to which it is a
party or which is binding upon it or any of its assets,

	 	 	 	nor result in the creation or imposition of any Encumbrance on it or its
assets pursuant to the provisions of any such agreement or document and in
particular but without prejudice to the foregoing the entry into and
performance of this Deed and the transactions and documents contemplated
hereby and thereby will not render invalid, void or voidable any security
granted by it to the Agent;
	 
	 	4.1.4	 	all authorisations, approvals, consents, licences, exemptions,
filings, registrations, notarisations and other matters, official or otherwise,
required in connection with the entry into, performance, validity and
enforceability of this Deed and each of the other documents contemplated hereby
and thereby and the transactions contemplated hereby and thereby have been
obtained or effected and are in full force and effect;
	 
	 	4.1.5	 	all information furnished by it to the Agent or its agents
relating to the business and affairs of an Obligor in connection with this Deed
and the other documents contemplated hereby and thereby was and remains true
and correct in all material respects and there are no other material facts or
considerations the omission of which would render any such information
misleading; and
	 
	 	4.1.6	 	it has fully disclosed in writing to the Agent all facts
relating to its business which it knows or should reasonably know and which
might reasonably be expected to influence the Agent in deciding whether or not
to enter into this Deed.

5

 

	5	 	Expenses
	 
	 	 	The Borrower and the Guarantors jointly and severally undertake to reimburse the Agent on
demand on a full indemnity basis for the reasonable charges and expenses (together with
value added tax or any similar tax thereon and including without limitation the fees and
expenses of legal and other advisers) incurred by the Agent in respect of the negotiation,
preparation, printing, execution, registration and enforcement of this Deed and any other
documents required in connection with the implementation of this Deed.

	6	 	Further Assurance

	 	 	The Borrower and each of the Guarantors will, from time to time on being required to do so
by the Agent, do or procure the doing of all such acts and/or execute or procure the
execution of all such documents in a form satisfactory to the Agent as the Agent may
reasonably consider necessary for giving full effect to this Deed or any of the documents
contemplated hereby or securing to the Agent the full benefit of the rights, powers and
remedies conferred upon the Agent in any such document.

	7	 	Counterparts
	 
	 	 	This Deed may be executed in any number of counterparts and all such counterparts taken
together shall be deemed to constitute one and the same agreement.

	8	 	Notices

	 	8.1	 	Any notice, demand or other communication (unless made by telefax) to be made
or delivered to the Borrower or the Guarantors pursuant to this Deed shall (unless the
Borrower or a Guarantor has by fifteen (15) days’ written notice to the Agent specified
another address) be made or delivered to the Borrower and/or the Guarantors c/o 7665
Corporate Center Drive, Miami, Florida 33126, United States of America (marked for the
attention of Ms Bonnie Biumi and the Legal Department (but one (1) copy shall suffice))
with a copy to c/o Star Cruises Limited, Star Cruises Terminal, Pulau Indah, PO Box No.
288, 42009 Pelabuhan Klang, Selangor Darul Ehsan, Malaysia (marked for the attention of
Mr Gerard Lim). Any notice, demand or other communication to be made or delivered by
the Borrower or a Guarantor pursuant to this Deed shall (unless the Agent has by
fifteen (15) days’ written notice to the Borrower and the Guarantor specified another
address) be made or delivered to the Agent at its Office, the details of which are set
out in schedule 1 of the Original Facility Agreement.
	 
	 	8.2	 	Any notice, demand or other communication to be made or delivered pursuant to
this Deed may be sent by telefax to the relevant telephone numbers (which at the date
hereof in respect of the Borrower and the Guarantors is +1 305 436 4140 (marked for the
attention of Ms Bonnie Biumi) and +1 305 436 4117 (marked for the attention of the
Legal Department) with a copy to +60 3 3884 0213 (marked for the attention of Mr Gerard
Lim) and in the case of the Agent is as recorded in schedule 1 of the Original Facility
Agreement) specified by it from time to time for the purpose and shall be deemed to
have been received when transmission of such telefax communication has been completed.
Each such telefax communication, if made to the Agent by the Borrower or a Guarantor,
shall be signed by the person or persons authorised in writing by the Borrower or the
Guarantor (as the case may be) and whose signature appears on the list of specimen
signatures contained in the secretary’s certificate required to be

6

 

	 	 	 	delivered by Clause 3 and shall be expressed to be for the attention of the
department or officer whose name has been notified for the time being for that
purpose by the Agent to the Borrower and the Guarantor.
	 
	 	8.3	 	The provisions of clauses 23.1, 23.5 and 23.6 of the Original Facility
Agreement shall apply to this Deed.

	9	 	Governing Law
	 
	 	 	This Deed shall be governed by English law.

	10	 	Jurisdiction

	 	10.1	 	The courts of England have exclusive jurisdiction to settle any dispute arising
out of or in connection with this Deed (including a dispute regarding the existence,
validity or termination of this Agreement) (a “Dispute”). Each party to this Deed
agrees that the courts of England are the most appropriate and convenient courts to
settle Disputes and accordingly no party will argue to the contrary.
	 
	 	 	 	This Clause 10.1 is for the benefit of the Agent only. As a result, no such party
shall be prevented from taking proceedings relating to a Dispute in any other courts
with jurisdiction. To the extent allowed by law, any such party may take concurrent
proceedings in any number of jurisdictions.
	 
	 	10.2	 	Neither the Borrower nor the Guarantors may, without the Agent’s prior written
consent, terminate the appointment of the Process Agent; if the Process Agent resigns
or its appointment ceases to be effective, the Borrower and/or the Guarantors (as the
case may be) shall within fourteen (14) days appoint a company which has premises in
London and has been approved by the Agent to act as the Borrower’s and/or the
Guarantors’ (as the case may be) process agent with unconditional authority to receive
and acknowledge service on behalf of the Borrower and/or the Guarantors of all process
or other documents connected with proceedings in the English courts which relate to
this Deed.
	 
	 	10.3	 	For the purpose of securing its obligations under Clause 10.2, the Borrower and
each of the Guarantors irrevocably agrees that, if it for any reason fails to appoint a
process agent within the period specified in Clause 10.2, the Agent may appoint any
person (including a company controlled by or associated with the Agent or any Lender)
to act as the Borrower’s or that Guarantor’s (as the case may be) process agent in
England with the unconditional authority described in Clause 10.2.
	 
	 	10.4	 	No neglect or default by a process agent appointed or designated under this
Clause (including a failure by it to notify the Borrower or the Guarantors (as the case
may be) of the service of any process or to forward any process to the Borrower or the
Guarantors (as the case may be)) shall invalidate any proceedings or judgment.
	 
	 	10.5	 	The Borrower and each of the Guarantors appoints in the case of the courts of
England the Process Agent to receive, for and on its behalf service of process in
England of any legal proceedings with respect to this Deed.

7

 

	 	10.6	 	A judgment relating to this Deed which is given or would be enforced by an
English court shall be conclusive and binding on the Borrower and/or the Guarantors (as
the case may be) and may be enforced without review in any other jurisdiction.
	 
	 	10.7	 	Nothing in this Clause shall exclude or limit any right which the Agent may
have (whether under the laws of any country, an international convention or otherwise)
with regard to the bringing of proceedings, the service of process, the recognition or
enforcement of a judgment or any similar or related matter in any jurisdiction.
	 
	 	10.8	 	In this Clause “judgment” includes order, injunction, declaration and any other
decision or relief made or granted by a court.

IN WITNESS whereof the parties hereto have caused this Deed to be duly executed as a deed on the
03 day of November 2005 and acknowledge that the effective date of this Deed is 30 September
2005.

	 	 	 	 	 
	SIGNED SEALED and DELIVERED as a DEED

	 	 	)	 
	by
PAUL ALAN TURNER

	 	 	)	 
	for and on behalf of

	 	 	)	     P.A. TURNER
	NCL CORPORATION LTD.

	 	 	)	 
	in the presence of:

	 	VINJAY
JEYARATNAM

V. JEYARATNAM     
	)	 
	 
	 	 	 	 
	SIGNED SEALED and DELIVERED as a DEED

	 	 	)	 
	by
PAUL ALAN TURNER

	 	 	)	 
	for and on behalf of

	 	 
	)	     P.A. TURNER
	NORWEGIAN SPIRIT LIMITED

	 	 	)	 
	in the presence of:

	 	VINJAY
JEYARATNAM

V. JEYARATNAM
	)	 
	 
	 	 	 	 
	SIGNED SEALED and DELIVERED as a DEED

	 	 	)	 
	by PAUL ALAN TURNER

	 	 	)	 
	for and on behalf of

	 	 	)	     P.A. TURNER
	NORWEGIAN STAR LIMITED

	 	 	)	 
	in the presence of:

	 	VINJAY
JEYARATNAM

V. JEYARATNAM
	)	 
	 
	 	 	 	 
	SIGNED SEALED and DELIVERED as a DEED

	 	 	)	 
	by PAUL ALAN TURNER

	 	 	)	 
	for and on behalf of

	 	 	)	     P.A. TURNER
	PRIDE OF ALOHA, INC.

	 	 	)	 
	in the presence of:

	 	VINJAY
JEYARATNAM

V. JEYARATNAM
	)	 

8

 

	 	 	 	 	 
	SIGNED SEALED and DELIVERED as a DEED

	 	 	)	 
	by KH
HOLTH,
Senior Vice President

	 	 	)	     KH
HOLTH
	for and on behalf of

	 	 	)	 
	DnB NOR BANK ASA

	 	 	)	 
	as the Agent

	 	 	)	 
	in the presence of:

	S.H. EIDEM

STIG H. EIDEM

ADVOKAT M.N.A.

STARNDEN 21,0021 OSLO 
	 	)	 

9

 

Schedule 1

Amendment of Original Facility Agreement

	 	 	 
	Definition/Clause	 	Amendment
	Clause 1.1, “Cash
Balance”

	 	“Cash Balance” means, at any date of determination, the unencumbered and otherwise unrestricted
cash and cash equivalents of the NCLC Group;
	 
	 	 
	Clause 1.1,
“Consolidated
Interest Expense”

	 	“Consolidated Interest Expense” means, for any relevant period, the consolidated interest expense
(excluding capitalised interest) of the NCLC Group for such period;
	 
	 	 
	Clause 1.1,
“Permitted Liens”

	 	“Permitted Liens” means (i) any Encumbrance created by or pursuant to the Security Documents (ii)
liens on a Vessel up to an aggregate amount at any time not exceeding ten million Dollars
(USD10,000,000) for current crew’s wages and salvage and liens incurred in the ordinary course of
trading a Vessel (iii) any deposits or pledges to secure the performance of bids, tenders, bonds or
contracts (iv) any other Encumbrance notified by any of the Obligors to the Agent prior to the
Signing Date (v) any Encumbrance in respect of existing Financial Indebtedness of a person which
becomes a Subsidiary of the Borrower or is merged with or into the Borrower or any of its
Subsidiaries (vi) liens on assets leased, acquired or upgraded after the Signing Date or assets
newly constructed or converted after the Signing Date provided that (a) such liens secure Financial
Indebtedness otherwise permitted under this Agreement (b) such liens are incurred within one (1)
year following such lease, acquisition, upgrade, construction or conversion and (c) the Financial
Indebtedness secured by such liens does not exceed the cost of such upgrade or the cost of such
assets acquired or leased (vii) statutory and other similar liens arising in the ordinary course of
business unrelated to Financial Indebtedness and securing obligations not yet delinquent or which
are being contested in good faith by appropriate proceedings and for which adequate reserves have
been established and (viii) liens arising out of the existence of judgments or awards in respect of
the Borrower or any of its Subsidiaries, provided that the aggregate amount of all cash and the
fair market value of all other property subject to such liens as are described in paragraphs (vi)
to (viii) above does not exceed ten million Dollars (USD10,000,000);
	 
	 	 
	Clause 11.2.1(b)

	 	as soon as practicable (and in any event within sixty (60) days after the close of each quarter of
each financial year) a Certified Copy of the unaudited consolidated accounts of the NCLC Group for
that quarter (commencing with the unaudited accounts made up to 30 June 2004);

10

 

	 	 	 
	Definition/Clause	 	Amendment
	Clause 11.2.1(c)

	 	as soon as practicable (and in any event within one hundred and twenty (120) days after the close
of each financial year), beginning with the financial year ending 31 December 2004, annual cash
flow projections on a consolidated basis of the NCLC Group showing on a monthly basis advance
ticket sales (for at least twelve (12) months following the date of such statement) for the NCLC
Group;
	 
	 	 
	Clause 11.2.1(d)(ii)

	 	updated financial projections of the NCLC Group for at least the next five (5) years (including an
income statement and projected results for the operation of the vessels owned and/or operated by
any member of the NCLC Group) and an outline of the assumptions supporting such budget and
financial projections including but without limitation any scheduled drydockings;
	 
	 	 
	Clause 11.2.1(e)

	 	within thirty (30) days of the end of each period of twelve (12) months referred to in the
penultimate sentence of Clause 11.17.1 and at such other times as the Agent may from time to time
reasonably require, a valuation of each of the Vessels obtained in accordance with the provisions
of Clause 11.17;
	 
	 	 
	Clause 11.2.1(f)

	 	as soon as practicable (and in any event within sixty (60) days after the close of each of the
first three (3) quarters of its financial year and within one hundred and twenty (120) days after
the close of each financial year) a statement signed by the NCLC Group’s chief financial officer in
the form of Schedule 6 (commencing with the second quarter of the financial year ending 31 December
2004) and such other information as the Agent may request;
	 
	 	 
	Clause 11.2.1(h)

	 	details of any material litigation, arbitration or administrative proceedings which affect any
Obligor as soon as the same are instituted and served, or, to the knowledge of the Borrower,
threatened (and for this purpose proceedings shall be deemed to be material if they involve a claim
in an amount exceeding ten million Dollars (USD10,000,000) or the equivalent in another currency).
	 
	 	 
	Clause 11.3.1

	 	at all times the minimum Free Liquidity will be not less than fifty million Dollars (USD50,000,000);

11

 

	 	 	 
	Definition/Clause	 	Amendment
	Clause 11.3.2

	 	either:
	 
	 	 
	 

	 	(a) as at 30 September 2005 and as at the end of each subsequent financial quarter the ratio of
Consolidated EBITDA to Consolidated Debt Service for the NCLC Group, computed for the period of the
four (4) consecutive financial quarters ending at the end of the relevant financial quarter, shall
not be less than one point two five (1.25) to one (1.0); or
	 
	 	 
	 

	 	(b) at all times during the period of twelve (12) months ending as at the end of the relevant
financial quarter the NCLC Group has maintained a minimum Free Liquidity in an amount which is not
less than one hundred million Dollars (USD100,000,000); and
	 
	 	 
	Clause 11.17.1

	 	Each of the Vessels shall for the purposes of this Clause 11.17 be valued in Dollars by two (2)
independent firms of shipbrokers or shipvaluers nominated by the Borrower and approved by the Agent
(acting on the instructions of the Majority Lenders) or failing such nomination and approval,
appointed by the Agent (acting on such instructions) in its sole discretion (each such valuation to
be made without, unless reasonably required by the Agent, physical inspection and on the basis of a
sale for prompt delivery for cash at arm’s length on normal commercial terms as between a willing
buyer and a willing seller without taking into account the benefit of any charterparty or other
engagement concerning the Vessel). Such valuations shall be obtained as at 31 December of each
year and at such other times as the Agent may from time to time reasonably require but no more
frequently than annually at the Borrower’s expense (unless an Event of Default has occurred and is
continuing) PROVIDED HOWEVER that if the Borrower has requested the drawdown of the Term Loan
Facility or the advance of a Drawing pursuant to Clause 2.3 and, at such time, such valuations are
more than ninety (90) days old, the Borrower shall, upon the Agent’s request and at the Borrower’s
expense, obtain new valuations at that time. The average of the valuations shall constitute the
value of the Vessel for the purposes of this Clause 11.17.
	 
	 	 
	Clause 13.1.4(i)

	 	No Event of Default will arise if the relevant Financial Indebtedness is not accelerated or, if it
is accelerated but, in aggregate, the Financial Indebtedness is less than ten million Dollars
(USD10,000,000);

12

 

Schedule 2

Amendment of Original Guarantees

	 	 	 
	Definition/Clause	 	Amendment
	Clause 9.2.3

	 	details of any material litigation, arbitration or
administrative proceedings which affect any Obligor as
soon as the same are instituted and served, or, to the
knowledge of the Guarantor, threatened (and for this
purpose proceedings shall be deemed to be material if
they involve a claim in an amount exceeding ten million
Dollars (USD10,000,000) or the equivalent in another
currency).

13

 

Schedule 3

Amendment
of Original Mortgages — m.v.s “NORWEGIAN SPIRIT” and “NORRWEGIAN STAR”

	 	 	 
	Definition/Clause	 	Amendment
	Clause 5.1.12

	 	not without the prior written consent of the Mortgagee
to settle, compromise or abandon any claim in respect of
any of the Insurances on the Vessel other than a claim
of less than ten million Dollars (USD10,000,000) or the
equivalent in any other currency and not being a claim
arising out of a Total Loss;
	 
	 	 
	Clause 5.1.13

	 	promptly to furnish the Mortgagee with full information
regarding any casualties or other accidents or damage to
the Vessel involving an amount in excess of ten million
Dollars (USD10,000,000);
	 
	 	 
	Clause 6.1.7(a)

	 	accidents to the Vessel involving repairs the cost of
which will or is likely to exceed ten million Dollars
(USD10,000,000);
	 
	 	 
	Clause 6.1.8

	 	promptly pay and discharge all debts, damages and
liabilities, taxes, assessments, charges, fines,
penalties, tolls, dues and other outgoings in respect of
the Vessel and keep proper books of account in respect
thereof PROVIDED ALWAYS that the Owner shall not be
obliged to compromise any debts, damages and liabilities
as aforesaid which are being contested in good faith
subject always that full details of any such contested
debt, damage or liability which, either individually or
in aggregate exceeds ten million Dollars (USD10,000,000)
shall forthwith be provided to the Mortgagee. As and
when the Mortgagee may so require it will make such
books available for inspection on behalf of the
Mortgagee and provide evidence satisfactory to the
Mortgagee that the wages and allotments and the
insurance and pension contributions of the master and
crew are being regularly paid, that all deductions of
crew’s wages in respect of any tax liability are being
properly accounted for and that the master has no claim
for disbursements other than those incurred in the
ordinary course of trading on the voyage then in
progress or completed prior to such inspection;
	 
	 	 
	Clause 6.1.9

	 	maintain the type of the Vessel as at the date hereof
and not put the Vessel into the possession of any person
without the prior consent of the Mortgagee for the
purpose of work being done on it in an amount exceeding
or likely to exceed ten million Dollars (USD10,000,000)
unless such person shall first have given to the
Mortgagee a written undertaking addressed to the
Mortgagee in terms satisfactory to the Mortgagee
agreeing not to exercise a lien on the Vessel or its
Earnings for the cost of such work or for any other
reason;

14

 

	 	 	 
	Definition/Clause	 	Amendment
	Clause 6.1.10

	 	promptly pay and discharge all liabilities which have
given rise, or may give rise, to liens or claims
enforceable against the Vessel under the laws of all
countries to whose jurisdiction the Vessel may from time
to time be subject PROVIDED ALWAYS that the Owner shall
not be obliged to compromise any liabilities as
aforesaid which are being contested in good faith
subject always that full details of any such contested
liabilities which, either individually or in aggregate,
exceed ten million Dollars (USD10,000,000) shall be
forthwith provided to the Mortgagee. If the Vessel is
arrested or detained for any reason it will procure the
Vessel’s immediate release by providing bail or taking
such other steps as the circumstances may require;

15

 

Schedule 4

Amendment
of Original Mortgage — m.v. “PRIDE OF ALOHA”

	 	 	 
	Definition/Clause	 	Amendment
	Clause 5.5.7.1

	 	accidents to the Vessel involving repairs the cost of
which will or is likely to exceed ten million Dollars
(USD10,000,000);
	 
	 	 
	Clause 5.5.8

	 	promptly pay and discharge all debts, damages and
liabilities, taxes, assessments, charges, fines,
penalties, tolls, dues and other outgoings in respect of
the Vessel and keep proper books of account in respect
thereof PROVIDED ALWAYS that the Owner shall not be
obliged to compromise any debts, damages and liabilities
as aforesaid which are being contested in good faith
subject always that full details of any such contested
debt, damage or liability which, either individually or
in aggregate exceeds ten million Dollars (USD10,000,000)
shall forthwith be provided to the Mortgagee. As and
when the Mortgagee may so require it will make such
books available for inspection on behalf of the
Mortgagee and provide evidence satisfactory to the
Mortgagee that the wages and allotments and the
insurance and pension contributions of the master and
crew are being regularly paid, that all deductions of
crew’s wages in respect of any tax liability are being
properly accounted for and that the master has no claim
for disbursements other than those incurred in the
ordinary course of trading on the voyage then in
progress or completed prior to such inspection;
	 
	 	 
	Clause 5.5.9

	 	maintain the type of the Vessel as at the date hereof
and not put the Vessel into the possession of any person
without the prior consent of the Mortgagee for the
purpose of work being done on it in an amount exceeding
or likely to exceed ten million Dollars (USD10,000,000)
unless such person shall first have given to the
Mortgagee a written undertaking addressed to the
Mortgagee in terms satisfactory to the Mortgagee
agreeing not to exercise a lien on the Vessel or its
Earnings for the cost of such work or for any other
reason;
	 
	 	 
	Clause 5.5.10

	 	promptly pay and discharge all liabilities which have
given rise, or may give rise, to liens or claims
enforceable against the Vessel under the laws of all
countries to whose jurisdiction the Vessel may from time
to time be subject PROVIDED ALWAYS that the Owner shall
not be obliged to compromise any liabilities as
aforesaid which are being contested in good faith
subject always that full details of any such contested
liabilities which, either individually or in aggregate,
exceed ten million Dollars (USD10,000,000) shall be
forthwith provided to the Mortgagee. If the Vessel is
arrested or detained for any reason it will procure the
Vessel’s immediate release by providing bail or taking
such other steps as the circumstances may require;

16

 

	 	 	 
	Definition/Clause	 	Amendment
	Clause 5.5.27

	 	not without the prior written consent of the Mortgage to
settle, compromise or abandon any claim in respect of
any of the Insurances on the Vessel other than a claim
of less than ten million Dollars (USD10,000,000) or the
equivalent in any other currency and not being a claim
arising out of a Total Loss;
	 
	 	 
	Clause 5.5.28

	 	promptly to furnish the Mortgagee with full information
regarding any casualties or other accidents or damage to
the Vessel involving an amount in excess of ten million
Dollars (USD10,000,000);

17

 

Schedule 5

Quarterly Statement of Financial Covenants

	 	 	 
	TO:

	 	DnB NOR BANK ASA
	 

	 	Stranden 21
	 

	 	NO-0021 Oslo
	 

	 	Norway
	 
	 	 
	 

	 	Attn: Mr Jon Flovik

We refer to clause 11.3 of the loan facility agreement dated 7 July 2004 (as amended, varied and/or
supplemented from time to time) (the “Facility Agreement”) between (among others) you as agent and
ourselves as borrower. Terms defined in the Facility Agreement shall have the same meanings
herein.

We hereby certify the amounts set out in the attached schedule as at the last day of the financial
quarter ending                      20[          ] for NCL Corporation Ltd. (the “Borrower”) and its
subsidiaries on a consolidated basis. We also hereby certify that the Borrower is in compliance
with all the financial covenants set out in clause 11.3 of the Facility Agreement [[and that no
Event of Default or Possible Event of Default has occurred and is continuing][an [Event of
Default][Possible Event of Default] has occurred and is continuing under clause 13.1.[ ] of the
Facility Agreement and the following step[s][is/are] being taken to cure the same: [     ]]].

NCL CORPORATION LTD.

	 	 	 
	 	 	 
	By: [                    ]
	 	 
	Chief Financial Officer
	 	 
	 
	 	 
	Dated:                               20[     ]

	 	

18

 

Schedule

Statement of Financial Covenants as of [                     ] 20[            ] (in USD’000)

	 	 	 	 	 	 	 	 	 
	Clause (of

Facility
	 	 	 	 	 	 	 	 
	Agreement)	 	 	 	as of [·]	 	Required Covenants  
	11.3.1/	 	Free Liquidity	 	A	 	A>USD50,000,000
	11.3.2(b)**	 	 	 	 	 	(11.3.1)**
	 
	 	 	 	 	 	 	A>USD100,000,000
	 	 	 	 	 	 	(11.3.2(b))**
	11.3.2(a)	 	Consolidated EBITDA:	 	B	 	>1.25:1
	 

	 	Consolidated Debt Service
	 	C	 	 	 	 
	11.1.3	 	Total Net Funded Debt:	 	D	 	<0.65:1 up to 31
	 	 	 	 	 	 	December 2007
	 	 	 	 	 	 	<0.60:1 thereafter
	 

	 	Total Capitalisation
	 	E	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	Consolidated EBITDA	 	 	 	 	 	 
	 	 	Consolidated Net Income (loss)	 	x	 	 
	(Deduct)/Add:	 	(Gain)/Loss on sale of assets or reserves	 	x	 	 
	Add:	 	Consolidated Interest Expense	 	x	 	 
	Add:	 	Depreciation and amortisation of assets	 	x	 	 
	Add:	 	Impairment charges	 	x	 	 
	(Deduct)/Add:	 	Other non-recurring charge (gain)	 	x	 	 
	Add:	 	Deferred income tax expense	 	x	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	Consolidated EBITDA	 	x	 	B
	 

	 	 	 	 	 	 	 	 
	 	 	Consolidated Debt Service	 	 	 	 
	 	 	Principal paid/payable (excluding balloon payments,

voluntary prepayments/repayments on sale/total loss of an
NCLC Fleet vessel)	 	x	 	 
	Add:	 	Consolidated Interest Expense	 	x	 	 
	 	 	Distributions	 	x	 	 
	 	 	Rent under capitalised leases	 	x	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Consolidated Debt Service
	 	 	 	x
	 	C
	 

	 	 	 	 	 	 	 	 
	 	 	Total Net Funded Debt	 	 	 	 
	 	 	Indebtedness for Borrowed Money	 	x	 	 
	Add:	 	Guarantees of non-NCLC Group members’ obligations	 	x	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	x	 	 
	 

	 	 	 	 	 	 	 	 
	Deduct:

	 	Cash Balance
	 	 	 	(x)	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Total Net Funded Debt
	 	 	 	(x)
	 	D
	 

	 	 	 	 	 	 	 	 
	 

	 	Total Capitalisation	 	 	 	 	 	 
	 

	 	Total Net Funded Debt
	 	 	 	x	 	 
	Add:	 	Consolidated stockholders’ equity	 	x	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	Total Capitalisation	 	x	 	E
	 

	 	 	 	 	 	 	 	 

19

 

For and on behalf of NCL CORPORATION LTD.

	 	 
	 	 
	[                    ]
	 

I, [ ], the officer primarily responsible for the financial management of the NCLC
Group, hereby declare that, to the best of knowledge and belief, the above Statement of Financial
Covenants as of [ ] 20[ ], in my opinion, is true and correct.

	 	 
	 	 
	[                    ]
	 
	Chief Financial Officer
	 
	NCL CORPORATION LTD.
	 

Dated:                               20[ ]

 

	**	 	Evidence satisfactory to the Agent of A at all times during the relevant period shall be
provided together with this statement

20Facility Agreement

 

EXHIBIT
4.9

DATED AS OF 23 SEPTEMBER 2005

NCL CORPORATION LTD.

(as indemnifier and credit support user)

DnB NOR BANK ASA

HSBC BANK USA, N.A.

NORDEA BANK NORGE ASA

(as mandated lead arrangers)

THE SEVERAL BANKS

particulars of which are set out in Appendix A

(as issuing banks)

DnB NOR BANK ASA

(as facility agent)

 

LETTERS OF CREDIT

FACILITY AGREEMENT

 

STEPHENSON HARWOOD

One St Paul’s Churchyard

London EC4M 8SH

Tel: +44 (0)20 7329 4422

Fax: +44 (0)20 7329 7100

Ref: 1253/44-01249

 

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1	 	 	Definitions and Interpretation
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	2	 	 	Issue and Cancellation of the Letters of Credit
	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	3	 	 	Conditions Precedent and Subsequent
	 	 	14	 
	 	 	 	 	 
	 	 	 	 
	4	 	 	Representations and Warranties
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	5	 	 	Counter-Indemnity
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	6	 	 	Authority to Pay
	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	7	 	 	Fees and Commissions
	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	8	 	 	Security Documents
	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	9	 	 	Covenants
	 	 	24	 
	 	 	 	 	 
	 	 	 	 
	10	 	 	Events of Default
	 	 	31	 
	 	 	 	 	 
	 	 	 	 
	11	 	 	Set-Off and Lien
	 	 	36	 
	 	 	 	 	 
	 	 	 	 
	12	 	 	Assignment and Transfer
	 	 	37	 
	 	 	 	 	 
	 	 	 	 
	13	 	 	Payments, Reserve Requirements and Illegality
	 	 	37	 
	 	 	 	 	 
	 	 	 	 
	14	 	 	Agent
	 	 	39	 
	 	 	 	 	 
	 	 	 	 
	15	 	 	Sharing among the Issuers
	 	 	45	 
	 	 	 	 	 
	 	 	 	 
	16	 	 	Default Procedure
	 	 	46	 
	 	 	 	 	 
	 	 	 	 
	17	 	 	The Letters of Credit and the Issuers
	 	 	46	 
	 	 	 	 	 
	 	 	 	 
	18	 	 	Communications
	 	 	47	 
	 	 	 	 	 
	 	 	 	 
	19	 	 	General Indemnities
	 	 	48	 
	 	 	 	 	 
	 	 	 	 
	20	 	 	Miscellaneous
	 	 	50	 
	 	 	 	 	 
	 	 	 	 
	21	 	 	Waiver of Immunity
	 	 	53	 
	 	 	 	 	 
	 	 	 	 
	22	 	 	Law and Jurisdiction
	 	 	53	 
	 	 	 	 	 
	 	 	 	 
	APPENDIX A	 	Particulars of Agent and Issuers
	 	 	55	 
	 	 	 	 	 
	 	 	 	 
	APPENDIX B	 	Issue Request
	 	 	56	 
	 	 	 	 	 
	 	 	 	 
	APPENDIX C	 	Form of Letter of Credit
	 	 	57	 
	 	 	 	 	 
	 	 	 	 
	APPENDIX D	 	Quarterly Statement of Financial Covenants
	 	 	63	 

 

 

FACILITY AGREEMENT

Dated: September 2005

BETWEEN:

	(1)	 	NCL CORPORATION LTD., a company validly existing under the laws of Bermuda with its
registered office at Milner House, 18 Parliament Street, Hamilton HM 12, Bermuda (the
“Indemnifier”);
	 
	(2)	 	THE SEVERAL BANKS particulars of which are set out in Appendix A (collectively the “Mandated
Lead Arrangers” and each individually a “Mandated Lead Arranger”);
	 
	(3)	 	THE SEVERAL BANKS particulars of which are set out in Appendix A (collectively the “Issuers”
and each individually an “Issuer”); and
	 
	(4)	 	DnB NOR BANK ASA acting through its office at Stranden 21, NO-0021 Oslo, Norway (the
“Agent”).

WHEREAS:

	(A)	 	Pursuant to an agreement dated 2 April 2003 as amended by a letter of assignment dated 26
March 2004 (the “Merchant Services Bankcard Agreement”) between Chase Merchant Services, LLC
(“Chase”), JPMorgan Chase Bank and the Indemnifier, the Indemnifier has agreed to procure the
issue in favour of Chase of letters of credit in the aggregate maximum amount of one hundred
million Dollars (USD100,000,000) to guarantee in part Chase’s risk as a credit card processor
to the Indemnifier for the Unfulfilled Ticket Liability (as defined in the Merchant Services
Bankcard Agreement).
	 
	(B)	 	At the request of the Indemnifier, the Mandated Lead Arrangers have arranged for the Issuers
to issue the Letters of Credit on the terms and conditions set out herein.

IT IS AGREED as follows:

	1	 	Definitions and Interpretation

	 	1.1	 	Definitions In this Agreement:

	 	1.1.1	 	“Acceleration Event” means the service by the Agent of notice
pursuant to Clause 10.1 following the occurrence of an Event of Default.
	 
	 	1.1.2	 	“Accounts” means the audited consolidated profit and loss
account and balance sheet (including all additional information and notes
thereto) of the Indemnifier and its consolidated Subsidiaries together with the
relative directors’ and auditors’ reports.
	 
	 	1.1.3	 	“Address for Service” means Clifford Chance Secretaries
Limited whose registered office is presently at 10 Upper Bank Street, London
E14 5JJ or, in relation to any of the Security Parties, such other address in
England or Wales as that Security Party may from time to time designate by no
fewer than ten (10) days’ written notice to the Agent.

 

 

	 	1.1.4	 	“Administration” has the meaning given to it in paragraph
1.1.3 of the ISM Code.
	 
	 	1.1.5	 	“Annex VI” means annex VI (Regulations for the Prevention of
Air Pollution from Ships) to the International Convention for the Prevention of
Pollution from Ships 1973 (as modified in 1978 and 1997) (as the same may be
amended from time to time).
	 
	 	1.1.6	 	“Approved Stock Exchange” means the New York Stock Exchange,
NASDAQ or such other stock exchange in the United States of America as is
approved in writing by the Agent (acting on the instructions of the Issuers).
	 
	 	1.1.7	 	“Arrasas” means Arrasas Limited of International House, Castle
Hill, Victoria Road, Douglas, Isle of Man IM2 4RB, British Isles.
	 
	 	1.1.8	 	“Availability Termination Date” means the date falling
fourteen (14) days from the date of this Agreement or such later date as the
Issuers may in their discretion agree.
	 
	 	1.1.9	 	“Business Day” means a day on which banks are open for the
transaction of business of the nature contemplated by this Agreement (and not
authorised by law to close) in New York, United States of America; London,
England; Oslo, Norway; and any other financial centre which the Agent may
consider appropriate for the operation of the provisions of this Agreement.
	 
	 	1.1.10	 	“Cash Balance” means, at any date of determination, the unencumbered and
otherwise unrestricted cash and cash equivalents of the NCLC Group.
	 
	 	1.1.11	 	“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, accurate and neither amended nor revoked copy of the original by any
of the directors or the secretary or assistant secretary or the chief financial
officer for the time being of that company.
	 
	 	1.1.12	 	“Commitment” means, at any time, the amount certified by the Agent to be the
maximum amount of the Issuers’ Obligations at that time, whether actual or
contingent, present or future.
	 
	 	1.1.13	 	“Communication” means any notice, approval, demand, request or other
communication from one party to this Agreement to another.
	 
	 	1.1.14	 	“Communications Address” means 7665 Corporate Center Drive, Miami, Florida
33126, United States of America (fax nos: +1 305 436 4140 and +1 305 436 4117)
marked for the attention of Ms Bonnie Biumi and the Legal Department
respectively but one (1) copy shall suffice.
	 
	 	1.1.15	 	“Company” means, at any given time, the company responsible for the Vessel’s
compliance with the ISM Code pursuant to paragraph 1.1.2 of the ISM Code.

2

 

	 	1.1.16	 	“Compulsory Acquisition” means requisition for title or other compulsory
acquisition of the Vessel including its capture, seizure, detention or
confiscation or expropriation but excluding any requisition for hire by or on
behalf of any government or governmental authority or agency or by any persons
acting or purporting to act on behalf of any such government or governmental
authority or agency.
	 
	 	1.1.17	 	“Compulsory Acquisition Compensation” means all compensation or other money
which may from time to time be payable to the Owner as a result of the
Compulsory Acquisition of the Vessel.
	 
	 	1.1.18	 	“Consolidated Debt Service” means, for any relevant period, the sum (without
double counting), determined in accordance with US GAAP, of:

	 	(a)	 	the aggregate principal payable or paid
during such period on any Indebtedness for Borrowed Money of any
member of the NCLC Group, other than:

	 	(i)	 	principal of any such
Indebtedness for Borrowed Money prepaid at the option of the
relevant member of the NCLC Group;
	 
	 	(ii)	 	principal of any such
Indebtedness for Borrowed Money prepaid upon the sale or
Total Loss of any vessel owned or leased under a capital
lease by any member of the NCLC Group; and
	 
	 	(iii)	 	balloon payments of any
such Indebtedness for Borrowed Money payable during such
period (and for the purpose of this paragraph (iii) a
“balloon payment” shall not include any scheduled repayment
instalment of such Indebtedness for Borrowed Money which
forms part of the balloon);

	 	(b)	 	Consolidated Interest Expense for such
period;
	 
	 	(c)	 	the aggregate amount of any dividend or
distribution of present or future assets, undertakings, rights or
revenues to any shareholder of any member of the NCLC Group (other
than the Indemnifier or one of its wholly owned Subsidiaries) or any
distribution in respect of share capital during such period
(“Distributions”); and
	 
	 	(d)	 	all rent under any capital lease
obligations by which the Indemnifier or any consolidated Subsidiary
is bound which are payable or paid during such period and the
portion of any debt discount that must be amortised in such period,

	 	 	 	as calculated in accordance with US GAAP and derived from the then latest
unaudited consolidated accounts of the NCLC Group delivered to the Agent
in the case of any period ending at the end of any of the first three (3)
financial quarters of each financial year of the Indemnifier and

3

 

	 	 	 	the then latest Accounts delivered to the Agent in the case of the final
quarter of each such financial year.
	 
	 	1.1.19	 	“Consolidated EBITDA” means, for any relevant period, the aggregate of:

	 	(a)	 	Consolidated Net Income from the
Indemnifier’s operations for such period; and
	 
	 	(b)	 	the aggregate amounts deducted in
determining Consolidated Net Income for such period in respect of
gains and losses from the sale of assets or reserves relating
thereto, Consolidated Interest Expense, depreciation and
amortisation, impairment charges and any other non-cash charges and
deferred income tax expense for such period.

	 	1.1.20	 	“Consolidated Interest Expense” means, for any relevant period, the
consolidated interest expense (excluding capitalised interest) of the NCLC
Group for such period.
	 
	 	1.1.21	 	“Consolidated Net Income” means, for any relevant period, the consolidated
net income (or loss) of the NCLC Group for such period as determined in
accordance with US GAAP.
	 
	 	1.1.22	 	“Co-ordination Deed” means the deed to be made between, among others, the
First Mortgagee as first mortgagee, the Agent as second mortgagee, the Owner
and the Indemnifier in respect of the Security Documents.
	 
	 	1.1.23	 	“Currency of Account” means, in relation to any payment to be made to the
Agent under or pursuant to any of the Security Documents, the currency in which
that payment is required to be made by the terms of the relevant Security
Document.
	 
	 	1.1.24	 	“Deed of Covenants” means the deed of covenants referred to in Clause 8.1.
	 
	 	1.1.25	 	“Disclosure Letter” means the letter so designated, given by the Indemnifier
and acknowledged by the Agent (acting on the instructions of the Issuers) on
the date of this Agreement and containing details of any material litigation,
arbitration or administrative proceedings affecting any Security Party which
have been instituted and served, or, to the knowledge of the Indemnifier,
threatened (and for this purpose proceedings shall be deemed to be material if
they involve a claim in an amount exceeding ten million Dollars (USD10,000,000)
or the equivalent in another currency).
	 
	 	1.1.26	 	“DnB NOR” means DnB NOR Bank ASA of Stranden 21, NO-0021 Oslo, Norway as an
Issuer.
	 
	 	1.1.27	 	“DnB NOR’s Transferee” means a bank or financial institution approved by the
Indemnifier, which approval may be withheld if the

4

 

	 	 	 	bank or financial institution is not acceptable to Chase, and the issuer
of a Letter of Credit pursuant to Clause 12.1.
	 
	 	1.1.28	 	“DOC” means a valid Document of Compliance issued for the Company by the
Administration pursuant to paragraph 13.2 of the ISM Code.
	 
	 	1.1.29	 	“Earnings” means, in respect of the Vessel, (whether earned or to be earned)
any and all freights, hire, fares and passage monies, proceeds of requisition
(other than Compulsory Acquisition Compensation), rebates and commissions, all
earnings deriving from contracts of employment, demurrage, charterparties,
contracts of affreightment, pooling agreements and joint ventures,
compensation, remuneration for salvage and towage services, damages howsoever
arising and detention monies, damages for breach of any charterparty or other
contract for the employment of the Vessel, any amounts payable in consideration
of the termination or variation of any charterparty or other such contract and
any other earnings whatsoever due or to become due to the Owner.
	 
	 	1.1.30	 	“Earnings Assignment” means the deed of assignment of the Earnings and
Compulsory Acquisition Compensation referred to in Clause 8.2.
	 
	 	1.1.31	 	“Encumbrance” means any mortgage, charge (fixed or floating), pledge, lien,
assignment, hypothecation, preferential right, option, title retention or trust
arrangement or any other agreement or arrangement which has the effect of
creating security or payment priority.
	 
	 	1.1.32	 	“Event of Default” means any of the events set out in Clause 10.2.
	 
	 	1.1.33	 	“Extension Fee” means an extension fee to be paid by the Indemnifier to the
Issuers pursuant to Clause 7.3.
	 
	 	1.1.34	 	“Facility Period” means the period beginning on the Issue Date and ending on
the date when the whole of the Indebtedness has been repaid in full and the
Security Parties have ceased to be under any further actual or contingent
liability to the Issuers under or in connection with the Security Documents.
	 
	 	1.1.35	 	“Financial Indebtedness” means any obligation for the payment or repayment of
money, whether as principal or as surety and whether present or future, actual
or contingent.
	 
	 	1.1.36	 	First Mortgage” means the first priority statutory mortgage over the Vessel
dated 16 July 2003 together with the collateral deed of covenants of the same
date in favour of the First Mortgagee granted by the Owner in respect of its
obligations under the Loan Agreement.
	 
	 	1.1.37	 	“First Mortgage Documents” means the documents granted or to be granted to
the First Mortgagee as security for the obligations of the Owner under the Loan
Agreement and including but without limitation the First Mortgage.
	 
	 	1.1.38	 	“First Mortgagee” means The Hongkong and Shanghai Banking Corporation Limited
of Level 30, HSBC Main Building, 1 Queen’s Road

5

 

	 	 	 	Central, Hong Kong as security agent for (among others) the lenders under
the Loan Agreement.
	 
	 	1.1.39	 	“Free Liquidity” means, at any date of determination, the aggregate of the
Cash Balance and any amounts available for drawing under any revolving or other
credit facilities of the NCLC Group which remain undrawn and would not, if
drawn, be repayable within six (6) months.
	 
	 	1.1.40	 	“IAPPC” means an international air pollution prevention certificate issued
under Annex VI.
	 
	 	1.1.41	 	“Indebtedness” means all sums of any nature (together with all interest on
any of those sums) which from time to time may be payable by the Security
Parties to the Issuers or the Agent pursuant to the Security Documents, whether
actually or contingently, present or future; any damages payable as a result of
any breach by a Security Party of any of the Security Documents; and any
damages or other sums payable as a result of any of the obligations of the
Indemnifier or the Owner under or pursuant to any of the Security Documents
being disclaimed by a liquidator or any other person, or, where the context
permits, the amount thereof for the time being outstanding.
	 
	 	1.1.42	 	“Indebtedness for Borrowed Money” means Financial Indebtedness (whether
present or future, actual or contingent, long-term or short-term, secured or
unsecured) in respect of:

	 	(a)	 	moneys borrowed or raised;
	 
	 	(b)	 	the advance or extension of credit
(including interest and other charges on or in respect of any of the
foregoing);
	 
	 	(c)	 	the amount of any liability in respect of
leases which, in accordance with US GAAP, are capital leases;
	 
	 	(d)	 	the amount of any liability in respect of
the purchase price for assets or services payment of which is
deferred for a period in excess of one hundred and eighty (180)
days;
	 
	 	(e)	 	all reimbursement obligations whether
contingent or not in respect of amounts paid under a letter of
credit or similar instrument; and
	 
	 	(f)	 	(without double counting) any guarantee
of Financial Indebtedness falling within paragraphs (a) to (e)
above;

PROVIDED THAT the following shall not constitute Indebtedness for
Borrowed Money:

	 	(i)	 	loans and advances made by other members
of the NCLC Group which are subordinated to the rights of the
Issuers;
	 
	 	(ii)	 	loans and advances made by Star Cruises
Limited which are subordinated to the rights of the Issuers; and

6

 

	 	(iii)	 	any liabilities of the Indemnifier or
any other member of the NCLC Group to a counterparty under any
master agreement relating to interest or currency exchange
transactions of a non-speculative nature.

	 	 	 	For the avoidance of doubt, the arrangements contemplated by and pursuant
to this Agreement shall not fall within this definition of “Indebtedness
for Borrowed Money” until Chase presents a draft under the Letters of
Credit when the amount of that draft shall fall within this definition
until the Issuers have been indemnified in full in respect of that draft.
	 
	 	1.1.43	 	“Initial Term” means the initial term of the Letters of Credit being the
period of three hundred and sixty four (364) days from the Issue Date.
	 
	 	1.1.44	 	“Insurance Assignment” means the deed of assignment of the Insurances
referred to in Clause 8.3.
	 
	 	1.1.45	 	“Insurances” means all policies and contracts of insurance and entries of the
Vessel in a protection and indemnity or war risks association which are
effected in respect of the Vessel, its freights, disbursements, profits or
otherwise and all benefits, including all claims and returns of premiums
thereunder and shall also include all Compulsory Acquisition Compensation.
	 
	 	1.1.46	 	“Interest” means interest at the rate of the aggregate of the cost to the
Issuers of obtaining funds in an amount similar to their respective shares in
the amount of the Indebtedness and a margin of two point two five per centum
(2.25%) per annum for the first seven (7) Business Days and thereafter the
aggregate of the cost to the Issuers of obtaining funds in an amount similar to
their respective shares in the amount of the Indebtedness or any relevant part
of the Indebtedness for such periods as the Agent shall determine in its
discretion plus a margin of four point two five per centum (4.25%) per annum.
	 
	 	1.1.47	 	“IOL” means Inter-Ocean Limited of international House, Castle Hill, Victoria
Road, Douglas, Isle of Man IM2 4RB, British Isles.
	 
	 	1.1.48	 	“ISM Code” means the International Management Code for the Safe Management of
Ships and for Pollution Prevention, as adopted by the Assembly of the
International Maritime Organisation on 4 November 1993 by resolution A.741 (18)
and incorporated on 19 May 1994 as chapter IX of the Safety of Life at Sea
Convention 1974.
	 
	 	1.1.49	 	“ISPS Code” means the International Ship and Port Facility Security Code
adopted by the International Maritime Organisation.
	 
	 	1.1.50	 	“ISSC” means an international ship security certificate issued for a vessel
under the ISPS Code.
	 
	 	1.1.51	 	“Issue Date” means the date on which the Letters of Credit are issued by the
Issuers pursuant to Clause 2.

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	 	1.1.52	 	“Issue Request” means a notice complying with Clause 2.2.
	 
	 	1.1.53	 	“Issuers’ Obligations” means all liabilities and obligations of the Issuers
under or pursuant to the Letters of Credit or under or pursuant to any renewal,
extension or variation of the Letters of Credit, and all liabilities and
obligations undertaken by the Issuers to any of their Subsidiaries, affiliates
or correspondents in respect of the Letter of Credits or any renewal, extension
or variation of the Letters of Credit.
	 
	 	1.1.54	 	“law” means any law, statute, treaty, convention, regulation, instrument or
other subordinate legislation or other legislative or quasi-legislative rule or
measure, or any order or decree of any government, judicial or public or other
body or authority, or any directive, code of practice, circular, guidance note
or other direction issued by any competent authority or agency (whether or not
having the force of law).
	 
	 	1.1.55	 	“Letters of Credit” means:

	 	(a)	 	any Original Letter of Credit; and
	 
	 	(b)	 	any letter of credit which is issued in
substitution for DnB NOR’s Original Letter of Credit by DnB NOR or
DnB NOR’s Transferee.

	 	1.1.56	 	“Lim Family” means:

	 	(a)	 	Tan Sri Lim Goh Tong;
	 
	 	(b)	 	his spouse;
	 
	 	(c)	 	his direct lineal descendants;
	 
	 	(d)	 	the personal estate of any of the above
persons; and
	 
	 	(e)	 	any trust created for the benefit of one
or more of the above persons and their estates.

	 	1.1.57	 	“Loan” means the loan of up to two hundred and twenty five million Dollars
(USD225,000,000) made to the Owner pursuant to the Loan Agreement or (as the
context may require) the amount thereof for the time being advanced and
outstanding under the Loan Agreement.
	 
	 	1.1.58	 	“Loan Agreement” means the agreement dated 9 July 2003 as amended by a first
supplement thereto dated 20 April 2004 in respect of the Loan made between,
among others, the Owner as borrower and the First Mortgagee as security agent.
	 
	 	1.1.59	 	“Managers” means NCL (Bahamas) Ltd. of Milner House, 18 Parliament Street,
Hamilton HM 12, Bermuda, or such other commercial and/or technical managers of
the Vessel nominated by the Owner as the Agent may in its discretion approve.
	 
	 	1.1.60	 	“Material Adverse Effect” means a material adverse effect on (i) the validity
or enforceability of any of the Security Documents or the rights

8

 

	 	 	 	or remedies of the Issuers or their Subsidiaries, affiliates or
correspondents (as the case may be) thereunder (ii) the ability of any
Security Party to perform its obligations under any of the Security
Documents or (iii) the business, operations, condition (financial or
otherwise) or prospects of the Indemnifier, the Owner or the NCLC Group
taken as a whole.
	 
	 	1.1.61	 	“Mortgage” means the second priority mortgage referred to in Clause 8.1.
	 
	 	1.1.62	 	“Mortgagees’ Insurances” means all policies and contracts of mortgagees’
interest insurance, mortgagees’ additional perils (oil pollution) insurance and
any other insurance from time to time taken out by the Agent in relation to the
Vessel.
	 
	 	1.1.63	 	“NCL America” means NCL America Inc. of Corporation Trust Center, 1209 Orange
Street, Wilmington, Delaware 19801, United States of America.
	 
	 	1.1.64	 	“NCL America Holdings” means NCL America Holdings, Inc. of Corporation Trust
Center, 1209 Orange Street, Wilmington, Delaware 19801, United States of
America.
	 
	 	1.1.65	 	“NCLC Fleet” means the vessels owned by the companies in the NCLC Group.
	 
	 	1.1.66	 	“NCLC Group” means the Indemnifier and its Subsidiaries.
	 
	 	1.1.67	 	“NCL International” means NCL International, Ltd. of Milner House, 18
Parliament Street, Hamilton HM 12, Bermuda.
	 
	 	1.1.68	 	“Original Letters of Credit” means the three (3) letters of credit to be
issued on the Issue Date by the Issuers in favour of Chase in the form attached
to this Agreement as Appendix C each in an amount not exceeding the relevant
Proportion of the aggregate of the amounts of the Letters of Credit.
	 
	 	1.1.69	 	“Owner” means Norwegian Sun Limited of Canon’s Court, 22 Victoria Street,
Hamilton HM 12, Bermuda.
	 
	 	1.1.70	 	“Permitted Encumbrance” means:

	 	(a)	 	any Encumbrance created by or pursuant to
the Security Documents;
	 
	 	(b)	 	liens on the Vessel up to an aggregate
amount at any time not exceeding ten million Dollars (USD10,000,000)
for current crew’s wages and salvage and liens incurred in the
ordinary course of trading the Vessel;
	 
	 	(c)	 	the First Mortgage Documents;
	 
	 	(d)	 	any deposits or pledges to secure the
performance of bids, tenders, bonds or contracts;

9

 

	 	(e)	 	any other Encumbrance notified by any of
the Security Parties to the Agent prior to signing of this Agreement
and acknowledged by the Agent in writing;
	 
	 	(f)	 	any Encumbrance in respect of existing
Financial Indebtedness of a person which becomes a Subsidiary of the
Borrower or is merged with or into the Borrower or any of its
Subsidiaries;
	 
	 	(g)	 	liens on assets leased, acquired or
upgraded after the date of this Agreement or assets newly
constructed or converted after the Signing Date provided that:

	 	(i)	 	such liens secure Financial
Indebtedness otherwise permitted under this Agreement;
	 
	 	(ii)	 	such liens are incurred
within one (1) year following such lease, acquisition,
upgrade, construction or conversion; and
	 
	 	(iii)	 	the Financial Indebtedness
secured by such liens does not exceed the cost of such
upgrade or the cost of such assets acquired or leased;

	 	(h)	 	statutory and other similar liens arising
in the ordinary course of business unrelated to Financial
Indebtedness and securing obligations not yet delinquent or which
are being contested in good faith by appropriate proceedings and for
which adequate reserves have been established; and
	 
	 	(i)	 	liens arising out of the existence of
judgments or awards in respect of the Borrower or any of its
Subsidiaries

	 	 	 	provided that the aggregate amount of all cash and the fair market value
of all other property subject to such liens as are described in
paragraphs (g) to (i) above does not exceed ten million Dollars
(USD10,000,000).
	 
	 	1.1.71	 	“Potential Event of Default” means any event which, with the giving of notice
and/or the passage of time and/or the satisfaction of any materiality test,
would constitute an Event of Default.
	 
	 	1.1.72	 	“Proceedings” means any suit, action or proceedings begun by the Issuers or
the Agent on their behalf arising out of or in connection with the Security
Documents.
	 
	 	1.1.73	 	“Proportion” means in the case of each Issuer the per centum set out against
its name in Appendix A, subject to Clause 12.1.
	 
	 	1.1.74	 	“Quotation Date” means, in relation to Interest, the day two (2) Business
Days (in London) prior to the date of an Issuer’s payment.
	 
	 	1.1.75	 	“Relevant Currency” means, in respect of all or any part of the Issuers’
Obligations, the currency in which the Issuers make payment of that part of the
Issuers’ Obligations.

10

 

	 	1.1.76	 	“Reserve Account Rights Assignment” means the assignment referred to in
Clause 8.4.
	 
	 	1.1.77	 	“SMC” means a valid safety management certificate issued for the Vessel by or
on behalf of the Administration pursuant to paragraph 13.4 of the ISM Code.
	 
	 	1.1.78	 	“SMS” means a safety management system for the Vessel developed and
implemented in accordance with the ISM Code and including the functional
requirements, duties and obligations required by the ISM Code.
	 
	 	1.1.79	 	“Security Documents” means this Agreement, the Mortgage, the Deed of
Covenants, the Earnings Assignment, the Insurance Assignment, the Reserve
Account Rights Assignment or (where the context permits) any one or more of
them, and any other agreement or document which may at any time be executed by
any person as security for the payment of all or any part of the Indebtedness.
	 
	 	1.1.80	 	“Security Parties” means the Indemnifier, the Owner and any other person or
company who may at any time during the Facility Period be liable for, or
provide security for, all or any part of the Indebtedness, and “Security Party”
means any one of them.
	 
	 	1.1.81	 	“Subsequent Term” means a term of the Letters of Credit other than the
Initial Term being the period of three hundred and sixty four (364) days from
the end of the Initial Term or any Subsequent Term provided that any such
period shall not expire after 2 April 2008.
	 
	 	1.1.82	 	“Subsidiary” has the meaning defined in the United Kingdom Companies Act
1985, Section 736 as substituted by the United Kingdom Companies Act 1989,
Section 144.
	 
	 	1.1.83	 	“Taxes” means all taxes, levies, imposts, duties, charges, fees, deductions
and withholdings (including any related interest, fines, surcharges and
penalties) and any restrictions or conditions resulting in any charge, other
than taxes on the overall net income of the Issuers, and “Tax” and “Taxation”
shall be interpreted accordingly.
	 
	 	1.1.84	 	“Third Party” means any person or group of persons acting in concert (as the
expression “acting in concert” is defined in the United Kingdom’s City Code on
Take-overs and Mergers) who or which is not a member of the Lim Family.
	 
	 	1.1.85	 	“Total Capitalisation” means, at any date of determination, Total Net Funded
Debt plus the consolidated stockholders’ equity of the NCLC Group at such date
determined in accordance with US GAAP and derived from the then latest
unaudited and consolidated accounts of the NCLC Group delivered to the Agent in
the case of the first three (3) quarters of each financial year and the then
latest Accounts delivered to the Agent in the case of the final quarter of each
financial year.

11

 

	 	1.1.86	 	“Total Funded Debt” means, as at any relevant date, Total Net Funded Debt
excluding Indebtedness for Borrowed Money related to vessels under construction
for a member of the NCLC Group.
	 
	 	1.1.87	 	“Total Loss” means:

	 	(a)	 	an actual, constructive, arranged, agreed
or compromised total loss of the Vessel; or
	 
	 	(b)	 	the requisition for title or compulsory
acquisition of the Vessel by or on behalf of any government or other
authority (other than by way of requisition for hire); or
	 
	 	(c)	 	the capture, seizure, arrest, detention
or confiscation or expropriation of the Vessel, unless the Vessel is
released and returned to the possession of the Indemnifier within
one (1) month after the capture, seizure, arrest, detention or
confiscation or expropriation in question.

	 	1.1.88	 	“Total Net Funded Debt” means, as at any relevant date:

	 	(a)	 	Indebtedness for Borrowed Money of the
NCLC Group; and
	 
	 	(b)	 	the amount of any Indebtedness for
Borrowed Money of any person which is not a member of the NCLC Group
but which is guaranteed by a member of the NCLC Group as at such
date;

	 	 	 	less an amount equal to any Cash Balance as at such date.
	 
	 	1.1.89	 	“Transaction Documents” means the Security Documents, the Co-ordination Deed
and the Merchant Services Bankcard Agreement and any other material document
now or hereafter issued in connection with the documents or the transaction
referred to in this Agreement.
	 
	 	1.1.90	 	“US GAAP” means generally accepted accounting principles in the United States
of America consistently applied (or, if not consistently applied, accompanied
by details of the inconsistencies) including, without limitation, those set
forth in the opinion and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board.
	 
	 	1.1.91	 	“Vessel” means the approximately two thousand (2,000) passenger luxury cruise
vessel “NORWEGIAN SUN” currently registered under the flag of the Bahamas in
the ownership of the Owner and everything now or in the future belonging to it
on board and ashore.

	 	1.2	 	Interpretation In this Agreement:

	 	1.2.1	 	words denoting the plural number include the singular and vice versa;
	 
	 	1.2.2	 	words denoting persons include corporations, partnerships,
associations of persons (whether incorporated or not) or governmental or
quasi-governmental bodies or authorities and vice versa;

12

 

	 	1.2.3	 	references to Recitals, Clauses and Appendices are references
to recitals and clauses of, and appendices to, this Agreement;
	 
	 	1.2.4	 	references to this Agreement include the Recitals and the
Appendices;
	 
	 	1.2.5	 	the headings and contents page(s) are for the purpose of
reference only, have no legal or other significance, and shall be ignored in
the interpretation of this Agreement;
	 
	 	1.2.6	 	references to any document (including, without limitation, to
all or any of the Security Documents) are, unless the context otherwise
requires, references to that document as amended, supplemented, novated or
replaced from time to time;
	 
	 	1.2.7	 	references to statutes or provisions of statutes are
references to those statutes, or those provisions, as from time to time
amended, replaced or re-enacted;
	 
	 	1.2.8	 	references to the Issuers, the Agent and Chase include its
respective successors, transferees and assignees; and
	 
	 	1.2.9	 	references to times of day are to London time unless otherwise
stated.

	 	1.3	 	Offer letter This Agreement supersedes the terms and conditions contained in
any correspondence relating to the subject matter of this Agreement exchanged between
the Issuers and/or the Agent and the Indemnifier or their representatives prior to the
date of this Agreement.

	2	 	Issue and Cancellation of the Letters of Credit

	 	2.1	 	Agreement to issue Subject to the terms and conditions of this Agreement, and
in reliance on each of the representations and warranties made or to be made in or in
accordance with each of the Security Documents, the Issuers agree to issue the Letters
of Credit.
	 
	 	2.2	 	Mechanics Subject to satisfaction by the Indemnifier of the conditions set out
in Clause 3.1, the Letters of Credit shall be issued by the Issuers on the same
Business Day for the Initial Term, provided that the Indemnifier shall have given to
the Agent not more than seven (7) days’ and not fewer than three (3) Business Days’
notice in writing of the required Issue Date materially in the form set out in Appendix
B. The Issue Request once given shall be irrevocable and shall constitute a warranty
by the Indemnifier that:

	 	2.2.1	 	all conditions precedent to the issue of the Letters of Credit
will have been satisfied on or before the Issue Date requested;
	 
	 	2.2.2	 	no Event of Default or Potential Event of Default will then
have occurred;
	 
	 	2.2.3	 	no Event of Default or Potential Event of Default will result
from the issue of the Letters of Credit; and

13

 

	 	2.2.4	 	there has been no material adverse change in the business,
affairs or financial condition of any of the Security Parties from that
pertaining at the date of this Agreement.

	 	 	 	Subject to Clause 2.4, the Letters of Credit will be automatically renewed for a
Subsequent Term at the end of the Initial Term and each Subsequent Term provided
that the Letters of Credit shall expire no later than 2 April 2008.
	 
	 	2.3	 	Availability Termination Date The Issuers shall be under no obligation to
issue the Letters of Credit after the Availability Termination Date.
	 
	 	2.4	 	Cancellation Option Notwithstanding the provisions of Clause 10.1 but subject
to Clause 17.3, the Issuers may serve a notice of cancellation of the Letters of Credit
on Chase not less than sixty (60) days prior to the expiry of the Initial Term or any
Subsequent Term.

	3	 	Conditions Precedent and Subsequent

	 	3.1	 	Conditions Precedent Subject to Clause 3.4, before the Issuers shall have any
obligation to issue the Letters of Credit, the Indemnifier shall deliver or cause to be
delivered to or to the order of the Agent the following documents and evidence:

	 	3.1.1	 	Evidence of incorporation Such evidence as the Agent may
reasonably require that each Security Party was duly incorporated in its
country of incorporation and remains in existence and, where appropriate, in
good standing, with power to enter into, and perform its obligations under,
those of the Security Documents to which it is, or is intended to be, a party,
including (without limitation) a Certified Copy of all documents establishing
or limiting the constitution of each Security Party.
	 
	 	3.1.2	 	Corporate authorities A Certified Copy of a resolution of the
directors of each Security Party (together, where appropriate, with signed
waivers of notice of any directors’ meeting) approving, and authorising or
ratifying the execution of, those of the Security Documents to which that
Security Party is or is intended to be a party and all matters incidental
thereto.
	 
	 	3.1.3	 	Officer’s certificate A certificate signed by a duly
authorised officer of each of the Security Parties setting out the names of the
directors, officers and shareholders of that Security Party.
	 
	 	3.1.4	 	Power of attorney The notarially attested power of attorney
of each of the Security Parties under which any documents are to be executed or
transactions undertaken by that Security Party.
	 
	 	3.1.5	 	Consents A Certified Copy of any consents required from any
ministry, governmental, financial or other authority for the execution of and
performance by the Security Party in question of its obligations under the
Security Documents to which it is a party or if no such consents are required a
secretary’s certificate to this effect.
	 
	 	3.1.6	 	Disclosure Letter The Disclosure Letter.

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	 	3.1.7	 	Merchant Services Bankcard Agreement A Certified Copy of the
Merchant Services Bankcard Agreement.
	 
	 	3.1.8	 	Letters of Credit The form of exhibit C to each of the
Letters of Credit duly signed by Chase.
	 
	 	3.1.9	 	Vessel documents Certified Copies of:

	 	(a)	 	any charterparty or other contract of
employment of the Vessel which will be in force on the Issue Date;
	 
	 	(b)	 	the management agreement between the
Owner and the Managers relating to the Vessel;
	 
	 	(c)	 	the Vessel’s current Safety Construction,
Safety Equipment, Safety Radio and Load Line Certificates;
	 
	 	(d)	 	the Vessel’s current Certificate of
Financial Responsibility issued pursuant to the United States Oil
Pollution Act 1990;
	 
	 	(e)	 	the Vessel’s current SMC;
	 
	 	(f)	 	the Company’s current DOC;
	 
	 	(g)	 	the Vessel’s current ISSC; and
	 
	 	(h)	 	the Vessel’s current IAPPC(s);

	 	 	 	in each case together with all addenda, amendments or supplements.
	 
	 	3.1.10	 	Evidence of ownership Certificate(s) of ownership and encumbrance (or
equivalent) issued by the Registrar of Ships (or equivalent official) at the
Vessel’s existing port of registry confirming that the Vessel is on the Issue
Date owned by the Owner and free of registered Encumbrances other than the
First Mortgage.
	 
	 	3.1.11	 	Evidence of insurance Evidence that the Vessel is, or will from the Issue
Date be, insured in the manner required by the Security Documents and that
letters of undertaking will be issued in the manner required by the Security
Documents, together with (if required by the Agent) the written approval of the
Insurances by an insurance adviser appointed by the Agent.
	 
	 	3.1.12	 	Confirmation of class A Certificate of Confirmation of Class for hull and
machinery confirming that the Vessel is classed with the highest class
applicable to vessels of its type with Det Norske Veritas or such other
classification society as may be acceptable to the Agent.
	 
	 	3.1.13	 	Instruction to classification society A letter of instruction from the Owner
to the Vessel’s classification society in the form reasonably required by the
Agent, duly acknowledged by the classification society.
	 
	 	3.1.14	 	Valuation Valuation of the Vessel addressed to the Agent certifying a value
for the Vessel, assessed in the manner described in Clause 9.16.

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	 	3.1.15	 	The Security Documents The Security Documents and the Co-ordination Deed
together with all notices and other documents required by any of them, duly
executed and, in the case of the Mortgage, registered with second priority
through the Bahamas Maritime Authority in London.
	 
	 	3.1.16	 	Issue Request An Issue Request.
	 
	 	3.1.17	 	Process agent A letter from Clifford Chance Secretaries Limited accepting
its appointment by each of the Security Parties as agent for service of
Proceedings pursuant to the Security Documents.
	 
	 	3.1.18	 	Managers’ confirmation The written confirmation of the Managers that,
throughout the Facility Period unless otherwise agreed by the Agent, they will
remain the commercial and technical managers of the Vessel and that they will
not, without the prior written consent of the Agent, sub-contract or delegate
the commercial or technical management of the Vessel to any third party.
	 
	 	3.1.19	 	Legal opinions Confirmation satisfactory to the Agent that all legal
opinions required by the Issuers will be given substantially in the form
required by the Agent.
	 
	 	3.1.20	 	Evidence of cancellation of existing letters of credit Evidence
satisfactory to the Agent of the cancellation of the two (2) letters of credit
issued or originally issued on 25 September 2003 in favour of Chase by The
Hongkong and Shanghai Banking Corporation Limited and DnB NOR Bank ASA in the
amounts of eighty million Dollars (USD80,000,000) and twenty million Dollars
(USD20,000,000) respectively to guarantee in part Chase’s risk as a credit card
processor to the Indemnifier for the Unfulfilled Ticket Liability.

	 	3.2	 	Conditions Subsequent The Indemnifier undertakes to deliver or to cause to be
delivered to the Agent on, or as soon as practicable after, the Issue Date, the
following additional documents and evidence:

	 	3.2.1	 	Evidence of registration Evidence of permanent registration
of the Vessel and the Mortgage (with second priority) with the Registrar of
Ships (or equivalent official) at the Vessel’s port of registry.
	 
	 	3.2.2	 	Letters of undertaking Letters of undertaking as required by
the Security Documents in form and substance acceptable to the Agent.
	 
	 	3.2.3	 	Legal opinions Such legal opinions as the Agent shall
require.
	 
	 	3.2.4	 	Companies Act registrations Evidence that the prescribed
particulars of the Security Documents have been delivered to the Registrar of
Companies in Bermuda.

	 	3.3	 	No waiver If the Issuers in their sole discretion agree to issue the Letters
of Credit before all of the documents and evidence required by Clause 3.1 or Clause 3.4
have been delivered to or to the order of the Agent, the Indemnifier undertakes to
deliver all outstanding documents and evidence to or to the order of the Agent no later
than

16

 

	 	 	 	the date specified by the Agent, and the issue of the Letters of Credit shall not be
taken as a waiver of the Agent’s right to require production of all the documents
and evidence required by Clause 3.1 or Clause 3.4.
	 
	 	3.4	 	Form and content All documents and evidence delivered to the Agent pursuant to
this Clause shall:

	 	3.4.1	 	be in form and substance acceptable to the Agent;
	 
	 	3.4.2	 	be accompanied, if required by the Agent, by translations into
the English language, certified in a manner acceptable to the Agent;
	 
	 	3.4.3	 	if required by the Agent, be certified, notarised, legalised
or attested in a manner acceptable to the Agent.

	 	3.5	 	Event of Default The Issuers shall be under no obligation to issue the Letters
of Credit nor to act on any Issue Request if, at the date of the Issue Request or at
the date on which the issue of the Letters of Credit is requested in the Issue Request,
an Event of Default or Potential Event of Default shall have occurred, or if an Event
of Default or Potential Event of Default would result from the issue of the Letters of
Credit.

	4	 	Representations and Warranties

	 	 	The Indemnifier represents and warrants to the Issuers as follows at the date of this
Agreement and (by reference to the facts and circumstances then pertaining) at the Issue
Date and sixty (60) days prior to the expiry of the Initial Term and any Subsequent Term as
follows:

	 	4.1	 	Status Each Security Party is a corporation duly organised, constituted and
validly existing under the laws of the country of its incorporation, possessing
perpetual corporate existence, the capacity to sue and be sued in its own name and the
power to own and charge its assets and carry on its business as it is now being
conducted.
	 
	 	4.2	 	Powers and authority Each of the Security Parties has the power to enter into
and perform this Agreement and those of the other Security Documents to which it is a
party and the transactions contemplated hereby and thereby and has taken all necessary
action to authorise the entry into and performance of this Agreement and such other
Security Documents and such transactions.
	 
	 	4.3	 	Legal validity This Agreement constitutes legal, valid and binding obligations
of the Indemnifier enforceable in accordance with its terms and in entering into this
Agreement, the Indemnifier is acting on its own account. Each other Transaction
Document constitutes (or will constitute when executed) legal, valid and binding
obligations of each Security Party expressed to be a party thereto enforceable in
accordance with their respective terms.
	 
	 	4.4	 	Non-conflict with laws The entry into and performance of this Agreement and
the other Transaction Documents and the transactions contemplated hereby and thereby do
not and will not conflict with:

	 	4.4.1	 	any law or regulation or any official or judicial order; or

17

 

	 	4.4.2	 	the constitutional documents of any Security Party; or
	 
	 	4.4.3	 	any agreement or document to which any Security Party is a
party or which is binding upon such Security Party or any of its assets,

	 	 	 	nor result in the creation or imposition of any Encumbrance on a Security Party or
its assets pursuant to the provisions of any such agreement or document.
	 
	 	4.5	 	No default No event has occurred which constitutes a default under or in
respect of any Transaction Document to which any Security Party is a party or by which
any Security Party may be bound (including (inter alia) this Agreement) and no event
has occurred which, with the giving of notice, lapse of time, determination of
materiality or other condition might constitute a default under or in respect of any
such Transaction Document and no event has occurred which constitutes a default under
or in respect of any agreement or document to which any Security Party is a party or by
which any Security Party may be bound to an extent or in a manner which might have a
material adverse effect on its business, assets or financial condition and no event has
occurred which, with the giving of notice, lapse of time, determination of materiality
or other condition might constitute a default under or in respect of any such agreement
or document.
	 
	 	4.6	 	Consents Except for the filing of those Security Documents which require
registration in the Companies Registries in England and Wales, the United States of
America and/or Bermuda, which filing must be completed within twenty one (21) days of
the execution of the relevant Security Document(s) in the case of England and Wales,
and for the registration of the Mortgage through the Bahamas Maritime Authority, all
authorisations, approvals, consents, licences, exemptions, filings, registrations,
notarisations and other matters, official or otherwise, required in connection with the
entry into, performance, validity and enforceability of this Agreement and each of the
other Transaction Documents and the transactions contemplated thereby have been
obtained or effected and are in full force and effect.
	 
	 	4.7	 	Accuracy of information All information furnished by any Security Party
relating to the business and affairs of any Security Party in connection with this
Agreement and the other Transaction Documents was and remains true and correct in all
material respects and there are no other material facts or considerations the omission
of which would render any such information misleading.
	 
	 	4.8	 	Full disclosure Each Security Party has fully disclosed in writing to the
Agent all facts relating to each Security Party which it knows or should reasonably
know and which might reasonably be expected to influence the Issuers in deciding
whether or not to enter into this Agreement.
	 
	 	4.9	 	No Encumbrances None of the assets or rights of any Security Party is subject
to any Encumbrance except Permitted Encumbrances.
	 
	 	4.10	 	Pari passu or priority status The claims of the Agent and the Issuers against
the Indemnifier under this Agreement will rank at least pari passu with the claims of
all unsecured creditors of the Indemnifier (other than claims of such creditors to the
extent that they are statutorily preferred) and in priority to the claims of any
creditor of the Indemnifier who is also a Security Party.

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	 	4.11	 	Solvency The Indemnifier is and shall remain, after the Issue Date, solvent in
accordance with the laws of Bermuda and the United Kingdom and in particular with the
provisions of the United Kingdom’s Insolvency Act 1986 (as from time to time amended)
and the requirements thereof.
	 
	 	4.12	 	Winding-up, etc. Neither the Indemnifier nor any other Security Party has
taken any corporate action nor have any other steps been taken or legal proceedings
been started or (to the best of its knowledge and belief) threatened against any of
them for the winding-up, dissolution or for the appointment of a liquidator,
administrator, receiver, administrative receiver, trustee or similar officer of any of
them or any or all of their assets or revenues nor have either sought any other relief
under any applicable insolvency or bankruptcy law.
	 
	 	4.13	 	Accounts The consolidated audited accounts of the NCLC Group for the period
ending on 31 December of each financial year during the period of this Agreement (which
accounts will be prepared in accordance with US GAAP) will fairly represent the
financial condition of the NCLC Group as shown in such audited accounts.
	 
	 	4.14	 	Litigation Save as disclosed in the Disclosure Letter, no litigation,
arbitration or administrative proceedings are current or pending or, to its knowledge,
threatened, which might, if adversely determined, have a Material Adverse Effect. For
the avoidance of doubt, the disclosure of any such litigation, arbitration or
administrative proceedings after the date of this Agreement shall not be deemed to be a
fact and circumstance subsisting at any time that this representation is deemed to be
repeated pursuant to this Clause 4.
	 
	 	4.15	 	Tax liabilities The NCLC Group has complied with all taxation laws in all
jurisdictions in which it is subject to Taxation and has paid all Taxes due and payable
by it; no material claims are being asserted against it with respect to Taxes, which
might, if such claims were successful, have a material adverse effect on its business,
assets or financial condition.
	 
	 	4.16	 	Ownership of assets Each member of the NCLC Group has good and marketable
title to all its assets which is reflected in the audited accounts referred to in
Clause 4.13.
	 
	 	4.17	 	No immunity None of the Security Parties nor any of their respective assets
enjoys any right of immunity (sovereign or otherwise) from set-off, suit or execution
in respect of their obligations under this Agreement or any of the other Transaction
Documents or by any relevant or applicable law.
	 
	 	4.18	 	Taxes on payments As at the date of this Agreement all amounts payable by the
Indemnifier hereunder may be made free and clear of and without deduction for or on
account of any Taxation.
	 
	 	4.19	 	Place of business None of the Security Parties has a place of business in any
jurisdiction (except as already disclosed) which requires any of the Security Documents
to be filed or registered in that jurisdiction to ensure the validity of the Security
Documents to which it is a party.
	 
	 	4.20	 	Ownership of shares All the authorised and issued shares in the Owner and the
Managers are legally and beneficially owned by NCL International, all the

19

 

	 	 	 	authorised and issued shares in NCL International are legally and beneficially owned
by Arrasas and all the authorised and issued shares in Arrasas are legally and
beneficially owned by the Indemnifier and such structure shall remain so throughout
the Facility Period. Further, no Event of Default has occurred under Clause 10.2.16
in respect of the ownership and/or control of the shares in the Indemnifier.
	 
	 	4.21	 	Completeness of documents The copies of the Transaction Documents and any
other relevant third party agreements delivered to the Agent are true and complete
copies of each such document constituting valid and binding obligations of the parties
thereto enforceable in accordance with their respective terms and no amendments thereto
or variations thereof have been agreed nor has any action been taken by the parties
thereto which would in any way render such document inoperative or unenforceable.
	 
	 	4.22	 	No undisclosed commissions There are and will be no commissions, rebates,
premiums or other payments by or to or on account of any Security Party, their
shareholders or directors in connection with the transaction as a whole other than as
disclosed to the Agent in writing.
	 
	 	4.23	 	Environment Each of the Security Parties:

	 	4.23.1	 	is in compliance with all applicable federal, state, local, foreign and
international laws, regulations, conventions and agreements relating to
pollution prevention or protection of human health or the environment
(including, without limitation, ambient air, surface water, ground water,
navigable waters, water of the contiguous zone, ocean waters and international
waters), including without limitation, laws, regulations, conventions and
agreements relating to:

	 	(a)	 	emissions, discharges, releases or
threatened releases of chemicals, pollutants, contaminants, wastes,
toxic substances, hazardous materials, oil, hazard substances,
petroleum and petroleum products and by-products (“Materials of
Environmental Concern”); or
	 
	 	(b)	 	the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or
handling of Materials of Environmental Concern,

	 	 	 	(such laws, regulations, conventions and agreements the “Environmental Laws”);
	 
	 	4.23.2	 	has all permits, licences, approvals, rulings, variances, exemptions,
clearances, consents or other authorisations required under applicable
Environmental Laws (“Environmental Approvals”) and are in compliance with all
Environmental Approvals required to operate its business as presently conducted
or as reasonably anticipated to be conducted; and
	 
	 	4.23.3	 	has not received any notice, claim, action, cause of action, investigation or
demand by any other person, alleging potential liability for, or a requirement
to incur, investigatory costs, clean-up costs, response and/or

20

 

	 	 	 	remedial costs (whether incurred by a governmental entity or otherwise),
natural resources damages, property damages, personal injuries,
attorney’s fees and expenses or fines or penalties, in each case arising
out of, based on or resulting from:

	 	(a)	 	the presence or release or threat of
release into the environment of any Material of Environmental
Concern at any location, whether or not owned by such person; or
	 
	 	(b)	 	circumstances forming the basis of any
violation, or alleged violation, of any Environmental Law or
Environmental Approval (“Environmental Claim”); and

there are no circumstances that may prevent or interfere with such full compliance
in the future.

There is no Environmental Claim pending or threatened against any of the Security
Parties.

There are no past or present actions, activities, circumstances, conditions, events
or incidents, including, without limitation, the release, emission, discharge or
disposal of any Material of Environmental Concern, that could form the basis of any
Environmental Claim against any of the Security Parties.

	5	 	Counter-Indemnity

	 	 	In consideration of the Issuers agreeing to issue the Letters of Credit, the Indemnifier
unconditionally and irrevocably agrees:

	 	5.1	 	Indemnity until the date falling three (3) months after the last day of the
Initial Term or any Subsequent Term, as a continuing security, to keep the Issuers and
the Agent indemnified in the Relevant Currency against all demands, claims, payments,
costs, liabilities, damages, losses, proceedings and expenses incurred or suffered by
the Issuers or the Agent directly or indirectly by reason of or in connection with the
Issuers’ Obligations PROVIDED THAT the aggregate amount which the Indemnifier is liable
to pay to the Issuers and/or the Agent under this Clause 5.1 in respect of such
demands, claims, payments, costs, liabilities, damages, losses, proceedings and
expenses, over and above any amount in respect of the Issuers’ Obligations plus
Interest thereon, shall not exceed twenty five million Dollars (USD25,000,000) in the
absence of any fraud committed by the Indemnifier or its gross negligence or wilful
misconduct in connection howsoever with the Issuers’ Obligations;
	 
	 	5.2	 	Evidence of termination/reduction to supply the Agent promptly with such
evidence as the Agent may reasonably require of the termination or reduction of the
Issuers’ liability under the Issuers’ Obligations;
	 
	 	5.3	 	Payments and Interest unless otherwise provided in this Agreement to pay to
the Agent within seven (7) Business Days of demand from time to time all amounts
payable by the Indemnifier under Clause 5.1 or Clause 6.4 with Interest on each of
those amounts from the date of the Issuers’ or the Agent’s payment in the case of
Clause 5.1 or demand in the case of Clause 6.4 until the date of the Indemnifier’s
payment to the Agent (for itself or for the Issuers), before or after any relevant

21

 

	 	 	 	judgment it being understood by the Indemnifier that all amounts payable by the
Indemnifier under Clause 5.1 and Clause 6.4 are due from the date of the Issuers’ or
the Agent’s (as the case may be) payment or demand (as the case may be); and
	 
	 	5.4	 	Computations Interest, commitment commission and any other payments under this
Agreement of an annual nature shall accrue from day to day and be computed on the basis
of a year of three hundred and sixty (360) days and for the actual number of days
elapsed.

	6	 	Authority to Pay

	 	6.1	 	Direction to pay The Indemnifier irrevocably directs the Issuers to make such
payments and comply with such demands or claims made on the Issuers in writing in
respect of or purporting to be in respect of the Issuers’ Obligations as the Issuers in
their absolute discretion think fit without any reference to or further authority or
direction from the Indemnifier, or any necessity to obtain the Indemnifier’s
confirmation or verification, and notwithstanding that the Indemnifier may have
disputed the Issuers’ liability to pay or comply or that all or any part of the
Issuers’ Obligations may not legally exist or be legally binding on the Issuers. The
Indemnifier agrees that the Issuers may treat the Issuers’ Obligations as payable on
first demand and that any such payment or compliance or purported compliance by the
Issuers shall as between the Issuers and the Indemnifier be conclusive evidence that
the Issuers were liable to make the payment or comply with the demand or claim.
	 
	 	6.2	 	Underlying transaction The Indemnifier agrees that the Issuers shall be
concerned only with the demand or claim made on them and, where a demand or claim must
be accompanied by any other document, with any such document, in each case as presented
to the Issuers, and not with any transaction to which the demand, claim or document
relates, or as to whether the payment demanded or the claim made was in fact due.
	 
	 	6.3	 	Propriety of demand Each of the Agent and the Issuers shall be entitled to
rely without further enquiry on any written demand, claim, document or communication
believed by it to be genuine and correct and to have been signed or otherwise executed
or made by the proper person. In particular, but without limitation, neither the Agent
nor the Issuers shall be obliged to investigate the propriety of any such written
demand, claim, document or communication or the authority or identity of the person
producing, claiming, signing or making such written demand, claim, document or
communication.
	 
	 	6.4	 	Funding and cash cover The Indemnifier undertakes at any time after the
occurrence and during the continuation of an Event of Default to pay to the Issuers or
to their order on demand the amount specified in that demand (in the currency so
specified):

	 	6.4.1	 	to give the Issuers cash cover for all or (if the Issuers so
specify) part of the amount of the Issuers’ Obligations; and/or
	 
	 	6.4.2	 	to put the Issuers in funds to make a payment which the
Issuers are authorised by this Agreement to make in connection with the
Issuers’ Obligations, whether actual or contingent.

22

 

	 	6.5	 	Security over funding/cash cover The Indemnifier undertakes, at its own
expense, to execute such documents as the Agent may require in order to create or
perfect in the Issuers’ or the Agent’s favour a restriction on withdrawal or repayment
of any amount paid by the Indemnifier under Clause 6.4 and/or a security in or over
such amount, in each case to secure or support the Indemnifier’s liabilities to the
Issuers under this Agreement.
	 
	 	6.6	 	Currency An Issuer may, if called on to make a payment or to comply with a
demand or claim in connection with the Issuers’ Obligations, purchase in accordance
with its usual practice the amount of the Relevant Currency necessary to make that
payment or to comply with that demand or claim (unless the Issuer has already been put
in funds by the Indemnifier pursuant to Clause 6.4).
	 
	 	6.7	 	Issuers’ Obligations reducing The Issuers’ Obligations shall be reduced by the
amount of each drawing made by Chase under the Letters of Credit and the aggregate of
such drawings shall not exceed the maximum amount of the Letters of Credit.

	7	 	Fees and Commissions

	 	7.1	 	Participation Fee The Indemnifier shall pay to the Issuers pro rata on the
date of this Agreement a participation fee of two hundred thousand Dollars
(USD200,000).
	 
	 	7.2	 	Letter of Credit Commission The Indemnifier shall pay to the Issuers pro rata
a letter of credit commission at the rate of one per centum (1.0%) per annum on the
maximum amount of the Commitment from time to time except that the rate shall be
reduced to nought point two per centum (0.2%) per annum on any amount of the Commitment
from time to time covered by cash pursuant to Clause 6.4 and/or Clause 9.17.1.
	 
	 	 	 	The letter of credit commission will accrue from the Issue Date from day to day and
shall be paid quarterly in arrears with a first payment on the date which is three
(3) months after the Issue Date and a final pro rata payment on the last day of the
Facility Period.
	 
	 	7.3	 	Issuers’ Extension Fee On each occasion that the Issuers agree with the
Indemnifier not to exercise their right of cancellation of the Letters of Credit under
Clause 2.4, the Indemnifier shall pay an Extension Fee to the Issuers in the amount of
nought point one per centum (0.1%) on the maximum amount of the Commitment at that
time. Such extension fee shall be paid on or before the sixtieth (60th) day
prior to the date falling three hundred and sixty four (364) days from the Issue Date
or to the last day of the relevant subsequent period of three hundred and sixty four
(364) days (as the case may be).
	 
	 	7.4	 	Renegotiation of fees and letter of credit commission On the occurrence of an
Event of Default the Issuers and the Indemnifier shall renegotiate the fees and letter
of credit commission payable under this Clause 7 with effect from the date of the
occurrence of the Event of Default.

	8	 	Security Documents

	 	 	As security for the repayment of the Indebtedness, the Indemnifier shall execute and deliver
to the Agent or cause to be executed and delivered to the Agent, on or before the Issue

23

 

	 	 	Date, the following Security Documents in such forms and containing such terms and
conditions as the Agent shall require:

	 	8.1	 	the Mortgage a second priority statutory mortgage over the Vessel together
with a collateral deed of covenants;
	 
	 	8.2	 	the Earnings Assignment a second priority deed of assignment of the Earnings
and Compulsory Acquisition Compensation;
	 
	 	8.3	 	the Insurance Assignment a second priority deed of assignment of the
Insurances; and
	 
	 	8.4	 	the Reserve Account Rights Assignment a second priority assignment in respect
of the reserve account in the possession of Chase.

	 	 	The occurrence of an Event of Default shall entitle the Agent to request the Indemnifier to
execute and deliver to the Agent or cause to be executed and delivered to the Agent such
further Security Documents as the Agent may require in its sole discretion.

	9	 	Covenants

	 	9.1	 	Duration The undertakings in this Clause 9 shall remain in full force and
effect until the Indemnifier has no remaining obligations, actual or contingent, under
or pursuant to this Agreement or any of the other Security Documents.
	 
	 	9.2	 	Information The Indemnifier will provide to the Agent (or will procure the
provision of):

	 	9.2.1	 	as soon as practicable (and in any event within one hundred
and twenty (120) days after the close of each of its financial years) a
Certified Copy of its Accounts (commencing with the audited accounts made up to
31 December 2005);
	 
	 	9.2.2	 	as soon as practicable (and in any event within sixty (60)
days after the close of each quarter of each financial year) a Certified Copy
of the unaudited consolidated accounts of the NCLC Group for that quarter
(commencing with the unaudited accounts made up to 30 June 2005);
	 
	 	9.2.3	 	as soon as practicable (and in any event within one hundred
and twenty (120) days after the close of each financial year), beginning with
the financial year ending 31 December 2005, annual cash flow projections on a
consolidated basis of the NCLC Group showing on a monthly basis advance ticket
sales (for at least twelve (12) months following the date of such statement)
for the NCLC Group;
	 
	 	9.2.4	 	as soon as practicable (and in any event not later than 31
January of each financial year):

	 	(a)	 	a budget for the NCLC Group for such new
financial year including a twelve (12) month liquidity budget for such
new financial year;
	 
	 	(b)	 	updated financial projections of the NCLC Group
for at least the next five (5) years (including an income statement and
projected

24

 

	 	 	 	results for the operation of the vessels owned and/or operated by
any member of the NCLC Group);
	 
	 	(c)	 	an outline of the assumptions supporting the
budget and financial projections referred to in paragraphs (a) and (b)
of this Clause 9.2.4;

	 	9.2.5	 	within thirty (30) days of the end of each period of twelve
(12) months referred to in the penultimate sentence of Clause 9.16.1 and at
such other times as the Agent may from time to time reasonably require, a
valuation of the Vessel obtained in accordance with the provisions of Clause
9.16;
	 
	 	9.2.6	 	as soon as practicable (and in any event within sixty (60)
days after the close of each of the first three (3) quarters of its financial
year and within one hundred and twenty (120) days after the close of each
financial year) a statement signed by the NCLC Group’s chief financial officer
in the form of Appendix D (commencing with the second quarter of the financial
year ending 31 December 2005) and such other information as the Agent may
request;
	 
	 	9.2.7	 	promptly, such further information in its possession or
control regarding its financial condition and operations and those of any
company in the NCLC Group as the Agent may request; and
	 
	 	9.2.8	 	details of any material litigation, arbitration or
administrative proceedings which affect any Security Party as soon as the same
are instituted and served, or, to the knowledge of the Indemnifier, threatened
(and for this purpose proceedings shall be deemed to be material if they
involve a claim in an amount exceeding ten million Dollars (USD10,000,000) or
the equivalent in another currency).
	 
	 	 	 	All accounts required under this Clause 9.2 shall be prepared in accordance with US
GAAP and shall fairly represent the financial condition of the relevant company.

	 	9.3	 	Dividends

	 	9.3.1	 	During any financial year of the Indemnifier until the date on
which the Indemnifier becomes a listed company on an Approved Stock Exchange
(on which date the restriction contained in this Clause 9.3.1 shall cease to
apply), the Indemnifier shall not and shall procure that no other member of the
NCLC Group shall, pay any dividends or make any other distributions in respect
of its share capital to any person which during any financial year of the
Indemnifier in aggregate exceeds fifty per cent (50%) of the Consolidated Net
Income (if positive) of the NCLC Group for such financial year PROVIDED HOWEVER
THAT (whether before or after the Indemnifier becomes a listed company on an
Approved Stock Exchange) the NCLC Group shall not be entitled to pay any
dividend or make any distribution in respect of any of its share capital if an
Event of Default has occurred and is continuing or would occur as a result of
the payment of such dividend or the making of such distribution and shall
provide the Agent with a certificate signed by the chief financial officer of
the NCLC Group confirming that no Event of Default has occurred and is
continuing or would occur as a result of the payment of a dividend or the

25

 

	 	 	 	making of a distribution before such dividend is paid or distribution is
made.
	 
	 	9.3.2	 	Subject to Clause 9.3.1, the Indemnifier will procure that any
dividends or other distributions and interest paid or payable in connection
therewith received by NCL International, NCL America Holdings and/or Arrasas
will be paid to the Indemnifier by way of dividend promptly on receipt.

	 	9.4	 	Notification of default The Indemnifier will notify the Agent of any Event of
Default or Potential Event of Default forthwith upon any Security Party becoming aware
of the occurrence thereof. Upon the Agent’s request from time to time the Indemnifier
will issue a certificate stating whether any Security Party is aware of the occurrence
of any Event of Default or Potential Event of Default.
	 
	 	9.5	 	Consents and registrations The Indemnifier will procure that (and will
promptly furnish Certified Copies to the Agent of) all such authorisations, approvals,
consents, licences and exemptions as may be required under any applicable law or
regulation to enable it or any Security Party to perform its obligations under, and
ensure the validity or enforceability of, each of the Transaction Documents are
obtained and promptly renewed from time to time and will procure that the terms of the
same are complied with at all times. Insofar as such filings or registrations have not
been completed on or before the Issue Date the Indemnifier will procure the filing or
registration within applicable time limits of each Security Document which requires
filing or registration together with all ancillary documents required to preserve the
priority and enforceability of the Security Documents.
	 
	 	9.6	 	Negative pledge The Indemnifier will not create or permit to subsist any
Encumbrance on the whole or any part of its or the Owner’ present or future assets,
except for Permitted Encumbrances.
	 
	 	9.7	 	Disposals Except with the prior consent of all the Issuers, the Indemnifier
shall not (and will procure that no other company in the NCLC Group shall), either in a
single transaction or in a series of transactions whether related or not and whether
voluntarily or involuntarily, sell, transfer, lease or otherwise dispose of all or a
substantial part of its assets except that the following disposals shall not be taken
into account:

	 	9.7.1	 	disposals made in the ordinary course of trading of the
disposing entity (excluding disposal of ships) including without limitation,
the payment of cash as consideration for the purchase or acquisition of any
asset or service or in the discharge of any obligation incurred for value in
the ordinary course of trading;
	 
	 	9.7.2	 	disposals of cash raised or borrowed for the purposes for
which such cash was raised or borrowed;
	 
	 	9.7.3	 	disposals of assets in exchange for other assets comparable or
superior as to type and value; and
	 
	 	9.7.4	 	a vessel or any other asset owned by any member of the NCLC
Group (other than the Owner) may be sold provided such sale is on a willing
seller willing buyer basis at or about market rate and at arm’s length subject

26

 

	 	 	 	always to the provisions of any loan documentation for the financing of such
vessel or other asset.

	 	9.8	 	Purchases Except with the prior consent of all the Issuers, the Indemnifier
shall not (and will procure that no other company in the NCLC Group shall), either in a
single transaction or in a series of transactions whether related or not purchase any
asset:

	 	9.8.1	 	other than on arm’s length terms;
	 
	 	9.8.2	 	which is not for its use in its ordinary course of business;
or
	 
	 	9.8.3	 	the cost of which is more than its fair market value at the
date of acquisition.

	 	9.9	 	Change of name or business Except with the prior consent of all the Issuers,
the Indemnifier shall not change its name or make or threaten to make any substantial
change in its business as presently conducted or carry on any other business which is
substantial in relation to its business as presently conducted so as to affect, in the
opinion of the Issuers, the Indemnifier’s ability to perform its obligations hereunder
and shall not form any further subsidiaries and the Indemnifier will procure that the
other Security Parties continue, throughout the Facility Period, to perform their
current business activities PROVIDED THAT any new leisure or hospitality venture
embarked upon by any member of the NCLC Group (other than the Indemnifier) shall not
constitute a substantial change in its business.
	 
	 	9.10	 	Mergers Except with the prior consent of all the Issuers, the Indemnifier will
not enter into any amalgamation, restructure, substantial reorganisation, merger,
de-merger or consolidation or anything analogous to the foregoing nor will it acquire
any equity, share capital or obligations of any corporation or other entity and will
procure that no company in the NCLC Group (other than NCL International or NCL America
Holdings) shall do so.
	 
	 	 	 	However, the prior consent of the Issuers shall not be required in respect of any
reorganisation or restructure involving wholly owned (whether directly or
indirectly) Subsidiaries of the Indemnifier only which does not imperil the security
created by any of the Security Documents or affect the ability of any Security Party
duly to perform any of its obligations under any Security Document to which it may
be a party at any time, PROVIDED THAT the Indemnifier has first consulted with the
Agent with regard to the proposed consolidation, reorganisation or restructure and
provides evidence satisfactory to the Agent that the Indemnifier will be in
compliance with the financial undertakings contained in Clause 9.24 after any such
reorganisation or restructure SUBJECT TO:

	 	9.10.1	 	Clause 4.20; and
	 
	 	9.10.2	 	the cash flows from which the Indebtedness will be repaid remaining
comparable as to amount (relative to the amount of the Indebtedness) and
accessibility for the Indemnifier to the cash flows as at the date of this
Agreement, in the sole discretion of the Issuers.

	 	 	 	For the avoidance of doubt, if the Agent are satisfied the Indemnifier will be in
compliance with the financial undertakings contained in Clause 9.24 after the

27

 

	 	 	 	acquisition by a member of the NCLC Group of any shares in any company or
corporation, such acquisition shall not in itself constitute a merger or
consolidation with such company or corporation requiring the consent of the Issuers
under this Clause 9.10.
	 
	 	9.11	 	Maintenance of status and franchises The Indemnifier will do all such things
as are necessary to maintain its corporate existence in good standing and will ensure
that it has the right and is duly qualified to conduct its business as it is conducted
in all applicable jurisdictions and will obtain and maintain all franchises and rights
necessary for the conduct of its business.
	 
	 	9.12	 	Financial records The Indemnifier will keep proper books of record and
account, in which proper and correct entries shall be made of all financial
transactions and the assets, liabilities and business of the Indemnifier in accordance
with US GAAP.
	 
	 	9.13	 	Subordination of indebtedness The Indemnifier shall procure that any and all
indebtedness (and in particular with any other Security Party) is at all times fully
subordinated to the Security Documents and the obligations of the Indemnifier
hereunder. Upon the occurrence of an Event of Default or a Potential Event of Default,
the Indemnifier shall not make any repayments of principal, payments of interest or of
any other costs, fees, expenses or liabilities arising from or representing such
indebtedness until the Indebtedness has been repaid in full.
	 
	 	9.14	 	Guarantees Save as contemplated by this Agreement, the Indemnifier will
procure that none of the owners of mortgaged vessels in the NCLC Fleet will issue or
enter into any guarantee or indemnity or otherwise become directly or contingently
liable for the obligations of any other person, firm or corporation, otherwise than in
the ordinary course of its business as owner of its vessel.
	 
	 	 	 	Subject to the above provision of this Clause, the Indemnifier will not, and will
procure that no member of the NCLC Group will, issue or enter into any guarantee or
indemnity or otherwise become directly or contingently liable for the obligations of
any other person, firm or corporation without first notifying the Agent with full
details of the amount(s) and the period(s) of the guarantee(s) or indemnity(ies), if
such is or are in excess of (in aggregate (if applicable)) the amount of twenty
million Dollars (USD20,000,000).
	 
	 	9.15	 	Further assurance The Indemnifier will, from time to time on being required to
do so by the Agent, do or procure the doing of all such acts and/or execute or procure
the execution of all such documents in a form satisfactory to the Agent as the Agent
may reasonably consider necessary for giving full effect to any of the Transaction
Documents or securing to the Agent and/or the Issuers the full benefit of the rights,
powers and remedies conferred upon the Agent and/or the Issuers in any such Transaction
Document.
	 
	 	9.16	 	Valuation of the Vessel

	 	9.16.1	 	The Vessel shall for the purposes of this Clause 9.16 be valued by two (2)
independent firms of shipbrokers or shipvaluers nominated by the Indemnifier
and approved by the Agent (acting on the instructions of the Issuers) or
failing such nomination and approval, appointed by the Agent (acting on such
instructions) in its sole discretion (each such valuation to be made without,
unless reasonably required by the Agent, physical inspection

28

 

	 	 	 	and on the basis of a sale for prompt delivery for cash at arm’s length on
normal commercial terms as between a willing buyer and a willing seller
without taking into account the benefit of any charterparty or other
engagement concerning the Vessel). The first such set of valuations shall
be that obtained as at 30 June 2005 and thereafter a set shall be obtained
every six (6) months and at such other times as the Agent may from time to
time reasonably require. The average of the set of valuations shall
constitute the value of the Vessel for the purposes of this Clause 9.16.
The cost of two (2) sets of such valuations per calendar year shall be for
the Indemnifier.
	 
	 	9.16.2	 	The Indemnifier shall procure that forthwith upon the issuance of any
valuation obtained pursuant to this Clause 9.16 a copy thereof is sent directly
to the Agent for review.

	 	9.17	 	Additional security If and so often as the value of the Vessel, determined as
more particularly described in Clause 9.16, plus the value (determined by the Agent in
its discretion) of any additional security for the time being provided to the Issuers
pursuant to this Clause 9.17, shall be less than one hundred per centum (100%) of the
aggregate of the amounts of the Commitment and the Loan, the Indemnifier will, within
thirty (30) days of the request of the Agent to do so, at the Indemnifier’s option:

	 	9.17.1	 	pay to the Agent or to its nominee a cash deposit in the amount of the
shortfall between the aggregate of the value of the Vessel and any additional
security and one hundred per centum (100%) of the aggregate of the amounts of
the Commitment and the Loan to be secured in favour of the Issuers and/or the
Agent as additional security for the payment of the Indebtedness; or
	 
	 	9.17.2	 	give to the Agent on behalf of the Issuers such other additional second
mortgage vessel security in amount and form acceptable to the Issuers in their
discretion such that the value of the Vessel, determined as more particularly
described in Clause 9.16, plus the value (determined by the Agent in its
discretion) of such additional second mortgage vessel security shall be no less
than one hundred and forty per centum (140%) of the aggregate of the amounts of
the Commitment and the Loan.

	 	9.18	 	Evidence of goodstanding The Indemnifier will from time to time within ten
(10) days of receipt of a request from the Agent provide the Agent with evidence in
form and substance satisfactory to the Agent that the Security Parties and all
corporate shareholders of any of the Security Parties remain in good standing.
	 
	 	9.19	 	Pari passu obligations The Indemnifier will ensure that, throughout the
Facility Period, the obligations of the Security Parties under or pursuant to the
Security Documents rank at least pari passu with all other existing or future unsecured
indebtedness, obligations or liabilities of the Security Parties, other than any
mandatorily preferred by law.
	 
	 	9.20	 	Notification of Event of Default The Indemnifier will immediately notify the
Agent in writing of the occurrence of any Event of Default or Potential Event of
Default.

29

 

	 	9.21	 	Financial year end The Indemnifier shall not change its financial year end.
	 
	 	9.22	 	Maintenance and insurance The Indemnifier will keep, and will procure that
each member of the NCLC Group keeps, all of its real property and assets properly
maintained and in existence and will comprehensively insure, and will procure that each
member of the NCLC Group comprehensively insures, for its full reinstatement cost all
of its property which is of an insurable nature in such name as the Agent shall in
writing approve and on such terms, for such amounts and of such types as would be
effected by prudent companies carrying on business similar to the Indemnifier or its
Subsidiary (as the case may be). In particular but without limitation, the Indemnifier
shall procure that the Owner maintains and insures the Vessel in accordance with the
provisions of the Mortgage.
	 
	 	9.23	 	Vessel The Indemnifier will procure that the Vessel is traded within the NCLC
Fleet from the Issue Date and throughout the remainder of the Facility Period.
	 
	 	9.24	 	Financial covenants The Indemnifier will ensure that:

	 	9.24.1	 	at all times the minimum Free Liquidity will be not less than fifty million
Dollars (USD50,000,000);
	 
	 	9.24.2	 	either:

	 	(a)	 	as at 30 September 2005 and as at the end of
each subsequent financial quarter the ratio of Consolidated EBITDA to
Consolidated Debt Service for the NCLC Group, computed for the period
of the four (4) consecutive financial quarters ending at the end of the
relevant financial quarter, shall not be less than one point two five
(1.25) to one (1.0); or
	 
	 	(b)	 	at all times during the period of twelve (12)
months ending as at the end of the relevant financial quarter the NCLC
Group has maintained a minimum Free Liquidity in an amount of not less
than one hundred million Dollars (USD100,000,000); and

	 	9.24.3	 	as at 31 December 2005 and as at the end of each subsequent financial
quarter, the ratio of Total Net Funded Debt to Total Capitalisation of the NCLC
Group shall not exceed:

	 	(a)	 	nought point six five (0.65) to one (1.0) for
financial quarters ending on or before 31 December 2007; and
	 
	 	(b)	 	nought point six (0.6) to one (1.0) for each
subsequent financial quarter.

Amounts available for drawing under any revolving or other credit facilities
of the NCLC Group which remain undrawn at the time of the relevant
calculation shall not be counted as cash or indebtedness for the purposes of
this ratio.

Save as specified in Clause 9.24.2, the ratios referred to in this Clause 9.24 will
be measured on a quarterly basis by reference to the consolidated accounts of the
NCLC Group.

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	10	 	Events of Default

	 	10.1	 	The Issuers’ and the Agent’s rights If any
of the events set out in Clause 10.2   occurs and is continuing unremedied, the Issuers may at their discretion:

	 	10.1.1	 	by notice to the Indemnifier declare itself to be under no further obligation
to the Indemnifier under or pursuant to this Agreement;
	 
	 	10.1.2	 	immediately require the Indemnifier to comply with its obligations under
Clauses 6.4 and 6.5;
	 
	 	10.1.3	 	cancel the Letters of Credit pursuant to Clause 2.4;
	 
	 	10.1.4	 	renegotiate the fees and letter of credit commission payable under this
Agreement pursuant to Clause 7.4;
	 
	 	10.1.5	 	exercise all or any of its rights under any of the Security Documents in such
order and in such manner as it shall deem appropriate, subject to the
provisions of the Co-ordination Deed and Clause 16; and/or
	 
	 	10.1.6	 	request the execution of further Security Documents pursuant to Clause 8,
subject to the provisions of the Co-ordination Deed.

	 	10.2	 	Events of Default The events referred to in Clause 10.1 are:

	 	10.2.1	 	Non-payment The Indemnifier or any other Security Party does not pay on the
due date any part of the Indebtedness (provided however that if any such amount
is not paid when due solely by reason of some error or omission on the part of
the bank or banks through whom the relevant funds are being transmitted no
Event of Default shall occur for the purposes of this Clause 10.2.1 until the
expiry of three (3) Business Days following the date on which such payment is
due), or within three (3) days of the due date any other amount, payable by it
under any Security Document to which it may at any time be a party, at the
place and in the currency in which it is expressed to be payable.
	 
	 	10.2.2	 	Breach of other obligations

	 	(a)	 	Any Security Party fails to comply with any
other material provision of any Security Document or there is any other
material breach in the sole opinion of the Agent of any of the
Transaction Documents and such failure (if in the opinion of the Agent
in its sole discretion it is capable of remedy) continues unremedied
for a period of thirty (30) days from the date of its occurrence and in
any such case as aforesaid the Agent in its sole discretion considers
that such failure is or could reasonably be expected to become
materially prejudicial to the interests, rights or position of the
Agent and/or the Issuers; or
	 
	 	(b)	 	If there is a repudiation or termination of any
Transaction Document or if any of the parties thereto becomes entitled
to terminate or repudiate any of them and evidences an intention so to
do.

31

 

	 	10.2.3	 	Misrepresentation Any representation warranty or statement made or repeated
in, or in connection with, any Security Document or in any accounts,
certificate, statement or opinion delivered by or on behalf of any Security
Party thereunder or in connection therewith is materially incorrect when made
or would, if repeated at any time hereafter by reference to the facts
subsisting at such time, no longer be materially correct.
	 
	 	10.2.4	 	Cross default

	 	(a)	 	Any event of default occurs under any financial
contract or financial document relating to any Financial Indebtedness
of any member of the NCLC Group.
	 
	 	(b)	 	Any such Financial Indebtedness or any sum
payable in respect thereof is not paid when due (after the expiry of
any applicable grace period(s)) whether by acceleration or otherwise.
	 
	 	(c)	 	Any Encumbrance over any assets of any member
of the NCLC Group becomes enforceable.
	 
	 	(d)	 	Any other Financial Indebtedness of any member
of the NCLC Group is not paid when due or is or becomes capable of
being declared due prematurely by reason of default or any security for
the same becomes enforceable by reason of default.

PROVIDED THAT:

	 	(i)	 	No Event of Default will arise if the relevant
Financial Indebtedness is not accelerated or, if it is accelerated but,
in aggregate, the Financial Indebtedness is less than ten million
Dollars (USD10,000,000);
	 
	 	(ii)	 	Financial Indebtedness being contested by the
Indemnifier in good faith will be disregarded PROVIDED first that full
details of the dispute shall be submitted to the Agent forthwith upon
its occurrence and second if the dispute remains unresolved for a
period of one hundred and fifty (150) days this Clause 10.2.4(ii) shall
not apply to that Financial Indebtedness; and
	 
	 	(iii)	 	If at any time hereafter the Indemnifier or
any other member of the NCLC Group agrees to the incorporation of a
cross default provision into any financial contract or financial
document relating to any Financial Indebtedness that is more onerous
than this Clause 10.2.4, then the Indemnifier shall immediately notify
the Agent and that cross default provision shall be deemed to apply to
this Agreement as if set out in full herein with effect from the date
of such financial contract or financial document and during the life of
that financial contract or financial document.

	 	10.2.5	 	Winding-up Any order is made or an effective resolution passed or other
action taken for the suspension of payments or dissolution, termination of
existence, liquidation, winding-up or bankruptcy of any member of the NCLC
Group.

32

 

	 	10.2.6	 	Moratorium or arrangement with creditors A moratorium in respect of all or
any debts of any member of the NCLC Group or a composition or an arrangement
with creditors of any member of the NCLC Group or any similar proceeding or
arrangement by which the assets of any member of the NCLC Group are submitted
to the control of its creditors is applied for, ordered or declared or any
member of the NCLC Group commences negotiations with any one or more of its
creditors with a view to the general readjustment or rescheduling of all or a
significant part of its Financial Indebtedness.
	 
	 	10.2.7	 	Appointment of liquidators etc. A liquidator, trustee, administrator,
receiver, manager or similar officer is appointed in respect of any member of
the NCLC Group or in respect of all or any substantial part of the assets of
any member of the NCLC Group and in any such case such appointment is not
withdrawn within thirty (30) days (the “Grace Period”) unless the Agent
considers in its sole discretion that the interest of the Issuers might
reasonably be expected to be adversely affected in which event the Grace Period
shall not apply.
	 
	 	10.2.8	 	Insolvency Any member of the NCLC Group becomes or is declared insolvent or
is unable, or admits in writing its inability, to pay its debts as they fall
due or becomes insolvent within the terms of any applicable law.
	 
	 	10.2.9	 	Legal process Any distress, execution, attachment or other process affects
the whole or any substantial part of the assets of any member of the NCLC Group
and remains undischarged for a period of twenty one (21) days or any uninsured
judgment in excess of ten million Dollars (USD10,000,000) following final
appeal remains unsatisfied for a period of thirty (30) days in the case of a
judgment made in the United States of America and otherwise for a period of
sixty (60) days PROVIDED THAT no Event of Default shall be deemed to have
occurred unless the distress, execution, attachment, other process or judgment
adversely affects any Security Party’s ability to meet any of its material
obligations under this Agreement, the other Security Documents or cause to
occur any of the events specified in sub-clauses 10.2.5 to 10.2.8 of this
Clause (the determination of which shall be in the Issuers’ sole discretion).
	 
	 	10.2.10	 	Analogous events Anything analogous to or having a substantially similar
effect to any of the events specified in sub-clauses 10.2.5 to 10.2.9 of this
Clause shall occur under the laws of any applicable jurisdiction.
	 
	 	10.2.11	 	Cessation of business Any member of the NCLC Group ceases to carry on all
or a substantial part of its business.
	 
	 	10.2.12	 	Revocation of consents Any authorisation, approval, consent, licence,
exemption, filing, registration or notarisation or other requirement necessary
to enable any Security Party to comply with any of its obligations under any of
the Transaction Documents is materially adversely modified, revoked or withheld
or does not remain in full force and effect and within ninety (90) days of the
date of its occurrence such event is not remedied to the satisfaction of the
Agent and the Agent considers in its sole discretion that such failure is or
might be expected to become materially prejudicial to the interests, rights or
position of the Issuers PROVIDED THAT the

33

 

	 	 	 	Indemnifier shall not be entitled to the aforesaid ninety (90) day period if
the modification, revocation or withholding of the authorisation, approval
or consent is due to an act or omission of any Security Party and the Agent
is satisfied in its sole discretion that the Issuers’ interests might
reasonably be expected to be materially adversely affected.
	 
	 	10.2.13	 	Unlawfulness At any time it is unlawful or impossible for:

	 	(a)	 	any Security Party to perform any of its
obligations under any Security Document to which it is a party; or
	 
	 	(b)	 	the Agent or any Issuer to exercise any of its
rights under any of the Security Documents;

	 	 	 	PROVIDED THAT no Event of Default shall be deemed to have occurred (except
where the unlawfulness or impossibility adversely affects any Security
Party’s payment obligations under this Agreement and/or the other Security
Documents (the determination of which shall be in the Agent’s sole
discretion) in which case the following provisions of this Clause 10.2.13
shall not apply) where the unlawfulness or impossibility prevents any
Security Party from performing its obligations (other than its payment
obligations under this Agreement and the other Security Documents) and is
cured within a period of twenty one (21) days of the occurrence of the event
giving rise to the unlawfulness or impossibility and the relevant Security
Party, within the aforesaid period, performs its obligation(s).
	 
	 	10.2.14	 	Insurances The Owner fails to insure the Vessel in the manner specified in
the Mortgage or fails to renew the Insurances at least ten (10) days prior to
the date of expiry thereof and produce prompt confirmation of such renewal to
the Agent.
	 
	 	10.2.15	 	Total Loss If the Vessel shall become a Total Loss and the proceeds of the
Insurances in respect thereof shall not have been received by the Agent within
one hundred and fifty (150) days after the date of the event giving rise to
such Total Loss or if the proceeds received at such time are insufficient to
settle or secure the Indebtedness.
	 
	 	10.2.16	 	Ownership and control of the Indemnifier If:

	 	(a)	 	at any time when the ordinary share capital of
the Indemnifier is not publicly listed on an Approved Stock Exchange or
at any time when a dividend is to be paid to the existing shareholders
of the Indemnifier by way of a share issue pursuant to a public
offering on an Approved Stock Exchange, the Lim Family together or
individually do not or will not, directly or indirectly, control the
Indemnifier and beneficially own, directly or indirectly, at least
fifty one per cent (51%) of the issued share capital of, and equity
interest in, the Indemnifier; or
	 
	 	(b)	 	at any time following the listing of the
ordinary share capital of the Indemnifier on an Approved Stock
Exchange:

	 	(i)	 	any individual or any Third
Party:

34

 

	 	(A)	 	owns legally
and/or beneficially and either directly or indirectly
at least thirty three per cent (33%) of the ordinary
share capital of the Indemnifier; or
	 
	 	(B)	 	has the right
or the ability to control either directly or indirectly
the affairs of or the composition of the majority of
the board of directors (or equivalent) of the
Indemnifier,

	 	 	 	and, at the same time as any of the events described in
paragraphs (A) or (B) of this Clause have occurred and are
continuing, the Lim Family together or individually do not,
directly or indirectly, beneficially own, at least fifty one
per cent (51%) of the issued share capital of, and equity
interest in, the Indemnifier; or
	 
	 	(ii)	 	the Indemnifier ceases to be a
listed company on an Approved Stock Exchange without the prior
written consent of the Issuers,

	 	 	 	(and, for the purpose of this Clause 10.2.16 “control” of any company,
limited partnership or other legal entity (a “body corporate”) by a member
of the Lim Family, means that one (1) or more members of the Lim Family has,
directly or indirectly, the power to direct the management and policies of
such a body corporate, whether through the ownership of more than fifty per
cent (50%) of the issued voting capital of that body corporate or by
contract, trust or other arrangement).
	 
	 	10.2.17	 	Disposals If the Indemnifier or any other member of the NCLC Group shall
have concealed, removed, or permitted to be concealed or removed, any part of
its property, with intent to hinder, delay or defraud its creditors or any of
them, or made or suffered a transfer of any of its property which may be
fraudulent under any bankruptcy, fraudulent conveyance or similar law; or shall
have made any transfer of its property to or for the benefit of a creditor with
the intention of preferring such creditor over any other creditor.
	 
	 	10.2.18	 	Prejudice to security Anything is done or suffered or omitted to be done by
any Security Party which in the reasonable opinion of the Agent would or might
be expected to imperil the security created by any of the Security Documents.
	 
	 	10.2.19	 	Material Adverse Effect Any event or circumstance occurs which the Issuers
believe has had or reasonably believe will have a Material Adverse Effect.
	 
	 	10.2.20	 	Governmental intervention The authority of any member of the NCLC Group in
the conduct of its business is wholly or substantially curtailed by any seizure
or intervention by or on behalf of any authority and within ninety (90) days of
the date of its occurrence any such seizure or intervention is not relinquished
or withdrawn and the Agent reasonably considers that the relevant occurrence is
or might be expected to become materially prejudicial to the interests, rights
or position of the Issuers

35

 

PROVIDED THAT the Indemnifier shall not be entitled to the aforesaid ninety
(90) day period if the seizure or intervention executed by any authority is
due to an act or omission of any member of the NCLC Group and the Agent is
satisfied, in its sole discretion, that the Issuers’ interest might
reasonably be expected to be materially adversely affected.

	11	 	Set-Off and Lien

	 	11.1	 	Set-off Subject to the provisions of the Co-ordination Deed and Clauses 15 and
16, the Indemnifier irrevocably authorises the Issuers and the Agent following an Event
of Default and for so long as such Event of Default is continuing, at any time after
all or any part of the Indebtedness shall have become due and payable, to set off
without notice any liability of the Indemnifier to the Issuers or the Agent (whether
present or future, actual or contingent, and irrespective of the branch or office,
currency or place of payment) against any credit balance from time to time standing on
any account of the Indemnifier (whether current or otherwise and whether or not subject
to notice) with any branch of the Issuers or the Agent in or towards satisfaction of
the Indebtedness and, in the name of the Issuers, the Agent or the Indemnifier, to do
all acts (including, without limitation, converting or exchanging any currency) and
execute all documents which may be required to effect such application.
	 
	 	11.2	 	Lien Subject to the provisions of the Co-ordination Deed and Clause 16,
following an Event of Default and for so long as such Event of Default is continuing,
the Issuers and the Agent shall have a lien on and be entitled to retain and realise as
additional security for the repayment of the Indebtedness any cheques, drafts, bills,
notes or negotiable or non-negotiable instruments and any stocks, shares or marketable
or other securities and property of any kind of the Indemnifier (or of the Issuers or
the Agent as agent or nominee of the Indemnifier) from time to time held by the Issuers
or the Agent whether for safe custody or otherwise.
	 
	 	11.3	 	Restrictions on withdrawal Despite any term to the contrary in relation to any
deposit or credit balance at any time on any account of the Indemnifier with the
Issuers, no such deposit or balance shall be repayable or capable of being assigned,
mortgaged, charged or otherwise disposed of or dealt with by the Indemnifier during the
Facility Period except in accordance with the Security Documents, but the Issuers or
the Agent may from time to time permit the withdrawal of all or any part of any such
deposit or balance without affecting the continued application of this Clause. This
Clause 11.3 shall take effect only from and after the occurrence of an Event of Default
or a Potential Event of Default.
	 
	 	11.4	 	Application The Indemnifier irrevocably authorises the Agent to apply all sums
which the Agent may receive:

	 	11.4.1	 	pursuant to a sale or other disposition of the Vessel or any right, title or
interest in the Vessel; or
	 
	 	11.4.2	 	by way of payment to the Agent of any sum in respect of the Insurances,
Earnings or Compulsory Acquisition; or
	 
	 	11.4.3	 	otherwise arising under or in connection with any of the Security Documents

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	 	 	 	in or towards satisfaction, or by way of retention on account, of the Indebtedness,
in such manner as the Issuers may in their discretion determine, subject to the
provisions of the Co-ordination Deed.

	12	 	Assignment and Transfer

	 	12.1	 	Right to assign An Issuer may assign all or any of its rights or transfer all
or any of its rights and obligations in each case by way of guarantee under or pursuant
to the Security Documents to any other branch of the Issuer or, with the prior approval
of the Indemnifier, which approval shall be given by way of a Communication and shall
not be unreasonably withheld or delayed, to any other bank or financial institution.
Further DnB NOR may transfer up to fifty per centum (50%) of its rights and obligations
under or pursuant to the Security Documents to DnB NOR’s Transferee. In such case the
Original Letter of Credit issued by DnB NOR shall be replaced by two (2) Letters of
Credit, one (1) issued by DnB NOR and the other by DnB NOR’s Transferee. DnB NOR’s
Transferee shall become a party to this Agreement as an Issuer from the date of issue
of its Letter of Credit.
	 
	 	12.2	 	Indemnifier’s co-operation The Indemnifier will co-operate fully with the
Issuers in connection with any assignment or transfer; will execute and procure the
execution of such documents as the Issuers may require in connection therewith; and
irrevocably authorises the Issuers to disclose to any proposed assignee or transferee
(whether before or after any assignment or transfer and whether or not any assignment
or transfer shall take place) all information relating to the Security Parties, the
Issuers’ Obligations or the Transaction Documents which the Issuers may in their
discretion consider necessary or desirable.
	 
	 	12.3	 	Rights of assignee or transferee Any assignee or transferee of an Issuer shall
(unless limited by the express terms of the assignment or transfer) take the full
benefit and assume the full obligations of every provision of the Security Documents
benefiting or obliging the relevant Issuer.

	13	 	Payments, Reserve Requirements and Illegality

	 	13.1	 	Payments All amounts payable by the Indemnifier or the Owner under or pursuant
to any of the Security Documents shall be paid to such accounts at such banks as the
Agent on behalf of the Issuers may from time to time direct to the Indemnifier, and
shall be paid in the Currency of Account in same day funds. Payments shall be deemed
to have been received by the Agent on the date on which the Agent receives
authenticated advice of receipt, unless that advice is received by the Agent on a day
other than a Business Day or at a time of day (whether on a Business Day or not) when
the Agent in its discretion considers that it is impossible or impracticable for the
Agent to utilise the amount received for value that same day, in which event the
payment in question shall be deemed to have been received by the Agent on the Business
Day next following the date of receipt of advice by the Agent.
	 
	 	13.2	 	No deductions or withholdings All payments to be made by the Indemnifier and
the Owner pursuant to the Security Documents shall, subject only to Clause 13.3, be
made free and clear of and without deduction for or on account of any Taxes or other
deductions, withholdings, restrictions, conditions or counterclaims of any nature.

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	 	13.3	 	Grossing-up If at any time any law requires (or is interpreted to require) the
Indemnifier or the Owner to make any deduction or withholding from any payment, or to
change the rate or manner in which any required deduction or withholding is made, the
Indemnifier or the Owner (as the case may be) will promptly notify the Agent and,
simultaneously with making that payment, will pay to the Agent whatever additional
amount (after taking into account any additional Taxes on, or deductions or
withholdings from, or restrictions or conditions on, that additional amount) is
necessary to ensure that, after making the deduction or withholding, the Agent receives
a net sum equal to the sum which it would have received had no deduction or withholding
been made.
	 
	 	13.4	 	Evidence of deductions If at any time the Indemnifier or the Owner is required
by law to make any deduction or withholding from any payment to be made by it pursuant
to any of the Security Documents, the Indemnifier or the Owner (as the case may be)
will pay the amount required to be deducted or withheld to the relevant authority
within the time allowed under the applicable law and will, no later than thirty (30)
days after making that payment, deliver to the Agent an original receipt issued by the
relevant authority, or other evidence acceptable to the Agent, evidencing the payment
to that authority of all amounts required to be deducted or withheld.
	 
	 	13.5	 	Rebate If the Indemnifier or the Owner makes any deduction or withholding from
any payment under or pursuant to any of the Security Documents, and the Agent or an
Issuer subsequently receives a refund or allowance from any tax authority which the
Agent or the Issuer (as the case may be) identifies as being referable to that
deduction or withholding, the Agent or the Issuer (as the case may be) shall, as soon
as reasonably practicable, pay to the Indemnifier or the Owner (as the case may be) an
amount equal to the amount of the refund or allowance received, if and to the extent
that it may do so without prejudicing its right to retain that refund or allowance and
without putting itself in any worse financial position than that in which it would have
been had the deduction or withholding not been required to have been made. Nothing in
this Clause shall be interpreted as imposing any obligation on the Agent or an Issuer
to apply for any refund or allowance nor as restricting in any way the manner in which
the Agent or any Issuer organises its tax affairs, nor as imposing on the Agent or any
Issuer any obligation to disclose to the Indemnifier any information regarding its tax
affairs or tax computations.
	 
	 	13.6	 	Adjustment of due dates If any payment to be made under any of the Security
Documents shall be due on a day which is not a Business Day, that payment shall be made
on the next succeeding Business Day (unless the next succeeding Business Day falls in
the next calendar month in which event the payment shall be made on the next preceding
Business Day). Any such variation of time shall be taken into account in computing any
interest in respect of that payment.
	 
	 	13.7	 	Change in law If, by reason of the introduction of any law, or any change in
any law, or the interpretation or administration of any law, or in compliance with any
request or requirement from any central bank or any fiscal, monetary or other
authority:

	 	13.7.1	 	an Issuer (or the holding company of an Issuer) shall be subject to any Tax
with respect to the Issuers’ Obligations; or

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	 	13.7.2	 	the basis of Taxation of payments to an Issuer in respect of all or any part
of the Indebtedness shall be changed; or

	 	13.7.3	 	any reserve requirements shall be imposed, modified or deemed applicable
against assets held by or deposits in or for the account of or loans by any
branch of an Issuer; or

	 	13.7.4	 	the manner in which an Issuer allocates capital resources to its obligations
under this Agreement or any ratio (whether cash, capital adequacy, liquidity or
otherwise) which an Issuer is required or requested to maintain shall be
affected; or

	 	13.7.5	 	there is imposed on an Issuer (or on the holding company of an Issuer) any
other condition in relation to the Indebtedness or the Security Documents;

	 	 	 	and the result of any of the above shall be to increase the cost to an Issuer (or to
the holding company of an Issuer) of the Issuer undertaking or maintaining the
Issuers’ Obligations, or to cause an Issuer to suffer (in its opinion) a material
reduction in the rate of return on its overall capital below the level which it
reasonably anticipated at the date of this Agreement and which it would have been
able to achieve but for its entering into this Agreement and/or performing its
obligations under this Agreement, the Indemnifier shall from time to time pay to an
Issuer on demand the amount which shall compensate the Issuers (or the holding
company of the Issuer) for such additional cost or reduced return. A certificate
signed by an authorised signatory of the relevant Issuer setting out the amount of
that payment and the basis of its calculation shall be submitted to the Indemnifier
by the Agent and shall be conclusive evidence of such amount save for manifest error
or on any question of law.
	 
	 	13.8	 	Illegality and impracticality Notwithstanding anything contained in the
Security Documents, the obligation of an Issuer to issue its Letter of Credit shall
terminate in the event that a change in any law or in the interpretation of any law by
any authority charged with its administration shall make it unlawful or, in the opinion
of the relevant Issuer, impracticable for it to issue its Letter of Credit. In that
event the Agent shall, by written notice to the Indemnifier, declare the relevant
Issuer’s obligations under this Agreement to be immediately terminated.

14 Agent

	 	14.1	 	Decision making Any determination of the Issuers shall be ascertained by the
Agent either:

	 	14.1.1	 	by means of a telefax sent by the Agent to each of the Issuers in identical
terms on the proposal or matter in issue; or

	 	14.1.2	 	by means of the vote of representatives of each Issuer at a meeting convened
by the Agent and held for the purpose of discussing (inter alia) such proposal
or matter in issue.

	 	 	 	Furthermore, it is hereby agreed by the Issuers that where a decision of the Issuers
is sought by the Agent by means of a telefax sent in accordance with paragraph (a)
above and PROVIDED THAT the Agent verifies forthwith by telephone with each

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	 	 	 	relevant Issuer that it has received such telefax in good order, then the Agent may
in its telefax:

	 	(a)	 	recommend a proposed course of action to be taken by the
Issuers; and
	 
	 	(b)	 	specify a time limit (of not less than three (3) Business Days)
within which the Issuers are required to respond to the Agent’s recommendation

	 	 	 	so that, if any Issuer fails to notify the Agent within such time limit of its
response to the recommendation, such Issuer shall be deemed to have accepted and
approved the course of action proposed by the Agent.

	 	14.2	 	The Agent

	 	14.2.1	 	Each of the Issuers hereby appoints the Agent to act as its agent under this
Agreement and the Security Documents with such rights, powers and discretions
as are expressly delegated to the Agent hereunder and thereunder.

	 	14.2.2	 	The Agent shall:

	 	(a)	 	promptly inform the Issuers of the contents of
any notice or request received by it from the Indemnifier under this
Agreement (whether such notice or request is addressed to the Agent
alone or the Agent on behalf of the Issuers) and of any information
delivered to it pursuant to Clause 9.2 and of any other matters which
the Agent considers material;
	 
	 	(b)	 	promptly deliver to the Issuers copies of any
accounts and certificates delivered to it pursuant to Clause 9.2 and,
as soon as reasonably practicable, copies of the documents delivered in
satisfaction of the requirements of Clause 3;
	 
	 	(c)	 	promptly inform the Issuers in reasonable
detail of any exercise by it of any of the rights, powers and/or
discretions vested in it hereunder (but without the Agent being under
any obligation to give prior notice to the Issuers of any such
exercise);
	 
	 	(d)	 	promptly notify the Issuers of the occurrence
of any Event of Default or any other default by the Indemnifier in the
due performance of or compliance with its material obligations under
this Agreement of which the Agent has actual knowledge or actual notice
and the occurrence of which the Agent has verified;
	 
	 	(e)	 	if directed by the Issuers, exercise (or
refrain from exercising) any right, power or discretion vested in it
hereunder in accordance with the directions of the Issuers provided,
however, that it may refrain from acting in accordance with any such
directions until it has received such security as it may require
(whether by way of payment in advance or otherwise) for all costs,
claims, expenses (including legal fees) and liabilities which it will
or may expend or incur in complying with such directions and for this
purpose the

40

 

	 	 	 	Agent shall make a demand for such security addressed to all the
Issuers;
	 
	 	(f)	 	receive from the Indemnifier all payments of
principal, interest and other moneys expressed to be payable to the
Agent hereunder on behalf of all or any of the Issuers and shall
promptly distribute the same amongst the Issuers and itself in
accordance with the terms of this Agreement pending which the Agent
shall hold any and all such moneys on trust for the Issuers and itself;
and
	 
	 	(g)	 	enter into any amendment to any of the Security
Documents or grant any waiver of any obligation of any of the Security
Parties under any of such Security Documents if so instructed by the
Issuers.

	 	14.2.3	 	The relationship between the Agent on the one part and each Issuer on the
other is that of agent and principal and, except in relation to any moneys
referred to in Clause 14.2.2(f) and held by the Agent pending distribution
hereunder, the Agent shall not have a fiduciary relationship with or be, or be
deemed to be, a trustee of or for any such party.

	 	14.2.4	 	In addition to the powers expressly given to the Agent by this Agreement:

	 	(a)	 	the Issuers may give the Agent (generally or in
any particular case) any powers which the Issuers consider appropriate;
and
	 
	 	(b)	 	the Agent has power to take any other action
which it considers to be reasonably incidental or conducive to the
performance of its functions under this Agreement or otherwise
appropriate in the context of those functions, including the exercise
of any powers given to it by the Issuers.

	 	14.2.5	 	The rights, powers and discretions vested in the Agent by this Agreement
shall only be exercised by the Agent in accordance with the instructions of the
Issuers provided however that the Agent shall be entitled (but not bound) to
exercise or refrain from exercising any such right, power or discretion without
the directions of the Issuers if the Agent believes that the immediate exercise
of such right, power or discretion is necessary or desirable to protect the
interests of the Issuers under or in respect of this Agreement.
	 
	 	 	 	Where any right, power or discretion is vested in the Agent under this
Agreement but is expressed as being exercisable in accordance with the
directions of the Issuers, such right, power or discretion shall not be
exercised by the Agent without the lawful directions of the Issuers.

	 	14.2.6	 	Notwithstanding anything to the contrary expressed or implied herein, the
Agent shall not:

	 	(a)	 	be bound to enquire as to the occurrence or
otherwise of any Event of Default or as to the performance by the
Indemnifier of its obligations under this Agreement;

41

 

	 	(b)	 	be bound to disclose to any other person any
information relating to the Indemnifier if such disclosure would or
might in its opinion constitute a breach of any law or regulation or be
otherwise actionable at the suit of any person;
	 
	 	(c)	 	have any responsibility to the Issuers for:

	 	(i)	 	the financial position,
creditworthiness, affairs or prospects of the Indemnifier;
	 
	 	(ii)	 	the performance or
non-performance howsoever by the Indemnifier of any of its
obligations hereunder;
	 
	 	(iii)	 	the due execution,
effectiveness, genuineness, validity or enforceability of this
Agreement or any document relating hereto or any filing or
recording thereof or the taking of any other action whatsoever
and howsoever in connection therewith or the collectability of
any sum due hereunder;
	 
	 	(iv)	 	any computations and/or
information supplied to the Issuers by the Agent in reliance
upon which the Issuers have entered into this Agreement;

	 	(d)	 	be under any liability whatsoever for any
consequence of relying on:

	 	(i)	 	any written communication or
document believed by it to be genuine or correct and to have
been communicated or signed by the person by whom it is
purported to have been communicated or signed; or
	 
	 	(ii)	 	the advice or opinions of any
professional advisers selected by it;

	 	(e)	 	be under any duty to account to any Issuer or
the Agent for any sum received by it for its own account or the profit
element of any such sum; or
	 
	 	(f)	 	be under any obligation other than those for
which express provision is made herein.

	 	14.2.7	 	The Agent may:

	 	(a)	 	carry out its duties hereunder through such
officers, directors, employees, consultants or independent agents as it
may in its unfettered discretion think fit;
	 
	 	(b)	 	assume that no Event of Default has occurred
and that the Indemnifier is not in breach of its obligations under this
Agreement unless the Agent has actual knowledge or actual notice to the
contrary;
	 
	 	(c)	 	engage and pay for the advice or services of
any internal or external lawyers, accountants, surveyors or other
experts whose advice or

42

 

	 	 	 	services may to it seem necessary, expedient or desirable and rely
upon any advice so obtained;
	 
	 	(d)	 	rely as to any matters of fact which might
reasonably be expected to be within the knowledge of the Indemnifier
upon a certificate signed by or on behalf of the Indemnifier; and
	 
	 	(e)	 	rely upon any communication or document
believed by it to be genuine.

	 	14.2.8	 	It is understood that each of the Issuers has itself been, and will continue
to be, solely responsible for making its own independent appraisal of and
investigations into the financial condition, creditworthiness, condition,
affairs, status and nature of the Indemnifier and, accordingly, each of the
Issuers warrants to the Agent that it has not relied and will not rely on the
Agent:

	 	(a)	 	to check or enquire on its behalf into the
adequacy, accuracy or completeness of any information provided by the
Indemnifier in connection with this Agreement; or
	 
	 	(b)	 	to assess or keep under review on its behalf
the financial condition, creditworthiness, condition, affairs, status
or nature of the Indemnifier.

	 	14.2.9	 	Subject to the terms of this Agreement, this Agreement shall be serviced,
supervised and administered by the Agent in the ordinary course of its business
and in accordance with its usual practices. In performing its duties and
functions hereunder, the Agent shall exercise the same care as it normally
exercises in making and administering loans for its own account, but assumes no
further responsibility in respect of such performance.

	 	14.2.10	 	The Agent shall not be under any liability as a result of taking or omitting
to take any action in relation to this Agreement save in the case of gross
negligence or wilful misconduct and the Issuers will not assert or seek to
assert against any director, officer or employee of the Agent any claim they
might have against any of them in respect of the matters referred to in this
Clause 14.2.10.

	 	14.2.11	 	Neither the Agent (nor any officer thereof) shall be precluded by reason of
so acting from underwriting, guaranteeing the subscription of or subscribing
for or otherwise acquiring, holding or dealing with any debentures, shares or
securities whatsoever of the Indemnifier or from entering into any contract or
financial or other transaction with or from engaging in any banking or other
business with the Indemnifier and shall not be liable to account for any profit
made or payment received by it thereby or in connection therewith.

	 	14.3	 	Retirement and replacement of the Agent

	 	14.3.1	 	The Agent may retire at any time without assigning any reason by giving to
the Indemnifier and the Issuers not less than thirty (30) days notice of its
intention to do so. Unless the Agent in its notice of retirement nominates

43

 

	 	 	 	any of its associated companies to be its successor, the successor Agent may
be appointed by the Issuers (with the prior written consent of the
Indemnifier, such consent not to be unreasonably withheld or delayed) during
such thirty (30) day period PROVIDED THAT, should they fail to do so, the
Agent may then appoint as its successor a reputable and experienced bank
with an office in Oslo, Norway or London, England.

	 	14.3.2	 	If any Issuer is dissatisfied with the Agent and wants it to be replaced,
such Issuer shall consult with the other relevant Issuers and the Indemnifier
for a period of up to thirty (30) days to decide whether the Agent should be
replaced and, if so, by whom (such replacement being one of the relevant
Issuers or an associated company thereof). If at the end of such period the
relevant Issuers unanimously agree that the Agent should be replaced by a
particular Issuer or one of its associated companies, and if the Indemnifier
consents in writing to the identity of the proposed replacement (such consent
(a) not to be unreasonably withheld and (b) not to be required if an Event of
Default has occurred and is continuing), then notice shall be given by the
relevant Issuers to the Agent specifying the date, being not fewer than five
(5) Business Days after the date of such notice, on which the appointment of
the successor Agent is, subject to Clause 14.3.4, to take effect.

	 	14.3.3	 	For the purposes of this Clause 14.3:

	 	(a)	 	an “associated company” of the Agent and/or any
Issuer shall mean any company which is a holding company of the Agent
and/or such Issuer or a wholly-owned subsidiary of it or its parent
company; and

	 	(b)	 	“relevant Issuers” means all of the Issuers
other than that Issuer which acts as Agent or whose associated company
acts in such capacity.

	 	14.3.4	 	Any appointment of a successor Agent under Clause 14.3.1 or 14.3.2 shall take
effect upon:

	 	(a)	 	the successor confirming in writing its
agreement to be bound by the provisions of this Agreement; and

	 	(b)	 	notice thereof by the Agent and its successor
(which notice, shall specify the banks to which payments to the new
Agent shall be made thereafter) being given to each of the other
parties to this Agreement.

	 	14.3.5	 	If a successor to the Agent is appointed under the provisions of this Clause
14.3:

	 	(a)	 	the outgoing Agent shall be discharged from any
further obligation under this Agreement;

	 	(b)	 	its successor and each of the other parties
hereto shall have the same rights and obligations amongst themselves as
they would have had

44

 

	 	 	 	if such successor had been a party hereto in place of the outgoing
Agent;

	 	(c)	 	Clause 14 and the other provisions of this
Agreement shall remain in effect for the benefit and protection of the
outgoing Agent in relation to any claim or loss which may be brought
against or incurred by it in connection with or as a result of any act,
omission, breach, neglect or other occurrence or matter relating to or
arising out of this Agreement which took place before its resignation.

15 Sharing among the Issuers

	 	15.1	 	Payments to Issuers If an Issuer (a “Recovering Issuer”) receives or recovers
any amount from a Security Party other than in accordance with Clause 13.1 and applies
that amount to a payment due under the Security Documents then:

	 	15.1.1	 	the Recovering Issuer shall, within three (3) Business Days, notify details
of the receipt or recovery, to the Agent;

	 	15.1.2	 	the Agent shall determine whether the receipt or recovery is in excess of the
amount the Recovering Issuer would have been paid had the receipt or recovery
been received or made by the Agent and distributed in accordance with Clause
14.2.2(f), without taking account of any Tax which would be imposed on the
Agent in relation to the receipt, recovery or distribution; and

	 	15.1.3	 	the Recovering Issuer shall, within three (3) Business Days of demand by the
Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt
or recovery less any amount which the Agent determines may be retained by the
Recovering Issuer as its share of any payment to be made, in accordance with
Clauses 11.4 and 14.2.2(f).

	 	15.2	 	Redistribution of payments The Agent shall treat the Sharing Payment as if it
had been paid by the relevant Security Party and distribute it between the Issuers
(other than the Recovering Issuer) in accordance with Clause 14.2.2(f).

	 	15.3	 	Recovering Issuer’s rights

	 	15.3.1	 	On a distribution by the Agent under Clause 15.2, the Recovering Issuer will
be subrogated to the rights of the Issuers which have shared in the
redistribution.

	 	15.3.2	 	If and to the extent that the Recovering Issuer is not able to rely on its
rights under Clause 15.3.1, the relevant Security Party shall be liable to the
Recovering Issuer for a debt equal to the Sharing Payment which is immediately
due and payable.

	 	15.4	 	Reversal of redistribution If any part of the Sharing Payment received or
recovered by a Recovering Issuer becomes repayable and is repaid by that Recovering
Issuer then:

	 	15.4.1	 	each Issuer which has received a share of the relevant Sharing Payment
pursuant to Clause 15.2 shall, upon request of the Agent, pay to the Agent for
account of that Recovering Issuer an amount equal to the appropriate

45

 

	 	 	 	part of its share of the Sharing Payment (together with an amount as is
necessary to reimburse that Recovering Issuer for its proportion of any
interest on the Sharing Payment which that Recovering Issuer is required to
pay); and

	 	15.4.2	 	that Recovering Issuer’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Security Party will be liable
to the reimbursing Issuer for the amount so reimbursed.

	 	15.5	 	Exceptions

	 	15.5.1	 	This Clause 15 shall not apply to the extent that the Recovering Issuer would
not, after making any payment pursuant to this Clause, have a valid and
enforceable claim against the relevant Security Party.

	 	15.5.2	 	A Recovering Issuer is not obliged to share with any other Issuer any amount
which the Recovering Issuer has received or recovered as a result of taking
legal or arbitration proceedings if:

	 	(a)	 	it notified that other Issuer of the legal or
arbitration proceedings; and

	 	(b)	 	that other Issuer had an opportunity to
participate in those legal or arbitration proceedings but did not do so
as soon as reasonably practicable having received notice and did not
take separate legal or arbitration proceedings.

16 Default Procedure

	 	16.1	 	Event of Default or Potential Event of Default If at any time an Event of
Default or a Potential Event of Default occurs, the Issuers shall consult together with
a view to determining the action to be taken in relation to such default pursuant to
Clause 10.1.

	 	16.2	 	Acceleration Event At any time following an Acceleration Event the Agent may
and shall, if so instructed by two (2) Issuers, subject to the provisions of the
Co-ordination Deed, declare the security constituted by the Security Documents to be
enforceable and take any steps it considers appropriate to enforce such security.

17 The Letters of Credit and the Issuers

	 	17.1	 	Simultaneous issue An Issuer shall not be obliged to issue its Letter of
Credit unless the other Issuers shall issue the other Letters of Credit simultaneously.

	 	17.2	 	Draft An Issuer shall immediately notify the other Issuers through the Agent
if it is presented with a draft by Chase under its Letter of Credit. If:

	 	17.2.1	 	all the other Issuers have not been presented with a draft by Chase pursuant
to exhibit C to each of the Letters of Credit, any Issuer that has received a
draft shall immediately request Chase to present drafts to itself and the other
Issuers in the form prescribed by exhibit C to each of the Letters of Credit.
If, notwithstanding the foregoing provisions of this Clause 17.2.1, Chase does
not present such drafts and any Issuer that has received the draft (the

46

 

	 	 	 	“Paying Issuer”), in all the circumstances, considers it necessary to make
the full payment requested by Chase in such draft, the Paying Issuer shall
be entitled to a contribution from the other Issuers (the “Indemnifying
Issuers”). The contributions of the Indemnifying Issuers shall be in the
Proportion of the amount demanded under the draft less the Proportion of any
amount received by the Paying Issuer from the Indemnifier in respect of the
Issuers’ Obligations under that draft within the relevant seven (7) Business
Day period; or

	 	17.2.2	 	each of the Issuers is presented with a draft but the amounts of the drafts
are not in the correct Proportions, each of the Issuers shall immediately
request Chase to present it with a draft in accordance with exhibit C to the
relevant Letter of Credit. If, notwithstanding the foregoing provisions of
this Clause 17.2.2, Chase does not re-present drafts in accordance with exhibit
C to each of the Letters of Credit and the Issuers, in all the circumstances,
consider it necessary to make the payments requested by Chase, an Issuer that
has paid in excess of the relevant Proportion of the aggregate amount of the
drafts shall be entitled to a contribution from the other Issuers in such
excess amount less the Proportion of any amount received by the relevant Issuer
from the Indemnifier in respect of the Issuers’ Obligations under that draft
within the relevant seven (7) Business Day period.

	 	17.3	 	Extension Not less than seventy five (75) days before the date falling three
hundred and sixty four (364) days from the Issue Date and from the last day of any
subsequent period of three hundred and sixty four (364) days, each Issuer shall notify
the others through the Agent whether it shall be extending its Letter of Credit at the
end of the current three hundred and sixty four (364) day period. If an Issuer wishes
to give notice of cancellation of its Letter of Credit it shall do so on the seventieth
(70th) day prior to the date falling three hundred and sixty four (364) days from the
Issue Date or from the first day of any subsequent period of three hundred and sixty
four (364) days (as the case may be) or, if such day is not a Business Day, on the next
Business Day (in Oslo, Norway and New York, New York, United States of America).
	 
	 	 	 	If an Issuer has notified the other Issuers as aforesaid that it shall be extending
its Letter of Credit at the end of the current three hundred and sixty four (364)
day period and subsequently changes its decision, the Issuer that has changed its
decision shall use its best endeavours to ensure that the other Issuers are notified
of its changed decision not less than one (1) Business Day (in Oslo, Norway and New
York, New York, United States of America) prior to the sixtieth (60th) day prior to
the date falling three hundred and sixty four (364) days from the Issue Date or from
the first day of any subsequent period of three hundred and sixty four (364) days
(as the case may be).

18 Communications

	 	18.1	 	Method Any Communication may be given, delivered, made or served (as the case
may be) under or in relation to this Agreement by letter or fax and shall be in the
English language and sent addressed:

	 	18.1.1	 	in the case of an Issuer to that Issuer at its address set out in Appendix A;

47

 

	 	18.1.2	 	in the case of the Agent to the Agent at its address set out in Appendix A;
and

	 	18.1.3	 	in the case of the Indemnifier to the Communications Address;

	 	 	 	or to such other address or fax number as an Issuer, the Agent or the Indemnifier
may designate for itself by written notice to the others, through the Agent in the
case of an Issuer or the Indemnifier.
	 
	 	18.2	 	Timing A Communication shall be deemed to have been duly given, delivered,
made or served to or on, and received by, the Indemnifier:

	 	18.2.1	 	in the case of a fax when the sender receives one or more transmission
reports showing the whole of the Communication to have been transmitted to the
correct fax number;

	 	18.2.2	 	if delivered to an officer of the Indemnifier or left at the Communications
Address at the time of delivery or leaving; or

	 	18.2.3	 	if posted, at 9.00 a.m. in the place of deemed receipt on the Business Day
two (2) Business Days after posting by prepaid first class or express airmail
(as appropriate) post.

	 	 	 	A Communication shall only be deemed to have been duly given, delivered, made or
served to or on, and received by, the Issuers or the Agent on actual receipt of the
whole of that Communication by the Issuers or the Agent (as the case may be).

	 	18.3	 	Indemnity The Indemnifier shall indemnify the Agent and the Issuers against
any cost, claim, liability, loss or expense (including legal fees and any Value Added
Tax or any similar or replacement tax (if applicable)) which the Agent or the Issuers
may sustain or incur as a consequence of any Communication sent by or on behalf of the
Indemnifier by fax not being received by its intended recipient, or being received
incomplete, or by reason of any Communication purportedly having been sent by or on
behalf of the Indemnifier having been sent fraudulently.

19 General Indemnities

	 	19.1	 	Currency In the event of the Agent or an Issuer receiving or recovering any
amount payable under any of the Security Documents in a currency other than the
Currency of Account, and if the amount received or recovered is insufficient when
converted by the Agent or the Issuer (as the case may be) into the Currency of Account
at the date of receipt in accordance with the Agent’s or the Issuer’s usual practice to
satisfy in full the amount due, the Indemnifier shall, on the Agent’s written demand,
pay to the Agent such further amount in the Currency of Account as is sufficient to
satisfy in full the amount due and that further amount shall be due to the Agent or the
Issuer (as the case may be) as a separate debt under this Agreement.

	 	19.2	 	Costs and expenses The Indemnifier will, within fourteen (14) days of the
Agent’s written demand, reimburse the Agent or the Issuers (as the case may be) for all
costs and expenses (including Value Added Tax or any similar or replacement tax if
applicable) of and incidental to:

48

 

	 	19.2.1	 	the negotiation, preparation, execution, registration, syndication and
administration of the Security Documents and the Issue Request (whether or not
any of the Security Documents are actually executed or registered and whether
or not any of the Issue Request or the Letters of Credit is issued);

	 	19.2.2	 	any amendments, addenda or supplements to any of the Security Documents
(whether or not completed);

	 	19.2.3	 	any other documents which may at any time be required by the Agent to give
effect to any of the Security Documents or which the Agent or the Issuers is or
are entitled to call for or obtain pursuant to any of the Security Documents
(including, without limitation, all premiums and other sums from time to time
payable by the Agent in relation to the Mortgagees’ Insurances); and

	 	19.2.4	 	the exercise of the rights, powers, discretions and remedies of the Agent and
the Issuers under or pursuant to the Security Documents.

	 	19.3	 	Events of Default The Indemnifier shall indemnify the Issuers and the Agent
from time to time on demand against all losses and costs incurred or sustained by the
Issuers or the Agent as a consequence of any Event of Default.

	 	19.4	 	Protection and enforcement The Indemnifier shall indemnify the Issuers and the
Agent from time to time on demand against all claims, losses, costs, including but
without limitation legal costs, and expenses which the Issuers or the Agent may from
time to time sustain, incur or become liable for in or about the protection,
maintenance or enforcement of the rights conferred on the Issuers or the Agent by the
Security Documents or in or about the exercise or purported exercise by the Issuers or
the Agent of any of the rights, powers, discretions or remedies vested in them or it
under or arising out of the Security Documents, including (without limitation) any
losses, costs and liabilities which the Agent and/or the Issuers may from time to time
sustain, incur or become liable for by reason of the Agent and/or the Issuers being a
mortgagee of the Vessel, or by reason of the Agent and/or the Issuers being deemed by
any court or authority to be an operator or controller, or in any way concerned in the
operation or control, of the Vessel.

	 	19.5	 	Liabilities of the Issuers The Indemnifier will from time to time reimburse
the Issuers or the Agent on demand for all sums which the Issuers or the Agent may pay
or become actually or contingently liable for on account of the Indemnifier or in
connection with the Vessel (whether alone or jointly or jointly and severally with any
other person) including (without limitation) all sums which the Issuers or the Agent
may pay or guarantees which they or it may give in respect of the Insurances, any costs
or expenses incurred by the Issuers or the Agent in connection with the maintenance or
repair of the Vessel or in discharging any lien, bond or other claim relating in any
way to the Vessel, and any sums which the Issuers or the Agent may pay or guarantee
which they or it may give to procure the release of the Vessel from arrest or
detention.

	 	19.6	 	Taxes The Indemnifier shall pay all Taxes to which all or any part of the
Indebtedness or any of the Security Documents may be at any time subject and shall
indemnify the Issuers or the Agent on demand against all liabilities, costs,

49

 

	 	 	 	claims and expenses resulting from any omission to pay or delay in paying any such Taxes.

20 Miscellaneous

	 	20.1	 	Waivers No failure or delay on the part of the Issuers or the Agent in
exercising any right, power, discretion or remedy under or pursuant to any of the
Security Documents, nor any actual or alleged course of dealing between the Issuers or
the Agent and the Indemnifier, shall operate as a waiver of, or acquiescence in, any
default on the part of any Security Party, unless expressly agreed to do so in writing
by the Issuers or the Agent (as the case may be), nor shall any single or partial
exercise by the Issuers or the Agent of any right, power, discretion or remedy preclude
any other or further exercise of that right, power, discretion or remedy, or the
exercise by the Issuers or the Agent of any other right, power, discretion or remedy.

	 	20.2	 	No oral variations No variation or amendment of any of the Security Documents
shall be valid unless in writing and signed on behalf of the Issuers or the Agent (in
the case of this Agreement).

	 	20.3	 	Severability If at any time any provision of any of the Security Documents is
invalid, illegal or unenforceable in any respect that provision shall be severed from
the remainder and the validity, legality and enforceability of the remaining provisions
shall not be affected or impaired in any way.

	 	20.4	 	Successors etc. The Security Documents shall be binding on the Security
Parties and on their respective successors and permitted transferees and assignees, and
shall inure to the benefit of each of the Issuers and the Agent and their respective
successors, transferees and assignees. The Indemnifier may not assign or transfer any
of its rights or obligations under or pursuant to any of the Security Documents without
the prior written consent of the Issuers.

	 	20.5	 	Further assurance If any provision of the Security Documents shall be invalid
or unenforceable in whole or in part by reason of any present or future law or any
decision of any court, or if the documents at any time held by the Agent or the Issuers
are considered by the Agent for any reason insufficient to carry out the terms of this
Agreement, then from time to time the Indemnifier will promptly, on demand by the
Agent, execute or procure the execution of such further documents as in the opinion of
the Issuers are necessary to provide adequate security for the repayment of the
Indebtedness.

	 	20.6	 	Other arrangements The Issuers or the Agent (acting on the instructions of the
Issuers) may, without prejudice to their or its rights under or pursuant to the
Security Documents, at any time and from time to time, on such terms and conditions as
they may in their or its discretion determine, and without notice to the Indemnifier or
the Owner, grant time or other indulgence to, or compound with, any other person liable
(actually or contingently) to the Issuers and the Agent in respect of all or any part
of the Indebtedness, and may release or renew negotiable instruments and take and
release securities and hold funds on realisation or suspense account without affecting
the liabilities of the Indemnifier or the rights of the Issuers and the Agent under or
pursuant to the Security Documents.

50

 

	 	20.7	 	Advisers The Indemnifier (for itself and on behalf of the Owner) irrevocably
authorises the Agent, at any time and from time to time during the Facility Period, to
consult insurance advisers on any matters relating to the Insurances, including,
without limitation, the collection of insurance claims, and from time to time to
consult or retain advisers or consultants to monitor or advise on any other claims
relating to the Vessel. The Indemnifier or the Owner will provide such advisers and
consultants with all information and documents which they may from time to time require
and will reimburse the Agent on demand for all costs and expenses incurred by the Agent
in connection with the consultation or retention of such advisers or consultants.

	 	20.8	 	Delegation Each of the Issuers and the Agent may at any time and from time to
time delegate to any person any of its rights, powers, discretions and remedies
pursuant to the Security Documents on such terms as it may consider appropriate
(including the power to sub-delegate).

	 	20.9	 	Rights etc. cumulative Every right, power, discretion and remedy conferred on
the Issuers or the Agent under or pursuant to the Security Documents shall be
cumulative and in addition to every other right, power, discretion or remedy to which
it may at any time be entitled by law or in equity. Each of the Issuers and the Agent
may exercise each of its rights, powers, discretions and remedies as often and in such
order as it deems appropriate. The exercise or the beginning of the exercise of any
right, power, discretion or remedy shall not be interpreted as a waiver of the right to
exercise that or any other right, power, discretion or remedy either simultaneously or
subsequently.
	 
	 	20.10	 	No enquiry Neither the Issuers nor the Agent shall be concerned to enquire
into the powers of the Security Parties or of any person purporting to act on behalf of
any of the Security Parties, even if any of the Security Parties or any such person
shall have acted in excess of their powers or if their actions shall have been
irregular, defective or informal, whether or not the Issuers or the Agent had notice
thereof.
	 
	 	20.11	 	Continuing security The security constituted by the Security Documents shall
be continuing and shall not be satisfied by any intermediate payment or satisfaction
until the Indebtedness shall have been repaid in full and neither the Agent nor the
Issuers shall be under no further actual or contingent liability to any third party in
relation to the Vessel, the Insurances, Earnings or Compulsory Acquisition Compensation
or any other matter referred to in the Security Documents.
	 
	 	20.12	 	Security cumulative The security constituted by the Security Documents shall
be in addition to any other security now or in the future held by the Issuers or the
Agent for or in respect of all or any part of the Indebtedness, and shall not merge
with or prejudice or be prejudiced by any such security or any other contractual or
legal rights of the Issuers or the Agent, nor affected by any irregularity, defect or
informality, or by any release, exchange or variation of any such security. Section 93
of the Law of Property Act 1925 and all provisions which the Issuers or the Agent
consider analogous thereto under the law of any other relevant jurisdiction shall not
apply to the security constituted by the Security Documents.
	 
	 	20.13	 	Re-instatement If the Issuers or the Agent take any steps to exercise any of
their or its rights, powers, remedies or discretions pursuant to the Security Documents
and the result shall be adverse to the Issuers or the Agent (as the case may be), the

51

 

	 	 	 	Indemnifier and the Issuers or the Agent (as the case may be) shall be restored to
their former positions as if no such steps had been taken.
	 
	 	20.14	 	The Issuers’ Obligations In performing the Issuers’ Obligations the Issuers
shall exercise the same care as they normally exercise in making and administering
loans for their own account and neither the Issuers nor the Agent nor any agent or
employee of the Issuers or the Agent shall be liable to the Indemnifier for any loss or
damage arising from any action taken or omitted in relation to the Issuers’
Obligations, unless caused by their or its gross negligence or wilful misconduct. In
particular, but without limitation, neither the Issuers nor the Agent nor any agent or
employee of the Issuers or the Agent shall be liable for any loss or damage arising
from any delay, loss, error, omission, variation or mutilation in the transmission,
translation, coding or decoding of all or any part of the Issuers’ Obligations or any
communication in connection with the Issuers’ Obligations.
	 
	 	20.15	 	No liability Neither the Issuers, the Agent nor any agent or employee of the
Issuers or the Agent, nor any receiver and/or manager appointed by the Issuers or the
Agent, shall be liable for any losses which may be incurred in or about the exercise of
any of the rights, powers, discretions or remedies of the Issuers or the Agent under or
pursuant to the Security Documents nor shall any of them be liable as mortgagee in
possession for any loss on realisation or for any neglect or default of any nature for
which a mortgagee in possession might otherwise be liable.
	 
	 	20.16	 	Rescission of payments etc. Any discharge, release or reassignment by the
Issuers or the Agent of any of the security constituted by, or any of the obligations
of any Security Party contained in, any of the Security Documents shall be (and be
deemed always to have been) void if any act (including, without limitation, any
payment) as a result of which such discharge, release or reassignment was given or made
is subsequently wholly or partially rescinded or avoided by operation of any law.
	 
	 	20.17	 	Subsequent Encumbrances If the Issuers or the Agent receive notice of any
subsequent Encumbrance affecting the Vessel or all or any part of the Insurances,
Earnings or Compulsory Acquisition Compensation, the Issuers and the Agent may open a
new account in their and its books for the Indemnifier. If the Issuers or the Agent do
not open a new account, then (unless the Issuers or the Agent (as the case may be) give
written notice to the contrary to the Indemnifier) as from the time of receipt by the
Issuers or the Agent (as the case may be) of notice of such subsequent Encumbrance, all
payments made to the Issuers or the Agent (as the case may be) shall be treated as
having been credited to a new account of the Indemnifier and not as having been applied
in reduction of the Indebtedness.
	 
	 	20.18	 	Releases If the Issuers or the Agent (acting on the instructions of the
Issuers) shall at any time in their or its discretion release any party from all or any
part of any of the Security Documents, the liability of any other party to the Security
Documents shall not be varied or diminished.
	 
	 	20.19	 	Discretions Unless otherwise expressly indicated, where the Issuers or the
Agent are stated in the Security Documents to have a discretion and/or where the
opinion of the Issuers or the Agent is referred to and/or where the consent, agreement
or approval of the Issuers or the Agent is required for any course of action, or where
anything is required to be acceptable to the Issuers or the Agent, the Issuers or the
Agent (as the case may be) shall have a sole, absolute and unfettered discretion

52

 

	 	 	 	and/or may give or withhold their or its consent, agreement or approval at their or
its sole, absolute and unfettered discretion.
	 
	 	20.20	 	Certificates Any certificate or statement signed by an authorised signatory
of the Issuers or the Agent purporting to show the amount of the Indebtedness (or any
part of the Indebtedness) or any other amount referred to in any of the Security
Documents shall, save for manifest error or on any question of law, be conclusive
evidence as against the Indemnifier of that amount.
	 
	 	20.21	 	Survival of representations and warranties The representations and warranties
on the part of the Indemnifier contained in this Agreement shall survive the execution
of this Agreement and the issue of the Letters of Credit.
	 
	 	20.22	 	Counterparts This Agreement may be executed in any number of counterparts
each of which shall be original but which shall together constitute the same
instrument.
	 
	 	20.23	 	Contracts (Rights of Third Parties) Act 1999 No term of this Agreement is
enforceable by a person who is not a party to it.

	21	 	Waiver of Immunity
	 
	 	 	To the extent that the Indemnifier may in any jurisdiction claim for itself or its assets
immunity from suit, execution, attachment (whether in aid of execution, before judgment or
otherwise) or other legal process in relation to this Agreement or the other Security
Documents and to the extent that in any such jurisdiction there may be attributed to itself
or its assets such immunity (whether or not claimed) the Indemnifier hereby irrevocably and
unconditionally agrees throughout the Security Period not to claim and hereby irrevocably
waives such immunity to the full extent permitted by the laws of such jurisdiction. In
respect of any legal action or proceedings arising out of or in connection with any of the
Security Documents the Indemnifier hereby consents generally as a matter of procedure in
relation to the waiver of immunity (but not so as to prejudice any defence which the
Indemnifier may have on the merits of the substantive issue) to the giving of any relief or
the issue of any process in connection with such legal action or proceedings including
without limitation, the making, enforcement or execution against any property whatsoever
(irrespective of its uses or intended uses) of any order or judgment which may be made or
given in such legal action or proceedings.

	 
	22	 	Law and Jurisdiction

	 	22.1	 	Governing law This Agreement shall in all respects be governed by and
interpreted in accordance with English law.

	 	22.2	 	Jurisdiction For the exclusive benefit of the Issuers, the parties to this
Agreement irrevocably agree that the courts of England are to have jurisdiction to
settle any disputes which may arise out of or in connection with this Agreement and
that any Proceedings may be brought in those courts.

	 	22.3	 	Alternative jurisdictions Nothing contained in this Clause shall limit the
right of the Issuers or the Agent to commence any Proceedings against the Indemnifier
in any other court of competent jurisdiction nor shall the commencement of any
Proceedings against the Indemnifier in one or more jurisdictions preclude the

53

 

	 	 	 	commencement of any Proceedings in any other jurisdiction, whether concurrently or
not.

	 	22.4	 	Waiver of objections The Indemnifier irrevocably waives any objection which it
may now or in the future have to the laying of the venue of any Proceedings in any
court referred to in this Clause, and any claim that those Proceedings have been
brought in an inconvenient or inappropriate forum, and irrevocably agrees that a
judgment in any Proceedings commenced in any such court shall be conclusive and binding
on it and may be enforced in the courts of any other jurisdiction.

	 	22.5	 	Service of process Without prejudice to the right of the Issuers and the Agent
to use any other method of service permitted by law, the Indemnifier irrevocably agrees
that any claim, writ, notice, judgment or other legal process shall be sufficiently
served on it if addressed to it and left at or sent by post to the Address for Service,
and in that event shall be conclusively deemed to have been served at the time of
leaving or, if posted, at 9.00 a.m. in the place of deemed receipt on the Business Day
two (2) Business Days after posting by prepaid first class post.

IN WITNESS of which the parties to this Agreement have executed this Agreement the day and year
first before written.

	 	 	 	 	 
	SIGNED
by PAUL TURNER

	 	 	)	 
	duly authorised for and on behalf

	 	 	)	     P.A. TURNER 
	of NCL CORPORATION LTD.

	 	 	)	 
	 
	 	 	 	 
	SIGNED
by JULIE CLEGG

	 	 	)	 
	duly authorised for and on behalf

	 	 	)	     J. CLEGG 
	of DnB NOR BANK ASA

	 	 	)	 
	(as a Mandated Lead Arranger and an Issuer)

	 	 	)	 
	 
	 	 	 	 
	SIGNED by JULIE CLEGG

	 	 	)	 
	duly authorised for and on behalf

	 	 	)	     J. CLEGG 
	of HSBC BANK USA, N.A.

	 	 	)	 
	(as a Mandated Lead Arranger and an Issuer)

	 	 	)	 
	 
	 	 	 	 
	SIGNED by JULIE CLEGG

	 	 	)	 
	duly authorised for and on behalf

	 	 	)	     J. CLEGG 
	of NORDEA BANK NORGE ASA

	 	 	)	 
	(as a Mandated Lead Arranger and an Issuer)

	 	 	)	 
	 
	 	 	 	 
	SIGNED by JULIE CLEGG

	 	 	)	 
	duly authorised for and on behalf

	 	 	)	      J.
CLEGG 
	of DnB NOR BANK ASA

	 	 	)	 
	(as the Agent)

	 	 	)	 

54

 

APPENDIX A

Particulars of Agent, Mandated Lead Arrangers and Issuers

Name and Address

Agent

DnB NOR BANK ASA

Stranden 21

NO-0021 Oslo

Norway

	 	 	 
	Fax:

	 	+47 22 482894
	Attn:

	 	Mrs Solveig Nuland Knoff

Mandated Lead Arrangers and Issuers

	 	 	 	 	 
	 	 	Proportion of
	Name and Address	 	Commitment
	DnB NOR BANK ASA

Stranden 21

NO-0021 Oslo

Norway

Fax: +47 22 482020

Attn: Mr Jon Flovik

Email: jon.flovik@dnbnor.no

	 	 	50.0	%
	 
	 	 	 	 
	HSBC BANK USA, N.A.

452 Fifth Avenue

New York

NY 10018

United States of America

Fax: +1 212 525 2469

Attn: Mr Chris Warner/Mr Bryan Debroka

Email: chris.warner@us.hsbc.com/

            bryan.debroka@us.hsbc.com

	 	 	25.0	%
	 
	 	 	 	 
	NORDEA BANK NORGE ASA

Middelthuns gate 17

Oslo

Norway

P O Box 1166 Sentrum

NO-0107 Oslo

Fax: +47 22 484278

Attn: Mr Arne Berglund

Email: arne.berglund@nordea.com

	 	 	25.0	%

55

 

APPENDIX B

Issue Request

			
	To:	 	DnB NOR BANK ASA

as the Agent

			
	From:	 	NCL CORPORATION LTD.

2005

Dear Sirs

Issue Request

We refer to the facility agreement dated           September 2005 made between (among others)
ourselves and yourselves (the “Agreement”).

Words and phrases defined in the Agreement have the same meaning when used in this Issue Request.

Pursuant to Clause 2.2 of the Agreement, we irrevocably request that the Issuers issue the Letters
of Credit in the form of Appendix C to the Agreement in the aggregate amount of [one hundred]
million Dollars (USD[100,000,000]) on                     2005, which is a Business Day.

We warrant that the representations and warranties contained in Clause 4 of the Agreement are true
and correct at the date of this Issue Request and will be true and correct on           
2005; that no Event of Default nor Potential Event of Default has occurred and is continuing; that
no Event of Default or Potential Event of Default will result from the issue of the Letters of
Credit on                2005.

Yours faithfully

For and on behalf of

NCL CORPORATION LTD.

56

 

APPENDIX C

Form of Letter of Credit

IRREVOCABLE STANDBY LETTER OF CREDIT

Irrevocable Standby Letter of Credit Number: [[               ]]

Date of Issue: 2005

	 	 	 
	Beneficiary:
	 

	 	Chase Merchant Services, L.L.C.
	 

	 	1307 Walt Whitman Road
	 

	 	Melville, NY 11747
	 

	 	Attention: Chief Credit Officer

Dear Sirs:

We hereby issue this Irrevocable Standby Letter of Credit (“Letter of Credit”) in favor of
Chase Merchant Services, L.L.C. and its permitted successors or assigns (as set forth below)
(“Beneficiary”) for the account of NCL Corporation Ltd. of Milner House, 18 Parliament
Street, Hamilton HM 12, Bermuda, for the amount of USD[[          ]],000,000.00 ([[          ]] Million
and 00/100 United States Dollars) which amount shall be automatically reduced by the amount of each
drawing hereunder (the “Available Amount”).

Beneficiary is hereby irrevocably authorized to make one or more drawings each in an amount not in
excess of the Available Amount in effect on the date such drawing is made by presentation of a
draft(s) in the form of Exhibit B hereto purportedly signed by an authorized representative of the
Beneficiary and in accordance with Exhibit C to us at our office at [[New York address to be set
forth]].

	 	 	 
	          Partial drawings:

	 	Allowed, subject to Exhibit C.
	 
	 	 
	          Pro rata drawings:

	 	Required, as described in and in accordance with Exhibit C.

This Letter of Credit sets forth in full the terms of our undertaking, and such undertaking shall
not in any way be modified, amended, or amplified by reference to any facts now known to the
undersigned or hereafter made known to the undersigned or to any document, instrument or agreement
in which this Letter of Credit is referred to or to which this Letter of Credit relates, and no
such reference shall be deemed to incorporate herein by reference any document, instrument or
agreement.

Our obligation under this Letter of Credit shall be absolute and shall not be affected by any
circumstance, claim or defense (real or personal), setoff or counterclaim of NCL Corporation Ltd.
or any other person as to the enforceability of the Merchant Services Bankcard Agreement referenced
herein, it being understood that our obligations shall be that of a primary obligor, and not that
of a surety or guarantor.

This Letter of Credit is transferable in its entirety (but not in part) only to JPMorgan Chase
Bank, N.A., First Data Merchant Services Corporation or to Beneficiary’s successor-in-interest as a
result of a merger, consolidation or corporate restructuring, unless Beneficiary obtains our prior
written consent. A transfer of this Letter of Credit to a transferee shall be effected by
Beneficiary’s

57

 

delivery to the transferee of a certificate duly executed and substantially in the form set forth
as Exhibit A to this Letter of Credit and to which this Letter of Credit is attached. A copy of
the said certificate shall be presented to us at our office aforesaid promptly after signature of
the certificate by the transferee.

Drafts must be presented to us on or before 2 April 2008 (the “Date of Expiry”) unless this Letter
of Credit prior to such date has been cancelled by written notice to the Beneficiary. Such
cancellation can only take place on the date falling three hundred and sixty four (364) days from
the date of issue of this Letter of Credit, or on the last day of each subsequent period of three
hundred and sixty four (364) days, with minimum sixty (60) days prior written notice by certified
mail, return receipt requested, or by overnight delivery with a courier of national reputation
which tracks receipt, to Beneficiary at:

	 	 	 
	          Chase Merchant Services, L.L.C.
	          1307 Walt Whitman Road
	          Melville, New York 11747
	          Attention: Chief Credit Officer
	 

	 	with a copy to: General Counsel
	 

	 	Chase Merchant Services, L.L.C.
	 

	 	at 3975 N.W. 120th Avenue
	 

	 	Coral Springs, Florida 33065

The pro rata drawing requirement of Exhibit C shall not apply to this Letter of Credit and the
Beneficiary may draw 100% of the Available Amount of this Letter of Credit at any time during the
thirty (30) day period prior to (a) the Date of Expiry or (b) the effective date of cancellation of
this Letter of Credit set forth in the notice of cancellation, as the case may be, unless a new
letter of credit equal to the Available Amount under this Letter of Credit that meets the criteria
established in Section 20.1 of the Merchant Services Bankcard Agreement referenced herein is
provided to the Beneficiary prior to such thirty (30) day period.

We hereby engage with you that drafts drawn in conformity with the terms of this Letter of Credit
(including its Exhibits) will be duly honoured on presentation. Please advise us all drawings
immediately by telecommunication, swift/cable charges are for the account of Beneficiary. All
banking charges outside Norway are for the account of Beneficiary – [Norwegian issuing banks only].

This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce, Publication No. 500.

	 	 	 
	 

	 	Authorized Signature
	 
	 	 
	 

	 	 

58

 

EXHIBIT A

TO THE IRREVOCABLE STANDBY LETTER OF CREDIT

INSTRUCTIONS TO TRANSFER

                                                                      , 20___

Re: Irrevocable Standby Letter of Credit Number [[xxxx]]

Gentlemen:

     The undersigned is named as a beneficiary in the Irrevocable Standby Letter of Credit referred
to above (the “Standby Letter of Credit”). The undersigned now wishes to transfer to the
Transferee named below, all rights of the undersigned to draw under the Standby Letter of Credit.

	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name of Transferee
	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 

	 	Address	 	 

     Therefore, for value received, the undersigned hereby irrevocably instructs you to transfer to
such Transferee all rights of the undersigned to draw under the Standby Letter of Credit. Such
Transferee shall hereafter have rights as a beneficiary under the Standby Letter of Credit.

     Original of the Standby Letter of Credit is enclosed herewith.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Certificate as of the                     
day of                                         , 20          .

	 	 	 	 	 	 	 
	 	 	Chase Merchant Services, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title	 	 

     The undersigned, [Name of Transferee], hereby accepts the foregoing transfer of rights under
the Standby Letter of Credit and acknowledges its obligations under Exhibit C.

	 	 	 	 	 	 	 
	 	 	[NAME OF TRANSFEREE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Title	 	 
	 
	 	 	 	 	 	 
	 	 	Address:	 	 
	 
	 	 	 	 	 	 
	 	 	[insert address]	 	 

59

 

EXHIBIT B

TO THE IRREVOCABLE STANDBY LETTER OF CREDIT

INSTRUCTION TO DRAWDOWN

     The Beneficiary hereby demands payment of $                     under Irrevocable Standby Letter of Credit
Number                                          in accordance with Exhibit C to such Irrevocable Standby Letter of Credit
for the purpose of paying and/or assuring future payment of Chargebacks, Credit Transactions and
any other amounts due from NCL Corporation Ltd. pursuant to the Merchant Services Bankcard
Agreement (including all appendices and amendments thereto) dated 2 April 2003 between Chase
Merchant Services, L.L.C., JPMorgan Chase Bank (“Bank”) and NCL Corporation Ltd., currently and/or
contingently, to Beneficiary and Bank, or either of them. The terms “Chargeback” and “Credit
Transaction”, as used above, shall have the meanings ascribed to such terms in the Merchant
Services Bankcard Agreement referenced herein above.

	 	 	 
	 

	 	Authorized Signature
	 
	 	 
	 

	 	 
	 

	 	(print name)

60

 

EXHIBIT C

TO THE IRREVOCABLE STANDBY LETTER OF CREDIT

NCL Corporation Ltd. acknowledges that it is providing Beneficiary with three Collateral Letters of
Credit for an aggregate amount of USD one hundred million ($100,000,000.00) as follows:

	 	 	 
	DnB NOR Bank ASA

	 	USD fifty million ($50,000,000.00)
	HSBC Bank USA, N.A.

	 	USD twenty five million ($25,000,000.00)
	Nordea Bank Norge ASA

	 	USD twenty five million ($25,000,000.00)

(the “Collateral Letters of Credit”).

In the event that Chase Merchant Services, L.L.C. or its permitted successors or assigns
(“Beneficiary”) makes a drawing under one or more of the Collateral Letters of Credit, Beneficiary
undertakes to draw upon each of the Collateral Letters of Credit on a pro rata basis, subject to
the following. If any of the institutions providing the Collateral Letters of Credit should, for
whatever reason, fail to honor its portion of any pro rata drawing, then the obligation of the
other institutions to honor their respective portion of such pro rata drawing is not removed and
continues as an absolute obligation pursuant to the applicable Collateral Letter of Credit. Upon
cancellation of one of the Collateral Letters of Credit the pro rata drawing requirement pursuant
to this Exhibit C shall apply with respect to the two remaining Collateral Letters of Credit i.e.
two thirds of the total draw amount upon the undrawn amount of the Collateral Letter of Credit
issued by DnB NOR Bank ASA and one third of the total draw amount upon the undrawn amount of the
Collateral Letter of Credit issued by HSBC Bank USA, N.A. or Nordea Bank Norge ASA (as the case may
be) if the cancelled Collateral Letter of Credit is one issued by HSBC Bank USA, N.A. or Nordea
Bank Norge ASA and half of the total draw amount upon the undrawn amounts of each of the Collateral
Letters of Credit issued by HSBC Bank USA, N.A. and Nordea Bank Norge ASA if the cancelled
Collateral Letter of Credit is that issued by DnB NOR Bank ASA. The pro rata drawing requirement
pursuant to this Exhibit C shall not apply to a Collateral Letter(s) of Credit which will expire or
will be cancelled and Beneficiary may draw 100% of the undrawn amount thereunder at any time during
the thirty (30) day period prior to (a) the Date of Expiry or (b) the effective date of
cancellation of such Collateral Letter(s) of Credit set forth in the notice of cancellation, as the
case may be, unless a new letter of credit that meets the criteria established in Section 20.1 of
the Merchant Services Bankcard Agreement has been provided to the Beneficiary prior to such thirty
(30) day period.

The institutions providing the Collateral Letters of Credit must continue to meet the criteria
established in Section 20.1 of the Merchant Services Bankcard Agreement. Should any of these
institutions fail to meet these criteria, then the Collateral Letter of Credit issued by such
institution(s) will not qualify towards the reserve requirement and CMS retains the right to obtain
substitute collateral.

	 	 	 	 	 	 	 
	 	 	Acknowledged and agreed:	 	 
	 
	 	 	 	 	 	 
	 	 	NCL Corporation Ltd.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 

61

 

	 	 	 	 	 	 	 
	 	 	Chase Merchant Services, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 

62

 

APPENDIX D

Quarterly Statement of Financial Covenants

			
	TO:	 	DnB NOR BANK ASA

Stranden 21

NO-0021 Oslo

Norway

Attn: Mr Jon Flovik

We refer to clause 9.24 of the letter of credit facility agreement dated                     
2005 (as amended, varied and/or supplemented from time to time) (the “Facility Agreement”)
between (among others) you as agent and ourselves as indemnifier. Terms defined in the Facility
Agreement shall have the same meanings herein.

We hereby certify the amounts set out in the attached schedule as at the last day of the financial
quarter ending           20[     ] for NCL Corporation Ltd. (the “Indemnifier”) and its
subsidiaries on a consolidated basis. We also hereby certify that the Indemnifier is in compliance
with all the financial covenants set out in clause 9.24 of the Facility Agreement [[and that no
Event of Default or Potential Event of Default has occurred and is continuing][an [Event of
Default][Potential Event of Default] has occurred and is continuing under clause 10.2.[  ] of the
Facility Agreement and the following step[s][is/are] being taken to cure the same: [     ]]].

	 	 	 
	NCL CORPORATION LTD.

	 	 
	 
	 	 
	 	 	 
	By: [                    ]

Chief Financial Officer
	 	 
	 
	 	 
	Dated:                          20[     ]
	 	 

63

 

Schedule

Statement of Financial Covenants as of [          ] 20[     ] (in USD’000)

	 	 	 	 	 	 	 	 	 
	Clause (of	 	 	 	 	 	 	 
	Facility	 	 	 	 	 	 	 
	Agreement)	 	 	 	as of [•]	 	Required Covenants
	9.24.1/	 	Free Liquidity	 	A	 	A>USD50,000,000 (9.24.1)
	 
	9.24.2(b)**	 	 	 	 	 	A>USD100,000,000 (9.24.2(b))**
	 
	 	 	 	 	 	 	 	 
	9.24.2(a)	 	Consolidated EBITDA:	 	B	 	>1.25:1
	 
	 	 	 	 	 	 	 	 
	 
	 	Consolidated Debt Service	 	C	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	9.24.3	 	Total Net Funded Debt:	 	D	 	<0.65:1 up to 31 December 2007
	 	 	 	 	 	 	<0.60:1 thereafter
	 
	 	 	 	 	 	 	 	 
	 
	 	Total Capitalisation	 	E	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Consolidated EBITDA	 	 	 	 	 	 
	 
	 	Consolidated Net Income (loss)	 	 	 	x	 	 
	(Deduct)/Add:
	 	(Gain)/Loss on sale of assets or reserves	 	 	 	x	 	 
	Add:
	 	Consolidated Interest Expense	 	 	 	x	 	 
	Add:
	 	Depreciation and amortisation of assets	 	 	 	x	 	 
	Add:
	 	Impairment charges	 	 	 	x	 	 
	(Deduct)/Add:
	 	Other non-recurring charge (gain)	 	 	 	x	 	 
	Add:
	 	Deferred income tax expense	 	 	 	x	 	 
	 
	 	 	 	 	 	 	 
	 
	 	Consolidated EBITDA	 	 	 	x	 	B
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Consolidated Debt Service	 	 	 	 	 	 
	 
	 	Principal paid/payable (excluding balloon payments, voluntary	 	 	 	 	 	 
	 
	 	prepayments/repayments on sale/total loss of an NCLC Fleet vessel)	 	 	 	x	 	 
	Add:
	 	Consolidated Interest Expense	 	 	 	x	 	 
	 
	 	Distributions	 	 	 	x	 	 
	 
	 	Rent under capitalised leases	 	 	 	x	 	 
	 
	 	 	 	 	 	 	 
	 
	 	Consolidated Debt Service	 	 	 	x	 	C
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Total Net Funded Debt	 	 	 	 	 	 
	 
	 	Indebtedness for Borrowed Money	 	 	 	x	 	 
	Add:
	 	Guarantees of non-NCLC Group
members’ obligations	 	 	 	x	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	x	 	 
	 
	 	 	 	 	 	 	 
	Deduct:
	 	Cash Balance	 	 	 	(x	)	 
	 
	 	 	 	 	 	 	 
	 
	 	Total Net Funded Debt	 	 	 	(x	)	D
	 
	 	 	 	 	 	 	 

64

 

	 	 	 	 	 	 	 	 	 
	Clause (of	 	 	 	 	 	 	 
	Facility	 	 	 	 	 	 	 
	Agreement)	 	 	 	as of [•]	Required Covenants
	 
	 	Total Capitalisation	 	 	 	 	 	 
	 
	 	Total Net Funded Debt	 	 	 	x	 	D
	Add:
	 	Consolidated stockholders’ equity	 	 	 	x	 	 
	 
	 	 	 	 	 	 	 
	 
	 	Total Capitalisation	 	 	 	x	 	E
	 
	 	 	 	 	 	 	 

For and on behalf of NCL CORPORATION LTD.

	 	 	 
	 	 	 
	[                    ]
	 	 

I, [               ], the officer primarily responsible for the financial management of the NCLC
Group, hereby declare that, to the best of knowledge and belief, the above Statement of Financial
Covenants as of [     ] 20[     ], in my opinion, is true and correct.

	 	 	 
	 	 	 
	[                    ]
	 	 
	Chief Financial Officer
	 	 
	NCL CORPORATION LTD.
	 	 
	 
	 	 
	Dated:                               20[   ]

 

			
	**	 	If the Indemnifier has opted to comply with the financial covenant set out in clause
9.24.2(b) of the Facility Agreement for the relevant twelve (12) month period, evidence
satisfactory to the Agent of A at all times during the twelve (12) month period shall be
provided together with this statement

65

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