Document:

Exhibit 10.10

 

Execution Version

 

Date: as of April 15, 2013

 

BULK PANGAEA LIMITED, BULK PATRIOT LTD.,
BULK JULIANA LTD. and BULK TRIDENT LTD.

as Joint and Several Borrowers

 

BULK PARTNERS (BERMUDA) LTD., BULK PARTNERS
HOLDING COMPANY BERMUDA LTD., and BULK FLEET BERMUDA HOLDING COMPANY LTD.

as Joint and Several Guarantors

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1

as Lenders

 

– and –

 

DVB BANK SE

as Agent

and as Security Trustee

 

 

 

LOAN AGREEMENT

  

 

 

relating to

a Senior Secured Post-Delivery Term Loan
Facility in

the initial principal amount of up to US$30,301,562.51

 

Watson, Farley & Williams

New York

 

    	 

    	 

    

 

INDEX

 

	Clause	 	Page
	 	 	 
	1	INTERPRETATION	2
	 	 	 
	2	FACILITY	26
	 	 	 
	3	POSITION OF THE LENDERS	26
	 	 	 
	4	DRAWDOWN	28
	 	 	 
	5	INTEREST	30
	 	 	 
	6	INTEREST PERIODS	31
	 	 	 
	7	DEFAULT INTEREST	32
	 	 	 
	8	REPAYMENT AND PREPAYMENT	33
	 	 	 
	9	CONDITIONS PRECEDENT	35
	 	 	 
	10	REPRESENTATIONS AND WARRANTIES	38
	 	 	 
	11	GENERAL AFFIRMATIVE AND NEGATIVE COVENANTS	47
	 	 	 
	12	FINANCIAL COVENANTS	55
	 	 	 
	13	MARINE INSURANCE COVENANTS	56
	 	 	 
	14	SHIP COVENANTS	62
	 	 	 
	15	COLLATERAL MAINTENANCE RATIO	67
	 	 	 
	16	guarantee	68
	 	 	 
	17	PAYMENTS AND CALCULATIONS	71
	 	 	 
	18	APPLICATION OF RECEIPTS	73
	 	 	 
	19	APPLICATION OF EARNINGS	75
	 	 	 
	20	EVENTS OF DEFAULT	79
	 	 	 
	21	FEES AND EXPENSES	83
	 	 	 
	22	INDEMNITIES	84
	 	 	 
	23	NO SET-OFF OR TAX DEDUCTION; tax indemnity; FATCA	86

 

    	 

    	 

    

 

 

INDEX

 

	Clause	 	Page
	 	 	 
	24	ILLEGALITY, ETC	91
	 	 	 
	25	INCREASED COSTS	91
	 	 	 
	26	SET-OFF	93
	 	 	 
	27	TRANSFERS AND CHANGES IN LENDING OFFICES	94
	 	 	 
	28	VARIATIONS AND WAIVERS	98
	 	 	 
	29	NOTICES	99
	 	 	 
	30	SUPPLEMENTAL	101
	 	 	 
	31	THE SERVICING BANKS	102
	 	 	 
	32	LAW AND JURISDICTION	106
	 	 	 
	33	WAIVER OF JURY TRIAL	107
	 	 	 
	34	PATRIOT ACT notice	107

 

	EXECUTION PAGE	108
	 	 
	SCHEDULE 1 LENDERS AND COMMITMENTS	109
	 	 
	SCHEDULE 2 INTENTIONALLY OMITTED	110
	 	 
	SCHEDULE 3 DRAWDOWN NOTICE	111
	 	 
	SCHEDULE 4 CONDITION PRECEDENT DOCUMENTS	113
	 	 
	SCHEDULE 5 TRANSFER CERTIFICATE	119
	 	 
	SCHEDULE 6 INTENTIONALLY OMITTED	123
	 	 
	SCHEDULE 7 list of approved brokers	124
	 	 
	SCHEDULE 8 dvb loan administration form	125
	 	 
	SCHEDULE 9 FORM OF LETTER OF INSTRUCTION TO CLASSIFICATION SOCIETY	127
	 	 
	SCHEDULE 10 FORM OF CLASSIFICATION SOCIETY LETTER OF UNDERTAKING	129
	 	 
	appendix a FORM OF APPROVED MANAGER’S UNDERTAKING	131
	 	 
	appendix b FORM OF BORROWER ACCESSION AGREEMENT	132

 

    	ii

    	 

    

 

 

INDEX

 

	Clause	 	Page
	 	 
	appendix c-1 FORM OF COMPLIANCE CERTIFICATE (borrowers)	133
	 	 
	appendix c-2 FORM OF COMPLIANCE CERTIFICATE (BULK PARTNERS)	134
	 	 
	appendix d FORM OF EARNINGS ACCOUNT PLEDGE	135
	 	 
	appendix e FORM OF EARNINGS ASSIGNMENT	136
	 	 
	appendix f FORM OF FREIGHTS ACCOUNT PLEDGE	137
	 	 
	appendix g FORM OF GUARANTOR ACCESSION AGREEMENT	138
	 	 
	appendix h FORM OF INSURANCE ASSIGNMENT	139
	 	 
	appendix I-1 FORM OF MORTGAGE (PANAMA)	140
	 	 
	appendix I-2 FORM OF MORTGAGE (MARSHALL ISLANDS)	141
	 	 
	appendix J FORM OF NOTE	142
	 	 
	appendix K FORM OF SHAREs PLEDGE	143
	 	 
	appendix l TIME CHARTER AND TIME CHARTER GUARANTEE ASSIGNMENT	144
	 	 
	appendix M FORM OF TIME CHARTER EARNINGS ASSIGNMENT	145
	 	 
	appendix N-1 FORM OF UNDERTAKING AND AGREEMENT – BULK PATRIOT	146
	 	 
	appendix N-2 FORM OF UNDERTAKING AND AGREEMENT – BULK TRIDENT	147

 

    	iii

    	 

    

 

THIS LOAN AGREEMENT (this “Agreement”)
is made as of April 15, 2013

 

AMONG

 

		(1)	BULK PANGAEA LIMITED (“Bulk Pangaea”), BULK PATRIOT LTD. (“Bulk Patriot”),
BULK JULIANA LTD. (“Bulk Juliana”) and BULK TRIDENT LTD. (“Bulk Trident”), each a company
organized and existing under the laws of Bermuda whose registered office is at 3rd Floor, Par la Ville Place, 14 Par
la Ville Road, Hamilton HM08, Bermuda, as joint and several borrowers (together with any other person that becomes a borrower party
hereto pursuant to a Borrower Accession Agreement (as defined below), the “Borrowers”, and each separately a
“Borrower”, which expressions include their respective successors, transferees and assigns);

 

		(2)	BULK PARTNERS (BERMUDA) LTD. (“Bulk Partners”), BULK PARTNERS HOLDING COMPANY
BERMUDA LTD. (“Bulk Holdings”) and BULK FLEET BERMUDA HOLDING COMPANY LTD. (“Bulk Fleet”),
each a company organized and existing under the laws of Bermuda whose registered office is at 3rd Floor, Par la Ville
Place, 14 Par la Ville Road, Hamilton HM08, Bermuda, as joint and several guarantors (together with any other person that becomes
a guarantor party hereto pursuant to a Guarantor Accession Agreement (as defined below), the “Guarantors”, and
each separately a “Guarantor”, which expressions include their respective successors, transferees and assigns);

 

		(3)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1, as lenders (the “Lenders”,
which expression includes their respective successors, transferees and assigns);

 

		(4)	DVB BANK SE, acting in such capacity through its office at Platz der Republik 6, 60325 Frankfurt
am Main, Germany, as agent for the Lenders (in such capacity, the “Agent”, which expression includes its successors,
transferees and assigns); and

 

		(5)	DVB BANK SE, acting in such capacity through its office at Platz der Republik 6, 60325 Frankfurt
am Main, Germany, as security trustee for the Lenders (in such capacity, the “Security Trustee”, which expression
includes its successors, transferees and assigns).

 

BACKGROUND

 

		(A)	The Lenders have agreed to make available to the Borrowers a senior secured post-delivery term
loan facility in the aggregate principal amount of up to $30,301,562.51 in respect of the refinancing of the Initial Ships, provided
that the foregoing amount may be increased by an amount to be agreed upon between the Lenders and the Borrowers to provide
for an Advance in respect of the acquisition of an Additional Ship.

 

		(B)	The Lenders have agreed to share pari passu in the Collateral to be granted to the Security
Trustee pursuant to this Agreement.

 

IT IS AGREED as follows:

 

    	 

    	 

    

 

1            INTERPRETATION

  

		1.1	Definitions. Subject to Clause 1.5, in this Agreement:

 

“Acceptable Accounting
Firm” means Ernst & Young LLP, or such other recognized accounting firm as the Agent may, with the consent of the
Majority Lenders, approve from time to time in writing, such approval not to be unreasonably withheld;

 

“Account Bank”
means HSBC Bank Bermuda Limited, acting through its office at 37 Front Street, Hamilton HM11, Bermuda;

 

“Additional
Ship” means any vessel which is:

 

(a)          to be
acquired by a subsidiary of Bulk Partners;

 

(b)         classed
with a Classification Society, free of overdue recommendations and conditions affecting that vessel’s class;

 

(c)          to be
registered on an Approved Flag; and

 

(d)         approved
by the Majority Lenders;

 

“Advance”
means the principal amount of each borrowing by the Borrowers under this Agreement;

 

“Affiliate”
means, as to any person, any other person that, directly or indirectly, controls, is controlled by or is under common control with
such person or is a director or officer of such person, and for purposes of this definition, the term “control”
(including the terms “controlling”, “controlled by” and “under common control with”)
of a person means the possession, direct or indirect, of the power to vote 20% or more of the Voting Stock of such person or to
direct or cause direction of the management and policies of such person, whether through the ownership of Voting Stock, by contract
or otherwise;

 

“Agreed Form”
means in relation to any document, that document in the form approved by the Agent with the consent of the Majority Lenders (such
consent not to be unreasonably withheld), or as otherwise approved in accordance with any other approval procedure specified in
any relevant provision of any Finance Document;

 

“Allseas”
means Allseas Logistics Bermuda Ltd., a Bermuda company;

 

“Applicable Collateral
Maintenance Ratio” has the meaning given in Clause 15.2;

 

“Applicable Margin”
means:

 

		(a)	with respect to the Advance relating to each of BULK PANGAEA, BULK PATRIOT and BULK TRIDENT, 3.50%
per annum; and

 

		(b)	with respect to the Advance relating to BULK JULIANA, 3.75% per annum;

 

“Applicable Maturity
Date” means:

 

		(a)	with respect to the Advance relating to BULK PANGAEA, the earlier of January 19, 2017 and the date
on which the Advance relating to BULK PANGAEA is accelerated pursuant to Clause 20.4;

 

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		(b)	with respect to the Advance relating to BULK PATRIOT, the earlier of October 19, 2017 and the date
on which the Advance relating to BULK PATRIOT is accelerated pursuant to Clause 20.4;

 

		(c)	with respect to the Advance relating to BULK JULIANA, the earlier of July 19, 2018 and the date
on which the Advance BULK JULIANA is accelerated pursuant to Clause 20.4; and

 

		(d)	with respect to the Advance relating to BULK TRIDENT, the earlier of October 19, 2018 and the date
on which the Advance BULK TRIDENT is accelerated pursuant to Clause 20.4;

 

“Approved Broker”
means any of the companies listed on Schedule 7 or such other company proposed by the Borrowers which the Agent may, with the consent
of the Majority Lenders (such consent not to be unreasonably withheld), approve from time to time for the purpose of valuing a
Ship, who shall act as an expert and not as arbitrator and whose valuation shall be conclusive and binding on all parties to this
Agreement;

 

“Approved Flag”
means the Panamanian flag, the Marshall Islands flag or such other flag as the Agent may, with the consent of the Majority Lenders,
approve from time to time in writing as the flag on which a Ship shall be registered;

 

“Approved Management
Agreement” means, in relation to a Ship in respect of its commercial and/or technical management, a management agreement
between the Borrower that owns that Ship and the relevant Approved Manager in Agreed Form;

 

“Approved Manager”
means Phoenix Bulk (US), Seamar Management SA or any other company proposed by the Borrowers which the Agent may, with the consent
of the Majority Lenders (such consent not to be unreasonably withheld), approve from time to time as the technical and/or commercial
manager of a Ship;

 

“Approved Manager’s
Undertaking” means, in relation to a Ship, the letter executed and delivered by an Approved Manager, in the form set
out in Appendix A;

 

“Availability Period”
means the period commencing on the Effective Date and ending on the earlier of:

 

		(a)	May 31, 2013 (or such later date as the Agent may, with the consent of the Majority Lenders, agree
with the Borrowers); and

 

		(b)	the date on which the Total Commitments are fully borrowed, cancelled or terminated;

 

“Bank Secrecy Act”
means the United States Bank Secrecy Act of 1970, as amended;

 

“Basel III”
means any of the changes designed to strengthen any capital standards or introduce minimum liquidity or other requirements referenced
in the publication of the Groups of Governors and Heads of Supervision of the Basel Committee on Banking Supervision (the “Basel
Committee”) dated 16 December, 2010, or any subsequent paper or document published by the Basel Committee on any of those
requirements;

 

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“Borrower Accession
Agreement” means an agreement providing for the accession of a person to this Agreement as a Borrower in the form set
out in Appendix B hereto;

 

“BULK
JULIANA” means the 2001-built motor vessel of 52,510 deadweight tons currently named “BULK JULIANA”, IMO
Number 9235854, and registered in the name of Bulk Juliana on Panamanian flag;

 

“BULK
PANGAEA” means the 1999-built motor vessel of 73,700 deadweight tons currently named “BULK PANGAEA”, IMO
Number 9187722, and registered in the name of Bulk Pangaea on Panamanian flag;

 

“Bulk Partners Shareholders”
means, as of the date hereof, Edward Coll, Anthony Laura, Lagoa Investments Ltd., a Bermuda company, Pangaea One, L.P., a Delaware
limited partnership, Pangaea One Parallel Fund (B), L.P., a Delaware limited partnership, Pangaea One (Cayman), L.P., a Cayman
Islands limited partnership, Pangaea One Parallel Fund, L.P., a Cayman Islands limited partnership, and up to ten other persons
who may be named by Bulk Partners as key personnel after the date of this Agreement, provided that such other persons shall
be employed by Bulk Partners or any of its subsidiaries at the time such other persons become Bulk Partners Shareholders, and,
if any such other person individually holds more than 10% of the shares of Bulk Partners at any time, Bulk Partners shall so notify
the Agent;

 

“BULK
PATRIOT” means the 1996-built motor vessel of 70,165 deadweight tons currently named “BULK PATRIOT”, IMO
Number 9115523, and registered in the name of Bulk Patriot on Panamanian flag;

 

“BULK
TRIDENT” means the 2006-built motor vessel of 52,514 deadweight tons currently named “BULK TRIDENT”, IMO
Number 9298545, and registered in the name of Bulk Trident on Marshall Islands flag;

 

“Business Day”
means a day on which banks are open in London, England, New York, New York and Frankfurt, Germany;

 

“Capitalized Lease”
means, as applied to any person, any lease of any property (whether real, personal or mixed) of which the discounted present value
of the rental obligations of such person, as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet
of such person; and “Capitalized Lease Obligation” is defined to mean the rental obligations, as aforesaid,
under a Capitalized Lease;

 

“Cash
Equivalents” means:

 

		(a)	securities issued or directly and fully guaranteed or insured by the United States of America or
any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support
thereof);

 

		(b)	time deposits, certificates of deposit or deposits in the interbank market of any commercial bank
of recognized standing organized under the laws of the United States of America, any state thereof or any foreign jurisdiction
having capital and surplus in excess of $500,000,000; and

 

		(c)	such other securities or instruments as the Majority Lenders shall agree in writing;

    	4

    	 

    

 

 

 

and in respect of both (a) and
(b) above, with a Rating Category of at least “A+” by S&P and “A” by Moody’s (or the equivalent
used by another Rating Agency), and in each case having maturities of not more than ninety (90) days from the date of acquisition;

 

“Change of Control”
means:

 

		(a)	in respect of each of the Borrowers, the Guarantors (other than Bulk
Partners) and the Time Charterer, the occurrence of any act, event or circumstance that without prior written consent of the Majority
Lenders results in Bulk Partners owning directly or indirectly less than 100% of the issued and outstanding Equity Interests in
any of the Borrowers, the Guarantors (other than Bulk Partners) and the Time Charterer; and

 

		(b)	in respect of Bulk Partners, the occurrence of any act, event or
circumstance that without prior written consent of the Majority Lenders results in the Bulk Partners Shareholders owning directly
or indirectly, individually or as a group, less than 100% of the issued and outstanding Equity Interests in Bulk Partners;

 

“Charter”
means, in relation to a Ship, any demise, time or consecutive voyage charter in respect of that Ship for a term which exceeds,
or which by virtue of any optional extensions may exceed, 12 months, in each case in Agreed Form, and for the avoidance of doubt,
the term “Charter” includes but is not limited to a Time Charter;

 

“CISADA” means
the United States Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010;

 

“Classification Society”
means, in relation to a Ship, Nippon Kaiji Kyokai, American Bureau of Shipping or such other first-class vessel classification
society that is a member of IACS that the Agent may, with the consent of the Majority Lenders (such consent not to be unreasonably
withheld), approve from time to time;

 

“COAs” mean,
collectively:

 

		(a)	the Contract of Affreightment dated January 1, 2011 between Noranda Alumina LLC as shipper and
Phoenix Bulk Carriers (US) LLC, a Delaware limited liability company (“Phoenix Bulk (US)”), as owner;

 

		(b)	the Contract of Affreightment dated January 1, 2011 between Phoenix Bulk (US) as shipper and the
Time Charterer as owner; and

 

		(c)	the Contract of Affreightment dated March 10, 2012 between Atlantic Minerals Limited as shipper
and Phoenix Bulk Carriers (BVI) Limited, a British Virgin Islands company (“Phoenix Bulk (BVI)”), as owner;

 

“Code” means
the United States Internal Revenue Code of 1986, as amended, and the regulations promulgated and rulings issued thereunder;

 

“Collateral”
means all property (including, without limitation, any proceeds thereof) referred to in the Finance Documents that is or is intended
to be subject to any Security Interest in favor of the Security Trustee, for the benefit of the Lenders, securing the Secured Liabilities;

 

    	5

    	 

    

 

“Commitment”
means, in relation to a Lender, the amount set opposite its name in Schedule 1, or, as the case may require, the amount specified
in the relevant Transfer Certificate, as that amount may be reduced, cancelled or terminated in accordance with this Agreement
(and “Total Commitments” means the aggregate of the Commitments of all the Lenders);

 

“Compliance Certificate”
means:

 

		(a)	a certificate executed by an authorized person of a Borrower in the form set out in Appendix C-1
(Borrowers); and

 

		(b)	a certificate executed by an authorized person of Bulk Partners in the form set out in Appendix
C-2 (Bulk Partners);

 

“Consolidated Debt Service”
means, on a consolidated basis, the aggregate amount of principal and Consolidated Net Interest Expense paid or scheduled to be
paid by Bulk Partners on its consolidated Financial Indebtedness for the immediately preceding twelve month period;

 

“Consolidated Debt
Service Coverage Ratio” means a fraction (expressed as a percentage, rounded up to the nearest tenth of a percent) where
(a) the numerator is Consolidated EBITDA and (b) the denominator is Consolidated Debt Service;

 

“Consolidated EBITDA”
means, for any accounting period, the net income of Bulk Partners on a consolidated basis for that accounting period:

 

		(a)	plus, to the extent deducted in computing the consolidated
net income of Bulk Partners for that accounting period, the sum, without duplication, of:

 

		(i)	all federal, state, local and foreign income taxes and tax distributions;

 

		(ii)	Consolidated Net Interest Expense;

 

		(iii)	depreciation, depletion, amortization of intangibles and other non-cash charges or non-cash losses
(including non-cash transaction expenses and the amortization of debt discounts) and any extraordinary losses not incurred in the
ordinary course of business; and

 

		(iv)	any drydocking expenses;

 

		(b)	minus, to the extent added in computing the consolidated net
income of Bulk Partners for that accounting period, any non-cash income or non-cash gains and any extraordinary gains on asset
sales or otherwise not incurred in the ordinary course of business;

 

“Consolidated Leverage
Ratio” means a fraction (expressed as a percentage, rounded up to the nearest tenth of a percent) where (a) the numerator
is a number equal to the consolidated Financial Indebtedness of Bulk Partners and (b) the denominator is Consolidated Net Worth;

 

“Consolidated Minimum
Liquidity” means freely available and unencumbered cash and/or Cash Equivalents held by Bulk Partners on a consolidated
basis;

 

    	6

    	 

    

 

“Consolidated Net
Interest Expense” means, on a consolidated basis, the aggregate of all interest, commitment and other fees, commissions,
discounts and other costs, charges or expenses accruing that are due from Bulk Partners during the relevant accounting period less
interest income received, determined in accordance with GAAP and as shown in the statement of income for Bulk Partners;

 

“Consolidated Net
Worth” means total market adjusted equity of Bulk Partners on a consolidated basis;

 

“Contractual Currency”
has the meaning given in Clause 22.4;

 

“Contribution”
means, in relation to a Lender, the part of the Loan which is owing to that Lender;

 

“Creditor Party”
means the Agent, the Security Trustee or any Lender, whether as at the date of this Agreement or at any later time;

 

“Currency Agreement”
means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to protect a person
or any of its subsidiaries against fluctuations in currency values to or under which such person or any of its subsidiaries is
a party or a beneficiary on the date of this Agreement or becomes a party or a beneficiary thereafter;

 

“Delivery Date”
means the date of the scheduled acquisition by and delivery of an Additional Ship to the Borrower that will own such Additional
Ship;

 

“Disbursement Authorization”
has the meaning given in Clause 9.2(b);

 

“Dollars”
and “$” means the lawful currency for the time being of the United States of America;

 

“Drawdown Date”
means, in relation to an Advance, the date requested by the Borrowers for such Advance to be made, or (as the context requires)
the date on which such Advance is actually made;

 

“Drawdown Notice”
means a notice in the form set out in Schedule 3 (or in any other form which the Agent approves or reasonably requires);

 

“Earnings”
means, in relation to a Ship, all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Borrower
owning that Ship, the Time Charterer or the Security Trustee and which arise out of the use or operation of that Ship, including
(but not limited to):

 

		(a)	except to the extent that they fall within paragraph (b):

 

		(i)	all freight, hire and passage moneys;

 

		(ii)	compensation payable to the Borrower owning that Ship, the Time Charterer or the Security Trustee
in the event of requisition of that Ship for hire;
	 	 	 
	 	(iii)	remuneration for salvage and towage services;

 

			

    	7

    	 

    

 

			

		(iv)	demurrage and detention moneys;

 

		(v)	damages for breach (or payments for variation or termination) of any charterparty or other contract
for the employment of that Ship; and

 

		(vi)	all moneys which are at any time payable under Insurances in respect of loss of hire; and

 

		(b)	if and whenever that Ship is employed on terms whereby any moneys falling within paragraphs (a)(i)
to (vi) are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing arrangement
which is attributable to that Ship;

 

“Earnings Account”
means, in relation to a Ship, an account in the name of the Borrower owning that Ship with the Account Bank designated “[Name
of Ship] - Earnings Account”, or any other account (with the Account Bank or the Agent or with another bank or financial
institution acceptable to the Majority Lenders) which is designated as the Earnings Account in relation to that Ship for the purpose
of receiving (i) all charter hire and other amounts paid under the Time Charter for that Ship and (ii) the Excess Cash Flow for
that Ship;

 

“Earnings Account Minimum
Balance” means the minimum amount required to be retained in an Earnings Account pursuant to Clause 19.2(a) or (b), as
the case may be;

 

“Earnings Account Pledge”
means a pledge of the Earnings Account for a Ship, in the form set out in Appendix D;

 

“Earnings Assignment”
means, in relation to a Ship, an assignment of the Earnings and any Requisition Compensation of that Ship, in the form set
out in Appendix E;

 

“Effective Date”
means the date on which this Agreement is executed and delivered by the parties hereto;

 

“Email” has
the meaning given in Clause 29.1;

 

“Environmental Claim”
means:

 

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

 

		(b)	any claim by any other person which relates to an Environmental Incident or to an alleged Environmental
Incident,

 

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

 

“Environmental Incident”
means:

 

		(a)	any release of Environmentally Sensitive Material from a Ship; or

 

    	8

    	 

    

 

		(b)	any incident in which Environmentally Sensitive Material is released and which involves a collision
or allision between a Ship and another vessel or object, or some other incident of navigation or operation, in any case, in connection
with which such Ship is actually or potentially liable to be arrested, attached, detained or injuncted and/or such Ship and/or
the Guarantors and/or the Borrower owning such Ship and/or any operator or manager of the Ship is at fault or allegedly at fault
or otherwise liable to any legal or administrative action; or

 

		(c)	any other incident in which Environmentally Sensitive Material is released otherwise than from
a Ship and in connection with which such Ship is actually or potentially liable to be arrested and/or where the Guarantors and/or
the Borrower owning such Ship and/or any operator or manager of such Ship is at fault or allegedly at fault or otherwise liable
to any legal or administrative action;

 

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

 

“Environmental Permit”
means any permit, approval, identification number, license or other authorization required under any Environmental Law;

 

“Environmentally Sensitive
Material” means oil, oil products and any other substance (including any chemical, gas or other hazardous or noxious
substance) which is (or is capable of being or becoming) polluting, toxic or hazardous;

 

“Equity Interests”
of any person means:

 

		(a)	any and all shares and other equity interests (including common stock, preferred stock, limited
liability company interests and partnership interests) in such person; and

 

		(b)	all rights to purchase, warrants or options or convertible debt (whether or not currently exercisable),
participations or other equivalents of or interests in (however designated) such shares or other interests in such person;

 

“ERISA” means
the United States Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated and rulings issued
thereunder;

 

“ERISA Affiliate”
means a trade or business (whether or not incorporated) that, together with Bulk Partners or any subsidiary of Bulk Partners, would
be deemed to be a single employer under Section 414 of the Code;

 

“Estate” has
the meaning assigned such term in Clause 31.1(b)(ii);

 

“Event of Default”
means any of the events or circumstances described in Clause 20.1;

 

“Executive Order”
means an executive order issued by the President of the United States of America;

 

“Excess
Cash Flow” means with respect to each Initial Ship, the amount of the Earnings for that Ship remaining in the Freights
Account after the payments referred to in Clause 19. 3 are made;

 

    	9

    	 

    

 

 

 

“Fair
Market Value” means, in relation to a Ship, the market value of such Ship at any date that is shown by either:

 

		(a)	a single valuation prepared for and addressed to the Agent by an Approved Broker selected and appointed
by the Agent (which shall be Maritime Strategies International Ltd., Arrow London, SSY (New York) and Compass Maritime (New Jersey)
unless the Agent advises otherwise); or

 

		(b)	if requested by the Borrowers, the average of two (2) valuations each prepared for and addressed
to the Agent by an Approved Broker, one selected by the Agent (which shall be Maritime Strategies International Ltd., Arrow London,
SSY (New York) and Compass Maritime (New Jersey) unless the Agent advises otherwise) and one selected by the Borrower, provided
that if there is a difference of or in excess of 10% between the two valuations, the Borrowers may, at their sole expense,
obtain a third valuation prepared for and addressed to the Agent by an Approved Broker, in which case the market value of such
Ship shall be the average of the three valuations obtained;

 

provided
that if a range of market values is provided in a particular appraisal, then the market value in such appraisal shall be deemed
to be the mid-point within such range;

 

Each valuation
prepared by an Approved Broker shall be:

 

		(ii)	as at a date not more than 14 days prior to the date such valuation is delivered to the Agent;

 

		(iii)	on a “desk-top” basis without physical inspection of that Ship;

 

		(iv)	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms
as between a willing seller and a willing buyer, free of any existing charter or other contract of employment (and with no value
to be given to any pooling arrangements); and

 

		(v)	after deducting the estimated amount of the usual and reasonable expenses which would be incurred
in connection with the sale;

 

“FATCA” means
Sections 1471 through 1474 of the Code and any regulations thereunder issued by the United States Treasury;

 

“FATCA Deduction”
means a deduction or withholding from a payment under any Finance Document required by or under FATCA;

 

“FATCA Exempt Party”
means a FATCA Relevant Party who is entitled under FATCA to receive payments free from any FATCA Deduction;

 

“FATCA Non-Exempt Party”
means a FATCA Relevant Party who is not a FATCA Exempt Party;

 

“FATCA Non-Exempt Lender”
means any Lender who is a FATCA Non-Exempt Party;

 

“FATCA Relevant Party”
means each Creditor Party and each Security Party;

 

“Finance
Documents” means:

 

    	10

    	 

    

 

		(a)	this Agreement;

 

		(b)	the Earnings Account Pledges;

 

		(c)	the Earnings Assignments;

 

		(d)	the Freights Account Pledge;

 

		(e)	the Insurance Assignments;

 

		(f)	the Mortgages;

 

		(g)	the Note;

 

		(h)	the Shares Pledges;

 

		(i)	the Time Charter and Time Charter Guarantee Assignments;

 

		(j)	the Time Charter Guarantees;

 

		(k)	the Time Charterer Earnings Assignments;

 

		(l)	the Undertakings and Agreements; and

 

		(m)	any other document (whether creating a Security Interest or not) which is executed at any time
by any person as security for, or to establish any form of subordination or priorities arrangement in relation to, any amount payable
to the Lenders under this Agreement or any of the other documents referred to in this definition;

 

“Financial
Indebtedness” means, with respect to any person (the “debtor”) at any date of determination (without
duplication):

 

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

 

		(b)	all obligations of the debtor evidenced by bonds, debentures, notes or other similar instruments;

 

		(c)	all obligations of the debtor in respect of any acceptance credit, guarantee or letter of credit
facility or equivalent made available to the debtor (including reimbursement obligations with respect thereto);

 

		(d)	all obligations of the debtor to pay the deferred purchase price of property or services, which
purchase price is due more than six months after the date of placing such property in service or taking delivery thereto or the
completion of such services, except trade payables;

 

		(e)	all Capitalized Lease Obligations of the debtor as lessee;

 

    	11

    	 

    

 

		(f)	all Financial Indebtedness of persons other than the debtor secured by a Security Interest on any
asset of the debtor, whether or not such Financial Indebtedness is assumed by the debtor, provided that the amount of such
Financial Indebtedness shall be the lesser of (i) the fair market value of such asset at such date of determination and (ii) the
amount of such Financial Indebtedness;

 

		(g)	all Financial Indebtedness of persons other than the debtor under any guarantee, indemnity or similar
obligation entered into by the debtor to the extent such Financial Indebtedness is guaranteed, indemnified, etc. by the debtor;
and

 

		(h)	to the extent not otherwise included in this definition, obligations of the debtor under Currency
Agreements and Interest Rate Agreements or any other kind of derivative transaction entered into by the debtor or, if the agreement
under which any such transaction is entered into requires netting of mutual liabilities, the liability of the debtor for the net
amount.

 

The amount
of Financial Indebtedness of any debtor at any date shall be the outstanding balance at such date of all unconditional obligations
as described above and, with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving
rise to the obligation, as determined in conformity with GAAP, provided that (i) the amount outstanding at any time of any
Financial Indebtedness issued with an original issue discount is the face amount of such Financial Indebtedness less the remaining
unamortized portion of such original issue discount of such Financial Indebtedness at such time as determined in conformity with
GAAP, and (ii) Financial Indebtedness shall not include any liability for taxes;

 

“Fiscal Year”
means, in relation to any person, each period of one (1) year commencing on January 1 of each year and ending on December 31 of
such year in respect of which its accounts are or ought to be prepared;

 

“Foreign Pension Plan”
means any plan, fund (including without limitation, any superannuation fund) or other similar program established or maintained
outside the United States of America by Bulk Partners or any one or more of its subsidiaries primarily for the benefit of its or
their employees residing outside the United States of America, which plan, fund or other similar program provides, or results in,
retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and
which plan is not subject to ERISA or the Code;

 

“Freights Account”
means an account in the name of Allseas with the Account Bank designated as the Freights Account for the Initial Ships and any
Additional Ship(s), or any other account (with the Account Bank or the Agent or with another bank or financial institution acceptable
to the Majority Lenders) for the purpose of receiving all Earnings of each such Ship under either the COAs for such Ship or any
charter by the Time Charterer as disponent owner for such Ship, as applicable;

 

“Freights
Account Pledge” means a pledge of the Freights Account, in the form set out in Appendix F;

 

“GAAP” means
generally accepted accounting principles in the United States of America, including, without limitation, those set forth in the
opinions 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 or in such other statements by such other entity as approved by
a significant segment of the accounting profession;

 

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“Guaranteed Obligations”
has the meaning given in Clause 16.1;

 

“Guarantor Accession
Agreement” means an agreement providing for the accession of a person to this Agreement as a Guarantor in the form set
out in Appendix G hereto;

 

“IACS” means
the International Association of Classification Societies;

 

“Initial Ships”
means, collectively, BULK PANGAEA, BULK PATRIOT, BULK JULIANA and BULK TRIDENT, and in the singular means any one of them;

 

“Insurances”
means in relation to a Ship:

 

		(a)	all policies and contracts of insurance, including entries of that Ship in any protection and indemnity
or war risks association, effected in respect of that Ship, the Earnings or otherwise in relation to that Ship whether before,
on or after the date of this Agreement; and

 

		(b)	all rights and other assets relating to, or derived from, any of the foregoing, including any rights
to a return of a premium and any rights in respect of any claim whether or not the relevant policy, contract of insurance or entry
has expired on or before the date of this Agreement;

 

“Insurance Assignment”
means, in relation to a Ship, an assignment of the Insurances, in the form set out in Appendix H;

 

“Interest Period”
means a period determined in accordance with Clause 6;

 

“Interest Rate Agreement”
means any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement or other similar agreement
or arrangement designed to protect a person or any of its subsidiaries against fluctuations in interest rates to or under which
such person or any of its subsidiaries is a party or a beneficiary on the date hereof or becomes a party or a beneficiary hereafter;

 

“IRS”
means the United States Internal Revenue Service or any successor taxing authority or agency of the United States government;

 

“ISM Code”
means the International Safety Management Code (including the guidelines on its implementation), adopted by the International Maritime
Organization, as the same may be amended or supplemented from time to time (and the terms “safety management system”,
“Safety Management Certificate” and “Document of Compliance” have the same meanings as are
given to them in the ISM Code);

 

“ISM Code Documentation”
includes, in respect of a Ship:

 

		(a)	the Document of Compliance and Safety Management Certificate issued pursuant to the ISM Code in
relation to that Ship within the periods specified by the ISM Code;

 

    	13

    	 

    

 

		(b)	all other documents and data which are relevant to the safety management system and its implementation
and verification which the Agent may reasonably require; and

 

		(c)	any other documents which are prepared or which are otherwise relevant to establish and maintain
that Ship’s compliance or the compliance of the Borrower that owns that Ship or the relevant Approved Manager with the ISM
Code which the Agent may reasonably require;

 

“ISPS Code”
means the International Ship and Port Facility Security Code as adopted by the International Maritime Organization, as the same
may be amended or supplemented from time to time;

 

“ISPS Code Documentation”
includes:

 

		(a)	the ISSC; and

 

		(b)	all other documents and data which are relevant to the ISPS Code and its implementation and verification
which the Agent may require;

 

“ISSC” means
a valid and current International Ship Security Certificate issued under the ISPS Code;

 

“Lending Office”
means, with respect to any Lender, the office of such Lender specified as its “Lending Office” under its name on Schedule
1 or in the relevant Transfer Certificate pursuant to which it became a Lender, or such other office of such Lender as such Lender
may from time to time specify to the Borrowers and the Agent in accordance with Clause 27.14;

 

“LIBOR” means,
in relation to any period for which a rate of interest is to be determined under any provisions of a Finance Document, the rate
which appears on Reuters BBA page LIBOR 01 screen at or about 11.00 am (London Time) on the relevant Quotation Date for a selected
interest period;

 

“Liquidity”
means the sum of (a) cash and (b) Cash Equivalents, in each case held by a Borrower on a freely available and unencumbered basis;

 

“Loan” means
the principal amount from time to time outstanding under this Agreement;

 

“Major Casualty”
means, in relation to a Ship, any casualty to that Ship in respect of which the claim or the aggregate of the claims against all
insurers, before adjustment for any relevant franchise or deductible, exceeds $500,000 or the equivalent in any other currency;

 

“Majority Lenders”
means:

 

		(a)	before the Loan has been made, Lenders whose Commitments total 66.67% of the Total Commitments;
and

 

		(b)	after the Loan has been made, Lenders whose Contributions total 66.67% of the Loan;

 

“Margin Stock”
has the meaning specified in Regulation U of the Board of Governors of the United States Federal Reserve System and any successor
regulations thereto, as in effect from time to time;

 

    	14

    	 

    

  

“MOA” means
the Memorandum of Agreement entered into between the Seller and a Borrower in respect of the sale and purchase of an Additional
Ship;

 

“Moody’s”
means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors;

 

“Mortgage”
means, in relation to a Ship, the first preferred Panamanian or Marshall Islands ship mortgage, as the case may be, on that Ship,
in the form set out in Appendix I-1 (Panama) or I-2 (Marshall Islands);

 

“Multiemployer Plan”
means, at any time, a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which a Borrower, a Guarantor
or any subsidiary of them or any ERISA Affiliate has any liability or obligation to contribute or has within any of the six preceding
plan years had any liability or obligation to contribute;

 

“Non-indemnified Tax”
means:

 

		(a)	any tax on the net income of a Creditor Party (but not a tax on gross income or individual items
of income), whether collected by deduction or withholding or otherwise, which is levied by a taxing jurisdiction which:

 

		(i)	is located in the country under whose laws such entity is formed (or in the case of a natural person
is a country of which such person is a citizen); or

 

		(ii)	with respect to any Lender, is located in the country of its Lending Office; or

 

		(iii)	with respect to any Creditor Party other than a Lender, is located in the country from which such
party has originated its participation in this transaction; or

 

		(b)	any FATCA Deduction made on account of a payment to a FATCA Non-Exempt Party;

 

“Note” means
a promissory note of the Borrowers, payable to the order of the Agent, evidencing the aggregate indebtedness of the Borrowers under
this Agreement, in the form set out in Appendix J;

 

“Notifying Lender”
has the meaning given in Clause 24.1 or Clause 25.1 as the context requires;

 

“OFAC” means
the Office of Foreign Assets Control of the United States Department of the Treasury;

 

“pari passu”,
when used with respect to the ranking of any Financial Indebtedness of any person in relation to other Financial Indebtedness of
such person, means that each such Financial Indebtedness:

 

		(a)	either (i) is not subordinated in right of payment to any other Financial Indebtedness of such
person or (ii) is subordinate in right of payment to the same Financial Indebtedness of such person as is the other and is so subordinate
to the same extent; and
	 	 	 

		(b)	is not subordinate in right of payment to the other or to any Financial Indebtedness of such person
as to which the other is not so subordinate;

 

    	15

    	 

    

 

“PATRIOT Act”
means the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Improvement and Reauthorization Act of 2005 (H.R. 3199);

 

“Payment Currency”
has the meaning given in Clause 22.4;

 

“Permitted Security
Interests” means:

 

		(a)	Security Interests created by the Finance Documents;

 

		(b)	Security Interests for unpaid but not past due master’s and crew’s wages in accordance
with usual maritime practice;

 

		(c)	Security Interests for salvage;

 

		(d)	Security Interests arising by operation of law for not more than two (2) months’ prepaid
hire under any charter or other contract of employment in relation to a Ship not otherwise prohibited by this Agreement or any
other Finance Document;

 

		(e)	Security Interests for master’s disbursements incurred in the ordinary course of trading
and any other Security Interests arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance
of a Ship, provided such Security Interests do not secure amounts more than 30 days overdue (unless the overdue amount is
being contested by the Borrower that owns such Ship in good faith by appropriate steps) and subject, in the case of Security Interests
for repair or maintenance, to Clause 14.13(h);

 

		(f)	any Security Interest created in favor of a plaintiff or defendant in any proceedings or arbitration
as security for costs and expenses where the Borrower that owns the relevant Ship is actively prosecuting or defending such proceedings
or arbitration in good faith and such Security Interest does not (and is not likely to) result in any sale, forfeiture or loss
of a Ship;

 

		(g)	Security Interests arising by operation of law in respect of taxes which are not overdue for payment
or in respect of taxes being contested in good faith by appropriate steps and in respect of which appropriate reserves have been
made;

 

		(h)	Security Interests created by Bulk Fleet in connection with financings existing prior to the date
of this Agreement in respect of the Equity Interests of Bulk Discovery (Bermuda) Ltd., Bulk Cajun Bermuda Ltd. and Bulk Atlantic
Ltd.; and

 

		(i)	Security Interests created by Allseas, Phoenix Bulk (BVI), Phoenix Bulk (US) or the Time Charterer
to secure the obligations in connection with a letter of credit dated on or about the date of this Agreement and issued by Rockland
Trust Company, provided that such the amount available under such letter of credit does not exceed $5,000,000;

 

provided that
the Security Interests described in paragraphs (b) through (g) above shall not exceed $500,000 in the aggregate at any time;

 

“Pertinent Document”
means:

 

    	16

    	 

    

  

		(a)	any Finance Document;

 

		(b)	any policy or contract of insurance contemplated by or referred to in Clause 13 or any other provision
of this Agreement or another Finance Document;

 

		(c)	any other document contemplated by or referred to in any Finance Document; and

 

		(d)	any document which has been or is at any time sent by or to a Servicing Bank in contemplation of
or in connection with any Finance Document or any policy, contract or document falling within paragraphs (b) or (c);

 

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

 

		(a)	the jurisdiction under the laws of which the company is incorporated or formed;

 

		(b)	a jurisdiction in which the company has the center of its main interests or in which the company’s
central management and control is or has recently been exercised;

 

		(c)	a jurisdiction in which the overall net income of the company is subject to corporation tax, income
tax or any similar tax;

 

		(d)	a jurisdiction in which assets of the company (other than securities issued by, or loans to, related
companies) having a substantial value are situated, in which the company maintains a branch or permanent place of business, or
in which a Security Interest created by the company must or should be registered in order to ensure its validity or priority; or

 

		(e)	a jurisdiction the courts of which have jurisdiction to make a winding up, administration or similar
order in relation to the company whether as a main or territorial or ancillary proceedings or which would have such jurisdiction
if their assistance were requested by the courts of a country referred to in paragraphs (a) or (b) above;

 

“Pertinent Matter”
means:

 

		(a)	any transaction or matter contemplated by, arising out of, or in connection with a Pertinent Document;
or

 

		(b)	any statement relating to a Pertinent Document or to a transaction or matter falling within paragraph
(a),

 

and covers any such transaction,
matter or statement, whether entered into, arising or made at any time before the signing of this Agreement or on or at any time
after that signing;

 

“Plan” means
any employee benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the
Code or Section 302 of ERISA, and in respect to which a Borrower, a Guarantor or any subsidiary of them or ERISA Affiliate is (or,
if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section
3(5) of ERISA;

 

    	17

    	 

    

 

“Potential Event of
Default” means an event or circumstance which, with the giving of any notice, the lapse of time, a determination of the
Majority Lenders and/or the satisfaction of any other condition, would constitute an Event of Default;

 

“Prohibited Person”
means any person (whether designated by name or by reason of being included in a class of persons) against whom Sanctions are directed;

 

“Quotation Date”
means, in relation to any period for which an interest rate is to be determined under any provision of a Finance Document, the
day which is two (2) Business Days before the first day of that period, unless market practice differs in the London Interbank
Market for a currency, in which case the Quotation Date will be determined by the Agent in accordance with market practice in the
London Interbank Market (and if quotations would normally be given by leading banks in the London Interbank Market on more than
one day, the Quotation Date will be the last of those days);

 

“Rating Agencies”
means:

 

		(a)	S&P and Moody’s; or

 

		(b)	if S&P or Moody’s or both of them are not making ratings of securities publicly available,
a nationally recognized United States rating agency or agencies, as the case may be, selected by the Agent with the consent of
the Majority Lenders, which will be substituted for S&P or Moody’s or both, as the case may be;

 

“Rating Category”
means:

 

		(a)	with respect to S&P, any of the following categories (any of which may include a “+”
or “-”): AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor categories);

 

		(b)	with respect to Moody’s, any of the following categories: Aaa, Aa, A, Baa, Ba, B, Caa, Ca,
C and D (or equivalent successor categories); and

 

		(c)	the equivalent of any such categories of S&P or Moody’s used by another Rating Agency,
if applicable;

 

“Repayment Date”
means a date on which a repayment is required to be made under Clause 8;

 

“Requisition Compensation”
includes all compensation or other moneys payable by reason of any act or event such as is referred to in paragraph (b) of the
definition of “Total Loss”;

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies Inc., and its successors;

 

“Sanctions”
means any sanctions, embargoes, freezing provisions, prohibitions or other restrictions relating to trading, doing business, investment,
exporting, financing or making assets available (or other activities similar to or connected with any of the foregoing):

 

		(a)	imposed by law or regulation of the Council of the European Union, the United Nations or its Security
Council or the United Kingdom;

 

		(b)	under CISADA;

 

    	18

    	 

    

 

		(c)	in respect of (i) a “national” of any “designated foreign country”, within
the meaning of the Foreign Assets Control Regulations or the Cuban Asset Control Regulations of the United States Department of
the Treasury, 31 C.F.R., Subtitle B, Chapter V, as amended, or (ii) a “specially designated national” listed by OFAC
or any regulations or rulings issued thereunder; or

 

		(d)	otherwise imposed by any law or regulation or Executive Order by which any Creditor Party, the
Borrowers or any Guarantor is bound or, as regards a regulation, compliance with which is reasonable in the ordinary course of
business of any Creditor Party, the Borrowers or any Guarantor, including without limitation laws or regulations or Executive Orders
restricting loans to, investments in, or the export of assets to, foreign countries or entities doing business there;

 

provided
that the laws and regulations described in paragraphs (a) and (d) shall be applicable only to the extent such laws and regulations
are not inconsistent with the laws and regulations of the United States of America;

 

“Secured Liabilities”
means all liabilities which the Security Parties or any of them have, at the date of this Agreement or at any later time or times,
under or in connection with any Finance Document or any judgment relating to any Finance Documents; and for this purpose, there
shall be disregarded any total or partial discharge of these liabilities, or variation of their terms, which is effected by, or
in connection with, any bankruptcy, liquidation, arrangement or other procedure under the insolvency laws of any country;

 

“Security Interest”
means:

 

		(a)	a mortgage, encumbrance, charge (whether fixed or floating) or pledge, any maritime or other lien
or privilege or any other security interest of any kind;

 

		(b)	the security rights of a plaintiff under an action in rem; and

 

		(c)	any arrangement entered into by a person (A) the effect of which is to place another person (B)
in a position which is similar, in economic terms, to the position in which B would have been had he held a security interest over
an asset of A; but this paragraph (c) does not apply to a right of set off or combination of accounts conferred by the standard
terms of business of a bank or financial institution;

 

“Security Party”
means the Borrowers, the Guarantors, the Time Charterer, the Time Charter Guarantors, Allseas, Phoenix Bulk (BVI), Phoenix Bulk
(US) and any other person (except a Creditor Party) who, as a surety, guarantor, mortgagor, assignor or pledgor, as a party to
any subordination or priorities arrangement, or in any similar capacity, executes a Finance Document;

 

“Security
Period” means the period commencing on the date of this Agreement and ending on the date on which the Agent notifies
the Borrowers, the other Security Parties and the other Creditor Parties that:

 

		(a)	all amounts which have become due for payment by the Borrowers or any other Security Party under
the Finance Documents have been paid;

    	19

    	 

    

 

 

		(b)	no amount is owing or has accrued (without yet having become due for payment) under any Finance
Document;

 

		(c)	neither the Borrowers nor any other Security Party has any future or contingent liability under
Clause 21, 22 or 23 or any other provision of this Agreement or another Finance Document; and

 

		(d)	the Agent, the Security Trustee and the Majority Lenders do not reasonably consider that there
is a significant risk that any payment or transaction under a Finance Document would be set aside, or would have to be reversed
or adjusted, in any present or possible future bankruptcy of the Borrowers or another Security Party or in any present or possible
future proceeding relating to a Finance Document or any asset covered (or previously covered) by a Security Interest created by
a Finance Document;

 

“Seller” means,
in respect of an MOA, the seller of the Additional Ship named therein;

 

“Seller’s Bank”
has the meaning given in Clause 9.2(b);

 

“Servicing Bank”
means the Agent or the Security Trustee;

 

“Shares Pledge”
means a pledge of the Equity Interests of each Borrower, in the form set out in Appendix K;

 

“Ship” means,
as the context may require:

 

		(a)	any Initial Ship; and

 

(b)      any Additional Ship;

 

“Substitute Basis”
has the meaning given such term in Clause 5.5;

 

“Time
Charter” means:

 

		(a)	in respect of BULK PANGAEA, a “hell or high water” time
charter party in Agreed Form between Bulk Pangaea as owner and the Time Charterer as charterer, the terms of which shall include,
among other things:

 

		(i)	a charter period ending on the earlier of (i) January 10, 2017 or (ii) the full repayment of the
Advance relating to BULK PANGAEA;

 

		(ii)	a minimum daily hire rate of not less than $11,250 payable in arrears; and

 

		(iii)	certain provisions allowing Bulk Pangaea to claim additional payments and/or charter hire to:

 

		(A)	repair a breach of the Applicable Collateral Maintenance Ratio; and

 

		(B)	cover any excess operational expenses/daily running costs, principal and interest which, in the
aggregate, would exceed daily hire rate of $11,250;

    	20

    	 

    

 

 

 

		(b)	in respect of BULK PATRIOT, a “hell or high water” time
charter party in Agreed Form between Bulk Patriot as owner and the Time Charterer as charterer, the terms of which shall include,
among other things:

 

		(i)	a charter period ending on the earlier of (i) October 10, 2017 or (ii) the full repayment of the
Advance relating to BULK PATRIOT;

 

		(ii)	a minimum daily hire rate of not less than $12,750 payable in arrears; and

 

		(iii)	certain provisions allowing Bulk Patriot to claim additional payments and/or charter hire to:

 

		(A)	repair a breach of the Applicable Collateral Maintenance Ratio; and

 

		(B)	cover any excess operational expenses/daily running costs, principal and interest which, in the
aggregate, would exceed daily hire rate of $12,750;

 

		(c)	in respect of BULK JULIANA, a “hell or high water” time
charter party in Agreed Form between Bulk Juliana as owner and the Time Charterer as charterer, the terms of which shall include,
among other things:

 

		(i)	a charter period ending on the earlier of (i) July 10, 2018 or (ii) the full repayment of the Advance
relating to BULK JULIANA;

 

		(ii)	a minimum daily hire rate of not less than $11,000 payable in arrears; and

 

		(iii)	certain provisions allowing Bulk Juliana to claim additional payments and/or charter hire to:

 

		(A)	repair a breach of the Applicable Collateral Maintenance Ratio; and

 

		(B)	cover any excess operational expenses/daily running costs, principal and interest which, in the
aggregate, would exceed daily hire rate of $11,000; and

 

		(d)	in respect of BULK TRIDENT, an “internal” time charter
party in Agreed Form between Bulk Trident as owner and the Time Charterer as charterer, the terms of which shall include, among
other things:

 

		(i)	a charter period ending on the earlier of (i) August 30, 2014 or (ii) the full repayment of the
Advance relating to BULK TRIDENT;

 

		(ii)	a minimum daily hire rate of not less than $10,615 (net) payable in arrears; and

 

		(iii)	certain provisions allowing Bulk Trident to claim additional payments and/or charter hire to:

 

		(A)	repair a breach of the Applicable Collateral Maintenance Ratio; and

 

    	21

    	 

    

 

		(B)	cover any excess operational expenses/daily running costs, principal and interest which, in the
aggregate, would exceed daily hire rate of $10,615 (net);

 

“Time Charter and Time
Charter Guarantee Assignment” means, in relation to a Ship, an assignment of the Time Charter and the Time Charter
Guarantee for such Ship, in the form set out in Appendix L;

 

“Time Charter Guarantee”
means, in respect of a Time Charter, a guarantee in Agreed Form in respect of the Time Charterer’s obligations under such
Time Charter made by the Time Charter Guarantors, jointly and severally, in favor of the Borrower that owns the Ship subject to
such Time Charter;

 

“Time Charter Guarantors”
means Bulk Partners, Bulk Holding and Bulk Fleet acting in such capacity, and in the singular means any one of them;

 

“Time Charterer”
means Americas Bulk Transport (BVI) Limited, a company organized and existing under the laws of British Virgin Islands;

 

“Time Charterer Earnings
Assignment” means, in respect of each Ship, an assignment by the Time Charterer of the Earnings and any Requisition Compensation
of such Ship, in the form set out in Appendix M;

 

“Total Loss”
means in relation to a Ship:

 

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

 

		(b)	any expropriation, confiscation, requisition or acquisition of that Ship, whether for full consideration,
a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any government
or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding
a requisition for hire for a fixed period not exceeding one (1) year without any right to an extension), unless it is within one
(1) month redelivered to the full control of the Borrower owning that Ship; or

 

		(c)	any arrest, capture, seizure or detention of that Ship (including any hijacking or theft) unless
it is within one (1) month redelivered to the full control of the Borrower owning that Ship;

 

“Total Loss Date”
means in relation to a Ship:

 

		(a)	in the case of an actual loss of that Ship, the date on which it occurred or, if that is unknown,
the date when that Ship was last heard of;

 

		(b)	in the case of a constructive, compromised, agreed or arranged total loss of that Ship, the earliest
of:

 

		(i)	the date on which a notice of abandonment is given to the insurers; and

 

    	22

    	 

    

 

		(ii)	the date of any compromise, arrangement or agreement made by or on behalf of the Borrower owning
that Ship with the Ship’s insurers in which the insurers agree to treat the Ship as a total loss; and

 

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

 

“Transfer Certificate”
has the meaning given in Clause 27.2;

 

“Transferee Lender”
has the meaning given in Clause 27.2;

 

“Transferor Lender”
has the meaning given in Clause 27.2;

 

“UCC” means
the Uniform Commercial Code of the State of New York;

 

“Undertaking and Agreement”
means:

 

		(a)	in relation to BULK PATRIOT, the undertaking and agreement made by Bulk Patriot, the Time Charterer,
Phoenix Bulk (US) and Allseas, in the form set out in Appendix N-1; and

 

		(b)	in relation to BULK TRIDENT, the undertaking and agreement made by Bulk Trident, the Time Charterer,
Phoenix Bulk (BVI) and Allseas, in the form set out in Appendix N-2; and

 

“Voting Stock”
of any person as of any date means the Equity Interests of such person that are at the time entitled to vote in the election of
the board of directors or similar governing body of such person.

 

		1.2	Construction of certain terms. In this Agreement:

 

“approved”
means, for the purposes of Clause 13, approved in writing by the Agent with the consent of the Majority Lenders;

 

“asset” includes
every kind of property, asset, interest or right, including any present, future or contingent right to any revenues or other payment;

 

“company”
includes any corporation, limited liability company, partnership, joint venture, unincorporated association, joint stock company
and trust;

 

“consent”
includes an authorization, consent, approval, resolution, license, exemption, filing, registration, notarization and legalization;

 

“contingent liability”
means a liability which is not certain to arise and/or the amount of which remains unascertained;

 

“document”
includes a deed; also a letter, Email or fax;

 

“excess risks”
means, in relation to a Ship, the proportion (if any) of claims for general average, salvage and salvage charges not recoverable
under the hull and machinery insurances in respect of that Ship in consequence of the value at which such Ship is assessed for
the purpose of such claims exceeding its insured value;

 

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“excess war risk P&I
cover” means, in relation to a Ship, cover for claims only in excess of amounts recoverable under the usual war risk
cover including (but not limited to) hull and machinery, crew and protection and indemnity risks;

 

“expense”
means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable value added or other
tax;

 

“law” includes
any order or decree, any form of delegated legislation, any treaty or international convention and any statute, regulation or resolution
of the United States of America, any state thereof, the Council of the European Union, the European Commission, the United Nations
or its Security Council or any other Pertinent Jurisdiction;

 

“legal or administrative
action” means any legal proceeding or arbitration and any administrative or regulatory action or investigation;

 

“liability”
includes every kind of debt or liability (present or future, certain or contingent), whether incurred as principal or surety or
otherwise;

 

“months” shall
be construed in accordance with Clause 1.3;

 

“obligatory insurances”
means, in relation to a Ship, all insurances effected, or which the Borrower owning that Ship is obliged to effect, under Clause
13 or any other provision of this Agreement or another Finance Document;

 

“parent company”
has the meaning given in Clause 1.4;

 

“person” includes
natural persons; any company; any state, political sub-division of a state and local or municipal authority; and any international
organization;

 

“policy”,
in relation to any insurance, includes a slip, cover note, certificate of entry or other document evidencing the contract of insurance
or its terms;

 

“protection and indemnity
risks” means the usual risks covered by a protection and indemnity association that is a member of the International
Group of P&I Clubs, including pollution risks and the proportion (if any) of any sums payable to any other person or persons
in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation in them of
clause 6 of the International Time Clauses (Hulls)(1/11/02 or 1/11/03) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83)
or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision;

 

“regulation”
includes any regulation, rule, official directive, request or guideline (either having the force of law or compliance with which
is reasonable in the ordinary course of business of the party concerned) of any governmental body, intergovernmental or supranational,
agency, department or regulatory, self-regulatory or other authority or organization;

 

“subsidiary”
has the meaning given in Clause 1.4;

 

“successor”
includes any person who is entitled (by assignment, novation, merger or otherwise) to any other person’s rights under this
Agreement or any other Finance Document (or any interest in those rights) or who, as administrator, liquidator or otherwise, is
entitled to exercise those rights; and in particular references to a successor include a person to whom those rights (or any interest
in those rights) are transferred or pass as a result of a merger, division, reconstruction or other reorganization of it or any
other person;

 

    	24

    	 

    

 

“tax” includes
any present or future tax, duty, impost, levy or charge of any kind which is imposed by any country, any state, any political sub-division
of a state or any local or municipal authority or any other governmental authority authorized to levy such tax (including any such
imposed in connection with exchange controls), and any related penalties, interest or fines; and

 

“war risks”
includes the risk of mines and all risks excluded by clause 29 of the Institute Hull Clauses (1/11/02 or 1/11/03) or clause 24
of the Institute Time clauses (Hulls) (1/11/1995) or clause 23 of the Institute Time Clauses (Hulls) (1/10/83).

 

		1.3	Meaning of “month”. A period of one or more “months”
ends on the day in the relevant calendar month numerically corresponding to the day of the calendar month on which the period started
(“the numerically corresponding day”), but:

 

		(a)	on the Business Day following the numerically corresponding day if the numerically corresponding
day is not a Business Day or, if there is no later Business Day in the same calendar month, on the Business Day preceding the numerically
corresponding day; or

 

		(b)	on the last Business Day in the relevant calendar month, if the period started on the last Business
Day in a calendar month or if the last calendar month of the period has no numerically corresponding day,

 

and “month”
and “monthly” shall be construed accordingly.

 

		1.4	Meaning of “subsidiary”. A company (S) is a subsidiary
of another company (P) if:

 

		(a)	a majority of the issued Equity Interests in S (or a majority of the issued Equity Interests in
S which carry unlimited rights to capital and income distributions) are directly owned by P or are indirectly attributable to P;
or

 

		(b)	P has direct or indirect control over a majority of the voting rights attaching to the issued Equity
Interests of S; or

 

		(c)	P has the direct or indirect power to appoint or remove a majority of the directors (or equivalent)
of S; or

 

		(d)	P otherwise has the direct or indirect power to ensure that the affairs of S are conducted in accordance
with the wishes of P;

 

and any company of which S is
a subsidiary is a parent company of S.

 

		1.5	General interpretation. In this Agreement:

 

		(a)	references to, or to a provision of, a Finance Document or any other document are references to
it as amended or supplemented, whether before the date of this Agreement or otherwise;

 

		(b)	references in Clause 1.1 to a document being in the form of a particular Appendix include references
to that form with any modifications to that form which the Agent approves or reasonably requires with the consent of the Majority
Lenders and which are acceptable to the Borrowers;

 

    	25

    	 

    

 

		(c)	references to, or to a provision of, any law or regulation include any amendment, extension, re-enactment
or replacement, whether made before the date of this Agreement or otherwise;

 

		(d)	words denoting the singular number shall include the plural and vice versa; and

 

		(e)	Clauses 1.1 to 1.5 apply unless the contrary intention appears.

 

		1.6	Headings. In interpreting a Finance Document or any provision
of a Finance Document, all clause, sub-clause and other headings in that and any other Finance Document shall be entirely disregarded.

 

		1.7	Accounting terms. Unless otherwise specified herein, all accounting
terms used in this Agreement and in the other Finance Documents shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to any Creditor Party under this Agreement shall be prepared, in accordance
with GAAP as from time to time in effect.

 

		1.8	Inferences regarding materiality. To the extent that any representation,
warranty, covenant or other undertaking of a Security Party in this Agreement or any other Finance Document is qualified by reference
to those matters which are not reasonably expected to result in a “material adverse effect” or language of similar
import, no inference shall be drawn therefrom that any Creditor Party has knowledge or approves of any noncompliance by such Security
Party with any law or regulation.

 

		2	FACILITY

 

		2.1	Amount of facility. Subject to the other provisions of this
Agreement, the Lenders severally agree to make available to the Borrowers a loan facility in the aggregate principal amount of
up to $30,301,562.51 in respect of the refinancing of the Initial Ships, provided that the foregoing amount may be increased
by an amount to be agreed upon between the Lenders and the Borrowers to provide for an Advance in respect of the acquisition of
an Additional Ship.

 

		2.2	Lenders’ participations in Advances. Subject to the
other provisions of this Agreement, each Lender shall participate in each Advance in the proportion which, as at the relevant Drawdown
Date, its Commitment bears to the Total Commitments.

 

		2.3	Purpose of Advances. The Borrowers undertake with each Creditor
Party to use each Advance only to partially finance or refinance the acquisition of a Ship to which such Advance relates.

 

		2.4	Cancellation of Total Commitments. Any portion of the Total
Commitments not disbursed to the Borrowers shall be cancelled and terminated automatically on the expiration of the Availability
Period.

 

		3	POSITION OF THE LENDERS

 

		3.1	Interests several. The rights of the Lenders under this Agreement
are several.

 

    	26

    	 

    

 

		3.2	Individual right of action. Each Lender shall be entitled
to sue for any amount which has become due and payable by a Security Party to it under this Agreement without joining the Agent,
the Security Trustee or any other Lender as additional parties in the proceedings.

 

		3.3	Proceedings requiring Majority Lender consent. Except as provided
in Clause 3.2, no Lender may commence proceedings against any Security Party in connection with a Finance Document without the
prior consent of the Majority Lenders.

 

		3.4	Obligations several. The obligations of the Lenders under
this Agreement are several; and a failure of a Lender to perform its obligations under this Agreement shall not result in:

 

		(a)	the obligations of the other Lenders being increased; nor

 

		(b)	any Security Party or any other Lender being discharged (in whole or in part) from its obligations
under any Finance Document,

 

and in no circumstances shall
a Lender have any responsibility for a failure of another Lender to perform its obligations under this Agreement.

 

		3.5	Replacement of a Lender.

 

		(a)	If at any time:

 

		(i)	any Lender becomes a Non-Consenting Lender (as defined in paragraph (c) below); or

 

		(ii)	the Borrowers or any other Security Party becomes obliged in the absence of an Event of Default
to repay any amount in accordance with Clause 24 or to pay additional amounts pursuant to Clause 23 or Clause 25 to any Lender
in excess of amounts payable to other Lenders generally,

 

then the Borrowers
may, on 30 Business Days’ prior written notice to the Agent and such Lender, replace such Lender by requiring such Lender
to (and such Lender shall) transfer pursuant to Clause 27 all (and not part only) of its rights and obligations under this Agreement
to a Lender or other bank, financial institution, trust, fund or other entity (a “Replacement Lender”) selected
by the Borrowers, which is acceptable to the Agent with the consent of the Majority Lenders (other than the Lender the Borrowers
desires to replace), which confirms its willingness to assume and by its execution of a Transfer Certificate does assume all the
obligations of the transferring Lender (including the assumption of the transferring Lender’s participations on the same
basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal
amount of such Lender’s participation in the outstanding Advances and all accrued interest and/or breakages costs and other
amounts payable in relation thereto under the Finance Documents.

 

		(b)	The replacement of a Lender pursuant to this Clause 3.5 shall be subject to the following conditions:

 

		(i)	the Borrowers shall have no right to replace the Agent or the Security Trustee;

 

		(ii)	neither the Agent nor any Lender shall have any obligation to the Borrowers to find a Replacement
Lender;

 

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		(iii)	in the event of a replacement of a Non-Consenting Lender such replacement must take place no later
than 30 days after the date the Borrowers notify the Non-Consenting Lender and the Agent of its intent to replace the Non-Consenting
Lender pursuant to Clause 3.5(a); and

 

		(iv)	in no event shall the Lender replaced under this paragraph (b) be required to pay or surrender
to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents.

 

		(c)	For purposes of this Clause 3.5, in the event that:

 

		(i)	the Borrowers or the Agent has requested the Lenders to give a consent in relation to or to agree
to a waiver or amendment of any provisions of the Finance Documents;

 

		(ii)	the consent, waiver or amendment in question requires the approval of all Lenders; and

 

		(iii)	Lenders whose Commitments aggregate more than 66.67% percent
of the Total Commitments have consented to or agreed to such waiver or amendment,

 

then any Lender
who does not and continues not to consent or agree to such waiver or amendment shall be deemed a “Non-Consenting Lender”.

 

		4	DRAWDOWN

 

		4.1	Request for Advance. Subject to the following conditions,
the Borrowers may request an Advance to be made by delivering to the Agent a completed Drawdown Notice not later than 10:00 a.m.
(New York City time) three (3) Business Days prior to the intended Drawdown Date.

 

		4.2	Availability. The conditions referred to in Clause 4.1 are
that:

 

		(a)	the Drawdown Date must be a Business Day during the Availability Period;

 

		(b)	the loan facility is divided into an Advance for each Ship as follows:

 

		(i)	in the principle amount of up to $5,562,500 in respect of the refinancing of BULK PANGAEA;

 

		(ii)	in the principle amount of up to $9,050,000 in respect of the refinancing of BULK PATRIOT;

 

		(iii)	in the principle amount of up to $7,436,458.34 in respect of the refinancing of BULK JULIANA;

 

		(iv)	in the principle amount of up to $9,562,500 in respect of the refinancing of BULK TRIDENT; and

 

		(v)	in a principle amount to be agreed upon between the Lenders and the Borrowers in respect of the
financing of the acquisition of any Additional Ship;

 

		(c)	the applicable conditions precedent stated in Clause 9 hereof shall have been satisfied or waived
as provided therein.

 

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		4.3	Notification to Lenders of receipt of a Drawdown Notice. The
Agent shall promptly notify the Lenders that it has received a Drawdown Notice and shall inform each Lender of:

 

		(a)	the amount of the Advance, the Ship(s) to which such Advance relates and the Drawdown Date;

 

		(b)	the amount of that Lender’s participation in the Advance; and

 

		(c)	the duration of the first Interest Period.

 

		4.4	Drawdown Notice irrevocable. A Drawdown Notice must be signed
by a director, an officer or a duly authorized attorney-in-fact of the Borrowers and once served, a Drawdown Notice cannot be revoked
without the prior consent of the Agent, acting on the authority of the Majority Lenders.

 

		4.5	Lenders to make available Contributions. Subject to the provisions
of this Agreement, each Lender shall, before 10:00 a.m. (New York City time) on and with value on the Drawdown Date, make available
to the Agent for the account of the Borrowers the amount due from that Lender under Clause 2.2.

 

		4.6	Disbursement of Advance. Subject to the provisions of this
Agreement, the Agent shall on the Drawdown Date pay to the Borrowers the amounts which the Agent receives from the Lenders under
Clause 4.5 and that payment to the Borrowers shall be made:

 

		(a)	to the account which the Borrowers specify in the Drawdown Notice; and

 

		(b)	in the like funds as the Agent received the payments from the Lenders.

 

		4.7	Disbursement of Advance to third party. The payment by the
Agent under Clause 4.6 to the account of a third party designated by the Borrowers in a Drawdown Notice shall constitute the making
of an Advance and the Borrowers shall at that time become indebted, as principal and direct obligor, to each Lender in an amount
equal to that Lender’s Contribution.

 

		4.8	Promissory note.

 

		(a)	The obligation of the Borrowers to pay the principal of, and interest on, the Loan shall be evidenced
by the Note, which shall be dated the date of the first Drawdown Date.

 

		(b)	Each Advance made by the Lenders to the Borrowers may be evidenced by a notation of the same made
by the Agent on the grid attached to the Note, which notation, absent manifest error, shall be prima facie evidence of the
amount of such Advance.

 

		(c)	Each Lender shall record on its internal records the amount of its participation in each Advance
and each payment in respect thereof, and the unpaid balance of such participation in such Advance shall, absent manifest error
and to the extent not inconsistent with the notations made by the Agent on the grid attached to the Note, be as so recorded.

 

		(d)	The failure of the Agent or any Lender to make any such notation shall not affect the obligation
of the Borrowers in respect of such Advance or the Loan nor affect the validity of any transfer by the Agent of the Note.

 

    	29

    	 

    

 

		(e)	On receipt of satisfactory evidence that the Note has been lost, mutilated or destroyed and on
surrender of the remnants thereof, if any, the Borrowers will promptly replace the Note, without charge to the Creditor Parties,
with a similar Note. If such replacement Note replaces a lost Note it shall bear an endorsement to that effect. Any lost Note subsequently
found shall be surrendered to the Borrowers and cancelled. The Agent shall indemnify the Borrowers for any losses, claims or damages
resulting from the loss of such Note.

 

		5	INTEREST

 

		5.1	Normal rate of interest. Subject to the provisions of this
Agreement, the rate of interest on each Advance in respect of an Interest Period shall be the aggregate of the Applicable Margin
and LIBOR applicable to such Advance for that Interest Period.

 

		5.2	Payment of normal interest. Subject to the provisions of this
Agreement, interest on an Advance in respect of each Interest Period shall be paid by the Borrowers on the last day of that Interest
Period.

 

		5.3	Payment of accrued interest. In the case of an Interest Period
longer than three (3) months, accrued interest shall be paid every three (3) months during that Interest Period and on the last
day of that Interest Period.

 

		5.4	Notification of Interest Periods and rates of normal interest.
The Agent shall notify the Borrowers and each Lender of:

 

		(a)	each rate of interest; and

 

		(b)	the duration of each Interest Period (as determined under Clause 6.2),

 

as soon as
reasonably practicable after each is determined.

 

		5.5	Non-availability of funds.

 

		(a)	If the Agent, in its sole discretion, shall determine, by reason of circumstances affecting the
London interbank market generally, that adequate and reasonable means do not or will not exist for ascertaining the LIBOR applicable
to any Advance for any interest period, the Agent shall forthwith give notice of such determination to the Borrowers.

 

		(b)	Not later than 15 days from the date of the notice required by Clause 5.5(a), the Agent and the
Borrowers shall enter into negotiations in good faith with a view to agreeing to an alternative mutually acceptable basis (the
“Substitute Basis”) for funding of such Advance (or the continued funding of such Advance), or such portion
thereof, and for determining the interest rate from time to time applicable thereto.

 

		(c)	If at the expiry of 30 days from the date of the notice required by Clause 5.5(a) the Agent and
the Borrowers have agreed upon such Substitute Basis, it shall be retroactive to and take effect from the beginning of the then
current Interest Period and the Agent shall promptly notify the Lenders accordingly.

 

		(d)	If at the expiry of 30 days from the date of the notice required by Clause 5.5(a) no such Substitute
Basis has been agreed, then the Borrowers shall have the right either:

 

    	30

    	 

    

 

		(i)	to maintain the Advance, or such portion thereof, with such interest rate as the Agent may, from
time to time, determine and which rate shall reflect the cost to the Lenders of funding such Advance, or such portion thereof,
from alternative sources and the margin over such cost from time to time provided for hereunder; or

 

		(ii)	to prepay the Advance, or such portion thereof, and accrued interest thereon at the rate or rates
applicable to such Advance during the immediately preceding Interest Period up to the date of payment, together with all costs
incurred by the Lenders to fund such Advance, or such portion thereof, during such 30 day period.

 

The Borrowers
shall on or prior to the end of such 30 day period notify the Agent in writing of the alternative which they have selected and,
if they select alternative (d)(ii) or if they fail to make any selection, in which case they shall be deemed to have selected alternative
(d)(ii), the Borrowers shall prepay such Advance (without premium or penalty but subject to any applicable prepayment fee under
Clause 8.9(c)), together with accrued interest thereon at the applicable rate plus the Applicable Margin on or prior to the end
of such 30 day period and thereupon the obligation of the Lenders to maintain the relevant Advance, or such portion thereof, shall
cease and the Total Commitments in respect of such Advance shall be cancelled. A selection (or a deemed selection) by the Borrowers
of alternative (d)(ii) shall be irrevocable and the Agent shall promptly notify the Lenders of the Borrowers’ intended prepayment.

 

		5.6	Application of prepayment. The provisions of Clause 8 shall
apply in relation to the prepayment made pursuant to Clause 5.5.

 

		6	INTEREST PERIODS

 

		6.1	Commencement of Interest Periods. The first Interest Period
applicable to an Advance shall commence on the Drawdown Date and each subsequent Interest Period shall commence on the expiry of
the preceding Interest Period.

 

		6.2	Duration of normal Interest Periods. Subject to Clauses 6.3
and 6.4, each Interest Period shall be 3 months or such other period as the Agent may, with the authorization of all the Lenders,
agree with the Borrowers pursuant to Clause 6.5.

 

		6.3	Duration of Interest Periods for repayment installments. In
respect of an amount due to be repaid under Clause 8 on a particular Repayment Date, an Interest Period shall end on that Repayment
Date.

 

		6.4	Non-availability of matching deposits for Interest Period selected.
If, after the Borrowers have selected and the Lenders have agreed an Interest Period longer than three (3) months pursuant to Clause
6.5, any Lender notifies the Agent by 11:00 a.m. (New York time) on the third Business Day before the commencement of the Interest
Period that it is not satisfied that deposits in Dollars for a period equal to the Interest Period will be available to it in the
London Interbank Market when the Interest Period commences, the Interest Period shall be of three (3) months.

 

		6.5	Interest periods longer than 12 months. Upon not less than
five (5) Business Days prior written notice from the Borrowers to the Agent, and subject to the agreement of all of the Lenders,
the interest rate of all or more than 50% of the Advance may be fixed for an Interest Period in excess of 12 months. The interest
rate will be the actual refinancing rate available to the Lenders (on a weighted average basis) for that Interest Period plus the
Applicable Margin.

 

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		7	DEFAULT INTEREST

 

		7.1	Payment of default interest on overdue amounts. A Security
Party shall pay interest in accordance with the following provisions of this Clause 7 on any amount payable by such Security Party
under any Finance Document which the Agent, the Security Trustee or any other designated payee does not receive on or before the
relevant date, that is:

 

		(a)	the date on which the Finance Documents provide that such amount is due for payment; or

 

		(b)	if a Finance Document provides that such amount is payable on demand, the date on which the demand
is served; or

 

		(c)	if such amount has become immediately due and payable under Clause 20.4, the date on which it became
immediately due and payable.

 

		7.2	Default rate of interest. Interest shall accrue on an overdue
amount from (and including) the relevant date until the date of actual payment (as well after as before judgment) at the rate per
annum determined by the Agent to be 2.00 percent above:

 

		(a)	in the case of an overdue amount of principal, the higher of the rates set out at Clauses 7.3(a)
and (b); or

 

		(b)	in the case of any other overdue amount, the rate set out at Clause 7.3(b).

 

		7.3	Calculation of default rate of interest. The rates referred
to in Clause 7.2 are:

 

		(a)	the rate applicable to the overdue principal amount immediately prior to the relevant date (but
only for any unexpired part of any then current Interest Period); and

 

		(b)	the Applicable Margin plus, in respect of successive periods of any duration (including at call)
up to three (3) months which the Agent may, with the consent of the Majority Lenders, select from time to time:

 

		(i)	LIBOR; or

 

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

 

		7.4	Notification of interest periods and default rates. The Agent
shall promptly notify the Lenders and each relevant Security Party of each interest rate determined by the Agent under Clause 7.3
and of each period selected by the Agent for the purposes of paragraph (b) of that Clause; but this shall not be taken to imply
that such Security Party is liable to pay such interest only with effect from the date of the Agent’s notification.

  

		7.5	Payment of accrued default interest. Subject to the other
provisions of this Agreement, any interest due under this Clause shall be paid on the last day of the period by reference to which
it was determined; and the payment shall be made to the Agent for the account of the Creditor Party to which the overdue amount
is due.

 

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		7.6	Compounding of default interest. Any such interest which is
not paid at the end of the period by reference to which it was determined shall thereupon be compounded.

 

		8	REPAYMENT AND PREPAYMENT

 

		8.1	Amount of repayment installments. The Borrowers shall repay
the Loan as follows:

 

		(a)	with respect to the Advance relating to BULK PANGAEA, by 15 equal consecutive quarterly installments
of $346,875 each;

 

		(b)	with respect to the Advance relating to BULK PATRIOT, by 18 consecutive quarterly installments
of $500,000 each for installment numbers 1 through 16, $387,500 for installment number 17 and $50,000 for the last quarterly installment;

 

		(c)	with respect to the Advance relating to BULK JULIANA, by 22 consecutive quarterly installments
of $338,020.83 each for installment numbers 1 through 21 and $338,020.91 for the last quarterly installment; and

 

		(d)	with respect to the Advance relating to BULK TRIDENT, by 22 equal consecutive quarterly installments
of $318,750 each, and a balloon payment in the amount of $2,550,000 together with the last quarterly repayment installment.

 

		8.2	Repayment Dates. The first installment of each Advance in
respect of an Initial Ship (other than BULK JULIANA) shall be repaid on July 19, 2013. The first installment of the Advance in
respect of BULK JULIANA shall be repaid on April 19, 2013. The last installment of each Advance in respect of an Initial Ship shall
be repaid on the Applicable Maturity Date for such Advance. The first installment of each Advance in respect of an Additional Ship
shall be repaid on the date falling three (3) months after the Drawdown Date of such Advance and the last installment on the Applicable
Maturity Date for such Advance.

 

		8.3	Applicable Maturity Date. On the relevant Applicable Maturity
Date, the Borrowers shall additionally pay to the Agent for the account of the Creditor Parties all other sums then accrued or
owing under any Finance Document to which they are a party in relation to such Advance.

 

		8.4	Voluntary prepayment. Subject to the following conditions,
the Borrowers may prepay the whole or any part of an Advance on the last day of an Interest Period.

 

		8.5	Conditions for voluntary prepayment. The conditions referred
to in Clause 8.4 are that:

 

		(a)	a partial prepayment shall be $100,000 or a multiple of $100,000;

 

		(b)	the Agent has received from the Borrowers at least five (5) Business Days’ prior written
notice specifying the Advance to be prepaid, the amount to be prepaid and the date on which the prepayment is to be made; and

 

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		(c)	the Borrowers have provided evidence satisfactory to the Agent that any consent required by the
Borrowers or any other Security Party in connection with the prepayment has been obtained and remains in force, and that any regulation
relevant to this Agreement which affects the Borrowers or any other Security Party has been complied with (which may be satisfied
by the Borrowers certifying that no consents are required and that no regulations need to be complied with).

 

		8.6	Effect of notice of prepayment. A prepayment notice may not
be withdrawn or amended without the consent of the Agent, given with the authorization of the Majority Lenders, and the amount
specified in the prepayment notice shall become due and payable by the Borrowers on the date for prepayment specified in the prepayment
notice.

 

		8.7	Notification of notice of prepayment. The Agent shall notify
the Lenders promptly upon receiving a prepayment notice, and shall provide any Lender which so requests with a copy of any document
delivered by the Borrowers under Clause 8.5(c).

 

		8.8	Mandatory prepayment. If a Ship is sold or becomes a Total
Loss, the Borrowers shall prepay in full the Advance related to that Ship:

 

		(a)	in the case of a sale, on or before the date on which the sale is completed by delivery of the
Ship to the buyer; or

 

		(b)	in the case of a Total Loss, on the earlier of the date falling 150 days after the Total Loss Date
and the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss.

 

		8.9	Amounts payable on prepayment. A voluntary prepayment under
Clause 8.4 and a mandatory prepayment under Clause 8.8 shall be made together with:

 

		(a)	accrued interest (and any other amount payable under Clause 22 or otherwise) in respect of the
amount prepaid;

 

		(b)	if the prepayment is not made on the last day of an Interest Period, any sums payable under Clause
22.1(b); and

 

		(c)	the following prepayment fees as applicable:

 

		(i)	in respect of the Advance relating to BULK PANGAEA:

 

		(A)	3.00% of the prepaid amount in respect of any prepayment made in respect of the Advance related
to it prior to the first anniversary of the Drawdown Date of such Advance;

 

		(B)	2.00% of the prepaid amount in respect of any prepayment made in respect of the Advance related
to it on or after the first anniversary of the Drawdown Date but prior to the second anniversary of the Drawdown Date of such Advance;

 

		(C)	1.00% of the prepaid amount in respect of any prepayment made in respect of the Advance related
to it on or after the second anniversary of the Drawdown Date but prior to the third anniversary of the Drawdown Date of such Advance;
or

 

    	34

    	 

    

 

		(D)	0.25% of the prepaid amount in respect of any prepayment made in respect of the Advance related
to it on or after the third anniversary of the Drawdown Date of such Advance;

 

		(ii)	in respect of each Advance relating to BULK PATRIOT, BULK JULIANA and BULK TRIDENT:

 

		(A)	2.00% of the prepaid amount in respect of any prepayment made in respect of the Advance related
to it prior to the first anniversary of the Drawdown Date of such Advance;

 

		(B)	1.00% of the prepaid amount in respect of any prepayment made in respect of the Advance related
to it on or after the first anniversary of the Drawdown Date but prior to the second anniversary of the Drawdown Date of such Advance;
or

 

		(C)	0.25% of the prepaid amount in respect of any prepayment made in respect of the Advance related
to it on or after the second anniversary of the Drawdown Date but prior to the third anniversary of the Drawdown Date of such Advance;

 

provided
that no prepayment fee shall be payable:

 

		(A)	in respect of prepayments made from Excess Cash Flow pursuant to Clause 19.3(c), 19.4(c), 19.5(b)(ii)
or 19.6(b)(ii);

 

		(B)	in respect of a mandatory prepayment under Clause 8.8(a) if the Ship is sold to a person who is
not an Affiliate of the Borrowers;

 

		(C)	in respect of a mandatory prepayment under Clause 8.8(b), 15.3 or 24.1(c);

 

		(D)	in respect of a refinancing of a Ship by the Agent or any of its Affiliates; or

 

		(E)	in respect of amounts paid pursuant to Clauses 8.9(a) and (b).

 

		8.10	Application of partial prepayment. Each partial prepayment
shall be applied against the repayment installments specified in Clause 8.1 in inverse order of maturity.

 

		8.11	No reborrowing. No amount prepaid may be reborrowed.

 

		9	CONDITIONS PRECEDENT

 

		9.1	Documents, fees and no default. Each Lender’s obligation
to contribute to an Advance is subject to the following conditions precedent:

 

		(a)	that, on or before the service of any Drawdown Notice, the Agent receives (to the extent not previously
delivered to the Agent in connection with a previous Drawdown Notice):

 

		(i)	the documents described in Part A of Schedule 4 in form and substance satisfactory to the Agent
and its lawyers; and

 

    	35

    	 

    

 

		(ii)	such documentation and other evidence as is reasonably requested by the Agent or a Lender in order
for each to carry out and be satisfied with the results of all necessary “know your customer” or other checks which
it is required to carry out in relation to the transactions contemplated by this Agreement and the other Finance Documents, including
without limitation obtaining, verifying and recording certain information and documentation that will allow the Agent and each
of the Lenders to identify each Security Party in accordance with the requirements of the PATRIOT Act;

 

		(b)	that, on each Drawdown Date but prior to the making of an Advance in respect of an Initial Ship,
the Agent receives or is satisfied that it will receive on the making of such Advance the documents described in Part B of Schedule
4 in form and substance satisfactory to it and its lawyers;

 

		(c)	that in respect of an Advance for an Additional Ship:

 

		(i)	the Borrower has advised the Agent at least 60 days prior to service of the Drawdown Notice for
such Advance of the identity of the proposed Additional Ship (and has provided the Agent with a copy of the MOA relative thereto
and all other documents and information as may be required by the Agent (acting with the authority of the Majority Lenders) to
decide whether to accept the such Additional Ship (with the Borrower acknowledging that the Agent acting with the authority of
the Majority Lenders shall be entitled to refuse, in its sole and absolute discretion, such a request));

 

		(ii)	the Agent (acting with the authority of the Majority Lenders) has agreed to accept such proposed
Additional Ship; and

 

		(iii)	on the Drawdown Date but prior to the making of an Advance in respect of such Additional Ship,
the Agent receives or is satisfied that it will receive on the making of such Advance the documents described in Part C of Schedule
4 in form and substance satisfactory to it;

 

		(d)	that, on or before the service of the first Drawdown Notice, the Agent receives payment of the
fees referred to in Clause 21.1 and payment of the expenses referred to in Clause 21.2;

 

		(e)	that both at the date of each Drawdown Notice and at each Drawdown Date:

 

		(i)	no Event of Default or Potential Event of Default has occurred or would result from the borrowing
of the Advance;

 

		(ii)	the representations and warranties in Clause 10 and those of the Borrowers or any other Security
Party which are set out in the other Finance Documents (other than those relating to a specific date) would be true and not misleading
if repeated on each of those dates with reference to the circumstances then existing; and

 

		(iii)	there has been no material change in the consolidated financial condition, operations or business
prospects of the Borrowers or the Guarantors since the date on which the Borrowers and/or the Guarantors provided information concerning
those topics to the Agent and/or any Lender;

 

		(iv)	there have been no material adverse global economic or political developments;

 

		(v)	there have been no material adverse developments in the international money and capital markets;
and

 

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		(vi)	none of the Guarantors or any of their subsidiaries or Affiliates has launched any other facilities
or debt transactions into the international capital markets either publicly or privately,

 

and, in the case
of paragraphs (iii), (iv), (v) or (vi) in the sole opinion of the Lenders, which might prejudice either the successful and timely
syndication or performance of the loan facility contemplated by this Agreement;

 

		(f)	that, if the Applicable Collateral Maintenance Ratio were applied immediately following the making
of such Advance, the Borrowers would not be required to provide additional Collateral or prepay part of the Loan under Clause 15;
and

 

		(g)	that the Agent has received, and found to be acceptable to it, any further opinions, consents,
agreements and documents in connection with the Finance Documents which the Agent may, with the authorization of the Majority Lenders,
request by notice to the Borrowers prior to the Drawdown Date.

 

		9.2	Waiver of conditions precedent. Notwithstanding anything in
Clause 9.1 to the contrary:

 

		(a)	except with respect to the circumstances described in Clause 9.2(b), if the Agent, with the consent
of the Majority Lenders, permits an Advance to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied,
the Borrowers shall ensure that such conditions are satisfied within ten (10) Business Days after such Drawdown Date (or such longer
period as the Agent may specify); and

 

		(b)	only if required under the terms of an MOA or another contract for the acquisition of an Additional
Ship, an Advance may be borrowed before the applicable conditions set forth in Clause 9.1 are satisfied and:

 

		(i)	each Lender agrees to fund its Contribution on a day not more than five (5) Business Days prior
to the Delivery Date of that Ship; and

 

		(ii)	the Agent shall on the date on which the Advance is funded (or as soon thereafter as practicable)
(A) preposition an amount equal to the aggregate principal amount of the Advance at a bank or other financial institution (the
“Seller’s Bank”) satisfactory to the Agent, which funds shall be held at the Seller’s Bank in the
name and under the sole control of the Agent or one of its Affiliates and (B) issue a SWIFT MT 199 or other similar communication
(each such communication, a “Disbursement Authorization”) authorizing the release of such funds by the Seller’s
Bank on the relevant Delivery Date upon receipt of a Protocol of Delivery and Acceptance in respect of such Ship duly executed
by the Seller and the Borrower owning such Ship and countersigned by a representative of the Agent;

 

provided
that if delivery of the Ship does not occur within five (5) Business Days after the scheduled Delivery Date, the funds held
at the Seller’s Bank shall be returned to the Agent for further distribution to the Lenders.

 

For the avoidance
of doubt, the parties hereto acknowledge and agree that:

 

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		(1)	the date on which the Lenders fund the Advance constitutes the Drawdown Date in respect of such
Advance and all interest and fees thereon shall accrue from such date;

 

		(2)	the Agent and the Lenders suspend fulfillment of the conditions precedent set forth in Schedule
4, Part C, Paragraphs 5, 8 and 9 solely for the time period on and between such Drawdown Date and the relevant Delivery Date, and
the Borrowers acknowledge and agree that fulfillment of such conditions precedent to the satisfaction of the Agent shall be required
as a condition precedent to the countersignature by a representative of the Agent of the Protocol of Delivery and Acceptance referred
to in Clause 9.2(b)(ii);

 

		(3)	from the date the proceeds of the Advance are deposited at the Seller’s Bank to the Delivery
Date (or, if delivery of the Ship does not occur within the time prescribed in the Disbursement Authorization, the date on which
the funds are returned to the Agent for further distribution to the Lenders), the Borrowers shall be entitled to interest on the
Advance at the applicable rate, if any, paid by the Seller’s Bank for such deposited funds;

 

		(4)	if the Ship is not delivered within the time prescribed in the Disbursement Authorization and the
proceeds of the Advance are returned to the Agent and distributed to the Lenders, (i) the Borrowers shall pay all accrued interest
and fees in respect of such returned proceeds on the date such proceeds are returned to the Agent and (ii) the relevant available
Commitment will be increased by an amount equal to the aggregate principal amount of the Loan proceeds so returned; and

 

		(5)	if the Borrowers have instructed the Agent to convert the aggregate principal amount of the Advance
borrowed into a currency other than Dollars for deposit with the Seller’s Bank and the relevant Ship is not delivered within
the time prescribed in the Disbursement Authorization and the proceeds of the Advance are returned to the Agent for further distribution
to the Lenders, the Agent shall convert the aggregate principal amount of funds so returned back into Dollars and if such funds
are less than the Dollar amount of the aggregate principal amount of the Advance incurred on the relevant Drawdown Date, the Borrowers
shall immediately repay the difference and, in any event, the Borrowers shall pay any and all fees, charges and expenses arising
from such conversion.

 

		10	REPRESENTATIONS AND WARRANTIES

 

		10.1	General. Each of the Borrowers and the Guarantors represents
and warrants to each Creditor Party as of the Effective Date and each Drawdown Date as follows.

 

		10.2	Status. Each Security Party is:

 

		(a)	duly incorporated or formed and validly existing and in good standing under the law of its jurisdiction
of incorporation or formation; and

 

		(b)	duly qualified and in good standing as a foreign company in each other jurisdiction in which it
owns or leases property or in which the conduct of its business requires it to so qualify or be licensed except where, in each
case, the failure to so qualify or be licensed and be in good standing could not reasonably be expected to have a material adverse
effect on its business, assets or financial condition or which may affect the legality, validity, binding effect or enforceability
of the Finance Documents, and there are no proceedings or actions pending
or contemplated by any Security Party, or to the knowledge of the Borrowers or any Guarantor contemplated by any third party, seeking
to adjudicate such Security Party a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official
for it or for any substantial part of its property.

 

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		10.3	Company power; consents. Each Security Party has the capacity
and has taken all action, and no consent of any person is required, for:

 

		(a)	it to own or lease and operate its properties and to carry on its business as now conducted and
as proposed to be conducted;

 

		(b)	it to execute each Finance Document to which it is or is to become a party and comply with its
obligations under each Finance Document to which it is or is to become a party;

 

		(c)	it (in the case of a Borrower only) to execute the MOA to which it is or will be a party, to purchase
and pay for the relevant Ship under such MOA and register the relevant Ship in its name under an Approved Flag;

 

		(d)	it (in the case of each Borrower, the Time Charterer and each Time Charter Guarantor only) to execute
each Time Charter and COA to which it is or will be a party, and comply with its obligations under each such each Time Charter
and COA to which it is or is to become a party;

 

		(e)	it to grant the Security Interests granted by it pursuant to the Finance Documents to which it
is or is to become a party;

 

		(f)	the perfection or maintenance of the Security Interests created by the Finance Documents (including
the first priority nature thereof); and

 

		(g)	the exercise by any Creditor Party of their rights under any of the Finance Documents or the remedies
in respect of the Collateral pursuant to the Finance Documents,

 

except, in each case, for consents
which have been duly obtained, taken, given or made and are in full force and effect.

 

		10.4	Consents in force. All the consents referred to in Clause
10.3 remain in force and nothing has occurred which makes any of them liable to revocation.

 

		10.5	Title.

 

		(a)	Each Security Party owns (i) in the case of owned real property, good and marketable fee title
to and (ii) in the case of owned personal property, good and valid title to, or, in the case of leased real or personal property,
valid and enforceable leasehold interests (as the case may be) in, all of its properties and assets, tangible and intangible, of
any nature whatsoever, free and clear in each case of all Security Interests or claims, except for Permitted Security Interests.

 

    	39

    	 

    

 

		(b)	Except for Permitted Security Interests, no Security Party has created or is contractually bound
to create any Security Interest on or with respect to any of its assets, properties, rights or revenues, and except as provided
in this Agreement no Security Party is restricted by contract, applicable law or regulation or otherwise from creating Security
Interests on any of its assets, properties, rights or revenues.

 

		(c)	Each Borrower has received (or will receive on the relevant Delivery Date) all deeds, assignments,
waivers, consents, non-disturbance and attornment or similar agreements, bills of sale and other documents, and has duly effected
(or will duly effect on the Delivery Date) all recordings, filings and other actions necessary to establish, protect and perfect
such Borrower’s right, title and interest in and to the Ship owned or to be owned by it and other properties and assets (or
arrangements for such recordings, filings and other actions acceptable to the Agent shall have been made).

 

		10.6	Legal validity; effective first priority Security Interests.
Subject to any relevant insolvency laws affecting creditors’ rights generally:

 

		(a)	the Finance Documents to which each Security Party is a party, constitute or, as the case may be,
will constitute upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents), such
Security Party’s legal, valid and binding obligations enforceable against it in accordance with their respective terms; and

 

		(b)	the Finance Documents to which each Security Party is a party, create or, as the case may be, will
create upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents), legal, valid
and binding first priority Security Interests enforceable in accordance with their respective terms over all the assets to which
they, by their terms, relate.

 

		10.7	No third party Security Interests. Without limiting the generality
of Clauses 10.5 and 10.6, at the time of the execution and delivery of each Finance Document:

 

		(a)	the relevant Security Party will have the right to create all the Security Interests which that
Finance Document purports to create; and

 

		(b)	no third party will have any Security Interest (except for Permitted Security Interests) or any
other interest, right or claim over, in or in relation to any asset to which any such Security Interest, by its terms, relates.

 

		10.8	No conflicts. The execution of each Finance Document, Time
Charter and COA, the borrowing of each Advance, and compliance with each Finance Document, Time Charter and COA, will not involve
or lead to a contravention of:

 

		(a)	to the knowledge of any of the Borrowers or the Guarantors, any law or regulation; or

 

		(b)	the constitutional documents of any Security Party; or

 

		(c)	any contractual or other obligation or restriction which is binding on any Security Party or any
of its assets.

 

		10.9	Status of Secured Liabilities. The Secured Liabilities constitute
direct, unconditional and general obligations of each Security Party and rank (a) senior to all subordinated Financial Indebtedness,
including but not limited to shareholder loans, trade credit, and revolving credit facilities and (b) not less than pari
passu (as to priority of payment and as to security) with all other Financial Indebtedness of each Security Party.

 

    	40

    	 

    

 

		10.10	Taxes.

 

		(a)	All payments which a Security Party is liable to make under the Finance Documents to which it is
a party can properly be made without deduction or withholding for or on account of any tax payable under any law of any Pertinent
Jurisdiction.

 

		(b)	Each Security Party has timely filed or has caused to be filed all tax returns and other reports
that it is required by law or regulation to file in any Pertinent Jurisdiction, and has paid or caused to be paid all taxes, assessments
and other similar charges that are due and payable in any Pertinent Jurisdiction, other than taxes and charges:

 

		(i)	which (A) are not yet due and payable or (B) are being contested in good faith by appropriate proceedings
and for which adequate reserves have been established and as to which such failure to have paid such tax does not create any risk
of sale, forfeiture, loss, confiscation or seizure of a Ship or of criminal liability; or
	 	 	 
	 	(ii)	the
non-payment of which could not reasonably be expected to have a material adverse effect on the financial condition of such Security
Party.

 

The charges,
accruals, and reserves on the books of each Security Party respecting taxes are adequate in accordance with GAAP.

 

		(c)	No material claim for any tax has been asserted against a Security Party by any Pertinent Jurisdiction
or other taxing authority other than claims that are included in the liabilities for taxes in the most recent balance sheet of
such person or disclosed in the notes thereto, if any.

 

		(d)	The execution, delivery, filing and registration or recording (if applicable) of the Finance Documents
and the consummation of the transactions contemplated thereby will not cause any of the Creditor Parties to be required to make
any registration with, give any notice to, obtain any license, permit or other authorization from, or file any declaration, return,
report or other document with any governmental authority in any Pertinent Jurisdiction.

 

		(e)	No taxes are required by any governmental authority in any Pertinent Jurisdiction to be paid with
respect to or in connection with the execution, delivery, filing, recording, performance or enforcement of any Finance Document.

 

		(f)	The execution, delivery, filing, registration, recording, performance and enforcement of the Finance
Documents by any of the Creditor Parties will not cause such Creditor Party to be subject to taxation under any law or regulation
of any governmental authority in any Pertinent Jurisdiction of any Security Party.

 

		(g)	It is not necessary for the legality, validity, enforceability or admissibility into evidence of
this Agreement or any other Finance Document that any stamp, registration or similar taxes be paid on or in relation to this Agreement
or any of the other Finance Documents.

 

		10.11	No default. No Event of Default or Potential Event of Default
has occurred or would result from the borrowing of the Advance.

 

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		10.12	Information. All financial statements, information and other
data furnished by or on behalf of a Security Party to any of the Creditor Parties:

 

		(a)	was true and accurate at the time it was given;

 

		(b)	such financial statements, if any, have been prepared in accordance with GAAP and accurately and
fairly represent the financial condition of such Security Party as of the date or respective dates thereof and the results of operations
of such Security Party for the period or respective periods covered by such financial statements;

 

		(c)	there are no other facts or matters the omission of which would have made or make any such information
false or misleading;

 

		(d)	there has been no material adverse change in the financial condition, operations or business prospects
of any Security Party since the date on which such information was provided other than as previously disclosed to the Agent in
writing; and

 

		(e)	none of the Security Parties has any contingent obligations, liabilities for taxes or other outstanding
financial obligations which are material in the aggregate except as disclosed in such statements, information and data.

 

		10.13	No litigation. No legal or administrative action involving
a Security Party (including any action relating to any alleged or actual breach of the ISM Code, the ISPS Code or any Environmental
Law) has been commenced or taken by any person, or, to the Borrowers’ or any Guarantor’s knowledge, is likely to be
commenced or taken which, in either case, would be likely to have a material adverse effect on the business, assets or financial
condition of a Security Party or which may affect the legality, validity, binding effect or enforceability of the Finance Documents.

 

		10.14	Intellectual property. Except for those with respect to which
the failure to own or license could not reasonably be expected to have a material adverse effect, each Security Party owns or has
the right to use all patents, trademarks, permits, service marks, trade names, copyrights, franchises, formulas, licenses and other
rights with respect thereto, and have obtained assignment of all licenses and other rights of whatsoever nature, that are material
to its business as currently contemplated without any conflict with the rights of others.

 

		10.15	ISM Code and ISPS Code compliance. Each Borrower has obtained
or will obtain or will cause to be obtained all necessary ISM Code Documentation and ISPS Code Documentation in connection with
the Ship owned or to be owned by it and its operation and will be or will cause such Ship and the Approved Manager to be in full
compliance with the ISM Code and the ISPS Code.

 

		10.16	Validity and completeness of MOAs, Time Charters, Time Charter
Guarantees and COAs.

 

		(a)	To the extent entered into for the purchase of an Additional Ship, the relevant MOA for such Additional
Ship constitutes valid, binding and enforceable obligations of the Seller and the Borrower party thereto in accordance with its
terms and:

 

		(i)	the copy of such MOA delivered to the Agent is a true and complete copy; and

 

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		(ii)	no amendments or additions to such MOA have been agreed nor has the relevant Borrower or Seller
party thereto waived any of their respective rights under such MOA.

 

		(b)	Each Time Charter constitutes valid, binding and enforceable obligations of the Time Charterer
and the Borrower party thereto in accordance with its terms and:

 

		(i)	the copy of such Time Charter delivered to the Agent before the date of this Agreement is a true
and complete copy; and

 

		(ii)	no amendments or additions to such Time Charter have been agreed nor has the relevant Borrower
party thereto or the Time Charterer waived any of their respective rights under such Time Charter.

 

		(c)	Each Time Charter Guarantee constitutes valid, binding and enforceable obligations of each of the
Time Charterer Guarantors in accordance with its terms and:

 

		(i)	the copy of such Time Charter Guarantee delivered to the Agent before the date of this Agreement
is a true and complete copy; and

 

		(ii)	no amendments or additions to such Time Charter Guarantee have been agreed nor has the relevant
Borrower waived any of its rights under such Time Charter Guarantee.

 

		(d)	Each COA constitutes valid, binding and enforceable obligations of each of Phoenix Bulk (BVI),
Phoenix Bulk (US) and/or the Time Charterer party thereto in accordance with its terms and:

 

		(i)	the copy of such COA delivered to the Agent before the date of this Agreement is a true and complete
copy; and

 

		(ii)	no amendments or additions to such COA have been agreed nor have any of Phoenix Bulk (BVI), Phoenix
Bulk (US) and/or the Time Charterer party thereto waived any of its rights under such COA.

 

		10.17	No rebates etc. There is no agreement or understanding to
allow or pay any rebate, premium, commission, discount or other benefit or payment (howsoever described) to the Borrowers or any
of their parents, subsidiaries or Affiliates, the Seller or any third party in connection with the relevant MOA, other than as
provided in such MOA and disclosed to the Agent in writing.

 

		10.18	Compliance with law; Environmentally Sensitive Material. Except
to the extent the following could not reasonably be expected to have a material adverse effect on the business, assets or financial
condition of any Security Party, or affect the legality, validity, binding effect or enforceability of the Finance Documents:

 

		(a)	the operations and properties of each of the Security Parties comply with all applicable laws and
regulations, including without limitation Environmental Laws, all necessary Environmental Permits have been obtained and are in
effect for the operations and properties of each of the Security Parties and each of the Security Parties is in compliance in all
material respects with all such Environmental Permits; and

 

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		(b)	none of the Security Parties has been notified in writing by any person that it or any of its subsidiaries
or Affiliates is potentially liable for the remedial or other costs with respect to treatment, storage, disposal, release, arrangement
for disposal or transportation of any Environmentally Sensitive Material, except for costs incurred in the ordinary course of business
with respect to treatment, storage, disposal or transportation of such Environmentally Sensitive Material.

 

		10.19	Ownership structure.

 

		(a)	No Borrower has any subsidiaries.

 

		(b)	All of the Equity Interests of each Borrower have been validly issued, are fully paid, non-assessable
and free and clear of all Security Interests and are owned beneficially and of record by Bulk Fleet.

 

		(c)	All of the Equity Interests of each of the Time Charterer, Phoenix Bulk (US), Phoenix Bulk (BVI),
Allseas and Bulk Fleet have been validly issued, are fully paid, non-assessable and free and clear of all Security Interests and
are owned beneficially and of record by Bulk Holding.

 

		(d)	All of the Equity Interests of Bulk Holding have been validly issued, are fully paid, non-assessable
and free and clear of all Security Interests and are owned beneficially and of record by Bulk Partners.

 

		(e)	All of the Equity Interests of Bulk Partners have been validly issued, are fully paid, non-assessable
and free and clear of all Security Interests and are owned beneficially and of record by the Bulk Partners Shareholders.

 

		(f)	None of the Equity Interests of any of the Security Parties are subject to any existing option,
warrant, call, right, commitment or other agreement of any character to which any of the Security Parties is a party requiring,
and there are no Equity Interests of any of the Security Parties outstanding which upon conversion or exchange would require, the
issuance, sale or transfer of any additional Equity Interests of any of the Security Parties or other Equity Interests convertible
into, exchangeable for or evidencing the right to subscribe for or purchase Equity Interests of any of the Security Parties except
for the rights of the Bulk Partners Shareholders to convert certain preferred shares of Bulk Partners into common stock of Bulk
Fleet.

 

		10.20	ERISA. None of the Borrowers or the Guarantors maintains any
Plan, Multiemployer Plan or Foreign Pension Plan.

 

		10.21	Margin Stock. The Borrowers are not engaged in the business
of extending credit for the purpose of purchasing or carrying Margin Stock and no proceeds of any Advance will be used to buy or
carry any Margin Stock or to extend credit to others for the purpose of buying or carrying any Margin Stock.

 

		10.22	Investment company, public utility, etc. None of the Borrowers
is:

 

		(a)	an “investment company,” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company
Act of 1940, as amended; or

 

		(b)	a “public utility” within the meaning of the United States Federal Power Act of 1920,
as amended.

 

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		10.23	Asset control.

 

		(a)	No Borrower is a Prohibited Person, no Borrower is owned or controlled by, or acting directly or
indirectly on behalf of or for the benefit of, a Prohibited Person and no Borrower owns or controls a Prohibited Person; and

 

		(b)	No proceeds of any Advance shall be made available, directly or indirectly, to or for the benefit
of a Prohibited Person or otherwise shall be, directly or indirectly, applied in a manner or for a purpose prohibited by Sanctions.

 

		10.24	No money laundering. Without prejudice to the generality of
Clause 2.3, in relation to the borrowing by the Borrowers of an Advance, the performance and discharge of its obligations and liabilities
under the Finance Documents, and the transactions and other arrangements affected or contemplated by the Finance Documents to which
any Borrower is a party, each of the Borrowers confirms that:

 

		(a)	it is acting for its own account;

 

		(b)	it will use the proceeds of such Advance for its own benefit, under its full responsibility and
exclusively for the purposes specified in this Agreement; and

 

		(c)	the foregoing will not involve or lead to a contravention of any law, official requirement or other
regulatory measure or procedure implemented to combat “money laundering” (as defined in Article 1 of Directive 2005/60/EC
of the European Parliament and of the Council) and comparable United States federal and state laws, including without limitation
the PATRIOT Act and the Bank Secrecy Act.

 

		10.25	Ships. As of the relevant Drawdown Date, each Ship will be:

 

		(a)	in the sole and absolute ownership of the a Borrower and duly registered in such Borrower’s
name under the law of an Approved Flag, unencumbered save and except for the Mortgage thereon in favor of the Security Trustee
recorded against it and Permitted Security Interests;

 

		(b)	seaworthy for hull and machinery insurance warranty purposes and in every way fit for its intended
service;

 

		(c)	insured in accordance with the provisions of this Agreement and the requirements hereof in respect
of such insurances will have been complied with;

 

		(d)	in class in accordance with the provisions of this Agreement and the requirements hereof in respect
of such classification will have been complied with; and

 

		(e)	managed by an Approved Manager pursuant to an Approved Management Agreement.

 

		10.26	Place of business. For purposes of the UCC, each Security
Party (other than Phoenix Bulk (US)) has only one place of business located at, or, if it has more than one place of business,
the chief executive office from which it manages the main part of its business operations and conducts its affairs is located at:

 

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Par la Ville Place

14 Par la Ville
Road

Hamilton HM08

Bermuda

 

None of the
Security Parties, other than Phoenix Bulk (US) has a place of business in the United States of America, the District of Columbia,
the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States of America.

 

Phoenix Bulk
(US) has only one place of business located at, or, if it has more than one place of business, the chief executive office from
which it manages the main part of its business operations and conducts its affairs is located at:

 

Phoenix Bulk
Carriers (US) LLC as agents

109 Long
Wharf, Second Floor

Newport,
Rhode Island 02840

 

		10.27	Solvency. In the case of each of the Borrowers and each of
the Guarantors:

 

		(a)	the sum of its assets, at a fair valuation, does and will exceed its liabilities, including, to
the extent they are reportable as such in accordance with GAAP, contingent liabilities;

 

		(b)	the present fair market saleable value of its assets is not and shall not be less than the amount
that will be required to pay its probable liability on its then existing debts, including, to the extent they are reportable as
such in accordance with GAAP, contingent liabilities, as they mature;

 

		(c)	it does not and will not have unreasonably small working capital with which to continue its business;
and

 

		(d)	it has not incurred, does not intend to incur and does not believe it will incur, debts beyond
its ability to pay such debts as they mature.

 

		10.28	Borrowers’ business; Guarantors’ business. From
the date of its incorporation until the date hereof, neither the Borrowers nor any of the Guarantors has conducted any business
other than in connection with, or for the purpose of, owning and operating the Ships.

 

		10.29	Immunity; enforcement; submission to jurisdiction; choice of law.

 

		(a)	Each Security Party is subject to civil and commercial law with respect to its obligations under
the Finance Documents, and the execution, delivery and performance by each Security Party of the Finance Documents to which it
is a party constitute private and commercial acts rather than public or governmental acts.

 

		(b)	No Security Party or any of its properties has any immunity from suit, court jurisdiction, attachment
prior to judgment, attachment in aid of execution of a judgment, set-off, execution of a judgment or from any other legal process
in relation to any Finance Document.

 

    	46

    	 

    

 

		(c)	It is not necessary under the laws of any Security Party’s jurisdiction of incorporation
or formation, in order to enable any Creditor Party to enforce its rights under any Finance Document or by reason of the execution
of any Finance Document or the performance by any Security Party of its obligations under any Finance Document, that such Creditor
Party should be licensed, qualified or otherwise entitled to carry on business in such Security Party’s jurisdiction of incorporation
or formation.

 

		(d)	Other than the recording of the Mortgage in accordance with the laws of the Republic of Panama
or the laws of the Republic of the Marshall Islands, as the case may be, and such filings as may be required in a Pertinent Jurisdiction
in respect of certain of the Finance Documents, and the payment of fees consequent thereto, it is not necessary for the legality,
validity, enforceability or admissibility into evidence of this Agreement or any other Finance Document that any of them or any
document relating thereto be registered, filed recorded or enrolled with any court or authority in any Pertinent Jurisdiction.

 

		(e)	The execution, delivery, filing, registration, recording, performance and enforcement of the Finance
Documents by any of the Creditor Parties will not cause such Creditor Party to be deemed to be resident, domiciled or carrying
on business in any Pertinent Jurisdiction of any Security Party or subject to taxation under any law or regulation of any governmental
authority in any Pertinent Jurisdiction of any Security Party.

 

		(f)	Under the law of each Security Party’s jurisdiction of incorporation or formation, the choice
of the law of New York to govern this Agreement and the other Finance Documents to which New York law is applicable is valid and
binding.

 

		(g)	The submission by the Borrowers and the Guarantors to the jurisdiction of the New York State courts
and the U.S. Federal court sitting in New York County pursuant to Clause 32.2(a) is valid and binding and not subject to revocation,
and service of process effected in the manner set forth in Clause 32.2(d) will be effective to confer personal jurisdiction over
the Borrowers and the Guarantors in such courts.

 

		11	GENERAL AFFIRMATIVE AND NEGATIVE COVENANTS

 

		11.1	Affirmative covenants. From the first Drawdown Date until
the Total Commitments have terminated and all amounts payable hereunder have been paid in full each of the Borrowers and each of
the Guarantors, as the case may be, undertakes with each Creditor Party to comply or cause compliance with the following provisions
of this Clause 11.1 except as the Agent, with the consent of the Majority Lenders, may approve from time to time in writing, such
approval not to be unreasonably withheld:

 

		(a)	Performance of obligations. Each Security Party shall duly observe and perform its obligations
under each Time Charter, COA and Finance Document to which it is or is to become a party.

 

		(b)	Notification of defaults (etc). The Borrowers shall promptly notify the Agent, upon becoming
aware of the same, of:

 

		(i)	the occurrence of an Event of Default or of any Potential Event of Default or any other event (including
any litigation) which might adversely affect any Security Party’s ability to perform its obligations under a Time Charter,
a COA or a Finance Document to which it is or is to become a party;

 

    	47

    	 

    

 

		(ii)	any default, or any interruption in the performance whether or not the same constitutes a default
lasting more than 5 consecutive days, by any party to a Time Charter or a COA; and

 

		(iii)	any damage or injury caused by or to a Ship in excess of $500,000.

 

		(c)	Confirmation of no default. The Borrowers will, within two (2) Business Days after service
by the Agent of a written request, serve on the Agent a notice which is signed by a director, an officer or a duly authorized person
of the Borrowers and which states that:

 

		(i)	no Event of Default or Potential Event of Default has occurred; or

 

		(ii)	no Event of Default or Potential Event of Default has occurred, except for a specified event or
matter, of which all material details are given.

 

The Agent may serve requests
under this Clause 11.1(c) from time to time but only if asked to do so by a Lender or Lenders having Contributions exceeding 10%
of the Loan or (if no Advances have been made) Commitments exceeding 10% of the Total Commitments, and this Clause 11.1(c) does
not affect the Borrowers’ obligations under Clause 11.1(b).

 

		(d)	Notification of litigation. The Borrowers will provide the Agent with details of any legal
or administrative action involving the Borrowers, any other Security Party, the Approved Manager or any Ship, the Earnings or the
Insurances as soon as such action is instituted or it becomes apparent to the Borrowers that it is likely to be instituted, unless
it is clear that the legal or administrative action cannot be considered material in the context of any Finance Document.

 

		(e)	Provision of further information. The Borrowers and each of the Guarantors will, as soon
as practicable after receiving the request, provide the Agent with any additional financial or other information relating to:

 

		(i)	the Borrowers, the Guarantors, the Time Charterer, the Time Charter Guarantors, Allseas, Phoenix
Bulk (US) or Phoenix Bulk (BVI); or

 

		(ii)	any other matter relevant to, or to any provision of, a Finance Document,

 

which may be reasonably requested
by the Agent, the Security Trustee or any Lender at any time.

 

		(f)	Books of record and account; separate accounts.

 

		(i)	Each of the Borrowers and the Guarantors shall keep separate and proper books of record and account
in which full and materially correct entries shall be made of all financial transactions and the assets and business of each of
the Borrowers and the Guarantors in accordance with GAAP, and the Agent shall have the right to examine the books and records of
each of the Borrowers and the Guarantors wherever the same may be kept from time to time as it sees fit, in its sole reasonable
discretion, or to cause an examination to be made by a firm of accountants selected by it, provided that any examination
shall be done without undue interference with the day to day business operations of the Borrowers or the Guarantors, as the case
may be.

 

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		(ii)	Each of the Borrowers and the Guarantors shall keep separate accounts and shall not co-mingle assets
with each other except for funds held in the Earnings Account or any other person.
	 	 	 

		(g)	Financial reports. Each of the Borrowers and Bulk Partners, as the case may be, shall prepare
and deliver to the Agent:

 

		(i)	as soon as practicable, but not later than:

 

		(A)	120 days after the end of each Fiscal Year, an unaudited balance sheet as of the end of such period
and the related statements of profit and loss and changes in financial position for each Borrower, each in respect of such Fiscal
Year, all in reasonable detail, prepared in accordance with GAAP and certified as having been reviewed by its chief financial officer
(or equivalent);

 

		(B)	180 days after the end of each Fiscal Year, an audited consolidated balance sheet as of the end
of such period and the related consolidated statements of profit and loss, cash flow statements and changes in financial position
for Bulk Partners, each in respect of such Fiscal Year, all in reasonable detail, prepared in accordance with GAAP and certified
as having been audited by an Acceptable Accounting Firm;

 

		(ii)	within 75 days after the end of each of the first three quarters of each Fiscal Year, consolidated
financial statements in respect of Bulk Partners for such fiscal quarter (which statements shall include a recap of the Borrowers),
all in reasonable detail and prepared in accordance with GAAP, certified as having been reviewed by Bulk Partner’s chief
financial officer or designated representative;

 

		(iii)	together with the financial statements that each of the Borrowers and Bulk Partners delivers in
(i) and (ii) above, a Compliance Certificate; and

 

		(iv)	such other financial statements (including without limitation details of all off-balance sheet
and time charter hire commitments), annual budgets and projections as may be reasonably requested by the Agent, each to be in such
form as the Agent may reasonably request.
	 	 	 

		(h)	Appraisals of Fair Market Value. The Borrowers shall cause the Fair Market Value of each
Ship to be reported to the Agent as follows:

 

		(i)	at the Borrowers’ expense, on a semi-annual basis, for the first time approximately six (6)
months after the first Drawdown Date and every six (6) months thereafter;

 

		(ii)	at the Lenders’ expense, at any time upon the request of the Agent (acting upon the instructions
of the Majority Lenders); and

 

		(iii)	at the Borrowers’ expense, at any time upon the request of the Agent (acting upon the instructions
of the Majority Lenders) if a Potential Event of Default or an Event of Default has occurred and is continuing.

 

    	49

    	 

    

 

		(i)	Taxes. Each Security Party shall prepare and timely file all tax returns required to be
filed by it and pay and discharge all taxes imposed upon it or in respect of any of its property and assets before the same shall
become in default, as well as all lawful claims (including, without limitation, claims for labor, materials and supplies) which,
if unpaid, might become a Security Interest upon the Collateral or any part thereof, except in each case, for any such taxes (i)
as are being contested in good faith by appropriate proceedings and for which adequate reserves have been established, (ii) as
to which such failure to have paid does not create any risk of sale, forfeiture, loss, confiscation or seizure of a Ship or criminal
liability, or (ii) the failure of which to pay or discharge would not be likely to have a material adverse effect on the business,
assets or financial condition of the Borrowers or any other Security Party or to affect the legality, validity, binding effect
or enforceability of the Finance Documents.

 

		(j)	Consents. Each Security Party shall obtain or cause to be obtained, maintain in full force
and effect and comply with the conditions and restrictions (if any) imposed in connection with, every consent and do all other
acts and things which may from time to time be necessary or required for the continued due performance of all of its obligations
under any Time Charter, COA and Finance Document to which it is or is to become a party, and shall deliver a copy of all such consents
to the Agent promptly upon its request.

 

		(k)	Compliance with applicable law. Each Security Party shall comply in all material respects
with all applicable federal, state, local and foreign laws, ordinances, rules, orders and regulations now in force or hereafter
enacted, including, without limitation, all Environmental Laws and regulations relating thereto, the failure to comply with which
would be likely to have a material adverse effect on the financial condition of such Security Party or affect the legality, validity,
binding effect or enforceability of any Time Charter, COA and Finance Document to which it is or is to become a party.

 

		(l)	Existence. Each Security Party shall do or cause to be done all things necessary to preserve
and keep in full force and effect its existence in good standing under the laws of its jurisdiction of incorporation or formation.

 

		(m)	Conduct of business.

 

		(i)	Each Borrower shall conduct business only in connection with, or for the purpose of, owning and
chartering the Ship owned by it.

 

		(ii)	Each Security Party shall conduct business in its own name and observe all corporate and other
formalities required by its constitutional documents.

 

		(n)	Properties.

 

		(i)	Except to the extent the failure to do so could not reasonably be expected to have a material adverse
effect on the business, assets or financial condition of a Security Party or affect the legality, validity, binding effect or enforceability
of the Finance Documents, each Security Party shall maintain and preserve all of its properties that are used or useful in the
conduct of its business in good working order and condition, ordinary wear and tear excepted.
	 	 	 
	 	(ii)	Each Security Party shall obtain and maintain good and marketable title or the right to use or occupy all real and personal properties
and assets (including intellectual property) reasonably required for the conduct of its business.

 

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		(iii)	Each Security Party shall maintain and protect its intellectual property and conduct its business
and affairs without infringement of or interference with any intellectual property of any other person in any material respect
and shall comply in all material respects with the terms of its licenses.

 

		(o)	Loan proceeds. The Borrowers shall use the proceeds of each Advance solely to partially
finance or refinance the acquisition of a Ship.

 

		(p)	Change of place of business. The Borrowers shall notify the Agent promptly of any change
in the location of the place of business where any Security Party conducts its affairs and keeps its records.

 

		(q)	Pollution liability. Each Security Party shall take, or cause to be taken, such actions
as may be reasonably required to mitigate potential liability to it arising out of pollution incidents or as may be reasonably
required to protect the interests of the Creditor Parties with respect thereto.

 

		(r)	Subordination of loans. Each Borrower shall cause all loans made to it by any Affiliate,
parent or subsidiary or an Approved Manager and all sums and other obligations (financial or otherwise) owed by it to any Affiliate,
parent or subsidiary or an Approved Manager to be fully subordinated to all Secured Liabilities.

 

		(s)	Asset control. Each Borrower shall to the best of its knowledge and ability ensure that:

 

		(i)	it is not owned or controlled by, or acting directly or indirectly on behalf of or for the benefit
of, a Prohibited Person and does not own or control a Prohibited Person; and

 

		(ii)	no proceeds of any Advance shall be made available, directly or indirectly, to or for the benefit
of a Prohibited Person or otherwise shall be, directly or indirectly, applied in a manner or for a purpose prohibited by Sanctions.

 

		(t)	Money laundering. The Borrowers shall to the best of their knowledge and ability comply,
and cause each of its subsidiaries to comply, with any applicable law, official requirement or other regulatory measure or procedure
implemented to combat “money laundering” (as defined in Article 1 of Directive 2005/60/EC of the European Parliament
and of the Council) and comparable United States federal and state laws, including without limitation the PATRIOT Act and the Bank
Secrecy Act.

 

		(u)	Pension Plans. Promptly upon the institution of a Plan, a Multiemployer Plan or a Foreign
Pension Plan by any Borrower or any Guarantor, the Borrowers shall furnish or cause to be furnished to the Agent written notice
thereof and, if requested by the Agent or any Lender, a copy of such Plan, Multiemployer Plan or Foreign Pension Plan.

 

		(v)	Information provided to be accurate. All financial and other information which is provided
in writing by or on behalf of any Security Party under or in connection with any Finance Document shall be true and not misleading
and shall not omit any material fact or consideration.

 

		(w)	Shareholder and creditor notices. Each of the Borrowers and the Guarantors shall send the
Agent, at the same time as they are dispatched, copies of all communications which are dispatched to its (i) shareholders (or equivalent)
or any class of them or (ii) creditors generally.

 

    	51

    	 

    

 

		(x)	Maintenance of Security Interests. Each of the Borrowers and the Guarantors shall:

 

		(i)	at its own cost, do all that it reasonably can to ensure that any Finance Document validly creates
the obligations and the Security Interests which it purports to create; and

 

		(ii)	without limiting the generality of paragraph (i), at its own cost, promptly register, file, record
or enroll any Finance Document with any court or authority in all Pertinent Jurisdictions, pay any stamp, registration or similar
tax in all Pertinent Jurisdictions in respect of any Finance Document, give any notice or take any other step which, in the opinion
of the Majority Lenders, is or has become necessary or desirable for any Finance Document to be valid, enforceable or admissible
in evidence or to ensure or protect the priority of any Security Interest which it creates.

 

		(y)	“Know your customer” checks. If:

 

		(i)	the introduction of or any change in (or in the interpretation, administration or application of)
any law or regulation made after the date of this Agreement;

 

		(ii)	any change in the status of any Borrower or any other Security Party after the date of this Agreement;
or

 

		(iii)	a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement
to a party that is not a Lender prior to such assignment or transfer,

 

obliges the Agent or any Lender
(or, in the case of paragraph (iii), any prospective new Lender) to comply with “know your customer” or similar identification
procedures in circumstances where the necessary information is not already available to it, the Borrowers shall promptly upon the
request of the Agent or the Lender concerned supply, or procure the supply of, such documentation and other evidence as is reasonably
requested by the Agent (for itself or on behalf of any Lender) or the Lender concerned (for itself or, in the case of the event
described in paragraph (iii), on behalf of any prospective new Lender) in order for the Agent, the Lender concerned or, in the
case of the event described in paragraph (iii), any prospective new Lender to carry out and be satisfied it has complied with all
necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions
contemplated in the Finance Documents.

 

		(z)	Further assurances. From time to time, at their expense, the Borrowers and each of the Guarantors
shall duly execute and deliver to the Agent, or cause the execution and delivery to the Agent of, such further documents and assurances
as the Majority Lenders or the Agent may request to effectuate the purposes of this Agreement, the other Finance Documents or obtain
the full benefit of any of the Collateral.

 

		11.2	Negative covenants. From the first Drawdown Date until the
Total Commitments have terminated and all amounts payable hereunder have been paid in full each of the Borrowers and each of the
Guarantors, as the case may be, undertakes with each Creditor Party to comply or cause compliance with the following provisions
of this Clause 11.2 except as the Agent, with the consent of the Majority Lenders, may approve from time to time in writing, such
approval not to be unreasonably withheld:

 

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		(a)	Security Interests. None of the Borrowers or the Guarantors shall create, assume or permit
to exist any Security Interest whatsoever upon any of its properties or assets, whether now owned or hereafter acquired, except
for Permitted Security Interests.

 

		(b)	Sale of assets; merger. No Security Party shall sell, transfer or lease (other than in connection
with a Charter) all or substantially all of its properties and assets, or enter into any transaction of merger or consolidation
or liquidate, windup or dissolve itself (or suffer any liquidation or dissolution) provided that (i) a Borrower may sell
the Ship owned by it pursuant to the terms of this Agreement and (ii) it shall not be a breach of this covenant for a Borrower
to dispose of up to 10% of its properties and assets.

 

		(c)	No contracts other than in ordinary course. None of the Borrowers shall enter into any transactions
or series of related transactions with third parties other than in the ordinary course of its business.

 

		(d)	Affiliate transactions. None of the Borrowers or the Guarantors shall enter into any transaction
or series of related transactions, whether or not in the ordinary course of business, with any Affiliate other than on terms and
conditions substantially as favorable to such Borrowers or Guarantor as would be obtainable by it at the time in a comparable arm’s-length
transaction with a person other than an Affiliate.

 

		(e)	Change of business. None of the Borrowers shall change the nature of its business or commence
any business other than in connection with, or for the purpose of, owning and chartering the Ship owned by it.

 

		(f)	Change of Control; Negative pledge. None of the Borrowers or the Guarantors shall permit
any act, event or circumstance that would result in a Change of Control, and the Guarantors shall not permit any pledge or assignment
of its or a Borrower’s Equity Interests except in favor of the Security Trustee to secure the Secured Liabilities.

 

		(g)	Increases in capital. None of the Guarantors shall permit an increase of its or a Borrower’s
capital by way of the issuance of any class or series of Equity Interests or create any new class of Equity Interests that is not
subject to a Security Interest to secure the Secured Liabilities.

 

		(h)	Financial Indebtedness; Trade payables.

 

		(i)	None of the Borrowers shall incur any Financial Indebtedness other than in respect of the Loan
and subordinated loans from a Guarantor or an Approved Manager or another Affiliate of the Borrowers permitted under Clause 11.1(r);

 

		(ii)	None of the Borrowers shall incur unsecured trade credit exceeding $500,000 (exclusive of drydocking
expenses), with repayment terms not to exceed 60 days, on the Ship owned by it at any time; and

 

		(iii)	None of the Guarantors shall incur any guarantee obligations other than (A) in respect of this
Agreement, (B) performance guarantees not exceeding $2,000,000 (individually or in the aggregate) with a duration of not more than
one year, and (C) ship finance guarantees for the next 3 vessel acquisitions, provided that the loan advance does not exceed
60% of the fair market value of any said acquisition except the purchase of m/v GOOD PROVIDENCE.

  

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For purposes of this Clause 11.2(h),
“performance guarantee” means any guarantee provided by a Guarantor for any purpose save for securing a loan
for the part financing of a vessel acquisition; and “ship finance guarantee” means any guarantee provided by
the guarantor as part of the security package to secure a loan for the part financing of a vessel acquisition.

 

		(i)	Dividends.

 

		(i)	None of the Borrowers shall declare or pay any dividends or return any capital to its equity holders
or authorize or make any other distribution, payment or delivery of property or cash to its equity holders, or redeem, retire,
purchase or otherwise acquire, directly or indirectly, for value, any interest of any class or series of its Equity Interests (or
acquire any rights, options or warrants relating thereto but not including convertible debt) now or hereafter outstanding, or repay
any subordinated loans to equity holders or set aside any funds for any of the foregoing purposes.

 

		(ii)	None of the Guarantors shall declare or pay any dividends or return any capital to its equity holders
or authorize or make any other distribution, payment or delivery of property or cash to its equity holders, or redeem, retire,
purchase or otherwise acquire, directly or indirectly, for value, any interest of any class or series of its Equity Interests (or
acquire any rights, options or warrants relating thereto but not including convertible debt) now or hereafter outstanding, or repay
any subordinated loans to equity holders or set aside any funds for any of the foregoing purposes, provided that:

 

		(A)	Bulk Partners is permitted to pay cash dividends of not more than $2,000,000 per calendar year
so long as no Event of Default has occurred and is continuing and Bulk Partners is in compliance with the financial covenants of
Clause 12 applicable to it both before and after such dividend is paid; and

 

		(B)	Bulk Partners is permitted to repay shareholder loans of not more than $5,000,000 per annum (including
accrued interest) so long as no Event of Default has occurred and is continuing and Bulk Partners is in compliance with the financial
covenants of Clause 12 applicable to it both before and after such repayment is made;

 

		(j)	No amendment to MOA, Time Charters or Time Charter Guarantees. None of the Borrowers shall
agree to any amendment or supplement to, or waive or fail to enforce, an MOA or any of its provisions or a Time Charter or any
of its provisions or a Time Charter Guarantee or any of its provisions.

 

		(k)	Intentionally omitted.

 

		(l)	Loans and investments. None of the Borrowers shall make any loan or advance to, make any
investment in, or enter into any working capital maintenance or similar agreement with respect to any person, whether by acquisition
of Equity Interests or indebtedness, by loan, guarantee or otherwise.

 

		(m)	Acquisition of capital assets. None of the Borrowers shall acquire any capital assets (including
any vessel other than a Ship) by purchase, charter or otherwise, provided that for the avoidance of doubt nothing in this
Clause 11.2(m) shall prevent or be deemed to prevent capital improvements being made to a Ship.

 

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		(n)	Sale and leaseback. None of the Borrowers shall enter into any arrangements, directly or
indirectly, with any person whereby it shall sell or transfer any of its property, whether real or personal, whether now owned
or hereafter acquired, if it, at the time of such sale or disposition, intends to lease or otherwise acquire the right to use or
possess (except by purchase) such property or like property for a substantially similar purpose.

 

		(o)	Changes to Fiscal Year and accounting policies. None of the Borrowers or the Guarantors
shall change its Fiscal Year or make or permit any change in accounting policies affecting (i) the presentation of financial statements
or (ii) reporting practices, except in either case in accordance with GAAP or pursuant to the requirements of applicable laws or
regulations.

 

		(p)	Jurisdiction of incorporation or formation; Amendment of constitutional documents. None
of the Borrowers or the Guarantors shall change the jurisdiction of its incorporation or formation or materially amend its constitutional
documents.

 

		(q)	Sale of Ship. No Borrower shall consummate the sale of its Ship without paying or causing
to be paid all amounts due and owing under this Agreement and the other Finance Documents relating to the Advance for such Ship
prior to or simultaneously with the consummation of such sale; provided that the Applicable Collateral Maintenance Ratio
pursuant to Clause 15.2 shall be maintained at all times.

 

		(r)	Change of location. None of the Borrowers shall change the location of its chief executive
office or the office where its corporate records are kept or open any new office for the conduct of its business on less than thirty
(30) days prior written notice to the Agent.

 

		(s)	No employees; VAT group.

 

		(i)	None of the Borrowers shall have any employees other than the master, the officers and the crew
of the Ship owned by it.

 

		(ii)	None of the Borrowers shall be or become a member of any VAT (value added tax) group.

 

		12	FINANCIAL COVENANTS

 

		12.1	General. From the first Drawdown Date until the Total Commitments
have terminated and all amounts payable hereunder have been paid in full the Borrowers and Bulk Partners undertake with each Creditor
Party to comply or cause compliance with the following provisions of this Clause 12 except as the Agent, with the consent of the
Majority Lenders, may approve from time to time in writing, such approval not to be unreasonably withheld.

 

		12.2	Borrowers’ Minimum liquidity requirements.

 

		(a)	Each Borrower shall at all times maintain Liquidity, including all amounts on deposit with any
bank, of not less than $350,000; and

 

		(b)	The Borrowers shall at all times maintain an aggregate on deposit in the Earnings Accounts of not
less than $2,000,000.

 

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		12.3	Bulk Partners’ Consolidated Leverage Ratio. Bulk Partners
shall maintain a Consolidated Leverage Ratio of not more than 200%.

 

		12.4	Bulk Partners’ Consolidated Debt Service Coverage Ratio.
From and after January 1, 2013, Bulk Partners shall maintain a Consolidated Debt Service Coverage Ratio of not less than 120% (on
a rolling four quarter basis, tested as of the last day of each fiscal quarter).

 

		12.5	Bulk Partners’ Consolidated Net Worth. Bulk Partners
shall maintain a Consolidated Net Worth of not less than $30,000,000 plus, with respect to any vessel purchased or leased by Bulk
Partners or its subsidiaries after the Effective Date, for so long as such vessels are legally or economically owned, 25% of the
purchase price or (finance) lease amount of such vessels.

 

		12.6	Bulk Partners’ Consolidated Minimum Liquidity. Bulk
Partners shall maintain Consolidated Minimum Liquidity of not less than $10,000,000 plus $1,000,000 for every vessel purchased
or (finance) leased by Bulk Partners or its subsidiaries after the Effective Date.

 

		13	MARINE INSURANCE COVENANTS

 

		13.1	General. From the first Drawdown Date until the Total Commitments
have terminated and all amounts payable hereunder have been paid in full, each of the Borrowers undertakes with each Creditor Party
to comply or cause compliance with the following provisions of this Clause 13 except as the Agent, with the consent of the Majority
Lenders, may approve from time to time in writing, such approval not to be unreasonably withheld.

 

		13.2	Maintenance of obligatory insurances. Each Borrower shall
keep the Ship owned by it insured at its expense for and against:

 

		(a)	hull and machinery risks, plus freight interest and hull interest and any other usual marine risks
such as excess risks;

 

		(b)	war risks (including the London Blocking and Trapping addendum or similar arrangement);

 

		(c)	full protection and indemnity risks (including liability for oil pollution and excess war risk
P&I cover) on standard Club Rules, covered by a Protection and Indemnity association which is a member of the International
Group of Protection and Indemnity Associations (or, if the International Group ceases to exist, any other leading protection and
indemnity association or other leading provider of protection and indemnity insurance) (including, without limitation, the proportion
(if any) of any collision liability not covered under the terms of the hull cover), or other with written consent from the Agent;

 

		(d)	freight, demurrage & defense risks;

 

		(e)	risks covered by mortgagee’s interest insurance (M.I.I.) (as provided in Clause 13.16 below);

 

		(f)	risks covered by mortgagee’s interest additional perils (pollution) (M.A.P.) (as provided
in Clause 13.16 below); and

 

		(g)	[intentionally omitted];

 

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		(h)	any other risks against which the Security Trustee considers, having regard to practices and other
circumstances prevailing at the relevant time, it would in the opinion of the Security Trustee be reasonable for that Borrower
to insure and which are specified by the Security Trustee by notice to that Borrower (such as political risks and mortgage rights
insurance).

 

		13.3	Terms of obligatory insurances. Each Borrower shall affect
such insurances in respect of the Ship owned by it:

 

		(a)	in Dollars;

 

		(b)	in the case of the insurances described in (a), (b), (e) and (f) of Clause 13.2 shall each be for
at least the greater of:

 

		(i)	when aggregated with the insured values of the other Ships then financed under this Agreement,
120% of the aggregate of the Loan; and

 

		(ii)	the Fair Market Value of the Ship owned by it;

 

		(c)	in the case of oil pollution liability risks, for an aggregate amount equal to the greater of $1,000,000,000
and the highest level of cover from time to time available under basic protection and indemnity club entry and in the international
marine insurance market;

 

		(d)	in relation to protection and indemnity risks in respect of the full tonnage of the Ship owned
by it;

 

		(e)	in relation to loss of hire insurance, for a daily amount equal to at least the daily running costs
and/or the daily hire rate under the Time Charter in respect of the Ship owned by it plus the daily debt service amount;

 

		(f)	on approved terms; and

 

		(g)	through approved brokers and with approved insurance companies and/or underwriters or, in the case
of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations that are
members of the International Group of P&I Clubs.

 

		13.4	Further protections for the Creditor Parties. In addition
to the terms set out in Clause 13.3, each Borrower shall procure that the obligatory insurances affected by it shall:

 

		(a)	subject always to paragraph (b), name that Borrower as the sole named assured unless the interest
of every other named assured is limited:

 

		(i)	in respect of any obligatory insurances for hull and machinery and war risks;

 

		(A)	to any provable out-of-pocket expenses that it has incurred and which form part of any recoverable
claim on underwriters; and

 

		(B)	to any third party liability claims where cover for such claims is provided by the policy (and
then only in respect of discharge of any claims made against it); and

 

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		(ii)	in respect of any obligatory insurances for protection and indemnity risks, to any recoveries it
is entitled to make by way of reimbursement following discharge of any third party liability claims made specifically against it;

 

and every other
named assured has undertaken in writing to the Security Trustee (in such form as it requires) that any deductible shall be apportioned
between that Borrower and every other named assured in proportion to the aggregate claims made or paid by each of them and that
it shall do all things necessary and provide all documents, evidence and information to enable the Security Trustee to collect
or recover any moneys which at any time become payable in respect of the obligatory insurances;

 

		(b)	in the case of any obligatory insurances against any risks other than protection and indemnity
risks, and whenever the Security Trustee requires, name (or be amended to name) the Security Trustee as additional named assured
for its rights and interests, warranted no operational interest and with full waiver of rights of subrogation against the Security
Trustee, but without the Security Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other assessments
in respect of such insurance;

 

		(c)	name the Security Trustee as first priority mortgagee and loss payee with such directions for payment
as the Security Trustee may specify;

 

		(d)	provide that all payments by or on behalf of the insurers under the obligatory insurances to the
Security Trustee shall be made without set-off, counterclaim or deductions or condition whatsoever;

 

		(e)	provide that the obligatory insurances shall be primary without right of contribution from other
insurances which may be carried by the Security Trustee or any other Creditor Party;

 

		(f)	provide that the Security Trustee may make proof of loss if that Borrower fails to do so; and

 

		(g)	provide that the deductible of the hull and machinery insurance is not higher that the amount agreed
upon and stated in the loss payable clause.

 

		13.5	Renewal of obligatory insurances. Each Borrower shall:

 

		(a)	at least 21 days before the expiry of any obligatory insurance:

 

		(i)	notify the Security Trustee of the brokers (or other insurers) and any protection and indemnity
or war risks association through or with whom that Borrower proposes to renew that obligatory insurance and of the proposed terms
of renewal; and

 

		(ii)	obtain the Security Trustee’s approval to the matters referred to in paragraph (i);

 

		(b)	at least five (5) days before the expiry of any obligatory insurance, renew that obligatory insurance
in accordance with the Security Trustee’s approval pursuant to paragraph (a); and

 

		(c)	procure that the approved brokers and/or the war risks and protection and indemnity associations
with which such a renewal is effected shall promptly after the renewal notify the Security Trustee in writing of the terms and
conditions of the renewal.

 

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		13.6	Copies of policies; letters of undertaking. Each Borrower
shall ensure that all approved brokers provide the Security Trustee with pro forma copies of all policies and cover notes relating
to the obligatory insurances which they are to affect or renew and of a letter or letters or undertaking in a form required by
the Security Trustee and including undertakings by the approved brokers that:

 

		(a)	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice
of assignment in accordance with the requirements of the Insurance Assignment for that Borrower’s Ship;

 

		(b)	they will hold such policies, and the benefit of such insurances, to the order of the Security
Trustee in accordance with the said loss payable clause;

 

		(c)	they will advise the Security Trustee immediately of any material change to the terms of the obligatory
insurances or if they cease to act as brokers;

 

		(d)	they will notify the Security Trustee, not less than 14 days before the expiry of the obligatory
insurances, in the event of their not having received notice of renewal instructions from that Borrower or its agents and, in the
event of their receiving instructions to renew, they will promptly notify the Security Trustee of the terms of the instructions;
and

 

		(e)	they will not set off against any sum recoverable in respect of a claim relating to the Ship owned
by that Borrower under such obligatory insurances any premiums or other amounts due to them or any other person whether in respect
of that Ship or otherwise, they waive any lien on the policies, or any sums received under them, which they might have in respect
of such premiums or other amounts, and they will not cancel such obligatory insurances by reason of non-payment of such premiums
or other amounts, and will arrange for a separate policy to be issued in respect of that Ship forthwith upon being so requested
by the Security Trustee.

 

		13.7	Copies of certificates of entry. Each Borrower shall ensure
that any protection and indemnity and/or war risks associations in which the Ship owned by it is entered provides the Security
Trustee with:

 

		(a)	a certified copy of the certificate of entry for that Ship;

 

		(b)	a letter or letters of undertaking in such form as may be required by the Security Trustee; and

 

		(c)	a certified copy of each certificate of financial responsibility for pollution by oil or other
Environmentally Sensitive Material issued by the relevant certifying authority in relation to the Ship.

 

		13.8	Deposit of original policies. Each Borrower shall ensure that
all policies relating to obligatory insurances are deposited with the approved brokers through which the insurances are effected
or renewed.

 

		13.9	Payment of premiums. Each Borrower shall punctually pay all
premiums or other sums payable in respect of the obligatory insurances and produce all relevant receipts when so required by the
Security Trustee.

 

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		13.10	Guarantees. Each Borrower shall ensure that any guarantees
required by a protection and indemnity or war risks association are promptly issued and remain in full force and effect.

 

		13.11	Compliance with terms of insurances. No Borrower shall do
nor omit to do (nor permit to be done or not to be done) any act or thing which would or might render any obligatory insurance
invalid, void, voidable or unenforceable or render any sum payable under an obligatory insurance repayable in whole or in part;
and, in particular:

 

		(a)	each Borrower shall take all necessary action and comply with all requirements which may from time
to time be applicable to the obligatory insurances, and (without limiting the obligation contained in Clause 13.6(c)) ensure that
the obligatory insurances are not made subject to any exclusions or qualifications to which the Security Trustee has not given
its prior approval;

 

		(b)	no Borrower shall make any changes relating to the classification or classification society or
manager or operator of the Ship owned by it unless approved by the underwriters of the obligatory insurances;

 

		(c)	each Borrower shall make (and promptly supply copies to the Agent of) all quarterly or other voyage
declarations which may be required by the protection and indemnity risks association in which the Ship owned by it is entered to
maintain cover for trading to the United States of America and Exclusive Economic Zone (as defined in the United States Oil Pollution
Act 1990 or any other applicable legislation); and

 

		(d)	no Borrower shall employ the Ship owned by it, nor allow it to be employed, otherwise than in conformity
with the terms and conditions of the obligatory insurances, without first obtaining the consent of the insurers and complying with
any requirements (as to extra premium or otherwise) which the insurers specify.

 

		13.12	Alteration to terms of insurances. No Borrower shall either
make or agree to any alteration to the terms of any obligatory insurance nor waive any right relating to any obligatory insurance.

 

		13.13	Settlement of claims. No Borrower shall settle, compromise
or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty, and shall do all things necessary and
provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any time
become payable in respect of the obligatory insurances.

 

		13.14	Provision of copies of communications. Upon specific request
of the Security Trustee each Borrower shall provide the Security Trustee, at the time of each such communication, copies of all
written communications between that Borrower and:

 

		(a)	the approved brokers;

 

		(b)	the approved protection and indemnity and/or war risks associations;

 

		(c)	the approved insurance companies and/or underwriters, which relate directly or indirectly to:

 

		(i)	that Borrower’s obligations relating to the obligatory insurances including, without limitation,
all requisite declarations and payments of additional premiums or calls; and

 

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		(ii)	any credit arrangements made between that Borrower and any of the persons referred to in paragraphs
(a) or (b) relating wholly or partly to the effecting or maintenance of the obligatory insurances; and

 

		(d)	any parties involved in case of a claim under any of insurances relating to that Borrower’s
Ship.

 

		13.15	Provision of information. In addition, each Borrower shall
promptly provide (and in no event less than five (5) days prior to a Drawdown Date) the Security Trustee (or any persons which
it may designate) with any information which the Security Trustee (or any such designated person) requests for the purpose of:

 

		(a)	obtaining or preparing any report from an independent marine insurance broker as to the adequacy
of the obligatory insurances effected or proposed to be effected; and/or

 

		(b)	effecting, maintaining or renewing any such insurances
as are referred to in Clause 13.16 or dealing with or considering any matters relating to any such insurances;

 

and that Borrower shall, forthwith
upon demand, indemnify the Security Trustee in respect of all fees and other expenses incurred by or for the account of the Security
Trustee in connection with any such report as is referred to in paragraph (a).

 

		13.16	Mortgagee’s interest, additional perils and political risk
insurances. The Security Trustee shall be entitled from time to time to effect, maintain and renew (i) mortgagee’s interest
marine insurance, (ii) mortgagee’s interest additional perils insurance and/or (iii) mortgagee’s political risks /
rights insurance in such amounts (up to 120% of the Loan), on such terms, through such insurers and generally in such manner as
the Security Trustee may from time to time consider appropriate and the Borrowers, jointly and severally, shall upon demand fully
indemnify the Security Trustee in respect of all premiums and other expenses which are incurred in connection with or with a view
to effecting, maintaining or renewing any such insurance or dealing with, or considering, any matter arising out of any such insurance.

 

		13.17	Review of insurance requirements. The Security Trustee may
and, on instruction of the Majority Lenders, shall review, at the expense of the Borrowers, the requirements of this Clause 13
from time to time in order to take account of any changes in circumstances after the date of this Agreement which are, in the opinion
of the Agent or the Majority Lenders significant and capable of affecting the relevant Borrower or a Ship and its insurance (including,
without limitation, changes in the availability or the cost of insurance coverage or the risks to which the relevant Borrower may
be subject.)

 

		13.18	Modification of insurance requirements. The Security Trustee
shall notify the Borrowers of any proposed modification under Clause 13.17 to the requirements of this Clause 13 which the Security
Trustee may or, on instruction of the Majority Lenders, shall reasonably consider appropriate in the circumstances and such modification
shall take effect on and from the date it is notified in writing to the Borrowers as an amendment to this Clause 13 and shall bind
the Borrowers accordingly.

 

		13.19	Compliance with instructions. The Security Trustee shall be
entitled (without prejudice to or limitation of any other rights which it may have or acquire under any Finance Document) to require
a Ship to remain at any safe port or to proceed to and remain at any safe port designated by the Security Trustee until the relevant
Security Party implements any amendments to the terms of the obligatory insurances and any operational changes required as a result
of a notice served under Clause 13.18.

 

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		14	SHIP COVENANTS

 

		14.1	General. From the first Drawdown Date until the Total Commitments
have terminated and all amounts payable hereunder have been paid in full, each of the Borrowers and each of the Guarantors, as
the case may be, undertakes with each Creditor Party to comply or cause compliance with the following provisions of this Clause
14 except as the Agent, with the consent of the Majority Lenders, may approve from time to time in writing, such approval not to
be unreasonably withheld.

 

		14.2	Ship’s name and registration. Each Borrower shall:

 

		(a)	keep the Ship owned by it registered in its name under the law of an Approved Flag;

 

		(b)	not do, omit to do or allow to be done anything as a result of which such registration might be
cancelled or imperiled; and

 

		(c)	not change the name or port of registry on which such Ship was registered when it became subject
to a Mortgage.

 

		14.3	Repair and classification. Each Borrower shall keep the Ship
owned by it in a good and safe condition and state of repair:

 

		(a)	consistent with first-class ship ownership and management practice;

 

		(b)	so as to maintain the highest class for that Ship with the Classification Society, free of overdue
recommendations and conditions; and

 

		(c)	so as to comply with all laws and regulations applicable to vessels registered under the law of
the Approved Flag on which that Ship is registered or to vessels trading to any jurisdiction to which that Ship may trade from
time to time, including but not limited to the ISM Code and the ISPS Code,

 

and the Borrowers
shall notify the Creditor Parties of the class and the Classification Society of a Ship not less than 15 days prior to the Drawdown
Date in respect of the Advance relating to such Ship.

 

		14.4	Classification Society instructions and undertaking. Each
Borrower shall instruct the Classification Society referred to in Clause 14.3(b) (and procure that the Classification Society undertakes
with the Security Trustee):

 

		(a)	to send to the Security Trustee, following receipt of a written request from the Security Trustee,
certified true copies of all original class records held by the Classification Society in relation to that Borrower’s Ship;

 

		(b)	to allow the Security Trustee (or its agents), at any time and from time to time, to inspect the
original class and related records of that Borrower and the Ship owned by it either (i) electronically (through the Classification
Society directly or by way of indirect access via such Borrower’s account manager and designating the Security Trustee as
a user or administrator of the system under its account) or (ii) in person at the offices of the Classification Society, and to
take copies of them electronically or otherwise;

 

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		(c)	to notify the Security Trustee immediately
                                         in writing and by Email at neil.mclaughlin@dvbbank.com and at techcom@dvbbank.com
                                         if the Classification Society:

 

		(i)	receives notification from that Borrower or any other person that that Ship’s Classification
Society is to be changed; or

 

		(ii)	becomes aware of any facts or matters which may result in or have resulted in a condition of class
or a recommendation, or a change, suspension, discontinuance, withdrawal or expiry of that Ship’s class under the rules or
terms and conditions of that Borrower’s or that Ship’s membership of the Classification Society;

 

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

 

		(i)	to confirm that that Borrower is not in default of any of its contractual obligations or liabilities
to the Classification Society and, without limiting the foregoing, that it has paid in full all fees or other charges due and payable
to the Classification Society; or

 

		(ii)	if that Borrower is in default of any of its contractual obligations or liabilities to the Classification
Society, to specify to the Security Trustee in reasonable detail the facts and circumstances of such default, the consequences
of such default, and any remedy period agreed or allowed by the Classification Society.

 

		14.5	Modification. No Borrower shall make any modification or repairs
to, or replacement of, the Ship owned by it or equipment installed on that Ship which would or is reasonably likely to materially
alter the structure, type or performance characteristics of that Ship or materially reduce its value.

 

		14.6	Removal of parts. No Borrower shall remove any material part
of the Ship owned by it, or any item of equipment installed on, that Ship unless the part or item so removed is forthwith replaced
by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any
Security Interest or any right in favor of any person other than the Security Trustee and becomes on installation on that Ship,
the property of that Borrower and subject to the security constituted by the Mortgage, provided that a Borrower may install
and remove equipment owned by a third party if the equipment can be removed without any risk of damage to the Ship owned by it.

 

		14.7	Surveys. Each Borrower, at its sole expense, shall submit
the Ship owned by it regularly to all periodical or other surveys which may be required for classification purposes and, if so
required by the Security Trustee, provide the Security Trustee, at that Borrower’s sole expense, with copies of all survey
reports.

 

		14.8	Inspection. Each Borrower shall permit the Security Trustee
(by surveyors or other persons appointed by it for that purpose at the cost of the Borrowers) to board the Ship owned by it at
all reasonable times but not more than once per year unless an Event of Default has occurred and is continuing, to inspect its
condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections.
The Security Trustee shall use reasonable efforts to ensure that the operation of that Ship is not adversely affected as a result
of such inspections.

 

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		14.9	Prevention of and release from arrest. Each Borrower shall
promptly discharge or contest in good faith with appropriate proceedings:

 

		(a)	all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable
against the Ship owned by it, the Earnings or the Insurances;

 

		(b)	all taxes, dues and other amounts charged in respect of the Ship owned by it, the Earnings or the
Insurances; and

 

		(c)	all other accounts payable whatsoever in respect of the Ship owned by it, the Earnings or the Insurances,

 

and, forthwith (and in no event
more than 14 days) upon receiving notice of the arrest of the Ship owned by it, or of its detention in exercise or purported exercise
of any lien or claim, that Borrower shall procure its release by providing bail or otherwise as the circumstances may require.

 

		14.10	Compliance with laws etc. Each Borrower shall:

 

		(a)	comply, or procure compliance with, all laws or regulations:

 

		(i)	relating to its business generally; or
	 	 	 
	 	(ii)	relating to the ownership,
employment, operation and management of the Ship owned by it,

  

including but not limited to
the ISM Code, the ISPS Code, all Environmental Laws and all Sanctions;

 

		(b)	without prejudice to the generality of paragraph (a) above, not employ the Ship owned by it nor
allow its employment in any manner contrary to any laws or regulations, including but not limited to the ISM Code, the ISPS Code;
all Environmental Laws and all Sanctions; and

 

		(c)	in the event of hostilities in any part of the world (whether war is declared or not), not cause
or permit the Ship owned by it to enter or trade to any zone which is declared a war zone by any government or by that Ship’s
war risks insurers unless the prior written consent of the Security Trustee has been given and that Borrower has (at its expense)
effected any special, additional or modified insurance cover which the Security Trustee may require.

 

		14.11	Provision of information. Each Borrower shall promptly provide
the Security Trustee with any information which it requests regarding:

 

		(a)	the Ship owned by it, its employment, position and engagements;

 

		(b)	the Earnings and payments and amounts due to that Ship’s master and crew;

 

		(c)	any expenses incurred, or likely to be incurred, in connection with the operation, maintenance
or repair of that Ship and any payments made in respect of that Ship;

 

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		(d)	any towages and salvages; and

 

		(e)	that Borrower’s, the Approved Manager’s and that Ship’s compliance with the ISM
Code and the ISPS Code,

 

and, upon the Security Trustee’s
request, provide copies of any current Time Charter and Time Charter Guarantee relating to that Ship and copies of that Borrower’s
or the Approved Manager’s Document of Compliance.

 

		14.12	Notification of certain events. Each Borrower shall immediately
notify the Security Trustee by fax or Email, confirmed forthwith by letter, of:

 

		(a)	any casualty which is or is likely to be or to become a Major Casualty;

 

		(b)	any occurrence as a result of which the Ship owned by it has become or is, by the passing of time
or otherwise, likely to become a Total Loss;

 

		(c)	any requirement or condition made by any insurer or classification society or by any competent
authority which is not immediately complied with;

 

		(d)	any arrest or detention of the Ship owned by it, any exercise or purported exercise of any Security
Interest on that Ship or the Earnings or any requisition of that Ship for hire;

 

		(e)	any intended dry docking of the Ship owned by it;

 

		(f)	any Environmental Claim made against that Borrower or in connection with the Ship owned by it,
or any Environmental Incident;

 

		(g)	any claim for breach of the ISM Code or the ISPS Code being made against that Borrower, the Approved
Manager or otherwise in connection with the Ship owned by it; or

 

		(h)	any other matter, event or incident, actual or threatened, the effect of which will or could lead
to the ISM Code or the ISPS Code not being complied with;

 

and that Borrower shall keep
the Security Trustee advised in writing on a regular basis and in such detail as the Security Trustee shall require of that Borrower’s,
the Approved Manager’s or any other person’s response to any of those events or matters.

 

		14.13	Restrictions on chartering, appointment of managers etc. No
Borrower shall:

 

		(a)	let the Ship owned by it on demise charter for any period;

 

		(b)	enter into any time or consecutive voyage charter in respect of that Ship for a term which exceeds,
or which by virtue of any optional extensions may exceed, 12 months (except pursuant to a Time Charter);

 

		(c)	enter into any charter in relation to that Ship under which more than two (2) months’ hire
(or the equivalent) is payable in advance;

 

		(d)	charter that Ship otherwise than on bona fide arm’s length terms at the time when that Ship
is fixed;

 

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		(e)	appoint a manager of that Ship other than the Approved Manager or agree to any alteration to the
terms of the Approved Management Agreement;

 

		(f)	de-activate or lay up that Ship;

 

		(g)	change the Classification Society;

 

		(h)	put that Ship into the possession of any person for the purpose of work being done upon it in an
amount exceeding or likely to exceed $500,000 (or the equivalent in any other currency) unless that person has first given to the
Security Trustee and in terms satisfactory to it a written undertaking not to exercise any Security Interest on that Ship or the
Earnings for the cost of such work or for any other reason; or

 

		(i)	permit the Ship owned by it to carry nuclear waste or material.

 

		14.14	Copies of Charters; Charter Assignment; Earnings Assignment.
Provided that all approvals necessary under Clause 14.13 have been previously obtained, each Borrower shall:

 

		(a)	furnish promptly to the Agent a true and complete copy of any Charter entered into by a Borrower
for the Ship owned by it, all other documents related thereto and a true and complete copy of each material amendment or other
modification thereof;

 

		(b)	in respect of any such Charter entered into by a Borrower, execute and deliver to the Agent a charter
assignment in Agreed Form and use reasonable commercial efforts to cause the charterer to execute and deliver to the Security Trustee
a consent and acknowledgement to such charter assignment in the form required thereby; and

 

		(c)	in respect of any contract for the employment of that Ship for a term which is or which by virtue
of any optional extensions therein contained would be reasonably likely to be of less than 12 months duration, execute and deliver
to the Agent an Earnings Assignment and use reasonable commercial efforts to cause the charterer to execute and deliver to the
Security Trustee a consent and acknowledgement to such Earnings Assignment in the form required thereby (if any).

 

		14.15	Notice of Mortgage. Each Borrower shall keep the Mortgage
registered against the Ship owned by it as a valid first preferred mortgage, carry on board that Ship a certified copy of the Mortgage
and place and maintain in a conspicuous place in the navigation room and the Master’s cabin of that Ship a framed printed
notice stating that such Ship is mortgaged by that Borrower to the Security Trustee.

 

		14.16	Sharing of Earnings. No Borrower shall enter into any agreement
or arrangement for the sharing of any Earnings.

 

		14.17	ISPS Code. Each Borrower shall comply with the ISPS Code and
in particular, without limitation, shall:

 

		(a)	procure that the Ship owned by it and the company responsible for that Ship’s compliance
with the ISPS Code comply with the ISPS Code; and

 

		(b)	maintain for that Ship an ISSC; and

 

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		(c)	notify the Agent immediately in writing of any actual or threatened withdrawal, suspension, cancellation
or modification of the ISSC.

 

		15	COLLATERAL MAINTENANCE RATIO

 

		15.1	General. From the first Drawdown Date until the Total Commitments
have terminated and all amounts payable hereunder have been paid in full, the Borrowers undertake with each Creditor Party to comply
with the following provisions of this Clause 15 except as the Agent, with the consent of the Majority Lenders, may approve from
time to time in writing, such approval not to be unreasonably withheld.

 

		15.2	Applicable Collateral Maintenance Ratio. If, at any time,
the Agent notifies the Borrowers that:

 

		(a)	the aggregate Fair Market Value of the Ships; plus

 

		(b)	the net realizable value of any additional Collateral previously provided under this Clause 15,

 

is below either
(i) 142.85 percent of the Loan at all times before any of BULK PANGAEA, BULK PATRIOT, BULK JULIANA or BULK TRIDENT is sold or becomes
a Total Loss or (ii) 200 percent of the Loan at all times after any of BULK PANGAEA, BULK PATRIOT, BULK JULIANA or BULK TRIDENT
is sold or becomes a Total Loss (such ratio being in either case the “Applicable Collateral Maintenance Ratio”),
the Agent (acting upon the instruction of the Majority Lenders) shall have the right to require the Borrowers to comply with the
requirements of Clause 15.3.

 

		15.3	Provision of additional Collateral; prepayment.

 

		(a)	If the Agent serves a notice on the Borrowers under Clause 15.2, the Borrowers shall prepay such
part (at least) of the Loan as will eliminate the shortfall on or before the date falling one (1) month after the date on which
the Agent’s notice is served under Clause 15.2 (the “Collateral Maintenance Prepayment Date”) unless
at least one (1) Business Day before the Collateral Maintenance Prepayment Date it has provided, or ensured that a third
party has provided, additional Collateral which, in the opinion of the Majority Lenders, has a net realizable value at least equal
to the shortfall and which has been documented in such terms as the Agent may, with the authorization of the Majority Lenders,
approve or require.

 

		(b)	Any prepayment made pursuant to Clause 15.3(a) shall be applied pro rata to each outstanding
Advance of the Loan at the time such prepayment is made.

 

		15.4	Value of additional vessel security. The net realizable value
of any additional Collateral which is provided under Clause 15.3 and which consists of a Security Interest over a vessel shall
be that shown by a valuation complying with the definition of Fair Market Value.

 

		15.5	Valuations binding. Any valuation under Clause 15.3 or 15.4
shall be binding and conclusive as regards the Borrowers and the Guarantors, as shall be any valuation which the Majority Lenders
make of any additional Collateral which does not consist of or include a Security Interest.

 

		15.6	Provision of information. The Borrowers shall promptly provide
the Agent and any Approved Broker or other expert acting under Clause 15.4 with any information which the Agent or the Approved
Broker or other expert may request for the purposes of the valuation; and, if the Borrowers fail to provide the information by
the date specified in the request, the valuation may be made on any basis and assumptions which the Approved Broker or the Majority
Lenders (or the expert appointed by them) consider prudent.

 

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		15.7	Payment of valuation expenses. Without prejudice to the generality
of the Borrowers’ obligations under Clauses 21.2, 21.3 and 22.3, the Borrowers shall, on demand, pay the Agent the amount
of the fees and expenses of any Approved Broker or other expert instructed by the Agent under this Clause 15 and all legal and
other expenses incurred by any Creditor Party in connection with any matter arising out of this Clause 15.

 

		16	guarantee

 

		16.1	Guarantee and indemnity. In order to induce the Lenders to
make the Loan to the Borrowers, each Guarantor irrevocably and unconditionally jointly and severally:

 

		(a)	guarantees, as a primary obligor and not merely as a surety, to each Creditor Party, the punctual
payment and performance by the Borrowers when due, whether at stated maturity, by acceleration or otherwise, of all Secured Liabilities
of the Borrowers, whether for principal, interest, fees, expenses or otherwise (collectively, the “Guaranteed Obligations”);

 

		(b)	undertakes with each Creditor Party that whenever the Borrowers do not pay any Guaranteed Obligation
when due, such Guarantor shall immediately on demand pay that Guaranteed Obligation as if it were the primary obligor; and

 

		(c)	indemnifies each Creditor Party immediately on demand against any cost, loss or liability suffered
or incurred by that Creditor Party (i) if any Guaranteed Obligation is or becomes unenforceable, invalid or illegal or (ii) by
operation of law as a consequence of the transactions contemplated by the Finance Documents. The amount of the cost, loss or liability
shall be equal to the amount which that Creditor Party would otherwise have been entitled to recover.

 

		16.2	Continuing guarantee. This guarantee:

 

		(a)	is a continuing guarantee;

 

		(b)	constitutes a guarantee of punctual performance and payment and not merely of collection;

 

		(c)	is joint and several with any other guarantee given in respect of the Guaranteed Obligations and
shall not in any way be prejudiced by any other guarantee or security now or subsequently held by any Creditor Party in respect
of the Guaranteed Obligations;

 

		(d)	shall remain in full force and effect until the later of the termination of the Total Commitments
and the payment and performance in full of the Guaranteed Obligations and all other amounts payable hereunder regardless of any
intermediate payment or discharge in whole or in part; and

 

		(e)	shall be binding upon each Guarantor, its successors and permitted assigns.

 

 

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		16.3	Performance of Guaranteed Obligations; obligations pari passu.

 

		(a)	Each Guarantor agrees that the Guaranteed Obligations will be performed and paid strictly in accordance
with the terms of the relevant Finance Document regardless of any law or regulation or order of any court:

 

		(i)	affecting (A) any term of such Finance Document or the rights of any of the Creditor Parties with
respect thereto or (B) the Borrowers’ ability or obligation to make or render, or right of any Creditor Party to receive,
any payments or performance due thereunder; or

 

		(ii)	which might otherwise constitute a defense to, or a legal or equitable discharge of, the Borrowers.

 

		(b)	The obligations of each Guarantor under this guarantee shall rank pari passu with all other
unsecured obligations of such Guarantor.

 

		16.4	Reinstatement. If any payment of any of the Guaranteed Obligations
is rescinded, discharged, avoided or reduced or must otherwise be returned by a Creditor Party or any other person upon the insolvency,
bankruptcy or reorganization of a Borrower or any other Security Party or otherwise:

 

		(a)	this guarantee shall continue to be effective or be reinstated, and the liability of each Guarantor
hereunder shall continue or be reinstated, as the case may be, as if the payment, discharge, avoidance or reduction had not occurred;
and

 

		(b)	each Creditor Party shall be entitled to recover the value or amount of that payment from each
Guarantor, as if the payment, discharge, avoidance or reduction had not occurred.

 

		16.5	Liability absolute and unconditional. The obligations of each
Guarantor under this Clause 16 shall be irrevocable, absolute and unconditional and shall not be affected by an act, omission,
matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 16, and
each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of
the following:

 

		(a)	any time, waiver or consent granted to, or composition with, any Security Party or other person;

 

		(b)	the release of any other Security Party or any other person under the terms of any composition
or arrangement with any creditor of any Security Party;

 

		(c)	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect,
take up or enforce, any rights against, or security over assets of, any Security Party or other person or any non-presentation
or non-observance of any formality or other requirement in respect of any instrument or any failure to realize the full value of
any security;

 

		(d)	any incapacity or lack of power, authority or legal personality of or dissolution or change in
the corporate or company structure or status of a Security Party or any other person (including without limitation any change in
the holding of such Security Party’s or other person’s Equity Interests);

 

		(e)	any amendment to or replacement of a Finance Document or any other document or security;

 

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		(f)	any unenforceability, illegality or invalidity of any obligation of any Security Party or any other
person under any Finance Document or any other document or security;

 

		(g)	any bankruptcy, insolvency or similar proceedings; or

 

		(h)	any other circumstance whatsoever that might otherwise constitute a defense available to, or a
legal or equitable discharge of, any Security Party.

 

		16.6	Waiver of promptness, etc. Each of the Guarantors hereby unconditionally
and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for performance, notice of non-performance,
default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this guarantee
and any requirement that a Creditor Party protect, secure, perfect or insure any Security Interest or any property subject thereto
or exhaust any right or take any action against any Security Party or any other person or entity or any Collateral.

 

		16.7	Waiver of revocation, etc. Each Guarantor hereby unconditionally
and irrevocably waives any right to revoke this guarantee.

 

		16.8	Waiver of certain defenses. Each Guarantor hereby unconditionally
and irrevocably waives:

 

		(a)	any defense arising by reason of any claim or defense based upon an election of remedies by a Creditor
Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration,
contribution or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against the Borrowers, any
of the other Security Parties, any other guarantor or any other person or entity or any Collateral; and

 

		(b)	any defense based on any right of set-off or counterclaim against or in respect of the obligations
of such Guarantor hereunder.

 

		16.9	Waiver of disclosure, etc. Each Guarantor hereby unconditionally
and irrevocably waives any duty on the part of any Creditor Party to disclose to the Guarantors any matter, fact or thing relating
to the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrowers, any other
Security Party or any of their respective subsidiaries now or hereafter known by any Creditor Party.

 

		16.10	Immediate recourse. Each Guarantor waives any right it may
have of first requiring any Creditor Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights
or security or claim payment from any person before claiming from that Guarantor under this Clause 16. This waiver applies irrespective
of any law or any provision of a Finance Document to the contrary.

 

		16.11	Acknowledgment of benefits. Each Guarantor acknowledges that
it will receive substantial direct and indirect benefits from the financing arrangements contemplated by the Finance Documents
and that the waivers set forth in this Clause 16 are knowingly made in contemplation of such benefits.

 

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		16.12	Independent obligations. The obligations of each Guarantor
under or in respect of this guarantee are independent of the Guaranteed Obligations or any other obligations of the Borrowers or
any other Security Party under or in respect of the Finance Documents, and a separate action or actions may be brought and prosecuted
against each Guarantor to enforce this guarantee irrespective of whether any action is brought against the Borrowers or any other
Security Party or whether the Borrowers or any other Security Party is joined in any such action or actions.

 

		16.13	Deferral of Guarantors’ rights. Until the Guaranteed
Obligations have been irrevocably paid and performed in full and unless the Agent otherwise directs, no Guarantor will exercise
any rights which it may have by reason of performance by it of its obligations under the Finance Documents:

 

		(a)	to be indemnified by another Security Party;

 

		(b)	to claim any contribution from any other guarantor of any Security Party’s obligations under
the Finance Documents; and/or

 

		(c)	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any
rights of the Creditor Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection
with, the Finance Documents by any Creditor Party.

 

		16.14	Limitation of liability. Each of the Guarantors and the Creditor
Parties hereby confirms that it is its intention that the Guaranteed Obligations not constitute a fraudulent transfer or conveyance
for purposes of the United States Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar law. To effectuate the foregoing intention, each of the Guarantors and the Creditor Parties hereby irrevocably agrees
that the Guaranteed Obligations guaranteed by each Guarantor shall be limited to such amount as will, after giving effect to such
maximum amount and all other (contingent or otherwise) liabilities of such Guarantor that are relevant under such laws and after
giving effect to any rights to contribution pursuant to any agreement providing for an equitable contribution among such Guarantor
and the other Guarantors, result in the Guaranteed Obligations of such Guarantor in respect of such maximum amount not constituting
a fraudulent transfer or conveyance.

 

		16.15	Reliance of Creditor Parties. Each of the Creditor Parties
has entered into this Agreement in reliance upon, among other things, this guarantee.

 

		17	PAYMENTS AND CALCULATIONS

 

		17.1	Currency and method of payments. All payments to be made by
the Lenders or by the Security Parties under a Finance Document shall be made to the Agent or to the Security Trustee, in the case
of an amount payable to it:

 

		(a)	by not later than 11:00 a.m. (New York City time) on the due date;

 

		(b)	in same day Dollar funds settled through the New York Clearing House Interbank Payments System
(or in such other Dollar funds and/or settled in such other manner as the Agent shall specify as being customary at the time for
the settlement of international transactions of the type contemplated by this Agreement);

 

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		(c)	in the case of an amount payable by a Lender to the Agent or by another Security Party to the Agent
or any Lender, to the account of the Agent at HSBC Bank USA, New York, New York, ABA No. 021001088, SWIFT ID No. MRMDUS33, for
credit to DVB Bank SE (Account No. 000.137.278), Reference: Bulk Partners Fleet Financing, or to such other account with such other
bank as the Agent may from time to time notify to the Borrowers, the other Security Parties and the other Creditor Parties; and

 

		(d)	in the case of an amount payable to the Security Trustee, to such account as it may from time to
time notify to the Borrowers and the other Creditor Parties.

 

		17.2	Payment on non-Business Day. If any payment by a Security
Party under a Finance Document would otherwise fall due on a day which is not a Business Day:

 

		(a)	the due date shall be extended to the next succeeding Business Day; or

 

		(b)	if the next succeeding Business Day falls in the next calendar month, the due date shall be brought
forward to the immediately preceding Business Day;

 

and interest shall be payable
during any extension under paragraph (a) at the rate payable on the original due date.

 

		17.3	Basis for calculation of periodic payments. All interest and
commitment fee and any other payments under any Finance Document which are of an annual or periodic nature shall accrue from day
to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year.

 

		17.4	Distribution of payments to Creditor Parties. Subject to Clauses
17.5, 17.6 and 17.7:

 

		(a)	any amount received by the Agent under a Finance Document for distribution or remittance to a Lender
or the Security Trustee shall be made available by the Agent to that Lender or, as the case may be, the Security Trustee by payment,
with funds having the same value as the funds received, to such account as the Lender or the Security Trustee may have notified
to the Agent not less than five (5) Business Days previously; and

 

		(b)	amounts to be applied in satisfying amounts of a particular category which are due to the Lenders
generally shall be distributed by the Agent to each Lender pro rata to the amount in that category which is due to it.

 

		17.5	Permitted deductions by Agent. Notwithstanding any other provision
of this Agreement or any other Finance Document, the Agent may, before making an amount available to a Lender, deduct and withhold
from that amount any sum which is then due and payable to the Agent from that Lender under any Finance Document or any sum which
the Agent is then entitled under any Finance Document to require that Lender to pay on demand.

 

		17.6	Agent only obliged to pay when monies received. Notwithstanding
any other provision of this Agreement or any other Finance Document, the Agent shall not be obliged to make available to the Borrowers
or any Lender any sum which the Agent is expecting to receive for remittance or distribution to the Borrowers or that Lender until
the Agent has satisfied itself that it has received that sum.

 

		17.7	Refund to Agent of monies not received. If and to the extent
that the Agent makes available a sum to the Borrowers or a Lender, without first having received that sum, the Borrowers or (as
the case may be) the Lender concerned shall, on demand:

 

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		(a)	refund the sum in full to the Agent; and

 

		(b)	pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against
any funding or other loss, liability or expense incurred by the Agent as a result of making the sum available before receiving
it.

 

		17.8	Agent may assume receipt. Clause 17.7 shall not affect any
claim which the Agent has under the law of restitution, and applies irrespective of whether the Agent had any form of notice that
it had not received the sum which it made available.

 

		17.9	Creditor Party accounts. Each Creditor Party shall maintain
accounts showing the amounts owing to it by the Borrowers and each other Security Party under the Finance Documents and all payments
in respect of those amounts made by the Borrowers and any other Security Party.

 

		17.10	Agent’s memorandum account. The Agent shall maintain
a memorandum account showing the amounts advanced by the Lenders and all other sums owing to the Agent, the Security Trustee and
each Lender from the Borrowers and each other Security Party under the Finance Documents and all payments in respect of those amounts
made by the Borrowers and any other Security Party.

 

		17.11	Accounts prima facie evidence. If any accounts maintained
under Clauses 17.9 and 17.10 show an amount to be owing by the Borrowers or any other Security Party to a Creditor Party, those
accounts shall be prima facie evidence that that amount is owing to that Creditor Party.

 

		18	APPLICATION OF RECEIPTS

 

		18.1	Normal order of application. Except as any Finance Document
may otherwise provide, any sums which are received or recovered by any Creditor Party under or by virtue of any Finance Document
shall be applied:

 

		(a)	FIRST: in or towards satisfaction of any amounts then due and payable under the Finance Documents
in the following order and proportions:

 

		(i)	first, in or towards satisfaction pro rata of all amounts then due and payable to
the Creditor Parties under the Finance Documents other than those amounts referred to at paragraphs (ii) and (iii) (including,
but without limitation, all amounts payable by the Borrowers under Clauses 21, 22 and 23 of this Agreement or by the Borrowers
or any other Security Party under any corresponding or similar provision in any other Finance Document);

 

		(ii)	second, in or towards satisfaction pro rata of any and all amounts of interest or
default interest payable to the Creditor Parties under the Finance Documents; and

 

		(iii)	third, in or towards satisfaction pro rata of the Loan;

 

		(b)	SECOND: in retention of an amount equal to any amount not then due and payable under any Finance
Document but which the Agent, by notice to the Borrowers, the other Security Parties and the other Creditor Parties, states in
its opinion will or may become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction
of them in accordance with the provisions of Clause 18.1(a); and

 

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		(c)	THIRD: provided that no Event of Default has occurred and is continuing, any surplus shall be paid
to the Borrowers or to any other person appearing to be entitled to it.

 

		18.2	Variation of order of application. The Agent may, with the
authorization of the Majority Lenders, by notice to the Borrowers, the other Security Parties and the other Creditor Parties provide
for a different manner of application from that set out in Clause 18.1 either as regards a specified sum or sums or as regards
sums in a specified category or categories.

 

		18.3	Notice of variation of order of application. The Agent may
give notices under Clause 18.2 from time to time; and such a notice may be stated to apply not only to sums which may be received
or recovered in the future, but also to any sum which has been received or recovered on or after the third Business Day before
the date on which the notice is served.

 

		18.4	Appropriation rights overridden. This Clause 18 and any notice
which the Agent gives under Clause 18.2 shall override any right of appropriation possessed, and any appropriation made, by the
Borrowers or any other Security Party.

 

		18.5	Payments in excess of Contribution.

 

		(a)	If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of
any right of set-off, counterclaim or otherwise) in excess of its Contribution, such Lender shall forthwith purchase from the other
Lenders such participation in their respective Contributions as shall be necessary to share the excess payment ratably with each
of them, provided that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender,
such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the
extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (a)
the amount of such Lender’s required repayment to (b) the total amount so recovered from the purchasing Lender) of any interest
or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered.

 

		(b)	The Borrowers agree that any Lender so purchasing a participation from another Lender pursuant
to this Clause 18.5 may, to the fullest extent permitted by law, exercise all of its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers in the amount
of such participation.

 

		(c)	Notwithstanding paragraphs (a) and (b) of this Clause 18.5, any Lender which shall have commenced
or joined (as a plaintiff) in an action or proceeding in any court to recover sums due to it under any Finance Document and pursuant
to a judgment obtained therein or a settlement or compromise of that action or proceeding shall have received any amount, such
Lender shall not be required to share any proportion of that amount with a Lender which has the legal right to, but does not, join
such action or proceeding or commence and diligently prosecute a separate action or proceeding to enforce its rights in the same
or another court.

 

		(d)	Each Lender exercising or contemplating exercising any rights giving rise to a receipt or receiving
any payment of the type referred to in this Clause 18.5 or instituting legal proceedings to recover sums owing to it under this
Agreement shall, as soon as reasonably practicable thereafter, give notice thereof to the Agent who shall give notice to the other
Lenders.

 

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		19	APPLICATION OF EARNINGS

 

		19.1	General. From the first Drawdown Date until the Total Commitments
have terminated and all amounts payable hereunder have been paid in full, each of the Borrowers undertakes with each Creditor Party
to comply or cause compliance with the following provisions of this Clause 19 except as the Agent, with the consent of the Majority
Lenders, may approve from time to time in writing, such approval not to be unreasonably withheld.

 

		19.2	Funding of Earnings Accounts.

 

		(a)	With respect to BULK JULIANA, BULK PANGEA and BULK PATRIOT, on the Drawdown Date of the Advance
for each such Initial Ship, the Borrower that owns such Ship shall deposit not less than $500,000 into and shall at all times thereafter
during the Security Period retain not less than $500,000 in the Earnings Account for the Ship owned by such Borrower, and

 

		(b)	With respect to BULK TRIDENT, on the Drawdown Date of the Advance in respect of such Initial Ship,
Bulk Trident shall deposit not less than $200,000 into the Earnings Account for such Initial Ship and shall, not later than December
31, 2013, increase such balance to not less than $500,000; provided that if the balance in such Earnings Account is less
than $500,000 on December 31, 2013, any Security Party may loan to Bulk Trident an amount sufficient to bring the balance in such
Earnings Account to $500,000,

 

provided
that the aggregate balance maintained in all of the Earnings Accounts on a consolidated basis shall be not less than $2,000,000
at all times during the Security Period.

 

		19.3	Application of Earnings.

 

		(a)	For each Initial Ship, each Borrower undertakes with each Creditor Party to ensure that, subject
only to the provisions of the relevant Time Charter, COA, Earnings Assignment, Earnings Account Pledge, Freights Account Pledge
and Time Charterer Earnings Assignment, as applicable:

 

		(i)	all Earnings of that Ship under either the COAs for such Ship or any charter by the Time Charterer
as disponent owner for such Ship are paid to the Freights Account; and

 

		(ii)	Allseas pays from such Earnings of that Ship, as and when due, all voyage expenses (if applicable)
related to the commercial operation of that Ship; and

 

		(iii)	Allseas pays from such Earnings of that Ship, as and when due, the amount necessary to pay the
charter hire for that Ship (or, if such Time Charter is no longer in existence, the amount necessary for the Borrower to satisfy
the debt service obligations in respect of the Advance under this Agreement relating to that Ship (principal, interest and fees)
as and when due under this Agreement and the amount necessary to pay all daily operating expenses of that Ship). Such transfer
shall be made to the Earnings Account for that Ship.

 

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		19.4	Application of Excess Cash Flow.

 

		(a)	Bulk Trident undertakes with each Creditor Party to ensure that all Excess Cash Flow of the BULK
TRIDENT (i.e., any Earnings of the BULK TRIDENT remaining in the Freights Account after paying the voyage expenses and charter
hire) shall be transferred to the Bulk Trident Earnings Account and retained, subject to the following:

 

		(i)	Provided the applicable Earnings Account Minimum Balance is being maintained in the Bulk Trident
Earnings Account:

 

		(A)	if the Excess Cash Flow is in the aggregate more than $106,250 on the date falling three (3) months
after the Drawdown Date of the Advance in respect of the BULK TRIDENT, and at the end of each three (3) month period thereafter,
Bulk Trident shall make a prepayment in integrals of $106,250, to be applied in the aggregate to prepay, without any prepayment
fee otherwise required by Clause 8.9(c)), the repayment installments specified in Clause 8.1(b) in inverse order of maturity, provided
that

 

		(B)	if the Excess Cash Flow is in the aggregate less than $106,250 on the last day of the applicable
3 month period, all such Excess Cash Flow shall be retained in the Bulk Trident Earnings Account and Bulk Trident shall not be
required to make the prepayment specified above; and

 

		(C)	if the Excess Cash Flow is in the aggregate more than $106,250 on the last day of the applicable
three (3) month Period (not including any amounts retained pursuant to Clause 19.4(a)(i)(B) above), all such Excess Cash Flow remaining
after the required prepayment of $106,250 is made shall be released to the Security Parties for general corporate purposes.

 

		(ii)	It is understood that the following shall be paid from the Bulk Trident Earnings Account:

 

		(A)	daily operating expenses (“OPEX”) of the BULK TRIDENT (crew costs, insurance, maintenance,
stores, lube oils, etc.);

 

		(B)	amounts necessary to comply with the Collateral Maintenance Ratio;

 

		(C)	excess expenses that exceed the daily charter hire rate.

 

		(b)	Bulk Patriot undertakes with each Creditor Party to ensure that all Excess Cash Flow of the BULK
PATRIOT (i.e., any Earnings of the BULK PATRIOT remaining in the Freights Account after paying the voyage expenses and charter
hire) shall be transferred to the Bulk Patriot Earnings Account and retained, subject to the following:

 

		(iii)	Provided the applicable Earnings Account Minimum Balance is being maintained in the Bulk Patriot
Earnings Account:

 

		(A)	if the Excess Cash Flow is in the aggregate more than $112,500 on the date falling three (3) months
after the Drawdown Date of the Advance in respect of the BULK PATRIOT, and at the end of each three (3) month period thereafter,
Bulk Patriot shall make a prepayment in integrals of $112,500, to be applied in the aggregate to prepay, without any prepayment
fee otherwise required by Clause 8.9(c)), the repayment installments specified in Clause 8.1(b) in inverse order of maturity, provided
that

 

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		(B)	if the Excess Cash Flow is in the aggregate less than $112,500 on the last day of the applicable
3 month period, all such Excess Cash Flow shall be retained in the Bulk Patriot Earnings Account and Bulk Patriot shall not be
required to make the prepayment specified above; and

 

		(C)	if the Excess Cash Flow is in the aggregate more than $112,500 on the last day of the applicable
three (3) month Period (not including any amounts retained pursuant to Clause 19.4(b)(i)(B) above), all such Excess Cash Flow remaining
after the required prepayment of $112,500 is made shall be released to the Security Parties for general corporate purposes, provided
further that:

 

		(1)	all charter hire has been paid; and

 

		(2)	all expenses incurred, or likely to be incurred, in connection with the operation, maintenance
or repair of the BULK PATRIOT have been paid in full or for which adequate reserves have been made.

 

		(iv)	It is understood that the following shall be paid from the Bulk Patriot Earnings Account:

 

		(A)	daily operating expenses (“OPEX”) of the BULK PATRIOT (crew costs, insurance, maintenance,
stores, lube oils, etc.);

 

		(B)	amounts necessary to comply with the Collateral Maintenance Ratio;

 

		(C)	excess expenses that exceed the daily charter hire rate.

 

		(c)	Bulk Juliana undertakes with each Creditor Party to ensure that all Excess Cash Flow of the BULK
JULIANA (i.e., any Earnings of the BULK JULIANA remaining in the Freights Account after paying the voyage expenses and charter
hire) shall be transferred to the Bulk Juliana Earnings Account and retained, subject to the following:

 

		(i)	Provided the applicable Earnings Account Minimum Balance is being maintained in the Bulk Juliana
Earnings Account:

 

		(A)	if the Excess Cash Flow is in the aggregate more than $100,000 on the date falling three (3) months
after the Drawdown Date of the Advance in respect of the BULK JULIANA, and at the end of each three (3) month period thereafter,
Bulk Juliana shall make a prepayment in integrals of $100,000, to be applied in the aggregate to prepay, without any prepayment
fee otherwise required by Clause 8.9(c)), the repayment installments specified in Clause 8.1(b) in inverse order of maturity, provided
that

 

		(B)	if the Excess Cash Flow is in the aggregate less than $100,000 on the last day of the applicable
3 month period, all such Excess Cash Flow shall be retained in the Bulk Juliana Earnings Account and Bulk Juliana shall not be
required to make the prepayment specified above.

 

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		(ii)	It is understood that the following shall be paid from the Bulk Juliana Earnings Account:

 

		(A)	daily operating expenses (“OPEX”) of the BULK JULIANA (crew costs, insurance, maintenance,
stores, lube oils, etc.);

 

		(B)	amounts necessary to comply with the Collateral Maintenance Ratio;

 

		(C)	excess expenses that exceed the daily charter hire rate.

 

		(d)	Bulk Pangaea undertakes with each Creditor Party to ensure that all Excess Cash Flow of the BULK
PANGAEA (i.e., any Earnings of the BULK PANGAEA remaining in the Freights Account after paying the voyage expenses and charter
hire) shall be transferred to the Bulk Pangaea Earnings Account and retained, subject to the following:

 

		(i)	Provided the applicable Earnings Account Minimum Balance is being maintained in the Bulk Pangaea
Earnings Account:

 

		(A)	if the Excess Cash Flow is in the aggregate more than $100,000 on the date falling three (3) months
after the Drawdown Date of the Advance in respect of the BULK PANGAEA, and at the end of each three (3) month period thereafter,
Bulk Pangaea may, at its option, make a prepayment in integrals of $100,000, to be applied in the aggregate to prepay, without
any prepayment fee otherwise required by Clause 8.9(c)), the repayment installments specified in Clause 8.1(b) in inverse order
of maturity, provided that

 

		(B)	if the Excess Cash Flow is in the aggregate less than $100,000 on the last day of the applicable
3 month period, all such Excess Cash Flow shall be retained in the Bulk Pangaea Earnings Account and Bulk Pangaea shall not be
required to make the prepayment specified above; and

 

		(ii)	It is understood that the following shall be paid from the Bulk Pangaea Earnings Account:

 

		(A)	daily operating expenses (“OPEX”) of the BULK PANGAEA (crew costs, insurance, maintenance,
stores, lube oils, etc.);

 

		(B)	amounts necessary to comply with the Collateral Maintenance Ratio;

 

		(C)	excess expenses that exceed the daily charter hire rate.

 

		19.5	Location of Earnings Accounts and Freights Account. Each of
the Borrowers shall promptly:

 

		(a)	comply, or cause the compliance, with any requirement of the Agent as to the location or re-location
of its Earnings Account or the Freights Account, and without limiting the foregoing, each of the Borrowers agrees to segregate,
or cause the segregation of, its Earnings Account from the banking platform on which their other accounts are located or designated
and the Freights Account from the banking platform on which the other bank accounts of Allseas are located or designated; and

 

		(b)	execute, or cause the execution of, any documents which the Agent specifies to create or maintain
in favor of the Security Trustee a Security Interest over (and/or rights of set-off, consolidation or other rights in relation
to) its Earnings Account and the Freights Account.

 

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		19.6	Debits for expenses etc. Upon the occurrence and during the
continuance of an Event of Default, the Agent shall be entitled (but not obliged) from time to time to debit the Earnings Accounts
and/or the Freights Account without prior notice in order to discharge any amount due and payable under Clause 21 or 22 to a Creditor
Party or payment of which any Creditor Party has become entitled to demand under Clause 21 or 22.

 

		19.7	Borrowers’ obligations unaffected. The provisions of
this Clause 19 do not affect:

 

		(a)	the liability of the Borrowers to make payments of principal and interest on the due dates required
by this Agreement or any other Finance Document; or
	 	 	 
	 	(b)	any other liability or obligation of the Borrowers or any other Security Party under any Finance Document.

 

		20	EVENTS OF DEFAULT

 

		20.1	Events of Default. An Event of Default occurs if:

 

		(a)	any Borrower or any other Security Party fails to pay when due any sum payable under a Finance
Document or under any document relating to a Finance Document or, only in the case of sums payable on demand, within five (5) Business
Days after the date when first demanded; or

 

		(b)	any breach occurs of any of Clauses 8.8, 9.2(a), 11.2(b), 11.2(e), 11.2(o), 11.2(p), 13 or 15.3;
or

 

		(c)	any breach by any Borrower or any other Security Party occurs of any provision of a Finance Document
(other than a breach covered by paragraphs (a), (b), (d), (e) or (n) of this Clause 20.1) which, in the opinion of the Majority
Lenders, is capable of remedy, and such default continues unremedied 10 days after written notice from the Agent requesting action
to remedy the same; or

 

		(d)	subject to any applicable grace period specified in a Finance Document, any breach by any Borrower
or any other Security Party occurs of any provision of a Finance Document (other than a breach falling within paragraphs (a), (b),
(c) or (e) of this Clause 20.1); or

 

		(e)	any representation, warranty or statement made or repeated by, or by an officer or director or
other authorized person of, a Borrower or any other Security Party in a Finance Document or in a Drawdown Notice or any other notice
or document relating to a Finance Document is untrue or misleading when it is made or repeated; or

 

		(f)	an event of default, or an event or circumstance which, with the giving of any notice, the lapse
of time or both would constitute an event of default, has occurred on the part of a Security Party under any contract or agreement
(other than the Finance Documents) to which such Security Party is a party (including without limitation a Time Charter or a COA),
and, in respect of any payment default, the value of which is or exceeds $250,000 (in the case of a Borrower) or $500,000 (in the
case of a Guarantor), and such event of default has not been cured within any applicable grace period, provided that any
event of default other than a payment default shall not be subject to the financial thresholds set forth in this paragraph (f);
or

 

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		(g)	any Financial Indebtedness of a Security Party is not paid when due (or if there is a grace period,
within such grace period) or, only in the case of sums payable on demand, when first demanded, except for any such Financial Indebtedness
which is being contested by such Security Party in good faith and through appropriate proceedings and in a manner that does not
involve any risk of sale, forfeiture, loss, confiscation or seizure of the Ship; or

 

		(h)	any Security Party shall generally not pay its debts as such debts become due, or shall admit in
writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or

 

		(i)	any proceeding shall be instituted by or against any Security Party seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition
of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry
of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial
part of its property, and solely in the case of an involuntary proceeding:

 

		(i)	such proceeding shall remain undismissed or unstayed for a period of 60 days; or

 

		(ii)	any of the actions sought in such involuntary proceeding (including, without limitation, the entry
of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or

 

		(j)	all or a material part of the undertakings, assets, rights or revenues of, or shares or other ownership
interest in, any Security Party are seized, nationalized, expropriated or compulsorily acquired by or under authority of any government;
or

 

		(k)	a creditor attaches or takes possession of, or a distress, execution, sequestration or process
(each an “action”) is levied or enforced upon or sued out against, a material part of the undertakings, assets,
rights or revenues (the “assets”) of any Security Party in relation to a claim by such creditor which, in the
reasonable opinion of the Majority Lenders, is likely to materially and adversely affect the ability of such Security Party to
perform all or any of its obligations under or otherwise to comply with the terms of any Finance Document, Time Charter or COA
to which it is a party and such Security Party does not procure that such action is lifted, released or expunged within 20 Business
Days of such action being (i) instituted and (ii) notified to such Security Party; or

 

		(l)	any judgment or order for the payment of money individually or in the aggregate in excess of $1,000,000
(exclusive of any amounts fully covered by insurance (less any applicable deductible) and as to which the insurer has acknowledged
its responsibility to cover such judgment or order) shall be rendered against a Security Party and such judgment shall not have
been vacated or discharged or stayed or bonded pending appeal within 30 days after the entry thereof or enforcement proceedings
shall have been commenced by any creditor upon such judgment or order; or

 

		(m)	any Security Party ceases or suspends or threatens to cease or suspend the carrying on of its business,
or a part of its business which, in the opinion of the Majority Lenders, is material in the context of this Agreement, except in
the case of a sale or a proposed sale of the Ship by a Borrower; or

 

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		(n)	a Ship becomes a Total Loss or suffers a Major Casualty and (i) in the case of a Total Loss, insurance
proceeds are not collected or received by the Security Trustee from the underwriters within 150 days of the Total Loss Date; or
(ii) in the case of a Major Casualty, that Ship has not been otherwise repaired in a timely and proper manner; or

 

		(o)	it becomes unlawful in any Pertinent Jurisdiction or impossible:

 

		(i)	for any Security Party to discharge any liability under a Finance Document or to comply with any
other obligation which the Majority Lenders consider material under a Finance Document;

 

		(ii)	for the Agent, the Security Trustee or the Lenders to exercise or enforce any right under, or to
enforce any Security Interest created by, a Finance Document; or

 

		(p)	any consent necessary to enable a Borrower to own, operate or charter the Ship owned by it or to
enable a Borrower or any other Security Party to comply with any provision which the Majority Lenders consider material of a Finance
Document or a Time Charter or a COA is not granted, expires without being renewed, is revoked or becomes liable to revocation or
any condition of such a consent is not fulfilled; or

 

		(q)	any provision of a Finance Document which the Majority Lenders consider material proves to have
been or becomes invalid or unenforceable, or a Security Interest created by a Finance Document proves to have been or becomes invalid
or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security Interest or
any other third party claim or interest; or

 

		(r)	the security constituted by a Finance Document is in any way imperiled or in jeopardy; or

 

		(s)	there occurs the cancellation or termination of any contract of employment for the Ship of more
than 12 months duration to which a Security Party is a party, including a Time Charter and a COA, unless such contract of employment
is replaced with a substitute contract of employment with the consent of the Lenders (such consent not to be unreasonably withheld);
or

 

		(t)	any event occurs or any circumstances arise or develop including, without limitation:

 

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

 

		(ii)	any accident or other event involving a Ship;

 

and the Majority Lenders reasonably
consider that there is a significant risk that a Security Party is, or will later become, unable to discharge its liabilities under
the Finance Documents as they fall due; or

 

		(u)	there occurs or develops a change in the financial position, state of affairs or prospects of a
Security Party which, in the reasonable opinion of the Majority Lenders, has a material adverse effect on such Security Party’s
ability to discharge its liabilities under the Finance Documents, the Time Charters or the COAs as they fall due; or

 

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		(v)	the results of any survey or inspection of a Ship pursuant to Clause 14.7 or 14.8 are deemed unsatisfactory
by the Majority Lenders in their sole, reasonable discretion after giving due consideration to the type and age of that Ship and
whether such results adversely affect that Ship’s Fair Market Value or safe operation, unless such survey or inspection is
revised to the satisfaction of the Majority Lenders within 60 days of the date that a copy of the original inspection is delivered
by the Borrowers to the Agent; or

 

		(w)	a Ship is off charter for a continuous period of 45 days at any time, or for an aggregate of 56
days in any 12 month period.

 

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

 

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

 

		(i)	serve on the Borrowers a notice stating that the Commitments and all other obligations of each
Lender to the Borrowers under this Agreement are cancelled; and/or

 

		(ii)	serve on the Borrowers a notice stating that the Loan, together with accrued interest and all other
amounts accrued or owing under this Agreement, are immediately due and payable or are due and payable on demand, provided that
in the case of an Event of Default under either of Clauses 20.1(h) or (i), the Loan and all accrued interest and other amounts
accrued or owing hereunder shall be deemed immediately due and payable without notice or demand therefor; and/or

 

		(iii)	take any other action which, as a result of the Event of Default or any notice served under paragraph
(i) or (ii), the Agent and/or the Lenders are entitled to take under any Finance Document or any applicable law; and/or

 

		(b)	the Security Trustee may, and if so instructed by the Agent, acting with the authorization of the
Majority Lenders, the Security Trustee shall, take any action which, as a result of the Event of Default or any notice served under
paragraph (a) (i) or (ii), the Security Trustee, the Agent and/or the Lenders are entitled to take under any Finance Document or
any applicable law to enforce the Security Interests created by this Agreement and any other Finance Document in any manner available
to it and in such sequence as the Security Trustee may, in its absolute discretion, determine.

 

		20.3	Termination of Commitments. On the service of a notice under
Clause 20.2(a)(i), the Commitments and all other obligations of each Lender to the Borrowers under this Agreement shall be cancelled.

 

		20.4	Acceleration of Loan. On the service of a notice under Clause
20.2(a)(ii), all or, as the case may be, the part of the Loan specified in the notice, together with accrued interest and all other
amounts accrued or owing from the Borrowers or any other Security Party under this Agreement and every other Finance Document shall
become immediately due and payable or, as the case may be, payable on demand.

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		20.5	Multiple notices; action without notice. The Agent may serve
notices under Clauses 20.2(a)(i) and (ii) simultaneously or on different dates and it and/or the Security Trustee may take any
action referred to in Clause 20.2 if no such notice is served or simultaneously with or at any time after the service of both or
either of such notices.

 

		20.6	Notification of Creditor Parties and Security Parties. The
Agent shall send to each Lender, the Security Trustee and each Security Party a copy of the text of any notice which the Agent
serves on the Borrowers under Clause 20.2. Such notice shall become effective when it is served on the Borrowers, and no failure
or delay by the Agent to send a copy or the text of the notice to any other person shall invalidate the notice or provide the Borrowers
or any Security Party with any form of claim or defense.

 

		20.7	Creditor Party rights unimpaired. Nothing in this Clause shall
be taken to impair or restrict the exercise of any right given to individual Lenders under a Finance Document or the general law;
and, in particular, this Clause is without prejudice to Clause 3.1.

 

		20.8	Exclusion of Creditor Party liability. No Creditor Party,
and no receiver or manager appointed by the Security Trustee, shall have any liability to any Security Party:

 

		(a)	for any loss caused by an exercise of rights under, or enforcement of a Security Interest created
by, a Finance Document or by any failure or delay to exercise such a right or to enforce such a Security Interest; or

 

		(b)	as mortgagee in possession or otherwise, for any income or principal amount which might have been
produced by or realized from any asset comprised in such a Security Interest or for any reduction (however caused) in the value
of such an asset,

 

provided that nothing
in this Clause 20.8 shall exempt a Creditor Party or a receiver or manager from liability for losses shown to have been directly
and mainly caused by the gross negligence or the willful misconduct of such Creditor Party’s own officers and employees or
( as the case may be) such receiver’s or manager’s own partners or employees.

 

		21	FEES AND EXPENSES

 

		21.1	Upfront and facility fees. The Borrowers shall pay to the
Agent:

 

		(a)	On or before the first Drawdown Date, an upfront fee of:

 

		(i)	$100,000 in respect of the Advance relating to BULK PANGAEA; and

 

		(ii)	$33,000 in respect of the Advance relating to each of BULK PATRIOT, BULK JULIANA and BULK TRIDENT,

 

each such upfront
fee to be payable to the Agent for its own account; and

 

		(b)	on the Drawdown Date of each Advance and on each anniversary of the Drawdown Date of each Advance,
a facility fee of $10,000 for each Advance payable to the Agent for its own account.

 

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		21.2	Costs of negotiation, preparation etc. The Borrowers shall
pay to the Agent on its demand the amount of all expenses incurred by the Agent or the Security Trustee in connection with the
negotiation, preparation, execution or registration of any Finance Document or any related document or with any transaction contemplated
by a Finance Document or a related document, including, without limitation, the reasonable fees and disbursements of a Creditor
Party’s legal counsel and any local counsel retained by them.

 

		21.3	Costs of variations, amendments, enforcement etc. The Borrowers
shall pay to the Agent, on the Agent’s demand, for the account of the Creditor Party concerned, the amount of all expenses
incurred by a Creditor Party in connection with:

 

		(a)	any amendment or supplement to a Finance Document, or any proposal for such an amendment to be
made;

 

		(b)	any consent or waiver by the Lenders, the Majority Lenders or the Creditor Party concerned under
or in connection with a Finance Document, or any request for such a consent or waiver;

 

		(c)	the valuation of any Collateral provided or offered under Clause 15 or any other matter relating
to such Collateral; or

 

		(d)	any step taken by the Security Trustee or a Lender with a view to the protection, exercise or enforcement
of any right or Security Interest created by a Finance Document or for any similar purpose.

 

There shall be recoverable under
paragraph (d) the full amount of all legal expenses, whether or not such as would be allowed under rules of court or any taxation
or other procedure carried out under such rules.

 

		21.4	Documentary taxes. The Borrowers shall promptly pay any tax
payable on or by reference to any Finance Document, and shall, on the Agent’s demand, fully indemnify each Creditor Party
against any claims, expenses, liabilities and losses resulting from any failure or delay by the Borrowers to pay such a tax.

 

		21.5	Certification of amounts. A notice which is signed by an officer
of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause
21 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate
amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

 

		22	INDEMNITIES

 

		22.1	Indemnities regarding borrowing and repayment of Loan. The
Borrowers shall fully indemnify the Agent and each Lender on the Agent’s demand and the Security Trustee on its demand in
respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by that Creditor Party, or
which that Creditor Party reasonably and with due diligence estimates that it will incur, as a result of or in connection with:

 

		(a)	an Advance not being borrowed on the date specified in the Drawdown Notice for any reason other
than a default by the Lender claiming the indemnity;

 

		(b)	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the
last day of an Interest Period or other relevant period;

 

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		(c)	any failure (for whatever reason) by the Borrowers or any other Security Party to make payment
of any amount due under a Finance Document on the due date or, if so payable, on demand (after giving credit for any default interest
paid by the Borrowers on the amount concerned under Clause 7); or

 

		(d)	the occurrence of an Event of Default or a Potential Event of Default and/or the acceleration of
repayment of the Loan under Clause 20.

 

It is understood
that the indemnities provided in this Clause 22.1 shall not apply to any claim cost or expense which is a tax levied by a taxing
authority on the indemnified party (which taxes are subject to indemnity solely as provided in Clause 23 below) but shall apply
to any other costs associated with any tax which is not a Non-indemnified Tax.

 

		22.2	Breakage costs. Without limiting its generality, Clause 22.1
covers any claim, expense, liability or loss, including a loss of a prospective profit, incurred by a Lender:

 

		(a)	in liquidating or employing deposits from third parties acquired or arranged to fund or maintain
all or any part of its Contribution and/or any overdue amount (or an aggregate amount which includes its Contribution or any overdue
amount); and

 

		(b)	in terminating, or otherwise in connection with, any interest and/or currency swap or any other
transaction entered into (whether with another legal entity or with another office or department of the Lender concerned) to hedge
any exposure arising under this Agreement or that part which the Lender concerned determines is fairly attributable to this Agreement
of the amount of the liabilities, expenses or losses (including losses of prospective profits) incurred by it in terminating, or
otherwise in connection with, a number of transactions of which this Agreement is one.

 

		22.3	Miscellaneous indemnities. The Borrowers shall fully indemnify
each Creditor Party severally on their respective demands in respect of all claims, expenses, liabilities and losses which may
be made or brought against or incurred by a Creditor Party, in any country, as a result of or in connection with:

 

		(a)	any action taken, or omitted or neglected to be taken, under or in connection with any Finance
Document by the Agent, the Security Trustee or any other Creditor Party or by any receiver appointed under a Finance Document;
or

 

		(b)	any other Pertinent Matter,

 

other than claims, expenses,
liabilities and losses which are shown to have been directly and mainly caused by the dishonesty or willful misconduct or gross
negligence of the officers or employees of the Creditor Party concerned.

 

Without prejudice to its generality,
this Clause 22.3 covers any claims, expenses, liabilities and losses which arise, or are asserted, under or in connection with
any law relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law, or as a consequence of any facsimile or
Email communication purporting to originate from any Security Party to any Creditor Party being made or delivered fraudulently
or without proper authorization.

 

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		22.4	Currency indemnity. If any sum due from the Borrowers or any
other Security Party to a Creditor Party under a Finance Document or under any order or judgment relating to a Finance Document
has to be converted from the currency in which the Finance Document provided for the sum to be paid (the “Contractual
Currency”) into another currency (the “Payment Currency”) for the purpose of:

 

		(a)	making or lodging any claim or proof against the Borrowers or any other Security Party, whether
in its liquidation, any arrangement involving it or otherwise; or

 

		(b)	obtaining an order or judgment from any court or other tribunal; or

 

		(c)	enforcing any such order or judgment,

 

the Borrowers shall indemnify
the Creditor Party concerned against the loss arising when the amount of the payment actually received by that Creditor Party is
converted at the available rate of exchange into the Contractual Currency.

 

In this Clause 22.4, the “available
rate of exchange” means the rate at which the Creditor Party concerned is able at the opening of business (London time)
on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the Payment Currency.

 

This Clause 22.4 creates a separate
liability of the Borrowers which is distinct from its other liabilities under the Finance Documents and which shall not be merged
in any judgment or order relating to those other liabilities.

 

		22.5	Intentionally omitted.

 

		22.6	Certification of amounts. A notice which is signed by an officer
of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause
22 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate
amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

 

		22.7	Sums deemed due to a Lender. For the purposes of this Clause
22, a sum payable by the Borrowers to the Agent or the Security Trustee for distribution to a Lender shall be treated as a sum
due to that Lender.

 

		23	NO SET-OFF OR TAX DEDUCTION; tax indemnity; FATCA

 

		23.1	No deductions. All amounts due from a Security Party under
a Finance Document shall be paid:

 

		(a)	without any form of set-off, cross-claim or condition; and

 

		(b)	free and clear of any tax deduction except a tax deduction which such Security Party is required
by law to make.

 

		23.2	Grossing-up for taxes. If a Security Party is required by
law to make a tax deduction from any payment:

 

		(a)	such Security Party shall notify the Agent as soon as it becomes aware of the requirement;

 

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		(b)	such Security Party shall pay the tax deducted to the appropriate taxation authority promptly,
and in any event before any fine or penalty arises; and

 

		(c)	except if the deduction is for collection or payment of a Non-indemnified Tax of a Creditor Party,
the amount due in respect of the payment shall be increased by the amount necessary to ensure that each Creditor Party receives
and retains (free from any liability relating to the tax deduction) a net amount which, after the tax deduction, is equal to the
full amount which it would otherwise have received.

 

		23.3	Evidence of payment of taxes. Within one (1) month after making
any tax deduction, the relevant Security Party shall deliver to the Agent documentary evidence satisfactory to the Agent that the
tax had been paid to the appropriate taxation authority.

 

		23.4	Tax credits. A Creditor Party which receives for its own account
a repayment or credit in respect of tax on account of which the Borrowers have made an increased payment under Clause 23.2 shall
pay to the Borrowers a sum equal to the proportion of the repayment or credit which that Creditor Party allocates to the amount
due from the Borrowers in respect of which the Borrowers made the increased payment, provided that:

 

		(a)	the Creditor Party shall not be obliged to allocate to this transaction any part of a tax repayment
or credit which is referable to a class or number of transactions;

 

		(b)	nothing in this Clause 23.4 shall oblige a Creditor Party to arrange its tax affairs in any particular
manner, to claim any type of relief, credit, allowance or deduction instead of, or in priority to, another or to make any such
claim within any particular time;

 

		(c)	nothing in this Clause 23.4 shall oblige a Creditor Party to make a payment which would leave it
in a worse position than it would have been in if the Borrowers had not been required to make a tax deduction from a payment; and

 

		(d)	any allocation or determination made by a Creditor Party under or in connection with this Clause
23.4 shall be conclusive and binding on the Borrowers and the other Creditor Parties.

 

		23.5	Indemnity for taxes. Each of the Borrowers and the Guarantors
hereby indemnifies and agrees to hold each Creditor Party harmless from and against all taxes other than Non-indemnified Taxes
levied on such Creditor Party (including, without limitation, taxes imposed on any amounts payable under this Clause 23.5) paid
or payable by such person, whether or not such taxes or other taxes were correctly or legally asserted. Such indemnification shall
be paid within 10 days from the date on which such Creditor Party makes written demand therefor specifying in reasonable detail
the nature and amount of such taxes or other taxes.

 

		23.6	Exclusion from indemnity and gross-up for taxes. The Borrowers
and the Guarantors shall not be required to indemnify any Creditor Party for a tax pursuant to Clause 23.5, or to pay any additional
amounts to any Creditor Party pursuant to Clause 23.2, to the extent that the tax is collected by withholding on payments (a “Withholding”)
and is levied by a Pertinent Jurisdiction of the payer and:

 

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		(a)	the person claiming such indemnity or additional amounts was not an original party to this agreement
and under applicable law (after taking into account relevant treaties and assuming that such person has provided all forms it may
legally and truthfully provide) on the date such person became a party to this Agreement a Withholding would have been required
on such payment, provided that this exclusion shall not apply to the extent such Withholding does not exceed the Withholding
that would have been applicable if such payment had been made to the person from whom such person acquired its rights under the
Agreement and this exclusion shall not apply to the extent that such Withholding exceeds the amount of Withholding that would have
been required under the law in effect on the date such person became a party to this Agreement; or

 

		(b)	the person claiming such indemnity or additional amounts is a Lender who has changed its Lending
Office and under applicable law (after taking into account relevant treaties and assuming that such Lender has provided all forms
it may legally and truthfully provide) on the date such Lender changed its Lending Office Withholding would have been required
on such payment, provided that this exclusion shall not apply to the extent such Withholding does not exceed the Withholding
that would have been applicable to such payment if such Lender had not changed its Lending Office and this exclusion shall not
apply to the extent that the Withholding exceeds the amount of Withholding that would have been required under the law in effect
immediately after such Lender changed its Lending Office; or

 

		(c)	in the case of a Lender, to the extent that Withholding would not have been required on such payment
if such Lender has complied with its obligations to deliver certain tax form pursuant to Section 23.7 below.

 

		23.7	Delivery of tax forms.

 

		(a)	Upon the reasonable request of the Borrowers, each Lender or transferee that is organized under
the laws of a jurisdiction outside the United States (a “Non-U.S. Lender”) shall deliver to the Agent and the
Borrowers two properly completed and duly executed copies of (as applicable) IRS Form W-8BEN, W-8ECI or W-8IMY or, upon request
of the Borrowers or the Agent, any subsequent versions thereof or successors thereto, in each case claiming such reduced rate (which
may be zero) of U.S. Federal withholding tax under Sections 1441 and 1442 of the Code with respect to payments of interest hereunder
as such Non-U.S. Lender may properly claim. In addition, in the case of a Non-U.S. Lender claiming exemption from U.S. Federal
withholding tax under Section 871(h) or 881(c) of the Code, such Non-U.S. Lender shall, when so requested by the Borrowers, provide
to the Agent and the Borrowers in addition to the W-8BEN required above a certificate representing that such Non-U.S. Lender is
not a bank for purposes of Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B)
of the Code) of the Borrowers and is not a controlled foreign corporation related to the Borrowers (within the meaning of Section
864(d)(4) of the Code), and such Non-U.S. Lender agrees that it shall promptly notify the Agent in the event any representation
in such certificate is no longer accurate.

 

		(b)	In the event that Withholding taxes may be imposed under the laws of any Pertinent Jurisdiction
(other than the United States or any political subdivision or taxing jurisdiction thereof or therein) in respect of payments on
the Loan or other amounts due under this Agreement and if certain documentation provided by a Lender could reduce or eliminate
such Withholding taxes under the laws of such Pertinent Jurisdiction or any treaty to which the Pertinent Jurisdiction is a party,
then, upon written request by the Borrowers, a Lender that is entitled to an exemption from, or reduction in the amount of, such
Withholding tax shall deliver to the Borrowers (with a copy to the Agent), at the time or times prescribed by applicable law or
promptly after receipt of Borrowers’ request, whichever is later, such properly completed and executed documentation requested
by the Borrowers, if any, as will permit such payments to be made without withholding or at a reduced rate of withholding; provided
that such Lender is legally entitled to complete, execute and deliver such documentation and in such Lender’s reasonable
judgment such completion, execution or delivery would not materially prejudice the legal or commercial position of such Lender.
Notwithstanding the foregoing, nothing in Clause 23.7 shall require a Lender to disclose any confidential information (including,
without limitation, its tax returns or its calculations).

 

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		(c)	Each Lender shall deliver such forms as provided in this Clause 23.7 within 20 days after receipt
of a written request therefor from the Agent or Borrowers.

 

		(d)	Notwithstanding any other provision of this Clause 23.7, a Lender shall not be required to deliver
any form pursuant to this Clause 23.7 that such Lender is not legally entitled to deliver.

 

		23.8	Intentionally omitted.

 

		23.9	FATCA information.

 

		(a)	Subject to paragraph (c) below, each FATCA Relevant Party confirms to each other FATCA Relevant
Party whether it is or is not a FATCA Exempt Party on the date hereof and thereafter within ten (10) Business Days of a reasonable
request by another FATCA Relevant Party shall:

 

		(i)	confirm to that other party whether it is a FATCA Exempt Party or is not a FATCA Exempt Party;
and

 

		(ii)	supply to the requesting party (with a copy to all other FATCA Relevant Parties) such other form
or forms (including IRS Form W-8 or Form W-9 or any successor or substitute form, as applicable) and any other documentation and
other information relating to its status under FATCA (including its applicable “passthru percentage” or other information
required under FATCA or other official guidance including intergovernmental agreements) as the requesting party reasonably requests
for the purpose of determining whether any payment to such party may be subject to any FACTA Deduction.

 

		(b)	If a FATCA Relevant Party confirms to any other FATCA Relevant Party that it is a FATCA Exempt
Party or provides an IRS Form W-8 or W-9 to showing that it is a FATCA Exempt Party and it subsequently becomes aware that it is
not, or has ceased to be a FATCA Exempt Party, that party shall so notify all other FATCA Relevant Parties reasonably promptly.

 

		(c)	Nothing in this Clause 23.9 shall obligate any FATCA Relevant Party to do anything which would
or, in its reasonable opinion, might constitute a breach of any law or regulation, any policy of that party, any fiduciary duty
or any duty of confidentiality, or to disclose any confidential information (including, without limitation, its tax returns and
calculations); provided that nothing in this paragraph shall excuse any FATCA Relevant Party from providing a true complete
and correct IRS Form W-8 or W-9 (or any successor or substitute form where applicable). Any information provided on such IRS Form
W-8 or W-9 (or any successor or substitute forms) shall not be treated as confidential information of such party for purposes of
this paragraph.

 

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		(d)	If a FATCA Relevant Party fails to confirm its status or to supply forms, documentation or other
information requested in accordance the provisions of this agreement or the provided information is insufficient under FATCA, then:

 

		(a)	such party shall be treated as if it were a FATCA Non-Exempt Party; and

 

		(b)	if that party failed to confirm its applicable passthru percentage then such party shall be treated
for the purposes of the Finance Documents (and payments made thereunder) as if its applicable passthru percentage is 100%,

 

until (in each
case) such time as the party in question provides sufficient confirmation, forms, documentation or other information to establish
the relevant facts.

 

		23.10	FATCA withholding.

 

		(a)	A FATCA Relevant Party making a payment to any FACTA Non-Exempt Party shall make such FATCA Deduction
as it determines is required by law and shall render payment to the IRS within the time allowed and in the amount required by FATCA.

 

		(b)	If a FATCA Deduction is required to be made by any FATCA Relevant Party to a FACTA Non-Exempt Party,
the amount of the payment due from such FATCA Relevant Party shall be reduced by the amount of the FATCA Deduction reasonably determined
to be required by such FATCA Relevant Party.

 

		(c)	Each FATCA Relevant Party shall promptly upon becoming aware that a FATCA Deduction is required
with respect to any payment owed to it (or that there is any change in the rate or basis of a FATCA Deduction) notify each other
FATCA Relevant Party accordingly.

 

		(d)	Within thirty days of making either a FATCA Deduction or any payment required in connection with
that FATCA Deduction, the party making such FATCA Deduction shall deliver to the Agent for delivery to the party on account of
whom the FATCA Deduction was made evidence reasonably satisfactory to that party that the FATCA Deduction has been made or (as
applicable) any appropriate payment paid to the IRS.

 

		(e)	A FATCA Relevant Party who becomes aware that it must make a FATCA Deduction in respect of a payment
to another FATCA Relevant Party (or that there is any change in the rate or basis of such FATCA Deduction) shall notify that party
and the Agent.

 

		(f)	The Agent shall promptly upon becoming aware that it must make a FATCA Deduction in respect of
a payment to a Lender which relates to a payment by the Borrowers (or that there is any change in the rate or the basis of such
a FATCA Deduction) notify the Borrowers and the relevant Lender.

 

		(g)	If a FATCA Deduction is made as a result of any Creditor Party failing to be a FATCA Exempt Party,
such party shall indemnify each other Creditor Party against any loss, cost or expense to it resulting from such FATCA Deduction.

 

		23.11	FATCA mitigation. Notwithstanding any other provision of this
Agreement, if a FATCA Deduction is or will be required to be made by any party under Clause 23.10 in respect of a payment to any
FATCA Non-Exempt Lender, the FATCA Non-Exempt Lender may either:

 

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		(a)	transfer its entire interest in the Loan to a U.S. branch or Affiliate, or

 

		(b)	nominate one or more transferee lenders who upon becoming a Lender would be a FATCA Exempt Party,
by notice in writing to the Agent and the Borrower specifying the terms of the proposed transfer, and cause such transferee lender(s)
to purchase all of the FATCA Non-Exempt Lender’s interest in the Loan.

 

		24	ILLEGALITY, ETC

 

		24.1	Illegality. If it becomes unlawful in any applicable jurisdiction
for a Lender (the “Notifying Lender”) to perform any of its obligations as contemplated by this Agreement or
to fund or maintain its participation in any Advance:

 

		(a)	the Notifying Lender shall promptly notify the Agent upon becoming aware of that event;

 

		(b)	upon the Agent notifying the Borrowers and the other Creditor Parties, the Commitment of the Notifying
Lender will be immediately cancelled; and

 

		(c)	the Borrowers shall repay the Notifying Lender’s participation in each Advance on the last
day of the Interest Period for each Advance occurring after the Agent has notified the Borrowers or, if earlier, the date specified
by the Notifying Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period
permitted by law).

 

		24.2	Mitigation. If circumstances arise which would result in a
notification under Clause 24.1 then, without in any way limiting the obligations of the Borrowers under Clause 24.1, the Notifying
Lender shall use reasonable commercial efforts to transfer its obligations, liabilities and rights under this Agreement and the
Finance Documents to another office or financial institution not affected by the circumstances but the Notifying Lender shall not
be under any obligation to take any such action if, in its opinion, to do would or might:

 

		(a)	have an adverse effect on its business, operations or financial condition; or

 

		(b)	involve it in any activity which is unlawful or prohibited or any activity that is contrary to,
or inconsistent with, any regulation; or

 

		(c)	involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage.

 

		25	INCREASED COSTS

 

		25.1	Increased costs. This Clause 25 applies if a Lender (the “Notifying
Lender”) notifies the Agent that the Notifying Lender considers that as a result of:

 

		(a)	the introduction or alteration after the date of this Agreement of a law or an alteration after
the date of this Agreement in the manner in which a law is interpreted or applied (disregarding any effect which relates to the
application to payments under this Agreement of a Non-Indemnified tax); or

 

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		(b)	complying with any regulation (including any which relates to capital adequacy or liquidity controls
or which affects the manner in which the Notifying Lender allocates capital resources to its obligations under this Agreement)
which is introduced, or altered, or the interpretation or application of which is altered, after the date of this Agreement,

 

the Notifying Lender (or a parent
company of it) has incurred or will incur an “increased cost”.

 

Notwithstanding anything herein
to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and all requests, rules, guidelines and directives
promulgated thereunder, are deemed to have been introduced or adopted after the date hereof, regardless of the date enacted or
adopted.

 

		25.2	Meaning of “increased costs”. In this Clause 25,
“increased costs” means, in relation to a Notifying Lender:

 

		(a)	an additional or increased cost incurred as a result of, or in connection with, the Notifying Lender
having entered into, or being a party to, this Agreement or having taken an assignment of rights under this Agreement, of funding
or maintaining its Commitment or Contribution or performing its obligations under this Agreement, or of having outstanding all
or any part of its Contribution or other unpaid sums;

 

		(b)	a reduction in the amount of any payment to the Notifying Lender under this Agreement or in the
effective return which such a payment represents to the Notifying Lender or on its capital;

 

		(c)	an additional or increased cost of funding all or maintaining all or any of the advances comprised
in a class of advances formed by or including the Notifying Lender’s Contribution or (as the case may require) the proportion
of that cost attributable to the Contribution; or

 

		(d)	a liability to make a payment, or a return foregone, which is calculated by reference to any amounts
received or receivable by the Notifying Lender under this Agreement;

 

but not an
item attributable to a change in the rate of tax on the overall net income of the Notifying Lender (or a parent company of it)
or an item covered by the indemnity for tax in Clause 23 or an item arising directly out of the implementation or application of
or compliance with Basel III or any other law or regulation which implements Basel III (whether such implementation, application
or compliance is by a government, regulator, Creditor Party or any of its affiliates).

 

For the purposes of this Clause
25.2 the Notifying Lender may in good faith allocate or spread costs and/or losses among its assets and liabilities (or any class
of its assets and liabilities) on such basis as it considers appropriate.

 

		25.3	Notification to Borrowers of claim for increased costs. The
Agent shall promptly notify the Borrowers and the other Security Parties of the notice which the Agent received from the Notifying
Lender under Clause 25.1.

 

		25.4	Payment of increased costs. The Borrowers shall pay to the
Agent, on the Agent’s demand, for the account of the Notifying Lender the amounts which the Agent from time to time notifies
the Borrowers that the Notifying Lender has specified to be necessary to compensate the Notifying Lender for the increased cost.

 

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		25.5	Notice of prepayment. If the Borrowers are not willing to
continue to compensate the Notifying Lender for the increased cost under Clause 25.4, the Borrowers may give the Agent not less
than 14 days’ notice of its intention to prepay the Notifying Lender’s Contribution at the end of an Interest Period.

 

		25.6	Prepayment; termination of Commitment. A notice under Clause
25.5 shall be irrevocable; the Agent shall promptly notify the Notifying Lender of the Borrowers’ notice of intended prepayment;
and:

 

		(a)	on the date on which the Agent serves that notice, the Commitment of the Notifying Lender shall
be cancelled; and

 

		(b)	on the date specified in its notice of intended prepayment, the Borrowers shall prepay (without
premium or penalty but subject to any applicable prepayment fee under Clause 8.9(c)) the Notifying Lender’s Contribution,
together with accrued interest thereon at the applicable rate plus the Applicable Margin.

 

		25.7	Application of prepayment. Clause 8 shall apply in relation
to the prepayment.

 

		26	SET-OFF

 

		26.1	Application of credit balances. Upon the occurrence and during
the continuance of an Event of Default, each Creditor Party may without prior notice:

 

		(a)	apply any balance (whether or not then due) which at any time stands to the credit of any account
in the name of the Borrowers or any of the Guarantors at any office in any country of that Creditor Party in or towards satisfaction
of any sum then due from the Borrowers or any of the Guarantors to that Creditor Party under any of the Finance Documents; and

 

		(b)	for that purpose:

 

		(i)	break, or alter the maturity of, all or any part of a deposit of any Borrower or Guarantor;

 

		(ii)	convert or translate all or any part of a deposit or other credit balance into Dollars; and

 

		(iii)	enter into any other transaction or make any entry with regard to the credit balance which the
Creditor Party concerned considers appropriate.

 

		26.2	Existing rights unaffected. No Creditor Party shall be obliged
to exercise any of its rights under Clause 26.1; and those rights shall be without prejudice and in addition to any right of set-off,
combination of accounts, charge, lien or other right or remedy to which a Creditor Party is entitled (whether under the general
law or any document).

 

		26.3	Sums deemed due to a Lender. For the purposes of this Clause
26, a sum payable by the Borrowers or any of the Guarantors to the Agent or the Security Trustee for distribution to, or for the
account of, a Lender shall be treated as a sum due to that Lender; and each Lender’s proportion of a sum so payable for distribution
to, or for the account of, the Lenders shall be treated as a sum due to such Lender.

 

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	 	26.4	No Security Interest.  This Clause 26 gives the Creditor Parties a contractual right of set-off only, and does not create any Security Interest over any credit balance of the Borrowers or any of the Guarantors.

 

		27	TRANSFERS AND CHANGES IN LENDING OFFICES

 

		27.1	Transfer by Borrowers or Guarantors. Neither the Borrowers
nor any of the Guarantors may, without the consent of the Agent, given on the instructions of all the Lenders, transfer any of
its rights, liabilities or obligations under any Finance Document.

 

		27.2	Transfer by a Lender. Subject to Clause 27.4, a Lender (the
“Transferor Lender”) may at any time, without needing the consent of the Borrowers or any other Security Party,
cause:

 

		(a)	its rights in respect of all or part of its Contribution; or

 

		(b)	its obligations in respect of all or part of its Commitment; or

 

		(c)	a combination of (a) and (b),

 

to be (in the case of its rights)
transferred to, or (in the case of its obligations) assumed by, another bank or financial institution or trust, fund or other entity
(a “Transferee Lender”) which (i) is regularly engaged in or established for the purpose of making, purchasing
or investing in loans, securities or other financial assets or the securitization or similar transaction of that Transferor Lender’s
Contribution or Commitment and (ii) is not an Affiliate of the Borrowers, by delivering to the Agent a completed certificate in
the form set out in Schedule 5 with any modifications approved or required by the Agent (a “Transfer Certificate”)
executed by the Transferor Lender and the Transferee Lender.

 

Notwithstanding the foregoing,
any rights and obligations of the Transferor Lender in its capacity as Agent or Security Trustee shall be determined in accordance
with Clause 31.

 

		27.3	Transfer Certificate, delivery and notification. As soon as
reasonably practicable after a Transfer Certificate is delivered to the Agent, it shall (unless it has reason to believe that the
Transfer Certificate may be defective):

 

		(a)	sign the Transfer Certificate on behalf of itself, the Borrowers, the other Security Parties, the
Security Trustee, each of the other Lenders;

 

		(b)	on behalf of the Transferee Lender, send to the Borrowers and each other Security Party letters
or faxes notifying them of the Transfer Certificate and attaching a copy of it;

 

		(c)	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b),

 

but the Agent shall only be obliged
to execute a Transfer Certificate delivered to it by the Transferor Lender and the Transferee Lender once it is satisfied it has
complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations
to the transfer to that Transferee Lender.

 

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		27.4	Effective Date of Transfer Certificate. A Transfer Certificate
becomes effective on the date, if any, specified in the Transfer Certificate as its effective date, provided that it is
signed by the Agent under Clause 27.3 on or before that date.

 

		27.5	No transfer without Transfer Certificate. Except as provided
in Clause 27.17, no assignment or transfer of any right or obligation of a Lender under any Finance Document is binding on, or
effective in relation to, the Borrowers, any other Security Party, the Agent or the Security Trustee unless it is effected, evidenced
or perfected by a Transfer Certificate.

 

		27.6	Lender re-organization; waiver of Transfer Certificate. If
a Lender enters into any merger, de-merger or other reorganization as a result of which all its rights or obligations vest in a
successor, the Agent may, if it sees fit, by notice to the successor and the Borrowers and the Security Trustee waive the need
for the execution and delivery of a Transfer Certificate and, upon service of the Agent’s notice, the successor shall become
a Lender with the same Commitment and Contribution as were held by the predecessor Lender.

 

		27.7	Effect of Transfer Certificate. The effect of a Transfer Certificate
is as follows:

 

		(a)	to the extent specified in the Transfer Certificate, all rights and interests (present, future
or contingent) which the Transferor Lender has under or by virtue of the Finance Documents are assigned to the Transferee Lender
absolutely, free of any defects in the Transferor Lender’s title and of any rights or equities which the Borrowers or any
other Security Party had against the Transferor Lender;

 

		(b)	the Transferor Lender’s Commitment is discharged to the extent specified in the Transfer
Certificate;

 

		(c)	the Transferee Lender becomes a Lender with the Contribution previously held by the Transferor
Lender and a Commitment of an amount specified in the Transfer Certificate;

 

		(d)	the Transferee Lender becomes bound by all the provisions of the Finance Documents which are applicable
to the Lenders generally, including those about pro-rata sharing and the exclusion of liability on the part of, and the indemnification
of, the Agent and the Security Trustee and, to the extent that the Transferee Lender becomes bound by those provisions (other than
those relating to exclusion of liability), the Transferor Lender ceases to be bound by them;

 

		(e)	any part of the Loan which the Transferee Lender advances after the Transfer Certificate’s
effective date ranks in point of priority and security in the same way as it would have ranked had it been advanced by the transferor,
assuming that any defects in the transferor’s title and any rights or equities of the Borrowers or any other Security Party
against the Transferor Lender had not existed;

 

		(f)	the Transferee Lender becomes entitled to all the rights under the Finance Documents which are
applicable to the Lenders generally, including but not limited to those relating to the Majority Lenders and those under Clause
21, and to the extent that the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to be entitled to
them; and

 

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		(g)	in respect of any breach of a warranty, undertaking, condition or other provision of a Finance
Document or any misrepresentation made in or in connection with a Finance Document, the Transferee Lender shall be entitled to
recover damages by reference to the loss incurred by it as a result of the breach or misrepresentation, irrespective of whether
the original Lender would have incurred a loss of that kind or amount.

 

The rights and equities of the
Borrowers or any other Security Party referred to above include, but are not limited to, any right of set off and any other kind
of cross-claim.

 

		27.8	Maintenance of register of Lenders. During the Security Period
the Agent shall maintain a register in which it shall record the name, Commitment, Contribution and administrative details (including
the lending office) from time to time of each Lender holding a Transfer Certificate and the effective date (in accordance with
Clause 27.4) of the Transfer Certificate; and the Agent shall make the register available for inspection by any Lender, the Security
Trustee and the Borrowers during normal banking hours, subject to receiving at least three (3) Business Days’ prior notice.

 

		27.9	Reliance on register of Lenders. The entries on that register
shall, in the absence of manifest error, be conclusive in determining the identities of the Lenders and the amounts of their Commitments
and Contributions and the effective dates of Transfer Certificates and may be relied upon by the Agent and the other parties to
the Finance Documents for all purposes relating to the Finance Documents.

 

		27.10	Authorization of Agent to sign Transfer Certificates. The
Borrowers, the Guarantors, the Security Trustee, each Lender irrevocably authorizes the Agent to sign Transfer Certificates on
its behalf.

 

		27.11	Registration fee. In respect of any Transfer Certificate,
the Agent shall be entitled to recover a registration fee of $5,000 from the Transferor Lender or (at the Agent’s option)
the Transferee Lender.

 

		27.12	Sub-participation; subrogation assignment. A Lender may sub-participate
all or any part of its rights and/or obligations under or in connection with the Finance Documents without the consent of, or any
notice to, the Borrowers, any other Security Party, the Agent or the Security Trustee; and the Lenders may assign, in any manner
and terms agreed by the Majority Lenders, the Agent and the Security Trustee, all or any part of those rights to an insurer or
surety who has become subrogated to them.

 

		27.13	Disclosure of information. Each of the Borrowers and the Guarantors
irrevocably authorizes each Creditor Party to give, divulge and reveal from time to time information and details relating to their
accounts, the Ships, the Finance Documents, the Loan or the Commitments to:

 

		(a)	any private, public or internationally recognized authorities that are entitled to and have requested
to obtain such information;

 

		(b)	the Creditor Parties’ respective head offices, branches and affiliates and professional advisors;

 

		(c)	any other parties to the Finance Documents;

 

		(d)	a rating agency or their professional advisors;

 

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		(e)	any person with whom such Creditor Party proposes to enter (or considers entering) into contractual
relations in relation to the Loan and/or its Commitment or Contribution; and

 

		(f)	any other person regarding the funding, re-financing, transfer, assignment, sale, sub-participation
or operational arrangement or other transaction in relation to the Loan, its Contribution or its Commitment, including without
limitation, for purposes in connection with a securitization or any enforcement, preservation, assignment, transfer, sale or sub-participation
of any of such Creditor Parties’ rights and obligations;

 

provided
that such Creditor Party has taken commercially reasonable efforts to ensure that any person to whom such Creditor Party passes
any information in accordance with the terms of this Clause 27.13 undertakes to maintain the confidentiality of such information
so as to protect any material non-public information of the Security Parties.

 

		27.14	Change of lending office. A Lender may change its lending
office by giving notice to the Agent and the change shall become effective on the later of:

 

		(a)	the date on which the Agent receives the notice; and

 

		(b)	the date, if any, specified in the notice as the date on which the change will come into effect.

 

		27.15	Notification. On receiving such a notice, the Agent shall
notify the Borrowers and the Security Trustee; and, until the Agent receives such a notice, it shall be entitled to assume that
a Lender is acting through the lending office of which the Agent last had notice.

 

		27.16	Intentionally omitted.

 

		27.17	Security over Lenders’ rights. In addition to the other
rights provided to Lenders under this Clause 27, each Lender may without consulting with or obtaining consent from the Borrowers
or any other Security Party, at any time charge, assign or otherwise create a Security Interest in or over (whether by way of collateral
or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:

 

		(a)	any charge, assignment or other Security Interest to secure obligations to a federal reserve or
central bank; and

 

		(b)	in the case of any Lender which is a fund, any charge, assignment or other Security Interest granted
to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security
for those obligations or securities;

 

except that
no such charge, assignment or Security Interest shall:

 

		(i)	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary
of the relevant charge, assignment or Security Interest for the Lender as a party to any of the Finance Documents; or

 

		(ii)	require any payments to be made by the Borrowers or any other Security Party or grant to any person
any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents.

 

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		28	VARIATIONS AND WAIVERS

 

		28.1	Variations, waivers etc. by Majority Lenders. Subject to Clause
28.2, a document shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or any Creditor Party’s
rights or remedies under such a provision or the general law, only if the document is signed, or specifically agreed to by fax
or Email, by the Borrowers, by the Agent on behalf of the Majority Lenders, by the Agent and the Security Trustee in their own
rights, and, if the document relates to a Finance Document to which a Security Party is party, by that Security Party.

 

		28.2	Variations, waivers etc. requiring agreement of all Lenders.
As regards the following, Clause 28.1 applies as if the words “by the Agent on behalf of the Majority Lenders” were
replaced by the words “by or on behalf of every Lender”:

 

		(a)	a reduction in the Applicable Margin;

 

		(b)	a postponement to the date for, or a reduction in the amount of, any payment of principal, interest,
fees or other sum payable under this Agreement or the Note;

 

		(c)	an increase in any Lender’s Commitment;

 

		(d)	a change to the definition of “Majority Lenders”;

 

		(e)	a change to Clause 11.2 or 28.3;

 

		(f)	any release of, or material variation to, a Security Interest, guarantee, indemnity or subordination
arrangement set out in a Finance Document; and

 

		(g)	any other change or matter as regards which this Agreement or another Finance Document expressly
provides that each Lender’s consent is required.

 

		28.3	Variations, waivers etc. relating to the Servicing Banks.
An amendment or waiver that relates to the rights or obligations of the Agent or the Security Trustee under Clause 31 may not be
effected without the consent of the Agent or the Security Trustee.

 

		28.4	Exclusion of other or implied variations. Except for a document
which satisfies the requirements of Clauses 28.1, 28.2 or 28.3, no document, and no act, course of conduct, failure or neglect
to act, delay or acquiescence on the part of the Creditor Parties or any of them (or any person acting on behalf of any of them)
shall result in the Creditor Parties or any of them (or any person acting on behalf of any of them) being taken to have varied,
waived, suspended or limited, or being precluded (permanently or temporarily) from enforcing, relying on or exercising:

 

		(a)	a provision of this Agreement or another Finance Document; or

 

		(b)	an Event of Default; or

 

		(c)	a breach by the Borrowers or another Security Party of an obligation under a Finance Document or
the general law; or

 

		(d)	any right or remedy conferred by any Finance Document or by the general law,

 

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

 

		29	NOTICES

 

		29.1	General. Unless otherwise specifically provided, any notice
under or in connection with any Finance Document shall be given by letter, electronic mail (“Email”) or fax
and references in the Finance Documents to written notices, notices in writing and notices signed by particular persons shall be
construed accordingly.

 

		29.2	Addresses for communications. A notice by letter, Email or
fax shall be sent:

 

	(a)	to the Borrowers:	Par la Ville Place
	 	 	14 Par la Ville Road
	 	 	Hamilton HM08
	 	 	Bermuda
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Phoenix Bulk Carriers (US) LLC as agents
	 	 	109 Long Wharf, Second Floor
	 	 	Newport, Rhode Island 02840
	 	 	 
	 	 	Attention: Mr. Tony Laura
	 	 	Facsimile: +401-846-1520
	 	 	Email: tlaurahome@aol.com
	 	 	 
	(b)	to a Lender:	At the address below its name in Schedule 1 or (as the case may require) in the relevant Transfer Certificate.
	 	 	 
	(c)	to the Agent:	DVB Bank SE
	 	 	Platz der Republik 6
	 	 	60325 Frankfurt am Main
	 	 	Germany
	 	 	 
	 	 	Attention: Loan Administration Manager
	 	 	Facsimile: +49 69 97 50 4444
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	DVB Bank SE
	 	 	c/o DVB Transport (US) LLC
	 	 	609 Fifth Avenue, 5th Floor
	 	 	New York, New York 10017
	 	 	 
	 	 	Attention: Mr. Neil McLaughlin
	 	 	Facsimile: +212-858-2676
	 	 	Email: neil.mclaughlin@dvbbank.com

 

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	(d)	to the Security Trustee:	DVB Bank SE
	 	 	Platz der Republik 6
	 	 	60325 Frankfurt am Main
	 	 	Germany
	 	 	 
	 	 	Attention: Loan Administration Manager
	 	 	Facsimile: +49 69 97 50 4444
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	DVB Bank SE
	 	 	c/o DVB Transport (US) LLC
	 	 	609 Fifth Avenue, 5th Floor
	 	 	New York, New York 10017
	 	 	 
	 	 	Attention: Mr. Neil McLaughlin
	 	 	Facsimile: +212-858-2676
	 	 	Email: neil.mclaughlin@dvbbank.com

 

or to such other address as the
relevant party may notify the Agent or, if the relevant party is the Agent or the Security Trustee, the Borrowers, the Lenders
and the Security Parties.

 

		29.3	Effective date of notices. Subject to Clauses 29.4 and 29.5:

 

		(a)	a notice which is delivered personally or posted shall be deemed to be served, and shall take effect,
at the time when it is delivered;

 

		(b)	a notice which is sent by Email shall be deemed to be served, and shall take effect, at the time
when it is actually received in readable form; and

 

		(c)	a notice which is sent by fax shall be deemed to be served, and shall take effect, two (2) hours
after its transmission is completed.

 

		29.4	Service outside business hours. However, if under Clause 29.3
a notice would be deemed to be served:

 

		(a)	on a day which is not a business day in the place of receipt; or

 

		(b)	on such a business day, but after 5:00 p.m. local time,

 

the notice shall (subject to
Clause 29.5) be deemed to be served, and shall take effect, at 9:00 a.m. on the next day which is such a business day.

 

		29.5	Illegible notices. Clauses 29.3 and 29.4 do not apply if the
recipient of a notice notifies the sender within one (1) hour after the time at which the notice would otherwise be deemed to be
served that the notice has been received in a form which is illegible in a material respect.

 

		29.6	Valid notices. A notice under or in connection with a Finance
Document shall not be invalid by reason that its contents or the manner of serving it do not comply with the requirements of this
Agreement or, where appropriate, any other Finance Document under which it is served if:

 

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		(a)	the failure to serve it in accordance with the requirements of this Agreement or other Finance
Document, as the case may be, has not caused any party to suffer any significant loss or prejudice; or

 

		(b)	in the case of incorrect and/or incomplete contents, it should have been reasonably clear to the
party on which the notice was served what the correct or missing particulars should have been.

 

		29.7	Electronic communication between the Agent and a Lender. Any
communication to be made between the Agent and a Lender under or in connection with the Finance Documents may be made by Email
or other electronic means, if the Agent and the relevant Lender:

 

		(a)	agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

 

		(b)	notify each other in writing of their Email address and/or any other information required to enable
the sending and receipt of information by that means; and

 

		(c)	notify each other of any change to their respective Email addresses or any other such information
supplied to them.

 

Any electronic communication
made between the Agent and a Lender will be effective only when actually received in readable form and, in the case of any electronic
communication made by a Lender to the Agent, only if it is addressed in such a manner as the Agent shall specify for this purpose.

 

		29.8	English language. Any notice under or in connection with a
Finance Document shall be in English.
	 	 	 
	 	29.9	Meaning of “notice”.
                                         In this Clause 29, “notice”
                                         includes any demand, consent, authorization, approval, instruction, waiver or other communication.

 

		30	SUPPLEMENTAL

 

		30.1	Rights cumulative, non-exclusive. The rights and remedies
which the Finance Documents give to each Creditor Party are:

 

		(a)	cumulative;

 

		(b)	may be exercised as often as appears expedient; and

 

		(c)	shall not, unless a Finance Document explicitly and specifically states so, be taken to exclude
or limit any right or remedy conferred by any law.

 

		30.2	Severability of provisions. If any provision of a Finance
Document is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or legality
of the other provisions of that Finance Document or of the provisions of any other Finance Document.

 

		30.3	Counterparts. A Finance Document may be executed in any number
of counterparts.

 

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		30.4	Binding Effect. This Agreement shall become effective on the
Effective Date and thereafter shall be binding upon and inure to the benefit of each of the parties hereto and their respective
successors and assigns.

 

		31	THE SERVICING BANKS

 

		31.1	Appointment and Granting.

 

		(a)	The Agent. Each of the Lenders appoints and authorizes (with a right of revocation) the
Agent to act as its agent hereunder and under any of the other Finance Documents with such powers as are specifically delegated
to the Agent by the terms of this Agreement and of any of the other Finance Documents, together with such other powers as are reasonably
incidental thereto.

 

		(b)	The Security Trustee.

 

		(i)	Authorization of Security Trustee. Each of the Lenders and the Agent appoints and authorizes
(with a right of revocation) the Security Trustee to act as security trustee hereunder and under the other Finance Documents (other
than the Note) with such powers as are specifically delegated to the Security Trustee by the terms of this Agreement and such other
Finance Documents, together with such other powers as are reasonably incidental thereto.

 

		(ii)	Granting Clause. To secure the payment of all sums of money from time to time owing to the
Lenders under the Finance Documents, and the performance of the covenants of the Borrowers and any other Security Party herein
and therein contained, and in consideration of the premises and of the covenants herein contained and of the extensions of credit
by the Lenders, the Security Trustee does hereby declare that it will hold as such trustee in trust for the benefit of the Lenders
and the Agent, from and after the execution and delivery thereof, all of its right, title and interest as mortgagee in, to and
under the Mortgages and its right, title and interest as assignee and secured party under the other Finance Documents (the right,
title and interest of the Security Trustee in and to the property, rights and privileges described above, from and after the execution
and delivery thereof, and all property hereafter specifically subjected to the Security Interest of the indenture created hereby
and by the Finance Documents by any amendment hereto or thereto are herein collectively called the “Estate”);
TO HAVE AND TO HOLD the Estate unto the Security Trustee and its successors and assigns forever, BUT IN TRUST, NEVERTHELESS, for
the equal and proportionate benefit and security of the Lenders and the Agent and their respective successors and assigns without
any priority of any one over any other, UPON THE CONDITION that, unless and until an Event of Default under this Agreement shall
have occurred and be continuing, the relevant Security Party shall be permitted, to the exclusion of the Security Trustee, to possess
and use the Ships. IT IS HEREBY COVENANTED, DECLARED AND AGREED that all property subject or to become subject hereto is to be
held, subject to the further covenants, conditions, uses and trusts hereinafter set forth, and each Security Party, for itself
and its respective successors and assigns, hereby covenants and agrees to and with the Security Trustee and its successors in said
trust, for the equal and proportionate benefit and security of the Lenders and the Agent as hereinafter set forth.

 

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		(iii)	Acceptance of Trusts. The Security Trustee hereby accepts the trusts imposed upon it as
Security Trustee by this Agreement, and the Security Trustee covenants and agrees to perform the same as herein expressed and agrees
to receive and disburse all monies constituting part of the Estate in accordance with the terms hereof.

 

		31.2	Scope of Duties. Neither the Agent nor the Security Trustee
(which terms as used in this sentence and in Clause 31.5 hereof shall include reference to their respective affiliates and their
own respective and their respective affiliates’ officers, directors, employees, agents and attorneys-in-fact):

 

		(a)	shall have any duties or responsibilities except those expressly set forth in this Agreement and
in any of the Finance Documents, and shall not by reason of this Agreement or any of the Finance Documents be (except, with respect
to the Security Trustee, as specifically stated to the contrary in this Agreement) a trustee for a Lender;

 

		(b)	shall be responsible to the Lenders for any recitals, statements, representations or warranties
contained in this Agreement or in any of the Finance Documents, or in any certificate or other document referred to or provided
for in, or received by any of them under, this Agreement or any of the other Finance Documents, or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any of the other Finance Documents or any other document referred
to or provided for herein or therein or for any failure by a Security Party or any other person to perform any of its obligations
hereunder or thereunder or for the location, condition or value of any property covered by any Security Interest under any of the
Finance Documents or for the creation, perfection or priority of any such Security Interest;

 

		(c)	shall be required to initiate or conduct any litigation or collection proceedings hereunder or
under any of the Finance Documents unless expressly instructed to do so in writing by the Majority Lenders; or

 

		(d)	shall be responsible for any action taken or omitted to be taken by it hereunder or under any of
the Finance Documents or under any other document or instrument referred to or provided for herein or therein or in connection
herewith or therewith, except for its own gross negligence or willful misconduct. Each of the Security Trustee and the Agent may
employ agents and attorneys-in-fact and neither the Security Trustee nor the Agent shall be responsible for the negligence or misconduct
of any such agents or attorneys-in-fact selected by it in good faith. Each of the Security Trustee and the Agent may deem and treat
the payee of a Note as the holder thereof for all purposes hereof unless and until a written notice of the assignment or transfer
thereof shall have been filed with the Agent.

 

		31.3	Reliance. Each of the Security Trustee and the Agent shall
be entitled to rely upon any certification, notice or other communication (including any thereof by telephone, telex, telefacsimile,
telegram or cable) believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper person
or persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by the Security
Trustee or the Agent, as the case may be. As to any matters not expressly provided for by this Agreement or any of the other Finance
Documents, each of the Security Trustee and the Agent shall in all cases be fully protected in acting, or in refraining from acting,
hereunder or thereunder in accordance with instructions signed by the Majority Lenders, and such instructions and any action taken
or failure to act pursuant thereto shall be binding on all of the Lenders.

 

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		31.4	Knowledge. Neither the Security Trustee nor the Agent shall
be deemed to have knowledge or notice of the occurrence of a Potential Event of Default or Event of Default (other than, in the
case of the Agent, the non-payment of principal of or interest on the Loan or actual knowledge thereof) unless each of the Security
Trustee and the Agent has received notice from a Lender or the Borrowers specifying such Potential Event of Default or Event of
Default and stating that such notice is a “Notice of Default”. If the Agent receives such a notice of the occurrence
of such Potential Event of Default or Event of Default, the Agent shall give prompt notice thereof to the Security Trustee and
the Lenders (and shall give each Lender prompt notice of each such non-payment). Subject to Clause 31.8 hereof, the Security Trustee
and the Agent shall take such action with respect to such Potential Event of Default or Event of Default or other event as shall
be directed by the Majority Lenders, except that, unless and until the Security Trustee and the Agent shall have received such
directions, each of the Security Trustee and the Agent may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Potential Event of Default or Event of Default or other event as it shall deem advisable in the
best interest of the Lenders.

 

		31.5	Security Trustee and Agent as Lenders. Each of the Security
Trustee and the Agent (and any successor acting as Security Trustee or Agent, as the case may be) in its individual capacity as
a Lender hereunder shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were
not acting as the Security Trustee or the Agent, as the case may be, and the term “Lender” or “Lenders”
shall, unless the context otherwise indicates, include each of the Security Trustee and the Agent in their respective individual
capacities. Each of the Security Trustee and the Agent (and any successor acting as Security Trustee and Agent, as the case may
be) and their respective affiliates may (without having to account therefor to a Lender) accept deposits from, lend money to and
generally engage in any kind of banking, trust or other business with the Guarantors and any of their subsidiaries or affiliates
as if it were not acting as the Security Trustee or the Agent, as the case may be, and each of the Security Trustee and the Agent
and their respective affiliates may accept fees and other consideration from the Borrowers for services in connection with this
Agreement or otherwise without having to account for the same to the Lenders.

 

		31.6	Indemnification of Security Trustee and Agent. The Lenders
severally agree, ratably in accordance with the aggregate principal amount of each Lender’s Contribution in the Loan, to
indemnify each of the Agent and the Security Trustee (to the extent not reimbursed under other provisions of this Agreement, but
without limiting the obligations of the Borrowers under said other provisions) for any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Security Trustee or the Agent in any way relating to or arising out of this Agreement
or any of the other Finance Documents or any other documents contemplated by or referred to herein or therein or the transactions
contemplated hereby (including, without limitation, the costs and expenses which the Borrowers are to pay hereunder, but excluding,
unless an Event of Default has occurred and is continuing, normal administrative costs and expenses incident to the performance
of their respective agency duties hereunder) or the enforcement of any of the terms hereof or thereof or of any such other documents,
except that no Lender shall be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct
of the party to be indemnified.

 

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		31.7	Reliance on Security Trustee or Agent. Each Lender agrees
that it has, independently and without reliance on the Security Trustee, the Agent or any other Lender, and based on such documents
and information as it has deemed appropriate, made its own credit analysis of the Borrowers and decision to enter into this Agreement
and that it will, independently and without reliance upon the Security Trustee, the Agent or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions in taking or
not taking action under this Agreement or any of the Finance Documents. None of the Security Trustee or the Agent shall be required
to keep itself informed as to the performance or observance by the Borrowers or the Guarantors of this Agreement or any of the
Finance Documents or any other document referred to or provided for herein or therein or to inspect the properties or books of
any Borrower or any Guarantor. Except for notices, reports and other documents and information expressly required to be furnished
to the Lenders by the Security Trustee or the Agent hereunder, neither the Security Trustee nor the Agent shall have any duty or
responsibility to provide a Lender with any credit or other information concerning the affairs, financial condition or business
of any Borrower, any Guarantor or any subsidiaries or affiliates thereof which may come into the possession of the Security Trustee,
the Agent or any of their respective affiliates.

 

		31.8	Actions by Security Trustee and Agent. Except for action expressly
required of the Security Trustee or the Agent hereunder and under the other Finance Documents, each of the Security Trustee and
the Agent shall in all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive
further assurances to its satisfaction from the Lenders of their indemnification obligations under Clause 31.6 against any and
all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.

 

		31.9	Resignation and Removal. Subject to the appointment and acceptance
of a successor Security Trustee or Agent (as the case may be) as provided below, each of the Security Trustee and the Agent may
resign at any time by giving notice thereof to the Lenders and the Borrowers, and the Security Trustee or the Agent may be removed
at any time with or without cause by the Majority Lenders by giving notice thereof to the Agent, the Security Trustee, the Lenders
and the Borrowers. Upon any such resignation or removal, the Majority Lenders shall have the right to appoint a successor Security
Trustee or Agent, as the case may be. If no successor Security Trustee or Agent, as the case may be, shall have been so appointed
by the Lenders or, if appointed, shall not have accepted such appointment within 30 days after the retiring Security Trustee’s
or Agent’s, as the case may be, giving of notice of resignation or the Majority Lenders’ removal of the retiring Security
Trustee or Agent, as the case may be, then the retiring Security Trustee or Agent, as the case may be, may, on behalf of the Lenders,
appoint a successor Security Trustee or Agent. Upon the acceptance of any appointment as Security Trustee or Agent hereunder by
a successor Security Trustee or Agent, such successor Security Trustee or Agent, as the case may be, shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Security Trustee or Agent, as the case may
be, and the retiring Security Trustee or Agent shall be discharged from its duties and obligations hereunder. After any retiring
Security Trustee or Agent’s resignation or removal hereunder as Security Trustee or Agent, as the case may be, the provisions
of this Clause 31 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it
was acting as the Security Trustee or the Agent, as the case may be.

 

		31.10	Release of Collateral. Without the prior written consent of
the Majority Lenders, neither the Security Trustee nor the Agent will consent to any modification, supplement or waiver under any
of the Finance Documents nor without the prior written consent of all of the Lenders release any Collateral or otherwise terminate
any Security Interest under the Finance Documents, except that no such consent is required, and each of the Security Trustee and
the Agent is authorized, to release any Security Interest covering property if the Secured Liabilities have been paid and performed
in full or which is the subject of a disposition of property permitted hereunder or to which the Lenders have consented.

 

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		32	LAW AND JURISDICTION

 

		32.1	Governing law. THIS AGREEMENT AND THE OTHER FINANCE DOCUMENTS
(EXCEPT AS OTHERWISE PROVIDED IN A FINANCE DOCUMENT) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAW PRINCIPLES.

 

		32.2	Consent to Jurisdiction.

 

		(a)	Each of the Borrowers and the Guarantors hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of any New York State court or Federal court of the United States of America
sitting in New York County, and any appellate court thereof, in any action or proceeding arising out of or relating to this Agreement
or any of the other Finance Documents to which such Security Party is a party or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State Court or, to the extent permitted by law, in such Federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by law.

 

		(b)	Nothing in this Clause 32.2 shall affect the right of a Creditor Party to bring any action or proceeding
against a Security Party or its property in the courts of any other jurisdictions where such action or proceeding may be heard.

 

		(c)	Each of the Borrowers and the Guarantors hereby irrevocably and unconditionally waives to the fullest
extent it may legally and effectively do so:

 

		(i)	any objection which it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any other Finance Document to which it is a party in any New York State
or Federal court and the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court; and

 

		(ii)	any immunity from suit, the jurisdiction of any court in which judicial proceedings may at any
time be commenced with respect to this Agreement or any other Finance Document or from any legal process with respect to itself
or its property (including without limitation attachment prior to judgment, attachment in aid of execution of judgment, set-off,
execution of a judgment or any other legal process), and to the extent that in any such jurisdiction there may be attributed to
such person such an immunity (whether or not claimed), such person hereby irrevocably agrees not to claim such immunity.

 

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		(d)	Each of the Borrowers and the Guarantors hereby agrees to appoint Leicht & Rein Tax Associates,
Ltd., with offices currently located at 570 Seventh Avenue, New York, NY 10018, as its designated agent for service of process
for any action or proceeding arising out of or relating to this Agreement or any other Finance Document. Each of the Borrowers
and the Guarantors also irrevocably consents to the service of any and all process in any such action or proceeding by the mailing
of copies of such process to its address specified in Clause 29.2. Each of the Borrowers and the Guarantors also agrees that service
of process may be made on it by any other method of service provided for under the applicable laws in effect in the State of New
York.

 

		32.3	Creditor Party rights unaffected. Nothing in this Clause 32
shall exclude or limit any right which any Creditor Party may have (whether under the law of any country, an international convention
or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment
or any similar or related matter in any jurisdiction.

 

		32.4	Meaning of “proceedings”. In this Clause 32, “proceedings”
means proceedings of any kind, including an application for a provisional or protective measure.

 

		33	WAIVER OF JURY TRIAL

 

		33.1	WAIVER. EACH OF THE BORROWER, THE GUARANTORS AND THE CREDITOR
PARTIES MUTUALLY AND IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

		34	PATRIOT ACT notice

 

		34.1	PATRIOT Act Notice. Each of the Agent and the Lenders hereby
notifies the Borrowers and the Guarantors that pursuant to the requirements of the Patriot
Act and the policies and practices of the Agent and each Lender, the Agent and each of the Lenders is required to obtain, verify
and record certain information and documentation that identifies each Security Party, which information includes the name and address
of each Security Party and such other information that will allow the Agent and each of the Lenders to identify each Security Party
in accordance with the PATRIOT Act.

 

[SIGNATURE
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EXECUTION
PAGE

WHEREFORE, the parties
hereto have caused this Loan Agreement to be executed as of the date first above written.

 

	BULK PANGAEA LIMITED, as Borrower	 	DVB BANK SE, as Lender, Agent and Security Trustee
	 	 	 
	By: 	 	 	 	By: 	 	 
	Name: Arthur E.M. Jones	 	Name: Jane Freeberg Sarma
	Title: Director	 	Title: Attorney-in-Fact
	 	 	 
	BULK PATRIOT LTD., as Borrower	 	 
	 	 	 
	By: 	 	 	 	 
	Name: Arthur E.M. Jones	 	 
	Title: Director	 	 
	 	 	 
	BULK JULIANA LTD., as Borrower	 	 
	 	 	 
	By: 	 	 	 	 
	Name: Arthur E.M. Jones	 	 
	Title: Director	 	 
	 	 	 
	BULK TRIDENT LTD., as Borrower	 	 
	 	 	 
	By: 	 	 	 	 
	Name: Arthur E.M. Jones	 	 
	Title: Director	 	 
	 	 	 
	BULK PARTNERS (BERMUDA) LTD.,

as Guarantor	 	 
	 	 	 
	By: 	 	 	 	 
	Name: Arthur E.M. Jones	 	 
	Title: Director	 	 
	 	 	 
	BULK PARTNERS HOLDING COMPANY BERMUDA LTD.,

as Guarantor	 	 
	 	 	 
	By: 	 	 	 	 
	Name: Arthur E.M. Jones	 	 
	Title: Director	 	 
	 	 	 
	BULK FLEET BERMUDA HOLDING COMPANY LTD.,

as Guarantor	 	 
	 	 	 
	By: 	 	 	 	 
	Name: Arthur E.M. Jones	 	 
	Title: Director	 	 

 

    	108

    	 

    

 

SCHEDULE
1

LENDERS AND COMMITMENTS

 

	Lender	Lending Office	Commitment
	DVB BANK SE	Platz der Republic 6	$30,301,562.51
	 	60325 Frankfurt am Main	 
	Address for Notices:	Germany	 
	 	 	 
	Platz der Republic 6	 	 
	60325 Frankfurt am Main	 	 
	Germany	 	 
	Attention: Loan Administration Manager	 	 
	Facsimile: +49 69 97 50 4444	 	 
	 	 	 
	with a copy to:	 	 
	 	 	 
	DVB Bank SE	 	 
	c/o DVB Transport (US) LLC	 	 
	609 Fifth Avenue, 5th Floor	 	 
	New York, New York 10017	 	 
	 	 	 
	Attention: Neil McLaughlin	 	 
	Facsimile: +212-858-2676	 	 
	Email: neil.mclaughlin@dvbbank.com	 	 

 

    	109

    	 

    

 

SCHEDULE
2

INTENTIONALLY OMITTED

 

    	110

    	 

    

 

SCHEDULE
3

DRAWDOWN NOTICE

 

	To:	DVB Bank SE, as Agent
	 	Platz der Republic 6
	 	60325 Frankfurt am Main
	 	Germany
	 	 
	 	Attention: Loans Administration Manager
	 	 
	Cc:	DVB Bank SE
	 	c/o DVB Transport (US) LLC
	 	609 Fifth Avenue, 5th Floor
	 	New York, New York 10017
	 	 
	 	Attention: Neil McLaughlin
	 	Facsimile: +212-858-2676
	 	Email: neil.mclaughlin@dvbbank.com

 

[Date]

 

DRAWDOWN NOTICE

 

		1.	We refer to the loan agreement dated as
of [l] (the “Loan
Agreement”) among ourselves, as Borrowers, the Guarantors referred to therein, the Lenders referred to therein and
yourselves as Agent and as Security Trustee in connection with a facility of up to US$[l].
Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice.

 

		2.	We request to borrow as follows:

 

		(a)	Amount: US$[l]
to [refinance / finance] [name of Ship];

 

		(b)	Drawdown Date: [l];

 

		(c)	Duration of the first Interest Period shall be 3 months; and

 

		(d)	Payment
instructions:

 

[l]

 

		3.	We represent and warrant that:

 

		(a)	no Event of Default or Potential Event of Default has occurred or would result from the borrowing
of the Advance;

 

		(b)	the representations and warranties in Clause 10 and those of the Borrowers or any other Security
Party which are set out in the other Finance Documents are true and not misleading as of the date of this Drawdown Notice and will
be true and not misleading as of the Drawdown Date, in each case with reference to the circumstances then existing;

 

    	111

    	 

    

 

		(c)	there has been no material change in the consolidated financial condition, operations or business
prospects of the Borrowers or the Guarantors since the date on which the Borrowers and/or the Guarantors provided information concerning
those topics to the Agent and/or any Lender which might prejudice either the successful and timely syndication or performance of
the loan facility contemplated by this Agreement;

 

		(d)	none of the Guarantors, the Borrowers or any of their respective subsidiaries or Affiliates has
launched any other facilities or debt transactions into the international capital markets either publicly or privately which might
prejudice either the successful and timely syndication or performance of the loan facility contemplated by this Agreement; and

 

		(e)	if the Applicable Collateral Maintenance Ratio were applied immediately following the making of
the Advance, the Borrowers would not be required to provide additional Collateral or prepay part of the Loan under Clause 15.

 

		4.	This notice cannot be revoked without the prior consent of the Majority Lenders.

 

		5.	We authorize you to deduct the outstanding fees and expenses referred to in Clause 21 from the
amount of the Loan.

 

 

 

Name

Title

for and on behalf of

[NAMES OF BORROWERS]

 

    	112

    	 

    

 

SCHEDULE
4

CONDITION PRECEDENT DOCUMENTS

 

PART A

 

The following
are the documents referred to in Clause 9.1(a)(i):

 

		1.	A duly executed original of this Agreement and the DVB Loan Administration form attached as Schedule
8.

 

		2.	In respect of the Ship to be financed with the Advance to which such Drawdown Notice relates, a
copy of the Time Charter (and COA, if any) and all addenda and supplements thereto, in form and substance acceptable to the Agent
and certified as of a date reasonably near the date of the Drawdown Notice by a director, an officer, an authorized person or an
attorney-in-fact of the Borrower that owns or will own that Ship as being a true and correct copy thereof.

 

		3.	Copies of certificates dated as of a date reasonably near the date of the Drawdown Notice, certifying
that each of the Security Parties is duly incorporated or formed and in good standing under the laws of its jurisdiction of incorporation
or formation.

 

		4.	Copies of the constitutional documents and each amendment thereto of each of the Security Parties,
certified as of a date reasonably near the date of the Drawdown Notice by a director, an officer, an authorized person or an attorney-in-fact
of such party as being a true and correct copy thereof.

 

		5.	Copies of the resolutions of the directors (or equivalent governing body) and, where applicable,
the shareholders (or equivalent equity holders), of each Security Party authorizing the execution of each of Finance Document,
MOA, Time Charter and COA to which that Security Party is to be a party and, in the case of the Borrowers, authorizing a director,
an officer, an authorized person or an attorney-in-fact of the Borrowers to give the Drawdown Notice and other notices required
under the Finance Documents, in each case certified as of a date reasonably near the date of the Drawdown Notice by a director,
an officer, an authorized person or an attorney-in-fact of such party as being a true and correct copy thereof.

 

		6.	An incumbency certificate in respect of the officers and directors (or equivalent) of each of the
Security Parties and signature samples of any signatories of such Security Parties to any Finance Document.

 

		7.	The original or a certified copy of any power of attorney under which any Finance Document is executed
on behalf of a Security Party.

 

		8.	Copies of all consents which a Security Party requires to enter into, or make any payment under,
any Finance Document, MOA, Time Charter or COA, each certified as of a date reasonably near the date of the Drawdown Notice by
a director, an officer, an authorized person or an attorney-in-fact of such party as being a true and correct copy thereof, or
certification by such director, officer, authorized person or attorney-in-fact that no such consents are required.

 

    	113

    	 

    

 

		9.	Copies of any mandates or other documents required in connection with the opening or operation
of each of the Earnings Accounts and the Freights Account, each certified as of a date reasonably near the date of the Drawdown
Notice by a director, an officer, an authorized person or an attorney-in-fact of the Borrowers as being a true and correct copy
thereof.

 

		10.	Documentary evidence that the capital structure of each of the Borrowers and the Guarantors is
satisfactory to and in the sole discretion of the Agent.

 

		11.	Documentary evidence that the agent for service of process named in Clause 32 of this Agreement
has accepted its appointment.

 

		12.	If the Agent so requires, in respect of any of the documents referred to above, a certified English
translation prepared by a translator approved by the Agent.

 

PART B

 

The following are the documents referred
to in Clause 9.1(b) for the making of an Advance in respect of an Initial Ship:

 

		1.	A duly executed original of each Finance Document to be executed in respect of such Initial Ship
(and of each document required to be delivered by each Finance Document).

 

		2.	If the Drawdown Date is more than five (5) Business Days after the date of the Drawdown Notice,
a bringdown certificate of each of the Security Parties certifying as of the Drawdown Date as to the absence of any amendments
to the documents of such Security Party referred to in paragraphs 4, 5 and 6 of Part A since the date of the Drawdown Notice.

 

		3.	Certification by the Borrowers as of the date of the Drawdown Date for such Advance as to the matters
described in Clauses 9.1(e) (other than 9.1(e)(iv) and (v)) and 9.1(f).

 

		4.	Documentary evidence that:

 

		(a)	in the case of each of BULK PANGAEA, BULK PATRIOT, BULK JULIANA, such Initial Ship is definitively
and permanently registered in the name of, as the case may be, Bulk Pangaea, Bulk Patriot or Bulk Juliana under the law and flag
of Panama;

 

		(b)	in the case of BULK TRIDENT, such Initial Ship is registered in the name of Bulk Trident under
the law and flag of the Republic of the Marshall Islands;

 

		(c)	in the case of each of BULK PANGAEA, BULK PATRIOT, BULK JULIANA, the Mortgage has been preliminarily
registered against the relevant Initial Ship to which such Advance relates as a valid first preferred ship mortgage in accordance
with the laws of the Republic of Panama;

 

		(d)	in the case of BULK TRIDENT, the Mortgage has been registered against such Initial Ship as a valid
first preferred ship mortgage in accordance with the laws of the Republic of the Marshall Islands;

 

		(e)	the Security Interests intended to be created by each of the Finance Documents required in connection
with such Initial Ship have been duly perfected under applicable law;

 

    	114

    	 

    

 

		(f)	the relevant Initial Ship is in the absolute and unencumbered ownership of the Borrower that owns
such Initial Ship save as contemplated by the Finance Documents;

 

		(g)	the relevant Initial Ship is insured in accordance with the provisions of Clause 13 of this Agreement
and all requirements therein in respect of insurances have been complied with;

 

		(h)	the relevant Initial Ship maintains the highest class for vessels of its type with the Classification
Society free of any recommendations and qualifications (which status shall be established by a Confirmation of Class Certificate
issued by the Classification Society and dated a date reasonably near the Drawdown Date (NB: a “Class Statement”
or similar instrument shall not be acceptable for purposes of this clause)); and

 

		(i)	the Borrower that owns such Initial Ship has sent an instruction letter in the form of Schedule
9 hereto to the Classification Society as required under Clause 14.4 and that the Classification Society has executed the undertaking
in the form of Schedule 10 hereto as required by Clause 14.4.

 

		5.	Valuations of the Fair Market Value of the relevant Initial Ship, paid for by the Borrowers but
addressed to the Agent and the Lenders, stated to be for the purposes of this Agreement and dated not more than 14 days before
the Drawdown Date, which evidence an average Fair Market Value for such Initial Ship of not less than 142.85% of the Advance in
respect of such Initial Ship.

 

		6.	The following documents establishing that the relevant Initial Ship will, as from the Drawdown
Date, be managed by an Approved Manager on terms acceptable to the Agent:

 

		(a)	a copy of each Approved Management Agreement, certified as of the Drawdown Date by a director,
an officer, an authorized person or an attorney-in-fact of the relevant Borrower as being a true and correct copy thereof;

 

		(b)	an Approved Manager’s Undertaking executed by each Approved Manager in favor of the Agent;
and

 

		(c)	copies of each Approved Manager’s Document of Compliance and of the relevant Initial Ship’s
ISSC and Safety Management Certificate (together with any other details of the applicable safety management system which the Agent
requires), certified as of the Drawdown Date by a director, an officer, an authorized person or an attorney-in-fact of the relevant
Approved Manager as being a true and correct copy thereof.

 

		7.	A favorable opinion from an independent insurance consultant acceptable to the Agent on such matters
relating to the insurances for the relevant Initial Ship as the Agent may require.

 

		8.	Delivery of technical information in respect of the relevant Initial Ship, in a form acceptable
to the Agent, including but not limited to (but only if available to the relevant Borrower): (i) full history of class, (ii) details
of statutory certificates, (iii) summaries of inspections (flag, port state control etc.) and (iv) any records of planned maintenance.

 

		9.	A certificate that the relevant Initial Ship is free from Asbestos/Glass Wool and nuclear products
(to be provided by the relevant Borrower on a best efforts basis but only if available to such Borrower).

 

    	115

    	 

    

 

		10.	A favorable opinion of Watson, Farley & Williams (New York) LLP, New York, Delaware and Marshall
Islands counsel for the Creditor Parties, in form, scope and substance satisfactory to the Creditor Parties.

 

		11.	Favorable legal opinions from lawyers appointed by the Borrowers or the Agent on such matters concerning
the laws of such relevant jurisdictions as the Agent may require (including without limitation the Marshall Islands, Panama, Bermuda
and the British Virgin Islands).

 

PART C

 

The following are the condition precedent
documents referred to in Clause 9.1(c) for the making of an Advance in respect of an Additional Ship:

 

		1.	A copy of the MOA in respect of the Additional Ship (and all addenda and supplements thereto),
in form and substance acceptable to the Agent and certified as of a date reasonably near the date of the Drawdown Notice by a director,
an officer, an authorized person or an attorney-in-fact of the Borrower party thereto as being a true and correct copy thereof.

 

		2.	Written acceptance by the Agent (acting on the authority of the Majority Lenders) of the Additional
Ship.

 

		3.	A duly executed original of a Borrower Accession Agreement (and of each document required to be
delivered thereby).

 

		4.	A duly executed original of an amendment of this Agreement in Agreed Form.

 

		5.	A duly executed amendment of the existing Mortgage over each Ship (other than the Additional Ship
being financed) in Agreed Form.

 

		6.	A duly executed original of each Finance Document required by the Agent to be executed in respect
of such Additional Ship (and of each document required to be delivered by each Finance Document).

 

		7.	If the Drawdown Date is more than five (5) Business Days after the date of the Drawdown Notice,
a bringdown certificate of each of the Security Parties certifying as of the Drawdown Date as to the absence of any amendments
to the documents of such Security Party referred to in paragraphs 4, 5 and 6 of Part A since the date of the Drawdown Notice.

 

		8.	Certification by the Borrowers as of the date of the Drawdown Date for such Advance as to the matters
described in Clauses 9.1(e) (other than 9.1(e)(iv) and (v)) and 9.1(f).

 

		9.	Documentary evidence that:

 

		(a)	the Additional Ship has been unconditionally delivered by the Seller to, and accepted by, the relevant
Borrower under the MOA, and the full purchase price payable under such MOA (in addition to the part to be financed by the Advance
in respect of such Additional Ship) has been duly paid;

 

		(b)	the Additional Ship is definitively and permanently registered in the name of the relevant Borrower
under the law of an Approved Flag;

 

    	116

    	 

    

 

		(c)	the Mortgage in respect of such Additional Ship has been duly registered (preliminarily or permanently)
or recorded against the Additional Ship as a valid first priority or preferred ship mortgage in accordance with the laws of an
Approved Flag;

 

		(d)	the Security Interests intended to be created by each of the Finance Documents have been duly perfected
under applicable law;

 

		(e)	the Additional Ship is in the absolute and unencumbered ownership of the relevant Borrower save
as contemplated by the Finance Documents;

 

		(f)	the Additional Ship is insured in accordance with the provisions of this Agreement and all requirements
therein in respect of insurances have been complied with;

 

		(g)	the Additional Ship maintains the highest class for vessels of its type with the Classification
Society free of any recommendations and qualifications (which status shall be established by an Interim Class Certificate issued
by the Classification Society and dated a date reasonably near the Drawdown Date (NB: a “Class Statement” or similar
instrument shall not be acceptable for purposes of this clause));

 

		(h)	the relevant Borrower has sent an instruction letter in the form of Schedule 9 hereto to the Classification
Society as required under Clause 14.4 and that the Classification Society has executed the undertaking in the form of Schedule
10 hereto as required by Clause 14.4.

 

		10.	A valuation of the Additional Ship, addressed to the Agent and the Lenders, stated to be for the
purposes of this Agreement and dated not earlier than 14 days before the Drawdown Date for such Advance, from two Approved Brokers
which show an average value for such Additional Ship of not less than 142.85 percent of the Advance in respect of such Additional
Ship.

 

		11.	A survey report addressed to the Agent and the Lenders, stated to be for the purposes of this Agreement
and dated not more than 30 days before the Drawdown Date for such Advance from an independent marine surveyor selected by the Agent
in respect of the physical condition of the Additional Ship, which report shall confirm the condition of such Ship to the satisfaction
of the Agent and the Lenders, in their sole discretion.

 

		12.	Copies of all documents signed or issued by the relevant Borrower and the Seller under or in connection
with the delivery of the Additional Ship under the terms of the MOA, certified as of the Drawdown Date for such Advance by a director,
an officer, an authorized person or an attorney-in-fact of such Borrower as being a true and correct copy thereof.

 

		13.	To the extent not provided under paragraph 12, such documentary evidence as the Agent may require
in relation to the due authorization and execution by the Seller of (a) the MOA and (b) all documents executed by the Seller under
the MOA.

 

		14.	The following documents establishing that the Additional Ship will, as from the Drawdown Date for
such Advance, be managed by the Approved Managers on terms acceptable to the Lenders, together with:

 

		(a)	a copy of the Approved Management Agreement, certified as of the Drawdown Date for such Advance
by an officer of the relevant Borrower as being a true and correct copy thereof;

 

    	117

    	 

    

 

		(b)	an Approved Manager’s Undertaking executed by each Approved Manager in favor of the Agent;
and

 

		(c)	copies of the relevant Approved Manager’s Document of Compliance and of the Additional Ship’s
ISSC and Safety Management Certificate (together with any other details of the applicable safety management system which the Agent
requires), certified as of the Drawdown Date for such Advance by an officer of the relevant Borrower as being a true and correct
copy thereof.

 

		15.	If the Additional Ship is changing its registry, documentary evidence that such Additional Ship
has been deleted from its current flag free from all registered encumbrances or, in the alternative, evidence that the Additional
Ship will be so deleted within such period as the Agent shall require and that, in any event, there are no encumbrances registered
against the Additional Ship on its current flag.

 

		16.	A favorable opinion from an independent insurance consultant acceptable to the Agent on such matters
relating to the insurances for the Additional Ship as the Agent may require.

 

		17.	Delivery of technical information in respect of the Additional Ship, in a form acceptable to the
Agent, including but not limited to (but only if available to the relevant Borrower): (i) full history of class, (ii) details of
statutory certificates, (iii) summaries of inspections (flag, port state control etc.) and (iv) any records of planned maintenance.

 

		18.	A certificate that the Additional Ship is free from Asbestos/Glass Wool and nuclear products (to
be provided by the relevant Borrower on a best efforts basis but only if available to such Borrower).

 

		19.	A favorable opinion of Watson, Farley & Williams (New York) LLP, New York, Delaware and Marshall
Islands counsel for the Creditor Parties, in form, scope and substance satisfactory to the Creditor Parties.

 

		20.	Favorable legal opinions from lawyers appointed by the Borrowers or the Agent on such matters concerning
the laws of such relevant jurisdictions as the Agent may require (including without limitation the Marshall Islands, Panama, Bermuda
and the British Virgin Islands).

 

    	118

    	 

    

 

SCHEDULE
5

TRANSFER CERTIFICATE

 

The Transferor and the Transferee accept
exclusive responsibility for ensuring that this Certificate and the transaction to which it relates comply with all legal and regulatory
requirements applicable to them respectively.

 

		To:	[Name of Agent] for itself and for and on behalf of the Borrowers, each other Security Party, the
Security Trustee and each Lender, as defined in the Loan Agreement referred to below.

 

[Date]

 

		1.	This Certificate relates to a Loan Agreement
dated as of [l] (as
amended or supplemented, the “Loan Agreement”) among (1) Bulk Pangaea Limited, Bulk Patriot Ltd., Bulk Juliana
Ltd. and Bulk Trident Ltd. (the “Borrowers”), (2) Bulk Partners (Bermuda) Ltd., Bulk Partners Holding Company
Ltd. and Bulk Fleet Bermuda Holding Company Ltd. (the “Guarantors”), (3) the banks and financial institutions
named therein as Lenders, (4) DVB Bank SE as Agent and (5) DVB Bank SE as Security Trustee for a loan facility of up to $[l].

 

		2.	In this Certificate, terms defined in the Loan Agreement shall, unless the contrary intention appears,
have the same meanings when used in this Certificate and:

 

“Relevant Parties”
means the Agent, the Borrowers, each of the Guarantors, the Security Trustee and each Lender;

 

“Transferor”
means [full name] of [lending office];

 

“Transferee”
means [full name] of [lending office].

		3.	The effective date of this Certificate
is [l], provided
that this Certificate shall not come into effect unless it is signed by the Agent on or before that date.

 

		4.	[The Transferor assigns to the Transferee
absolutely all rights and interests (present, future or contingent) which the Transferor has as Lender under or by virtue of the
Agreement and every other Finance Document in relation to [l]%
of its Contribution, which percentage represents $[l].

 

		5.	[By virtue of this Certificate and Clause
27 of the Agreement, the Transferor is discharged [entirely from its Commitment which amounts to $[l]]
[from [l]% of its Commitment,
which percentage represents $[l]]
and the Transferee acquires a Commitment of $[l].]

 

		6.	The Transferee undertakes with the Transferor and each of the Relevant Parties that the Transferee
will observe and perform all the obligations under the Finance Documents which Clause 27 of the Agreement provides will become
binding on it upon this Certificate taking effect.

  

		7.	The Agent, at the request of the Transferee (which request is hereby made) accepts, for the Agent
itself and for and on behalf of every other Relevant Party, this Certificate as a Transfer Certificate taking effect in accordance
with Clause 27 of the Agreement.

 

    	119

    	 

    

 

		8.	The Transferor:

 

		(a)	warrants to the Transferee and each Relevant Party that:

 

		(i)	the Transferor has full capacity to enter into this transaction and has taken all corporate action
and obtained all consents which are required in connection with this transaction; and

 

		(ii)	this Certificate is valid and binding as regards the Transferor;

 

		(b)	warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances, to
all the rights and interests covered by the assignment in paragraph 4; and

 

		(c)	undertakes with the Transferee that the Transferor will, at its own expense, execute any documents
which the Transferee reasonably requests for perfecting in any relevant jurisdiction the Transferee’s title under this Certificate
or for a similar purpose.

 

		9.	The Transferee:

 

		(a)	confirms that it has received a copy of the Agreement and each of the other Finance Documents;

 

		(b)	agrees that it will have no rights of recourse on any ground against the Transferor, the Agent,
the Security Trustee or any Lender in the event that:

 

		(i)	any of the Finance Documents prove to be invalid or ineffective;

 

		(ii)	the Borrowers or any other Security Party fails to observe or perform its obligations, or to discharge
its liabilities, under any of the Finance Documents;

 

		(iii)	it proves impossible to realize any asset covered by a Security Interest created by a Finance Document,
or the proceeds of such assets are insufficient to discharge the liabilities of the Borrowers or any other Security Party under
any of the Finance Documents;

 

		(c)	agrees that it will have no rights of recourse on any ground against the Agent, the Security Trustee
or any Lender in the event that this Certificate proves to be invalid or ineffective;

 

		(d)	warrants to the Transferor and each Relevant Party that:

 

		(i)	it has full capacity to enter into this transaction and has taken all corporate action and obtained
all consents which it needs to take or obtain in connection with this transaction; and

 

		(ii)	that this Certificate is valid and binding as regards the Transferee; and

 

		(iii)	confirms the accuracy of the administrative details set out below regarding the Transferee.

 

    	120

    	 

    

 

		10.	The Transferor and the Transferee each undertake with the Agent and the Security Trustee severally,
on demand, fully to indemnify the Agent and/or the Security Trustee in respect of any claim, proceeding, liability or expense (including
all legal expenses) which they or either of them may incur in connection with this Certificate or any matter arising out of it,
except such as are shown to have been mainly and directly caused by the gross negligence or willful misconduct of the Agent’s
or the Security Trustee’s own officers or employees.
	 	 	 

		11.	The Transferee shall repay to the Transferor on demand so much of any sum paid by the Transferor
under paragraph 10 as exceeds one-half of the amount demanded by the Agent or the Security Trustee in respect of a claim, proceeding,
liability or expense which was not reasonably foreseeable at the date of this Certificate; but nothing in this paragraph shall
affect the liability of each of the Transferor and the Transferee to the Agent or the Security Trustee for the full amount demanded
by it.

 

	[Name of Transferor]	 	[Name of Transferee]
	 	 	 
	By: 	 	 	 	By: 	 	 
	Name:	 	Name:
	Title:	 	Title:
	Date:	 	Date:
	 	 	 
	Agent	 	 
	 	 	 
	Signed for itself and for and on behalf of itself	 	 
	as Agent and for every other Relevant Party	 	 
	 	 	 
	[Name of Agent]	 	 
	 	 	 
	By: 	 	 	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	 

 

    	121

    	 

    

 

Administrative Details of Transferee

 

Name of Transferee:

 

Lending Office:

 

Contact Person

(Loan Administration Department):

 

Telephone:

 

Fax:

 

Contact Person

(Credit Administration Department):

 

Telephone:

 

Fax:

Account for payments:

 

Note:     This
Transfer Certificate alone may not be sufficient to transfer a proportionate share of the Transferor’s interest in the security
constituted by the Finance Documents in the Transferor’s or Transferee’s jurisdiction. It is the responsibility of
each Lender to ascertain whether any other documents are required for this purpose.

 

    	122

    	 

    

 

SCHEDULE
6

INTENTIONALLY OMITTED

 

    	123

    	 

    

 

SCHEDULE
7

list of approved brokers

 

Maritime Strategies International Ltd.

Arrow London

SSY (New York)

Compass Maritime (New Jersey)

Vessel
Value

 

    	124

    	 

    

 

SCHEDULE
8

dvb loan administration form

 

	To:	DVB Bank SE, as Agent
	 	Platz der Republic 6
	 	60325 Frankfurt am Main
	 	Germany
	 	 
	 	Attention: Transaction & Loan Services
	 	 
	Cc:	DVB Bank SE
	 	c/o DVB Transport (US) LLC
	 	609 Fifth Avenue, 5th Floor
	 	New York, New York 10017
	 	 
	 	Attention: Neil McLaughlin
	 	Facsimile: +212-858-2676

 

[Date]

 

Re: Providing financing to [Bulk Pangaea
Limited][Bulk Patriot Ltd.][Bulk Juliana Ltd.][Bulk Trident Ltd.] (the “Company”) in relation to m.v. [BULK
PANGAEA][BULK PATRIOT][BULK JULIANA][BULK TRIDENT] (the “Financing”).

 

We
refer to the Financing and a facility agreement (the “Facility Agreement”) dated as of [l]
and entered into between, inter alia, us, as borrowers and DVB Bank SE as Agent for and on behalf of the Lenders in relation to
the Financing. Terms and expressions not otherwise defined herein shall have the same meaning as defined in the Facility Agreement.

 

We hereby appoint the following persons
to act as our point of contact with regards to any issue arising in connection with the administration to the Facility Agreement
or any other documents related to the Financing:

 

1. [name], title

2. [name], title

3. [name], title

 

No other persons other than the [Directors]
[Officers] of the Company or the persons listed above (the “Authorized Persons”) are hereby authorized to request
any information from you regarding the Facility Agreement or any other matter related to the Financing or the Company or communicate
with you in any way regarding the forgoing in and under any circumstances.

 

For the avoidance of doubt, the following
are the Directors [and Officers] of the Company:

 

1. [name], title

2. [name], title

3. [name], title

4. [name], title

 

    	125

    	 

    

 

This list of authorized persons may only
be amended, modified or varied in writing by an Authorized Person with copy to the other Authorized Persons. We agree to indemnify
you and hold you harmless in relation to any information you provide to any Authorized Person. This letter shall be governed and
construed in accordance with New York law.

 

Yours sincerely

 

[Company]

 

    	126

    	 

    

 

SCHEDULE
9

FORM OF LETTER OF INSTRUCTION TO CLASSIFICATION SOCIETY

 

To:[NAME OF CLASSIFICATION SOCIETY]

 

Date:[l]

 

Dear Sirs:

 

Name
of ship: “[l]”
(the “Ship”)

Flag: [Panama][Marshall Islands]

IMO
Number: [l]

Name
of Owner: [l]
(the “Owner”)

Name of mortgagee: DVB BANK SE (the
“Mortgagee”)

 

We refer to the Ship, which is registered
in the ownership of the Owner, and which has been entered in and classed by [Name of Classification Society] (the “Classification
Society”).

 

The Mortgagee has agreed to provide financing
to the Owner upon condition that, among other things, the Owner and the Mortgagee issue this letter of instruction to the Classification
Society.

 

The Owner and the Mortgagee irrevocably
and unconditionally instruct and authorise the Classification Society (notwithstanding any previous instructions whatsoever which
the Owner may have given to the Classification Society to the contrary) as follows:

 

		1	to send to the Mortgagee, following receipt of a written request from the Mortgagee, certified
true copies of all original certificates of class and other class records held by the Classification Society in relation to the
Ship;

 

		2	to allow the Mortgagee (or its agents), at any time and from time to time, to inspect the original
class and related records of the Owner and the Ship at the offices of the Classification Society and to take copies of them and,
to the extent possible, to grant the Mortgagee electronic access to such records;

 

		3	to notify the Mortgagee immediately by email to neil.mclaughlin@dvbbank.com and techcom@dvbbank.com
if the Classification Society:

 

		(a)	receives notification from the Owner or any other person that the Ship’s classification society
is to be changed;

 

		(b)	imposes a condition of class or issues a class recommendation in respect of the Ship;

 

		(c)	becomes aware of any facts or matters which may result or have resulted in a change, suspension,
discontinuance, withdrawal or expiry of the Ship’s class under the rules or terms and conditions of the Owner’s or
the Ship’s membership of the Classification Society;

 

		4	following receipt of a written request from the Mortgagee:

 

    	127

    	 

    

 

		(a)	to confirm that the Owner is not in default of any of its contractual obligations or liabilities
to the Classification Society and, without limiting the foregoing, that it has paid in full all fees or other charges due and payable
to the Classification Society; or

 

		(b)	if the Owner is in default of any of its contractual obligations or liabilities to the Classification
Society, to specify to the Mortgagee in reasonable detail the facts and circumstances of such default, the consequences thereof,
and any remedy period agreed or allowed by the Classification Society.

 

Notwithstanding the above instructions
given for the benefit of the Mortgagee, the Owner shall continue to be responsible to the Classification Society for the performance
and discharge of all its obligations and liabilities relating to or arising out of or in connection with the contract it has with
the Classification Society, and nothing in this letter should be construed as imposing any obligation or liability on the Mortgagee
to the Classification Society in respect thereof. The instructions and authorisations which are contained in this notice shall
remain in full force and effect until the Owner and the Mortgagee together give you notice in writing revoking them.

 

The Owner undertakes to reimburse the Classification
Society in full for any costs or expenses it may incur in complying with the instructions and authorisations referred to in this
letter.

 

This letter and any non-contractual obligations
arising from or connected with it are governed by New York law.

 

	 	 	 
	For and on behalf of	 	 
	NAME OF OWNER	 	 
	 	 	 
	 	 	 
	For and on behalf of	 	 
	DVB BANK SE	 	 

 

    	128

    	 

    

 

SCHEDULE
10

FORM OF CLASSIFICATION SOCIETY LETTER OF UNDERTAKING

 

	To:	[Name of Owner]
	 	Par la Ville Place
	 	14 Par la Ville Road
	 	Hamilton HM08
	 	Bermuda
	 	 
	 	with a copy to:
	 	 
	 	Phoenix Bulk Carriers (US) LLC as agents
	 	109 Long Wharf, Second Floor
	 	Newport, Rhode Island 02840
	 	 
	 	Attention: Mr. Tony Laura
	 	Facsimile: +401-846-1520
	 	Email: tlaurahome@aol.com
	 	 
	 	-and-
	 	 
	 	DVB Bank SE
	 	Platz der Republik 6
	 	60325 Frankfurt am Main
	 	Germany
	 	 
	 	Attention: Loan Administration Manager
	 	Facsimile: +49 69 97 50 4444
	 	 
	 	with a copy to:
	 	 
	 	DVB Bank SE
	 	c/o DVB Transport (US) LLC
	 	609 Fifth Avenue, 5th Floor
	 	New York, New York 10017
	 	 
	 	Attention: Mr. Neil McLaughlin
	 	Facsimile: +212-858-2676
	 	Email: neil.mclaughlin@dvbbank.com

 

Dated:[l]

 

Dear Sirs:

 

Name
of ship: “[l]”
(the “Ship”)

Flag: [Panama][Marshall Islands]

IMO
Number: [l]

Name
of Owner: [l]
(the “Owner”)

Name of mortgagee: DVB BANK SE (the
“Mortgagee”)

 

    	129

    	 

    

 

We,
[Name of Classification Society], hereby acknowledge receipt of a letter (a copy of which is attached hereto) dated [l]
sent to us by the Owner and the Mortgagee (together the “Instructing Parties”) regarding the Ship.

 

In consideration of the agreement by the
Mortgagee to approve the selection of American Bureau of Shipping (the receipt and adequacy of which is hereby acknowledged), we
undertake to comply with the instructions of the Instructing Parties contained in such letter.

 

This letter and any non-contractual obligations
arising out of or in connection with it shall be governed by New York law.

 

Yours faithfully

 

For and on behalf of

[NAME OF CLASSIFICATION SOCIETY]

 

    	130

    	 

    

 

appendix
a

FORM OF APPROVED MANAGER’S UNDERTAKING

 

    	131

    	 

    

 

appendix
b

FORM OF BORROWER ACCESSION AGREEMENT

 

    	132

    	 

    

 

appendix
c-1

FORM OF COMPLIANCE CERTIFICATE (borrowers)

 

    	133

    	 

    

 

appendix
c-2

FORM OF COMPLIANCE CERTIFICATE (BULK PARTNERS)

 

    	134

    	 

    

 

appendix
d

FORM OF EARNINGS ACCOUNT PLEDGE

 

    	135

    	 

    

 

appendix
e

FORM OF EARNINGS ASSIGNMENT

 

    	136

    	 

    

 

appendix
f

FORM OF FREIGHTS ACCOUNT PLEDGE

 

    	137

    	 

    

 

appendix
g

FORM OF GUARANTOR ACCESSION AGREEMENT

 

    	138

    	 

    

 

appendix
h

FORM OF INSURANCE ASSIGNMENT

 

    	139

    	 

    

 

appendix
I-1

FORM OF MORTGAGE (PANAMA)

 

    	140

    	 

    

 

appendix
I-2

FORM OF MORTGAGE (MARSHALL ISLANDS)

 

    	141

    	 

    

 

appendix
J

FORM OF NOTE

 

    	142

    	 

    

 

appendix
K

FORM OF SHAREs PLEDGE

 

    	143

    	 

    

 

appendix
l

TIME CHARTER AND TIME CHARTER GUARANTEE ASSIGNMENT

 

    	144

    	 

    

 

appendix
M

FORM OF TIME CHARTER EARNINGS ASSIGNMENT

 

    	145

    	 

    

 

appendix
N-1

FORM OF UNDERTAKING AND AGREEMENT – BULK PATRIOT

 

    	146

    	 

    

 

appendix
N-2

FORM OF UNDERTAKING AND AGREEMENT – BULK TRIDENT

 

    	147Exhibit 10.11

 

LOAN AGREEMENT

 

October I.2011

 

Bulk Partners (Bermuda)
Ltd

P.O Box HM2257

Hamilton I1MJX

Bermuda

 

Mr Ed Coll, Lagoa Investments
Ltd., and Mr Anthony Laura ("the Lenders"), are pleased to confirm that, subject to the following terms and conditions.
they agree to make loans to Bulk Partners (Bermuda) Ltd. ("the Borrower") in the aggregate amount of US$l 0,000.000.

 

The Notes:

The obligation to repay the loans shall
he evidenced by the three Promissory Notes (the "Notes") in substantially the form of Exhibit A hereto, dated the date
of the making of the loans, payable to the order of the Lenders in accordance with the repayment terms dictated by the Note.

 

The Interest:

The Note shall bear interest from its date,
payable annually as stipulated in the Notes, at a rate per annum (on the basis of a 360 day year for the actual number of days
involved) equal to eight percent. (8.00%) per annum. To the extent permitted by law, any payment of interest on the Notes not made
when due shall bear interest from the date when due until payment is made at a rate per annum equal to ten percent. (10%) per annum.

 

Optional Prepayment:

The Borrower shall have the right, on not
less than 7 days notice. to prepay the Notes in whole at any time or in part from time to time, together with accrued interest
on the principal being prepaid to the date of prepayment.

 

Representation and Warranties:

The Borrower represents and warrants that: 

		(a)	This Agreement constitutes, and the Note, when issued, will constitute, the valid and legally binding
obligations of the Borrower enforceable in accordance with their terms;

		(h)	There is no provision of any mortgage, indenture contract, or agreement binding on the Borrower
or affecting its property; which would prohibit. conflict with, or in any way prevent the execution, delivery, or carrying out
the terms of this Agreement and of the Notes.

 

    	 

    	 

    

 

Conditions of Lending:

The obligation of the Lenders to make each
loan is subject to the following conditions precedent:

 

		(a)	At the time of the loan (i) the Borrower shall have complied and
shall then be in compliance with all the terms. covenants and conditions of this Agreement which are binding upon it, (ii) there
shall have occurred no Event of Default as defined below and no event which, with the giving of notice or the lapse of time,
or both, would constitute an Event of Default and (iii) the representations and warranties contained
in this Agreement shall be true with the same effect as though such representations and warranties had been made at the
time of the loan.

 

Covenants:

The Borrower agrees that so long as it
may borrow under this Agreement and until the payment in full of the Notes it will give prompt '• iitten notice to the Lenders
of the following:

(i) Any Event of Default as defiled
below and any event which with the giving of notice or the lapse of time. or both, would constitute an Event of Default.

(ii) Any material adverse change
in the business, properties, condition (financial or other) or operations. present or prospective. of the Borrower.

 

Events of Default:

If any of the following events (each an
"Event of Default") shall occur:

		(a)	Default shall be made in any payment of interest on or principal of the Notes when demanded and
payable;

		(b)	Default shall be made in the due observance or performance of any other term, covenant or agreement
contained in this Agreement;

		(c)	Any representation or warranty made by the Borrower herein or any statement or representation made
in any certificate, report or other document delivered in connection herewith shall prove to have been misleading in any material
respect when made;

		(d)	The Borrower makes an assignment for the benefit of creditors, files a petition in bankruptcy,
is adjudicated insolvent or bankrupt under any law or statute of any jurisdiction, whether now or hereafter in effect, or if there
is commenced against the Borrower any such proceeding which remains undismissed for a period of 30 days. or the Borrower by any
act indicates its consent to, approval of or acquiescence in any such proceeding or suffers any such receivership to continue undischarged
for a period of 30 days; or

 

    	 

    	 

    

 

		(e)	One or more judgements against the Borrower or attachments against its property, which in the aggregate
exceed $50.000 or the operation or result of which could be to interfere materially and adversely with the conduct of the business
of the Borrower, remain unpaid. unstayed on appeal, undischarged, unbonded, or undismissed for a period of 30 days;

then the Notes shall become and be immediately
due and payable and the obligation of the Lenders to make any or further loans hereunder shall terminate upon declaration to that
effect delivered by the Lenders to the Borrower; provided. that upon the happening of any event specified in (d), no declaration
or other notice need be given.

 

Miscellaneous:

		(a)	This Agreement and the rights and obligations of the parties hereunder shall he governed by the
laws of the islands of Bermuda, as to both interpretation and performance.

		(b)	If any suit is instituted by the Lenders to enforce this Agreement or the Notes, the Borrower hereby
submits to jurisdiction and to the laying of venue in the Islands of Bermuda.

 

If you agree to the foregoing terms and
conditions, please signify your acceptance by signing, dating and returning to us the enclosed copy of this Agreement.

 

Yours faithfully,

For and on behalf of:-

 

ACCEPTED AND AGREED TO:

 

Dated:   October 1, 2011

 

For and on behalf of :Bulk Partners (Bermuda) Ltd

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