Document:

Exhibit 10.23

 

Date     7         April 2011

 

COSTAMARE INC.

as Borrower

 

– and –

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1

as Lenders

 

– and –

 

ING BANK N.V., LONDON BRANCH

as Agent, Mandated Lead Arranger

and Security Trustee

 

– and –

 

ING BANK N.V.

as Swap Bank

 

 

 

LOAN AGREEMENT

 

 

 

relating to a loan facility of up to US$140,000,000
to

provide pre- and post-delivery finance for two 8,800 TEU containership

newbuildings currently under construction
at

Sungdong Shipbuilding and Marine Engineering
Co. Ltd.

 

WATSON, FARLEY & WILLIAMS

Piraeus 

    	 

    	

    

INDEX

 

	Clause	 	Page
	 	 	 	 
	1	INTERPRETATION	 	1
	 	 	 	 
	2	FACILITY	 	18
	 	 	 	 
	3	POSITION OF THE LENDERS, THE SWAP BANK AND THE MAJORITY LENDERS	 	18
	 	 	 	 
	4	DRAWDOWN	 	19
	 	 	 	 
	5	INTEREST	 	21
	 	 	 	 
	6	INTEREST PERIODS	 	24
	 	 	 	 
	7	DEFAULT INTEREST	 	24
	 	 	 	 
	8	REPAYMENT AND PREPAYMENT	 	25
	 	 	 	 
	9	CONDITIONS PRECEDENT	 	29
	 	 	 	 
	10	REPRESENTATIONS AND WARRANTIES	 	30
	 	 	 	 
	11	GENERAL UNDERTAKINGS	 	31
	 	 	 	 
	12	CORPORATE UNDERTAKINGS	 	34
	 	 	 	 
	13	INSURANCE	 	36
	 	 	 	 
	14	SHIP COVENANTS	 	40
	 	 	 	 
	15	SECURITY COVER	 	43
	 	 	 	 
	16	PAYMENTS AND CALCULATIONS	 	45
	 	 	 	 
	17	APPLICATION OF RECEIPTS	 	47
	 	 	 	 
	18	APPLICATION OF EARNINGS	 	48
	 	 	 	 
	19	EVENTS OF DEFAULT	 	50
	 	 	 	 
	20	FEES AND EXPENSES	 	54
	 	 	 	 
	21	INDEMNITIES	 	55
	 	 	 	 
	22	NO SET-OFF OR TAX DEDUCTION	 	57
	 	 	 	 
	23	ILLEGALITY, ETC	 	58
	 	 	 	 
	24	INCREASED COSTS	 	59
	 	 	 	 
	25	SET-OFF	 	60
	 	 	 	 
	26	TRANSFERS AND CHANGES IN LENDING OFFICES	 	61
	 	 	 	 
	27	VARIATIONS AND WAIVERS	 	64

    	 

    	

    

	28	NOTICES	 	65
	 	 	 	 
	29	SUPPLEMENTAL	 	67
	 	 	 	 
	30	LAW AND JURISDICTION	 	67
	 	 	 	 

	SCHEDULE 1 LENDERS AND COMMITMENTS	69
	 	 
	SCHEDULE 2 DRAWDOWN NOTICE	70
	 	 
	SCHEDULE 3 CONDITION PRECEDENT DOCUMENTS	71
	 	 
	SCHEDULE 4 TRANSFER CERTIFICATE	74
	 	 
	SCHEDULE 5 DESIGNATION NOTICE	78
	 	 
	SCHEDULE 6 FORM OF COMPLIANCE CERTIFICATE	79
	 	 
	SCHEDULE 7 MANDATORY COST FORMULA	80
	 	 
	SCHEDULE 8 FORM OF CONFIDENTIALITY AGREEMENT	82
	 	 
	EXECUTION PAGE	87

    	 

    	

    

THIS AGREEMENT is made on          April
2011

 

BETWEEN

 

		(1)	COSTAMARE INC., as Borrower;

 

		(2)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders;

 

		(3)	ING BANK N.V., LONDON BRANCH, as Agent;

 

		(4)	ING BANK N.V., LONDON BRANCH, as Mandated Lead Arranger;

 

		(5)	ING BANK N.V., LONDON BRANCH, as Security Trustee; and

 

		(6)	ING BANK N.V., as Swap Bank.

 

BACKGROUND

 

		(A)	The Lenders have agreed to make available to the Borrower a facility not exceeding $140,000,000
divided into two Tranches, each to be in an amount of up to the lesser of (a) $70,000,000 and (b) an amount in Dollars equal to
70 per cent. of (i) the Contract Price of the Ship to be financed by that Tranche or (ii) if that Ship is not subject to an Approved
Charter on the Drawdown Date of its Delivery Advance, the Initial Market Value of such Ship (which may be on-lent by the Borrower
to, or invested by the Borrower in, its wholly-owned subsidiaries Owner A and Owner B, respectively) for the purpose of assisting
such subsidiaries in part-financing the acquisition cost of the Ships.

 

		(B)	The Swap Bank has agreed to enter into interest rate swap transactions with the Borrower from time
to time to hedge the Borrower’s exposure under this Agreement to interest rate fluctuations.

 

		(C)	The Lenders and the Swap Bank have agreed to share pari passu in the security 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:

 

“Account Charge”
means, in relation to each Earnings Account and the Retention Account, a deed creating security in respect of that Earnings Account
and the Retention Account in the Agreed Form;

 

“Accounts”
means, together, the Earnings Accounts and the Retention Account and in the singular means any of them;

 

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

 

“Affected Lender”
has the meaning given in Clause 5.7;

 

“Agency and Trust Agreement”
means the agency and trust agreement dated the same date as this Agreement and made between the same parties;

    	 

    	

    

“Agent” means
ING Bank N.V., London Branch, acting in such capacity through its office at 60 London Wall, London EC2M 5TQ, England, or any successor
of it appointed under clause 5 of the Agency and Trust Agreement;

 

“Agreed Form”
means in relation to any document, that document in the form approved in writing by the Agent (acting on the instructions of all
the Lenders) or as otherwise approved in accordance with any other approval procedure specified in any relevant provisions of any
Finance Document;

 

“Applicable Accounts”
means, in relation to a Compliance Date, the consolidated balance sheets and related consolidated statements of stockholders’
equity, income and cash flows, together with, in the case of the annual consolidated financial statements of the Borrower’s
Group, related notes of the Borrower’s Group set out in such financial statements prepared as of the relevant Compliance
Date (and which the Borrower is obliged to deliver to the Agent pursuant to Clause 11.5, which accounts are to be prepared in accordance
with Clause 11.6);

 

“Approved Charterer”
means Mediterranean Shipping Company S.A. of 40, Avenue Eugene Pittard – 1206 Geneva, Switzerland;

 

“Approved Charterparty
Assignment” means, in relation to a Ship, an assignment of the rights of the Owner of that Ship under the Approved Charter
relative thereto executed or to be executed by the relevant Owner in favour of the Security Trustee in the Agreed Form;

 

“Approved Charters”
means, in relation to each Ship, together, the Initial Approved Charter and any Subsequent Approved Charter in respect of that
Ship and, in the singular, means any of them;

 

“Approved Flag”
means any of the Greek, Panamanian, Liberian, Marshall Islands, Maltese or Hong Kong flags or any other flag as the Lenders may,
in their absolute discretion, approve as the flag on which a Ship may be registered;

 

“Approved Flag State”
means any of Greece, Panama, Liberia, the Marshall Islands, Malta or Hong Kong or any other country in which the Lenders may, in
their absolute discretion, approve that a Ship may be registered;

 

“Approved Manager”
means, in relation to a Ship, Costamare Shipping, Ciel Management or Shanghai Costamare or any other company which the Agent may,
with the authorisation of the Majority Lenders, approve from time to time as the manager of the Ships;

 

“Approved Shipbrokers”
means, together, H. Clarkson and Company Ltd of London, England, Arrow Research Ltd. of London, England, Braemar Seascope of London,
England, Simpson Spence & Young of London, England, Maersk Brokers of London, England and Howe Robinson of London, England
and any other independent firm of shipbrokers nominated by the Borrower and approved in writing by the Agent in its absolute discretion
from time to time and in the singular means any of them;

 

“Availability Period”
means the period commencing on the date of this Agreement and ending on:

 

		(a)	in relation to a Tranche, the earlier of (i) the Contract Cancellation Date for the Shipbuilding
Contract relative to the Ship to be financed by that Tranche and (ii) 31 December 2013 (or such later date as the Agent may, with
the authorisation of the Majority Lenders, agree with the Borrower); or

    	2

    	

    

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

 

“Bank Levy” means
the proposed tax detailed in draft legislation released together with a written ministerial statement by the Financial Secretary
to the Treasury of the United Kingdom made on 21 October 2010 as such proposed tax may be subsequently enacted;

 

“Borrower”
means Costamare Inc. a corporation incorporated in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, MH 96960 the Marshall Islands (and includes their respective successors);

 

			“Borrower’s Group” means the Borrower and each of its subsidiaries;

 

			“Break Costs”  means the amount (if any) by which:

 

		(a)	the interest which a Lender should have received for the period from the date of receipt of all
or any part of its participation in a Tranche to the last day of the current Interest Period in respect of such Tranche had the
principal amount received been paid on the last day of that Interest Period;

 

exceeds:

 

		(b)	the amount which that Lender would be able to obtain by placing an amount equal to the principal
amount received by it on deposit with a leading bank in the London Interbank Market for a period starting on the Business Day following
receipt or recovery and ending on the last day of the current Interest Period;

 

	 	“Builder” means Sungdong Shipbuilding and Marine Engineering Co. Ltd., a corporation
incorporated and existing under the laws of the Republic of Korea, with its registered office at 1609-2 Hwang-li, Guangdo-myeon,
Tongyoung-si, Gyeongnam, the Republic of Korea;

 

“Business Day”
means a day on which banks are open in London and Piraeus and, in respect of a day on which a payment is required to be made under
a Finance Document, also in New York City and/or any other relevant place of payment;

 

“Cash and Cash Equivalents”
means the aggregate of:

 

		(a)	the amount of freely available credit balances on any deposit or current or call account;

 

		(b)	the market value of transferable certificates of deposit in a freely convertible currency acceptable
to the Lenders issued by a prime international bank; and

 

		(c)	the market value of equity securities (if and to the extent that the Agent is satisfied that there
is a ready market for such equity securities) and investment grade debt securities which are publicly traded on a major stock exchange
or investment market (valued at market value as at any applicable date of determination)

 

in each case owned free of any
Security Interest (other than a Security Interest in favour of the Security Trustee) by the Borrower or any of its subsidiaries
where:

 

		(i)	the market value of any asset specified in paragraph (b) and (c) shall be the bid price quoted
for it on the relevant calculation date by the Agent; and

    	3

    	

    

		(ii)	the amount or value of any asset denominated in a currency other than Dollars shall be converted
into Dollars using the Agent’s spot rate for the purchase of Dollars with that currency on the relevant calculation date;

 

“Ciel Management”
means Ciel Shipmanagement S.A., a corporation incorporated under the laws of Liberia having a place of business is at 2-6 Aeroporon
Street, P. Faliro, Athens, 175 64, Greece;

 

“Combined Asset
Cover Ratio” means, at the relevant time (a) the aggregate of (i) the Market Value of the Ships then subject to a Mortgage
and (ii) the market value (determined in accordance with Clause 15.5) of any additional security provided at that time pursuant
to Clause 15 expressed as a percentage of (b) the aggregate of the Loan (i) plus the Swap Exposure at that time, if an amount would
be owing by the Borrower to the Swap Bank pursuant to the terms of the Master Agreement when such Swap Exposure is calculated or
(ii) minus the Swap Exposure at that time, if an amount would be owing by the Swap Bank to the Borrower pursuant to the terms of
the Master Agreement when such Swap Exposure is calculated;

 

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

 

“Compliance Date”
means 30 June and 31 December in each calendar year;

 

“Confirmation”
and “Early Termination Date”, in relation to any continuing Designated Transaction, have the meanings given
in the Master Agreement;

 

“Contract Cancellation
Date” means, in respect of a Shipbuilding Contract, the date on which the Owner which is a party to that Shipbuilding
Contract actually cancels, terminates or rescinds that Shipbuilding Contract on account of delay pursuant to the terms of the Shipbuilding
Contract;

 

“Contract Price”
means, in relation to each Ship, the final contract price payable for that Ship under the Shipbuilding Contract relative thereto;

 

“Contractual Currency”
has the meaning given in Clause 21.4;

 

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

 

“Costamare Shipping”
means Costamare Shipping Company S.A., a company incorporated under the laws of Panama and having a place of business at 60, Zephyrou
Street & Syngrou Avenue, 175 64 Athens, Greece;

 

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

 

“Deed of Covenant”
means, in relation to a Ship subject to a first priority statutory mortgage, a deed of covenant collateral to the Mortgage on the
Ship in the Agreed Form;

 

“Delivery Advances”
means, together, the Ship A Delivery Advance and the Ship B Delivery Advance and in the singular means either of them;

    	4

    	

    

“Delivery Date”
means, in relation to a Ship, the date on which that Ship is delivered by the Builder to, and accepted by, the relevant Owner under
the applicable Shipbuilding Contract;

 

“Designated Transaction”
means a Transaction which fulfils the following requirements:

 

		(a)	it is entered into by the Borrower pursuant to the Master Agreement with the Swap Bank which, at
the time the Transaction is entered into, is also a Lender and the Borrower’s rights under the Master Agreement are subject
to a Master Agreement Assignment;

 

		(b)	its purpose is the hedging of the Borrower’s exposure under this Agreement to fluctuations
in LIBOR arising from the funding of the Loan (or any part thereof) for a period expiring no later than the final Repayment Date;
and

 

		(c)	it is designated by the Borrower,
                                         by delivery by the Borrower to the Agent of a notice of designation in the form set out
                                         in Schedule 6,5, as a Designated Transaction for the purposes of the
                                         Finance Documents;

 

“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 Borrower for the Advance to be made, or (as the context requires) the
date on which the Advance is actually made;

 

“Drawdown Notice”
means a notice in the form set out in Schedule 2 (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 Owner
of that Ship or the Security Trustee and which arise out of the use or operation of that Ship;

 

“Earnings Account”
means, in relation to a Ship, an account in the name of the Owner thereof with the Agent in London or any other account (with that
or another office of the Agent) which is designated by the Agent as the Earnings Account in relation to the Ship for the purposes
of this Agreement;

 

“EBITDA” means,
as of any Compliance Date, the aggregate amount of the consolidated profits of the Borrower’s Group before interest, taxes,
depreciation and amortisation in respect of the Rolling Four Quarter Period ending on the relevant Compliance Date, as shown in
the relevant Applicable Accounts;

 

“Environmental Claim”
means:

 

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

 

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

 

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

 

“Environmental Incident”
means:

    	5

    	

    

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

 

		(b)	any incident in which Environmentally Sensitive Material is released from a vessel other than a
Ship as a result of a collision between a Ship and such other vessel or some other incident of navigation or operation, in either
case, in connection with which a Ship is actually arrested, attached, detained or injuncted and/or a Ship and/or any Owner and/or
any operator or manager of a Ship is at fault or otherwise liable to any legal or administrative action; or

 

		(c)	any other incident in which Environmentally Sensitive Material is released otherwise than from
a Ship and in connection with which a Ship is actually arrested and/or where any Owner and/or any operator or manager of a Ship
is 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;

 

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

 

“Event of Default”
means any of the events or circumstances described in Clause 19.1;

 

“Finance Documents”
means:

 

		(a)	this Agreement;

 

		(b)	the Agency and Trust Agreement;

 

		(c)	the Master Agreement Assignment;

 

		(d)	the Guarantees;

 

		(e)	the Pre-delivery Security Assignments;

 

		(f)	any Deeds of Covenant;

 

		(g)	the General Assignments;

 

		(h)	the Mortgages;

 

		(i)	the Account Charges;

 

		(j)	any Approved Charterparty Assignments;

 

		(k)	the Manager’s Undertakings; and

 

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

 

“Financial Indebtedness”
means, in relation to a person (the “debtor”), a liability of the debtor:

    	6

    	

    

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

 

		(b)	under any loan stock, bond, note or other security issued by the debtor;

 

		(c)	under any acceptance credit, guarantee or letter of credit facility or dematerialised equivalent
made available to the debtor;

 

		(d)	under a financial lease, a deferred purchase consideration arrangement or any other agreement having
the commercial effect of a borrowing or raising of money by the debtor;

 

		(e)	under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability
of another person which would fall within paragraphs (a) to (d) if the references to the debtor referred to the other person;

 

“Financial Year”
means, in relation to the Borrower’s Group and each Owner, each period of 1 year commencing on 1 January in respect of which
its audited accounts are or ought to be prepared;

 

“General Assignment”
means, in relation to a Ship, a general assignment of the Earnings, the Insurances and any Requisition Compensation in the Agreed
Form;

 

“Guarantee”
means, in relation to each Owner, a guarantee of the obligations of the Borrower under this Agreement, the Master Agreement and
the other Finance Documents in the Agreed Form;

 

“Individual Asset Cover
Ratio” means, at any relevant time in relation to a Ship and the Tranche used to finance it (a) the aggregate of (i)
the Market Vale of that Ship and (ii) the market value (determined in accordance with Clause 15.5) of any additional security provided
at that time pursuant to Clause 15 in respect of that Tranche expressed as a percentage of (b) the aggregate of that Tranche (i)
plus the Relevant Percentage of the Swap Exposure at that time if an amount would be owing by the Borrower to the Swap Bank pursuant
to the terms of the Master Agreement when such Swap Exposure is calculated or (ii) minus the Relevant Percentage of the Swap Exposure
at that time if an amount would be owing by the Swap Bank to the Borrower pursuant to the terms of the Master Agreement when such
Swap Exposure is calculated;

 

“Initial Approved
Charter” means, in relation to a Ship, a time charterparty in respect of that Ship with the Approved Charterer having
a duration of at least 10 years at a daily hire rate of $42,000;

 

“Initial Market Value”
means, in respect of a Ship, the Market Value of that Ship determined pursuant to the valuation referred to in paragraph 7 of Schedule
3, Part C;

 

“Insurances”
means, in relation to a Ship:

 

		(a)	all policies and contracts of insurance, including entries of the Ship in any protection and indemnity
or war risks association, effected in respect of the Ship, its Earnings or otherwise in relation to it 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;

 

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

    	7

    	

    

“ISM Code”
means the International Safety Management Code (including the guidelines on its implementation), adopted by the International Maritime
Organisation 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);

 

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

 

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

 

“Konstantakopoulos Family”
means, together, each of the following:

 

		(a)	Mr Vasileios Kostantakopoulos;

 

		(b)	Mr Kostantinos V. Kostantakopoulos;

 

		(c)	Mr Achillefs V. Kostantakopoulos;

 

		(d)	Mr Christos V. Kostantakopoulos;

 

		(e)	all the lineal descendants in direct line of any of the said Messrs. Vassileios Kostantakopoulos,
Achillefs V. Kostantakopoulos, Kostantinos V. Kostantakopoulos and Christos V. Konstantakopoulos;

 

		(f)	a husband or wife, or former husband or wife, or widower or widow of any of the above persons;

 

		(g)	the estates, trusts or legal representatives of any of the above persons (whether controlled by
any of them or being the beneficiaries of any of them); and

 

		(h)	each company (other than a member of the Borrower’s Group) legally or beneficially owned
or (as the case may be) controlled by one or more of the persons or entities which would fall within paragraphs (a) to (f) of this
definition,

 

and each one of the above shall
be referred to as “a member of the Konstantakopoulos Family”;

 

“Lender” means
a bank or financial institution listed in Schedule 1 and acting through its branch indicated in Schedule 1 (or through another
branch notified to the Agent under Clause 26.14) or its permitted transferee, successor or assign;

 

“LIBOR” means,
in relation to any period for which an interest rate is to be determined under any provision of a Finance Document:

 

		(a)	the applicable Screen Rate; or

 

		(b)	if no Screen Rate is available for that period, the Reference Bank’s Cost of Funding,

 

as of 11 a.m. (London time) on
the Quotation Date for that period for the offering of deposits in the relevant currency and for a period comparable to that period;

 

“Loan” means
the principal amount for the time being outstanding under this Agreement;

    	8

    	

    

“Major Casualty”
means, in relation to a Ship, any casualty to the 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 $2,000,000 or the equivalent in any other currency;

 

“Majority Lenders”
means:

 

		(a)	before an Advance has been made, Lenders whose Commitments total 66.67 per cent. of the Total Commitments;
and

 

		(b)	after an Advance has been made, Lenders whose Contributions total 66.67 per cent. of the Loan;

 

“Management Agreement”
means, in relation to each Ship, an agreement made or to be made between (i) the Owner of that Ship and (ii) the Approved Manager
in respect of the commercial and technical management of the Ship and, in the plural, means all of them;

 

“Manager’s Undertaking”
means, in relation to each Ship, a letter of undertaking executed or to be executed by the Approved Manager in favour of the Security
Trustee in the Agreed Form agreeing certain matters in relation to the management of that Ship and subordinating the rights of
the Approved Manager against the Ship and the Owner thereof to the rights of the Creditor Parties under the Finance Documents;

 

“Mandated Lead Arranger”
means ING Bank N.V., London Branch acting through its office at 60 London Wall, London EC2M 5TQ, England;

 

“Mandatory Cost”
means the percentage rate per annum calculated by the Agent in accordance with Schedule 7;

 

“Market Value”
means, in relation to each Ship, the market value thereof calculated in accordance with Clause 15.3;

 

“Margin” means
2.50 per cent. per annum;

 

“Master Agreement”
means a master agreement (on the 1992 or, as the case may be, 2002 ISDA (Multicurrency - Crossborder) form) made between the Borrower
and the Swap Bank and includes all Designated Transactions from time to time entered into and Confirmations from time to time exchanged
under the master agreement;

 

“Master Agreement Assignment”
means the assignment of the Master Agreement in the Agreed Form;

 

“Mortgage”
means, in relation to each Ship, a first priority or preferred mortgage on that Ship executed or to be executed by the relevant
Owner in favour of the Security Trustee or, as the case may be, the Lenders, in each case in the Agreed Form;

 

“Net Interest Expense”
means, as of any Compliance Date, the aggregate of all interest, commitment and other fees, commissions, discounts and other costs,
charges or expenses accruing due from all the members the Borrower’s Group less any interest income received from all members
of the Borrower’s Group, in each case during the Rolling Four Quarter Period ending on the relevant Compliance Date, determined
on a consolidated basis in accordance with USGAAP and as shown in the consolidated statements of income for the Borrower’s
Group in the relevant Applicable Accounts;

    	9

    	

    

“Negotiation Period”
has the meaning given in Clause 5.10;

 

“Notifying Lender”
has the meaning given in Clause 23.1 or Clause 24.1 as the context requires;

 

“Owner A” means
Jodie Shipping Co., a corporation which is a wholly-owned subsidiary of the Borrower incorporated and existing under the laws of
the Republic of Liberia and having its registered office at 80 Broad Street, Monrovia, Liberia;

 

“Owner B” means
Kayley Shipping Co., a corporation which is a wholly-owned subsidiary of the Borrower incorporated and existing under the laws
of the Republic of Liberia and having its registered office at 80 Broad Street, Monrovia, Liberia;

 

“Owners” means,
together Owner A and Owner B and in the singular means either of them;

 

“Payment Currency”
has the meaning given in Clause 21.4;

 

“Permitted Security Interests”
means:

 

		(a)	Security Interests created by the Finance Documents;

 

		(b)	liens for unpaid master’s and crew’s wages in accordance with usual maritime practice;

 

		(c)	liens for salvage;

 

		(d)	liens arising by operation of law for not more than 2 months’ prepaid hire under any charter
in relation to a Ship not prohibited by this Agreement;

 

		(e)	liens for master’s disbursements incurred in the ordinary course of trading and any other
lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of a Ship, provided
such liens do not secure amounts more than 60 days overdue (unless the overdue amount is being contested by the relevant Owner
in good faith by appropriate steps) and subject, in the case of liens for repair or maintenance, to Clause 14.13(g);

 

		(f)	any Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration
as security for costs and expenses while an Owner is actively prosecuting or defending such proceedings or arbitration in good
faith; and

 

		(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;

 

“Pertinent Document”
means:

 

		(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

    	10

    	

    

		(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)	England and Wales;

 

		(b)	the country under the laws of which the company is incorporated or formed;

 

		(c)	a country in which the company has the centre of its main interests or which the company’s
central management and control is exercised;

 

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

 

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

 

		(f)	a country the courts of which have jurisdiction to make a winding up, administration or similar
order in relation to the company, whether as 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 (b) or (c);

 

“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;

 

“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;

 

“Pre-delivery
Advances” means, together, the Ship A Pre-delivery Advances and the Ship B Pre-delivery Advances and in the singular
means any of them;

 

“Pre-delivery
Security Assignment” means, in relation to an Owner, an assignment of the Shipbuilding Contract and of the Refund Guarantee
relevant to that Owner, to be given by that Owner in favour of the Lender, in the Agreed Form and in the plural means both of them;

 

“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 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

    	11

    	

    

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);

 

“Reference Bank”
means, subject to Clause 26.16, ING Bank N.V., London Branch;

 

“Reference Bank’s
Cost of Funding” means, at any relevant time, the rate per annum quoted by the Reference Bank to leading banks in the
London Interbank Market, as such rate shall be supplied by the Reference Bank to the Agent at its request;

 

“Refund Guarantees”
means, together, the Ship A Refund Guarantee and the Ship B Refund Guarantee, and in the singular means either of them;

 

“Refund Guarantor”
means the Export-Import Bank of Korea acting through its office at 16-1, Yoido-Dong, Yeongdeungpo-Gu, Seoul, 150-996, Korea;

 

“Relevant Percentage
of the Swap Exposure” means, in relation to a Tranche, the Swap Exposure multiplied by a fraction of which the numerator
is the relevant Tranche outstanding at that time and the denominator the Loan outstanding at that time;

 

“Relevant Person”
has the meaning given in Clause 19.9;

 

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

 

“Requisition Compensation”
includes 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”;

 

“Retention Account”
means an account in the name of the Borrower with the Agent in London designated “Costamare Inc. – Retention Account”
or any other account (with that or another office of the Agent) which is designated by the Agent as the Retention Account for the
purposes of this Agreement;

 

“Rolling Four Quarter
Period” means, as of a Compliance Date, the 12-month period ending on such Compliance Date;

 

“Screen Rate”
means, in relation to any period for which an interest rate is to be determined under any provision of a Finance Document, the
British Bankers’ Association Interest Settlement Rate for the relevant currency and period displayed on the appropriate page
of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Agent may specify another page or
service displaying the appropriate rate after consultation with the Borrower and the Lenders;

 

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

 

“Security Interest”
means:

 

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

 

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

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	 	(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 each Owner and any other person (except a Creditor Party or any Approved Manager) who, as a surety or mortgagor, as a party
to any subordination or priorities arrangement, or in any similar capacity, executes a document falling within the last paragraph
of the definition of “Finance Documents”;

 

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

 

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

 

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

 

	 	(c)	neither the Borrower nor any Security Party has any future or contingent liability under Clauses 20, 21 or 22
or any other provision of this Agreement or another Finance Document; and

 

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

 

“Security Trustee”
means ING Bank N.V., London Branch, acting in such capacity through its office at 60 London Wall, London EC2M 5TQ, England, or
any successor of it appointed under clause 5 of the Agency and Trust Agreement;

 

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

 

“Shanghai Costamare”
means Shanghai Costamare Ship Management Co., Ltd., a company incorporated in the People’s Republic of China and having its
principal place of business at 38F Sino Life Tower, 707 Zhangyang Road, Pudong New District, Shanghai, PRC 200122;

 

“Ship A”
means the newbuilding containership of approximately 8,800 TEU currently being constructed by the Builder and having Builder’s
Hull No. S4010, which is to be purchased by Owner A pursuant to the Ship A Shipbuilding Contract and which on the relevant Delivery
Date is to be registered in its ownership under an Approved Flag;

 

“Ship A Delivery Advance”
means the Advance relating to Ship A made or to be made available on or at any time after (but before the last day of the Availability
Period) the Delivery Date of Ship A;

 

“Ship
A Pre-delivery Advances” means the Advances relating to Ship A made or to be made available to finance or refinance the
payment of a pre-delivery stage payment under the Ship A Shipbuilding Contract and in the singular means any of them;

    	13 

    	 

    

“Ship A Refund Guarantee”
means the irrevocable and unconditional refund guarantee issued by the Refund Guarantor in favour of Owner A in relation to each
stage payment made or to be made by Owner A to the Builder pursuant to the Ship A Shipbuilding Contract prior to the relevant Delivery
Date;

 

“Ship
A Shipbuilding Contract” means the shipbuilding contract dated 28 January 2011 (as amended by addendum no.1 dated 10
February 2011), both made between the Builder and Owner A for the construction by the Builder of Ship A and its purchase by Owner
A, as supplemented from time to time;

 

“Ship B”
means the newbuilding container of approximately 8,800 TEU currently being constructed by the Builder and having Builder’s
Hull No. S4011, which is to purchased by Owner B pursuant to the Ship B Shipbuilding Contract and which on the relevant Delivery
Date is to be registered in its ownership under an Approved Flag;

 

“Ship B Delivery Advance”
means the Advance relating to Ship B made or to be made available on the Delivery Date of Ship B;

 

“Ship B Pre-delivery
Advances” means the Advances relating to Ship B made or to be made available to finance or refinance the payment of a
pre-delivery stage payment under the Ship B Shipbuilding Contract and in the singular means any of them;

 

“Ship
B Refund Guarantee” means the irrevocable and unconditional refund guarantee issued by the Refund Guarantor in favour
of Owner B in relation to each stage payment made or to be made by Owner B to the Builder pursuant to the Ship B Shipbuilding Contract
prior to the relevant Delivery Date;

 

“Ship
B Shipbuilding Contract” means the shipbuilding contract dated 28 January 2011  
(as amended by addendum no.1 dated 10 February 2011) made between the Builder and Owner B, for the construction by the Builder
of Ship B and its purchase by Owner B, as supplemented from time to time;

 

	 	“Shipbuilding Contracts” means, together, the Ship A Shipbuilding Contract and
the Ship B Shipbuilding Contract, and in the singular means either of them;

 

“Ships” means,
together, Ship A and Ship B, and in the singular means either of them;

 

“Short Term Supplement
Rate” means, at any relevant time in respect of any Interest Period of less than 6 months’ duration, the rate per
annum by which the Reference Bank’s Cost of Funding exceeds the applicable Screen Rate at that time;

 

“Subsequent Approved
Charter” means, in relation to a Ship, any contract of employment in respect of that Ship in each case in form and on
terms and conditions and with a charterer reasonably acceptable to the Majority Lenders;

 

“Swap Bank”
means ING Bank N.V., acting in its capacity as swap bank through its Amsterdam office at Foppingadreef 7, PO Box 1800, NL-1000
BV Amsterdam, The Netherlands or through its London office at 60 London Wall, London EC2M 5TQ, England;

 

“Swap Exposure”
means, as at any relevant date, the amount certified by the Swap Bank to the Agent to be the aggregate net amount in Dollars which
would be payable by the Borrower to the Swap Bank or by the Swap Bank to the Borrower under (and calculated in accordance with)
section 6(e) (Payments on Early Termination) of the Master Agreement if an Early Termination Date had occurred on the relevant
date in relation to all continuing Designated Transactions entered into between the Borrower and the Swap Bank;

    	14 

    	 

    

“Total Bank Debt”
means, as at the date of calculation, the aggregate amount, on consolidated basis, of (a) all short-term interest bearing Financial
Indebtedness owing by members of the Borrower’s Group (excluding, for the avoidance of doubt, any Financial Indebtedness
due to another member of the Borrower’s Group and any Financial Indebtedness falling within item (e) of the definition of
“Financial Indebtedness”) which is included in the Applicable Accounts under the heading “Current Liabilities”
and (b) the long-term interest bearing Financial Indebtedness owing by members of the Borrower’s Group (excluding for the
avoidance of doubt any Financial Indebtedness due to another member of the Borrower’s Group and any Financial Indebtedness
falling within item (e) of the definition of “Financial Indebtedness”) computed in each case in accordance with USGAAP;

 

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

 

	 	(a)	the 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) unless it is within 3 months redelivered to the full control of the Owner of the Ship; and

 

	 	(c)	any arrest, capture, seizure or detention of the Ship (including any hijacking or theft) unless
it is within 6 months redelivered to the full control of the Owner of the 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 the Ship was last heard of;

 

	 	(b)	in the case of a constructive, compromised, agreed or arranged total loss of that Ship, the date
of any compromise, arrangement or agreement made by or on behalf of the Owner of that Ship with that Ship’s insurers in which
the insurers agree to treat that Ship as a total loss; and

 

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

 

“Tranche”
means, in relation to a Ship, an amount of $70,000,000 or, as the context may require, the aggregate principal amount of the Pre-delivery
Advances and the Delivery Advances for that Ship outstanding at the relevant time under this Agreement;

 

“Transfer Certificate”
has the meaning given in Clause 26.2;

 

“Transaction”
has the meaning given in the Master Agreement;

 

“Trust Property”
has the meaning given in clause 3.1 of the Agency and Trust Agreement; and

 

“USGAAP”
means generally accepted accounting principles as from time to time in effect in the United States of America.

 

	1.2 	Construction of certain terms. In this Agreement:

    	15 

    	 

    

“administration notice”
means a notice appointing an administrator, a notice of intended appointment and any other notice which is required by law (generally or in the case concerned) to be filed with the court or given to a person prior to, or in connection with, the appointment of an administrator;

 

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

 

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

 

“company”
includes any partnership, joint venture and unincorporated association;

 

“consent”
includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration, notarisation and legalisation;

 

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

 

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

 

“excess risks”
means, in relation to a Ship, the proportion of claims for general average, salvage and salvage charges not recoverable under the
hull and machinery policies in respect of the Ship in consequence of its insured value being less than the value at which the Ship
is assessed for the purpose of such claims;

 

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

 

“law” includes
any order or decree, any form of delegated legislation, any treaty or international convention and any regulation or resolution
of the Council of the European Union, the European Commission, the United Nations or its Security Council;

 

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

 

“liability”
includes every kind of debt or liability (present or future, certain or contigent), 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 Owner 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 any company; any state, political sub-division of a state and local or municipal authority; and any international organisation;

 

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

 

“protection and indemnity
risks” means the usual risks covered by a protection and indemnity association being a member of the International Group
of P&I Clubs or any successor organisation, including pollution risks and the proportion (if any) of any sums payable to any
other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation
in them of clause 6 of the International Hull Clauses (1/11/02 or 1/11/03) or clause 8 of the Institute Time

    	16 

    	 

    

Clauses (Hulls) (1/11/95) or
clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute Amended Running Down Clause (1/10/71) or any equivalent
provision, whichever is applicable in the case of the relevant Ship;

 

“regulation”
includes any regulation, rule, official directive, request or guideline having the force of law of any governmental, intergovernmental
or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

“subsidiary”
has the meaning given in Clause 1.4;

 

“tax” includes
any present or future tax, duty, impost, levy or charge of any kind which is imposed by any state, any political sub-division of
a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any connected
penalty, interest or fine; and

 

“war risks”
includes the risk of mines, blocking and trapping risks, primary war protection and indemnity risks and all risks excluded by clause
29 of the International Hull Clauses (1/11/02 or 1/11/03) or clause 24 of the Institute Time Clauses (Hulls)(1/11/95) or clause
23 of the Institute Time Clauses (Hulls) (1/10/83) or any equivalent provision, whichever is applicable in the case of the relevant
Ship.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

    	17 

    	 

    

	(d)	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 	Event of Default. An Event of Default is “continuing” if it has not been
remedied or waived.

 

	2	FACILITY

 

	2.1 	Amount of facility. Subject to the other provisions of this Agreement, the Lenders shall
make available to the Borrower a loan facility not exceeding $140,000,000 divided into two Tranches, each in an amount not exceeding
the lesser of (a) $70,000,000 and (b) an amount in Dollars equal to 70 per cent. of (i) the Contract Price of the Ship to be financed
by that Tranche or (ii) if that Ship is not subject to an Approved Charter on the Drawdown Date of its Delivery Advance, the Initial
Market Value of such 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 Borrower undertakes with each Creditor Party to use each Advance
only for the purpose stated in the preamble to this Agreement.

 

	3	POSITION OF THE LENDERS, THE SWAP BANK AND THE MAJORITY LENDERS

 

	3.1 	Interests of Lenders and Swap Bank several. The rights of the Lenders and the Swap Bank
under this Agreement and the Master Agreement are several; accordingly:

 

	(a)	each Lender shall be entitled to sue for any amount which has become due and payable by the Borrower
to it under this Agreement; and

 

	(b)	the Swap Bank shall be entitled to sue for any amount which has become due and payable by the Borrower
to it under the Master Agreement,

 

without joining
the Agent, the Security Trustee, any other Lender and the Swap Bank as additional parties in the proceedings.

 

	3.2 	Proceedings by individual Lender or Swap Bank. However, without the prior consent of the
Majority Lenders, no Lender nor the Swap Bank may bring proceedings in respect of:

 

	(a)	any other liability or obligation of the Borrower or a Security Party under or connected with a
Finance Document or the Master Agreement; or

 

	(b)	any misrepresentation or breach of warranty by the Borrower or a Security Party in or connected
with a Finance Document or the Master Agreement.

 

Clause 19.2 shall apply to any
action which may be taken by the Agent and/or the Security Trustee, acting on the instructions of the Majority Lenders, following
the occurrence of an Event of Default (including, without limitation, the enforcement of any of the Security Interests created
by the Finance Documents).

 

	3.3 	Obligations several. The obligations of the Lenders and the Swap Bank under this Agreement
and of the Swap Bank under the Master Agreement are several; and a failure

    	18 

    	 

    

of a Lender
or the Swap Bank to perform its obligations under this Agreement or of the Swap Bank to perform its obligations under the Master
Agreement shall not result in:

 

	(a)	the obligations of the other Lenders or (as the case may be) the Swap Bank being increased; nor

 

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

 

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

 

	3.4 	Parties bound by certain actions of Majority Lenders. Every Lender, the Swap Bank, the Borrower
and each Security Party shall be bound by:

 

	(a)	any determination made, or action taken, by the Majority Lenders under any provision of a Finance
Document;

 

	(b)	any instruction or authorisation given by the Majority Lenders to the Agent or the Security Trustee
under or in connection with any Finance Document (subject always to Clause 27.2);

 

	(c)	any action taken (or in good faith purportedly taken) by the Agent or the Security Trustee in accordance
with such an instruction or authorisation.

 

	3.5 	Reliance on action of Agent. However, the Borrower and each Security Party:

 

	(a)	shall be entitled to assume that the Majority Lenders have duly given any instruction or authorisation
which, under any provision of a Finance Document, is required in relation to any action which the Agent has taken or is about to
take; and

 

	(b)	shall not be entitled to require any evidence that such an instruction or authorisation has been given.

 

	3.6 	Construction. In Clauses 3.4 and 3.5 references to action taken include (without limitation)
the granting of any waiver or consent, an approval of any document and an agreement to any matter.

 

	4	DRAWDOWN

 

	4.1 	Request for Advance. Subject to the following conditions, the Borrower may request an Advance
to be made by ensuring that the Agent receives a completed Drawdown Notice not later than 11.00 a.m. (London time) 2 Business Days
prior to the intended Drawdown Date.

 

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

 

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

 

	(b)	an Advance shall relate to either Ship and shall be either a Pre-delivery Advance or the Delivery
Advance for that Ship;

 

	(c)	the amount of each Pre-delivery Advance shall not exceed 70 per cent. of the amount of the relevant
pre-delivery instalment of the Contract Price for the relevant Ship which is being part-financed or re-financed by that Advance;

    	19 

    	 

    

	(d)	the amount of each Delivery Advance shall not exceed the lesser of:

 

	 	(i)	an amount equal to 70 per cent. of the instalment payable under the Shipbuilding Contract for the
relevant Ship on the delivery of that Ship; and

 

	 	(ii)	an amount, which when aggregated with the Pre-delivery Advances for the relevant Ship equals 70
per cent. of (AA) the Contract Price of that Ship if it is subject to an Approved Charter relative to it on the Delivery Date thereof
or (BB) the Initial Market Value of that Ship in all other circumstances;

 

	(e)	the aggregate amount of the Advances shall not exceed the Total Commitments.

 

	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 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 or attorney-in-fact
of the Borrower; and once served, a Drawdown Notice cannot be revoked without the prior consent of the Agent, acting on the authority
of the Majority Lenders, such consent not to be unreasonably withheld or delayed (and such consent may be withheld if any of the
Lenders incurs any reasonable and documented expenses or losses as a result of a revocation of a Drawdown Notice and is not indemnified
by the Borrower for the same).

 

	4.5 	Lenders to make available Contributions. Subject to the provisions of this Agreement, each
Lender shall, on and with value on each Drawdown Date, make available to the Agent for the account of the Borrower the amount due
from that Lender on that Drawdown Date under Clause 2.2.

 

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

 

	(a)	to the account which the Borrower specifies 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 shall
constitute the making of the Advance and the Borrower 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 	“Pre-placement” of Delivery Advances. 

 

	(a)	Notwithstanding that the Borrower may have not satisfied all of the conditions precedent set out
in Schedule 3, Part C in relation to the Delivery Advance for a Ship on or before the Drawdown Date relative thereto, in order
to facilitate compliance by the relevant Owner with Article X.4(a)(ii) of the Shipbuilding Contract relevant to that Ship, and
provided that:

 

	 	(i)	the Borrower has submitted a Drawdown Notice in accordance with Clause 4.1; and

    	20 

    	 

    

	 	(ii)	in the Agent’s opinion the Borrower is reasonably likely to satisfy all such conditions precedent
in relation to that Delivery Advance within 4 Business Days from the relevant Drawdown Date and in any event upon the Release (as
defined below in Clause 4.8(b)),

 

the Lenders
shall, subject to the other terms and conditions of this Clause 4.8 and the other provisions of this Agreement, make available
to the Agent the Delivery Advance for that Ship, on the date specified in the relevant Drawdown Notice, being the date on which
the “fourth instalment” for that Ship is required to be deposited in accordance with Article X.4(a)(ii) of the relevant
Shipbuilding Contract with the Refund Guarantor.

 

	(b)	Any such Delivery Advance drawn down pursuant to this Clause 4.8 (a “Pre-placed Advance”)
shall (subject to the other provisions of this Agreement) be remitted by the Agent to the Refund Guarantor as a cash deposit in
the Agent’s name with the Refund Guarantor (the “Agent Account”) with its correspondent bank in New York
City, and will be held by the Refund Guarantor to the order of the Agent for release by the Agent to the Builder (the “Release”)
and only subject to such irrevocable instructions (the “Irrevocable Instructions”) addressed from the Agent
to the Refund Guarantor as are acceptable to the Agent (acting on the instructions of the Majority Lenders).

 

	(c)	The Irrevocable Instructions shall provide (inter alia) that the Pre-placed Advance shall not be
released to the Builder or to its order, and the Agent shall not agree to release a Pre-placed Advance to the Builder or its order,
unless and until:

 

	 	(i)	the Agent is satisfied that the “Protocol of Delivery and Acceptance” in respect of
the relevant Ship has been signed by the Builder and the relevant Owner and counter-signed by the Agent or one of its duly authorised
representatives; and

 

	 	(ii)	the Agent is satisfied that all the conditions precedent set out in Schedule 3, Part C in respect
of the applicable Delivery Advance have been satisfied in full (or as otherwise agreed by the Majority Lenders).

 

	(d)	The Borrower shall immediately prepay a Pre-placed Advance, together with interest thereon (calculated
in accordance with Clause 5), on the date on which the Refund Guarantor is required to return the moneys funded by that Pre-placed
Advance to the Agent in accordance with the Irrevocable Instructions (and regardless of whether the Refund Guarantor has then carried
out such instructions), provided that any moneys actually returned to the Agent from the Agent Account shall be applied by the
Agent in satisfaction of such prepayment obligation of the Borrower and in payment of any amounts payable by the Borrower under
Clause 8.9 as a result of such prepayment.

 

	(e)	In case of application of this Clause 4.8 in respect of a Pre-placed Advance, that Pre-placed Advance
shall accrue interest in accordance with the terms of Clause 5 from its Drawdown Date.

 

	5	INTEREST

 

	5.1 	Payment of normal interest. Subject to the provisions of this Agreement, interest on each
Advance or the Loan in respect of each Interest Period applicable to it shall be paid by the Borrower on the last day of that Interest
Period.

 

	5.2 	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest
on each Advance or the Loan in respect of an Interest Period applicable to it shall be the aggregate of:

 

	(a)	the Margin;

    	21 

    	 

    

	(b)	the Mandatory Cost (if any);

 

	(c)	LIBOR; and

 

	(d)	in the case of any Interest Period having a duration of less than 6 months and for which LIBOR
is not determined in accordance with the Reference Bank’s Cost of Funding, additionally in the case of the Contribution of
ING Bank N.V., London Branch, the Short Term Supplement Rate,

 

for that Interest Period but
excluding any Mandatory Costs to the extent charged on the date of this Agreement.

 

	5.3 	Payment of accrued interest. In the case of an Interest Period longer than 6 months, accrued
interest shall be paid every 6 months during that Interest Period and on the last day of that Interest Period.

 

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

 

	(a)	each rate of interest; and

 

	(b)	the duration of each Interest Period,

 

as soon as reasonably practicable
after each is determined.

 

	5.5 	Obligation of Reference Bank to quote. The Reference Bank shall use all reasonable efforts
to supply the quotation required of it for the purposes of fixing a rate of interest under this Agreement.

 

	5.6 	Absence of quotations by Reference Bank. If the Reference Bank fails to supply a quotation
the relevant rate of interest shall be set in accordance with the following provisions of this Clause 5.

 

	5.7 	Market disruption. The following provisions of this Clause 5 apply if:

 

	(a)	no Screen Rate is available for an Interest Period and the Reference Bank does not, before 1.00
p.m. (London time) on the Quotation Date, provide quotations to the Agent in order to fix LIBOR; or

 

	(b)	at least 1 Business Day before the start of an Interest Period, Lenders having Contributions together amounting to more than 50 per cent. of the Loan (or, if an Advance has not been made, Commitments amounting to more than 50 per cent. of the Total Commitments) notify the Agent that LIBOR fixed by the Agent would not accurately reflect the cost to those Lenders of funding their respective Contributions (or any part of them) during the Interest Period in the London Interbank Market at or about 11.00 a.m. (London time) on the Quotation Date for the Interest Period; or

 

	(c)	at least 1 Business Day before the start of an Interest Period, the Agent is notified by a Lender
(the “Affected Lender”) that for any reason it is unable to obtain Dollars in the London Interbank Market in
order to fund its Contribution (or any part of it) during the Interest Period.

 

For the purposes
of Clause 5.7(b), the reference to “Lenders” shall, in the case of any Interest Period having a duration of less than
6 months, be interpreted to mean all Lenders other than ING Bank N.V., London Branch whose Commitment and/or Contribution shall
be discounted in determining whether the 50 per cent. threshold referred to in Clause 5.7(b) has been achieved and the references
to “Loan” and “Total Commitments”
in that 

    	22 

    	 

    

Clause shall be interpreted to exclude the Commitment or, as the case may be, the Contribution of ING Bank N.V., London
Branch.

 

	5.8 	Notification of market disruption. The Agent shall promptly notify the Borrower and each
of the Lenders stating the circumstances falling within Clause 5.7 which have caused its notice to be given.

 

	5.9 	Suspension of drawdown. If the Agent’s notice under Clause 5.8 is served before an
Advance is made:

 

	(a)	in a case falling within Clauses 5.7(a) or 5.7(b), the Lenders’ obligations to make the Advance;
and

 

	(b)	in a case falling within Clause 5.7(c), the Affected Lender’s obligation to participate in
the Advance,

 

shall be suspended while the
circumstances referred to in the Agent’s notice continue.

 

	5.10 	Negotiation of alternative rate of interest. If the Agent’s notice under Clause 5.8
is served after an Advance is made, the Borrower, the Agent and the Lenders or (as the case may be) the Affected Lender shall use
reasonable endeavours to agree, within the 30 days after the date on which the Agent serves its notice under Clause 5.8 (the “Negotiation
Period”), an alternative interest rate or (as the case may be) an alternative basis for the Lenders or (as the case may
be) the Affected Lender to fund or continue to fund their or its Contribution during the Interest Period concerned.

 

	5.11 	Application of agreed alternative rate of interest. Any alternative interest rate or an
alternative basis which is agreed during the Negotiation Period shall take effect in accordance with the terms agreed.

 

	5.12 	Alternative rate of interest in absence of agreement. If an alternative interest rate or
alternative basis is not agreed within the Negotiation Period, and the relevant circumstances are continuing at the end of the
Negotiation Period, then the Agent shall, with the agreement of each Lender or (as the case may be) the Affected Lender, set an
interest period and interest rate representing the cost of funding of the Lenders or (as the case may be) the Affected Lender in
Dollars or in any available currency of their or its Contribution plus the Margin and the Mandatory Cost (if any); and the procedure
provided for by this Clause 5.12 shall be repeated if the relevant circumstances are continuing at the end of the interest period
so set by the Agent.

 

	5.13 	Notice of prepayment. If the Borrower does not agree with an interest rate set by the Agent
under Clause 5.12, the Borrower may give the Agent not less than 3 Business Days’ notice of its intention to prepay the Loan
or (as the case may be) the Affected Lender’s Contribution, at the end of the interest period set by the Agent.

 

	5.14 	Prepayment; termination of Commitments. A notice under Clause 5.13 shall be irrevocable;
the Agent shall promptly notify the Lenders or (as the case may require) the Affected Lender of the Borrower’s notice of
intended prepayment; and:

 

	(a)	on the date on which the Agent serves that notice, the Total Commitments or (as the case may require)
the Commitment of the relevant Affected Lender shall be cancelled; and

 

	(b)	on the last Business Day of the interest period set by the Agent, the Borrower shall prepay (without
premium or penalty) the Loan or, as the case may be, the relevant Affected Lender’s Contribution, together with accrued interest
thereon at the applicable rate plus the Margin and the Mandatory Cost (if any).

    	23 

    	 

    

	5.15 	Application of prepayment. The provisions of Clause 8 shall apply in relation to the prepayment.

 

	6	INTEREST PERIODS

 

	6.1 	Commencement of Interest Periods. The first Interest Period applicable to an Advance shall
commence on the Drawdown Date applicable to it 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:

 

	(a)	1, 3, 6 or 12 months as notified by the Borrower to the Agent not later than 11.00 a.m. (London
time) 2 Business Days before the commencement of the Interest Period; or

 

	(b)	in the case of the first Interest Period applicable to the second or any subsequent Advance relating
to a Ship, a period ending on the last day of the then current Interest Period applicable to the then outstanding Advance or Advances
relating to that Ship, whereupon all of the Advances relating to that Ship shall be consolidated and treated as a single Advance;

 

	(c)	6 months, if the Borrower fails to notify the Agent by the time specified in paragraph (a); or

 

	(d)	such other period as the Agent may, with the authorisation of all the Majority Lenders, agree with
the Borrower.

 

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

 

	6.4 	Non-availability of matching deposits for Interest Period selected. If, after the Borrower
has selected an Interest Period longer than 6 months, any Lender notifies the Agent by 11.00 a.m. (London time) on the third Business
Day before the commencement of the Interest Period that it is not satisfied that deposits in Dollars for a period equal to the
Interest Period will be available to it in the London Interbank Market when the Interest Period commences, the Interest Period
shall be of 6 months unless the Borrower does not agree in which case the procedure referred to in Clause 5 (arising from a notification
to the Agent pursuant to Clause 5.7(c)) shall apply.

 

	7	DEFAULT INTEREST

 

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

 

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

 

	(b)	if a Finance Document provides that such amount is payable on demand, the date falling 3 Business
Days after the date on which the demand is served; or

 

	(c)	if such amount has become immediately due and payable under Clause 19.4, the date on which it became
immediately due and payable.

    	24 

    	 

    

	7.2 	Default rate of interest. Interest shall accrue on an overdue amount from (and including)
the relevant date until the date of actual payment (as well after as before judgment) at the rate per annum determined by the Agent
to be 2 per cent. above:

 

	(a)	in the case of an overdue amount of principal, either the rate set out at Clause 7.3(a) (during
any unexpired part of any current Interest Period applicable to that overdue amount immediately prior to the relevant date) or
the rate set out at Clause 7.3(b) (in all other cases); 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 applicable to it);

 

	(b)	the aggregate of the Margin and, to the extent higher than the Mandatory Cost applicable on the
date of this Agreement, the Mandatory Cost (if any) plus, in respect of successive periods of any duration (including at call)
up to 3 months which the Agent may select from time to time:

 

	 	(i)	LIBOR and, in the case of the Contribution of ING Bank N.V., London Branch, additionally the Short
Term Supplement Rate; or

 

	 	(ii)	if the Agent (after consultation with the Reference Bank) determines that Dollar deposits for any
such period are not being made available to the Reference Bank 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 Reference Bank from
such other sources as the Agent (after consultation with the Reference Bank) may from time to time determine.

 

	7.4 	Notification of interest periods and default rates. The Agent shall promptly notify the
Lenders and the Borrower 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 7.3(b) of that Clause; but this shall not be taken to imply that the Borrower 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.
	 	 
	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.

 

	7.7 	Application to Master Agreement. For the avoidance of doubt, this Clause 7 does not apply
to any amount payable under the Master Agreement in respect of any continuing Designated Transaction as to which section 2(e) (Default
Interest; Other Amounts) of the Master Agreement shall apply.

 

	8	REPAYMENT AND PREPAYMENT

 

	8.1 	Amount of repayment instalments. The Borrower shall repay each Tranche by:

 

	(a)	16 consecutive six-monthly instalments (each, a “Six-monthly Instalment”) each
in an amount equal to X; and

 

	(b)	a balloon instalment in the amount equal to Y.

    	25 

    	 

    

In this Clause 8.1:

 

	 	(i)	“X” means an amount equal to the amount of that Tranche outstanding on the Drawdown
Date of the Delivery Advance for the Ship financed by that Tranche (after the drawdown of the relevant Delivery Advance) divided
by 30;

 

	 	(ii)	“Y” means an amount equal to the Tranche outstanding on the Drawdown Date of
the Delivery Advance for the Ship financed by that Tranche (after the drawdown of the relevant Delivery Advance) multiplied by
the relevant fraction; and

 

	 	(iii)	“relevant fraction” means a fraction whose numerator is 14 and denominator is
30.

 

	8.2 	Repayment Dates. The first Six-monthly Instalment for each Tranche shall be repaid on the
date falling six months after the Drawdown Date of the Delivery Advance for the Ship being financed by that Tranche (or, if earlier,
the date falling 6 months after the last day of the Availability Period) and the last Six-monthly Instalment shall be repaid on
the eighth anniversary of the earlier of (a) the Drawdown Date of the Delivery Advance of the relevant Ship and (b) the last date
of the Availability Period.

 

	8.3 	Final Repayment Date. On the final Repayment Date, the Borrower shall additionally pay to
the Agent for the account of the Creditor Parties all other sums then accrued or owing under any Finance Document.

 

	8.4 	Voluntary prepayment. Subject to the following conditions, the Borrower may prepay the whole
or any part of an Advance at any time.

 

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

 

	(a)	a partial prepayment shall be equal to a Six-monthly Instalment or a higher integral multiple thereof;

 

	(b)	the Agent has received from the Borrower at least 5 days’ prior written notice specifying
the amount to be prepaid and the date on which the prepayment is to be made; and

 

	(c)	if a prepayment is not made on the last day of an Interest Period, the Borrower shall pay to the
Agent in relation to such prepayment any additional amounts determined by reference to Clause 8.9.

 

	8.6 	Effect of notice of prepayment. A prepayment notice may not be withdrawn or amended without
the consent of the Agent (such consent not to be unreasonably withheld or delayed), given with the authorisation of the Majority
Lenders, and the amount specified in the prepayment notice shall become due and payable by the Borrower 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.

 

	8.8 	Mandatory prepayment. The Borrower shall be obliged to prepay the Relevant Amount:

 

	(a)	if a Ship is sold, on or before the date on which the sale is completed by delivery of that Ship
to its buyer;

 

	(b)	if a Ship becomes a Total Loss, on the earlier of the date falling 90 days (in the case of a Total
Loss falling within paragraph (c) of the definition of that term) or 180 days (in all other cases) after the Total Loss Date (or
such later date as the Agent (acting on the

    	26 

    	 

    

instructions
of the Majority Lenders) may agree) and the date of receipt by the Security Trustee of the proceeds of insurance relating to such
Total Loss; or

 

	(c)	if any of the following occurs, on demand by the Security Trustee:

 

	 	(i)	either the Shipbuilding Contract or the Refund Guarantee in relation to a Ship is cancelled, terminated,
rescinded or otherwise ceases to remain in force for any reason; or

 

	 	(ii)	the Shipbuilding Contract for a Ship is materially amended or varied without the prior written
consent of the Agent (acting upon the instructions of the Majority Lenders) except for any such amendment or variation as is permitted
by this Agreement or any other relevant Finance Document; or

 

	 	(iii)	a Ship has not for any reason been delivered to, and accepted by, the relevant Owner under the
Shipbuilding Contract for that Ship by the end of the Availability Period,

 

Provided
however that the Borrower shall not be obliged to prepay the Relevant Amount in the event of a Refund Guarantee being cancelled,
terminated or rescinded if, within 15 days after the earlier of (1) the date when the Borrower became aware that the relevant event
occurred or started to exist and (2) the date when the Agent notifies the Borrower in writing that the relevant event has occurred
or exists, the Borrower has:

 

	 	(A)	arranged the issuing of a new substitute refund guarantee for its Shipbuilding Contract in favour
of the relevant Owner, in form and substance substantially similar to the relevant Refund Guarantee and issued by a bank acceptable
to the Agent (acting on the instructions of the Majority Lenders in their discretion);

 

	 	(B)	assigned in favour of the Security Trustee (at the expense of the Borrower) the benefit of such
new substitute refund guarantee by executing a security assignment agreement in a form similar to the relevant Pre-delivery Security
Assignment (and has delivered to the Security Trustee any notices of assignment thereunder and has used its best endeavours to
deliver to the Security Trustee acknowledgements or further documents required to be delivered pursuant thereto); and

 

	 	(C)	provided the Agent (at the expense of the Borrower) with any legal opinion in respect of the matters
referred to in paragraphs (A) and (B) above, in form and substance satisfactory to the Agent.

 

In this Clause “Relevant
Amount” means:

 

	 	(A)	if any of the events referred to in paragraphs (a) or (b) of this Clause 8.8 occurs:

 

	 	(1)	in the case of the Ship to be first sold or lost such amount of the Loan which, after giving credit
for the amount of the prepayment made pursuant to this Clause 8.8, results in the Combined Asset Cover Ratio being equal to 140
per cent. unless:

 

	 	(aa)	the Combined Asset Cover Ratio maintained on the date of sale of, or the Total Loss Date in respect
of, the Ship which has been sold or lost was less than 140 per cent. in which case the amount to be prepaid shall be an amount
which, after giving credit to the same, results in the

    	27 

    	 

    

Combined Asset Cover Ratio
being equal to the higher of (i) the Combined Asset Cover Ratio which applied on the date of sale of, or the Total Loss Date in
respect of, the Ship which was sold or lost and (ii) 120 per cent.; or

 

	 	(bb)	the net proceeds from the sale or Total Loss of that Ship are insufficient to make either of the
aforementioned prepayments specified in this sub-paragraph (A)(1) in which case the Borrower shall apply the whole of the net proceeds
from such sale or Total Loss in prepayment of the Loan; and

 

	 	(2)	in any other case, the whole of the Loan; and

 

	 	(B)	if any of the events referred to in paragraph (c) of this Clause 8.8 occurs, the whole of the Pre-Delivery
Advances used to part-finance the relevant Ship whereupon the undrawn portion of the Pre-Delivery Advances relating to the relevant
Ship shall be cancelled.

 

	8.9 	Amounts payable on prepayment. A prepayment shall be made together with accrued interest
(and any other amount payable under Clause 21 or otherwise) in respect of the amount prepaid and, if the prepayment is not made
on the last day of an Interest Period together with any sums payable under Clause 21.1(b) but without premium or penalty.

 

	8.10 	Application of partial prepayment. Each partial prepayment made pursuant to:

 

	(a)	Clause 8.4, shall be applied against the Six-monthly Instalments of the relevant Tranche prepaid
as specified in Clause 8.1 either pro rata, in inverse order of maturity or in direct order of maturity, at the Borrower’s
option; and

 

	(b)	Clauses 8.8(a) or 8.8(b), shall be applied in full prepayment of the Tranche used to finance the
Ship which has been sold or become a Total Loss and any balance shall be applied against the Six-monthly Instalments of the other
Tranche specified in Clause 8.1 either pro rata, in inverse order of maturity or in direct order of maturity, at the Borrower’s
option.

 

	8.11 	No reborrowing. No amount prepaid may be reborrowed.

 

	8.12 	Unwinding of Designated Transactions. On or prior to any prepayment of the Loan under this
Clause 8 or any other provision of this Agreement, the Borrower shall wholly or partially reverse, offset, unwind or otherwise
terminate one or more of the continuing Designated Transactions to the extent necessary to ensure that the notional principal amount
of the continuing Designated Transactions thereafter remaining does not and will not in the future (taking into account the scheduled
amortisation) exceed the amount of the Loan as reducing from time to time thereafter pursuant to Clause 8.1.

 

	8.13 	Prepayment of swap benefit. If a Designated Transaction is terminated in circumstances where
the Swap Bank would be obliged to pay an amount to the Borrower under the Master Agreement, the Borrower hereby agrees that such
payment shall, if an Event of Default is continuing at that time, be applied in prepayment of the Loan in accordance with Clause
8.10(a) and authorises the Swap Bank to pay such amount to the Agent for such purpose.

 

	8.14 	Voluntary cancellation. Subject to the following conditions, the Borrower may cancel the
whole or any part of the Commitment.

 

	8.15 	Conditions for voluntary cancellation. The conditions referred to in Clause 8.14 are that:

    	28 

    	 

    

	(a)	a partial cancellation shall be equal to a Six-monthly Instalment or a higher integral multiple
thereof; and

 

	(b)	the Agent has received from the Borrower at least 5 Business Days’ prior written notice specifying
the amount to be cancelled and the date on which the cancellation is to be made.

 

	8.16 	Effect of notice of cancellation. A cancellation notice may not be withdrawn or amended
without the consent of the Agent, given with the authorisation of the Majority Lenders, and on the date for cancellation specified
in the cancellation notice, the amount of the Commitment specified in the cancellation notice shall become permanently cancelled
and the Borrower shall pay any commitment fee accrued under Clause 20 in respect of the amount cancelled up until the date of cancellation.

 

	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 the first Drawdown Notice, the Agent receives the documents described
in Part A of Schedule 3 in form and substance satisfactory to the Agent;

 

	(b)	that, on each Drawdown Date in respect of a Pre-delivery Advance but prior to the making of that
Pre-delivery Advance, the Agent receives or is satisfied that it will receive on the making of that Advance the documents described
in Part B of Schedule 3 in form and substance satisfactory to it;

 

	(c)	that, on each Drawdown Date in respect of a Delivery Advance but prior to the making of that Delivery
Advance, the Agent receives or is satisfied that it will receive on the making of that Advance the documents described in Part
C of Schedule 3 in form and substance satisfactory to it;

 

	(d)	that, on or before the Drawdown Date in respect of the second Delivery Advance to be made available,
the Agent receives all accrued commitment fee payable pursuant to Clause 20.1;

 

	(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 and is continuing or would result
from the borrowing of the Advance;

 

	 	(ii)	the representations and warranties in Clause 10.1 and those of the Borrower or any Security Party
which are set out in the other Finance Documents would be true and not misleading if repeated on each of those dates with reference
to the circumstances then existing; and

 

	 	(iii)	none of the circumstances contemplated by Clause 5.7 has occurred and is continuing; and

 

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

 

	9.2 	Waiver of conditions precedent. If the Majority Lenders, at their discretion, permit an
Advance to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied, the Borrower shall ensure that
those conditions are satisfied within 20 Business

    	29 

    	 

    

Days after
the Drawdown Date relative to that Advance (or such longer period as the Agent may, with the authorisation of the Majority Lenders,
specify).

 

	10	REPRESENTATIONS AND WARRANTIES

 

	10.1 	General. The Borrower represents and warrants to each Creditor Party as follows, subject
always to any qualifications contained in the legal opinions obtained by the Agent pursuant to the provisions of Clause 9.

 

	10.2 	Status. The Borrower is duly incorporated and validly existing and in good standing under
the laws of the Marshall Islands.

 

	10.3 	Corporate power. The Borrower has (and in the case of paragraph (a) procures that each Owner
has) the corporate capacity, and has taken all corporate action and obtained all consents necessary for it:

 

	(a)	to execute the Shipbuilding Contract to which it is a party and to purchase and pay for its Ship
under such Shipbuilding Contract;

 

	(b)	to execute the Finance Documents to which it is a party; and

 

	(c)	to borrow under this Agreement, to enter into Designated Transactions under the Master Agreement
and to make all the payments contemplated by, and to comply with, those Finance Documents.

 

	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 	Legal validity; effective Security Interests. The Finance Documents to which the Borrower
is a party, do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration as provided for
in the Finance Documents):

 

	(a)	constitute the Borrower’s legal, valid and binding obligations enforceable against it in
accordance with their respective terms; and

 

	(b)	create legal, valid and binding Security Interests enforceable in accordance with their respective
terms over all the assets to which they, by their terms, relate,

 

subject to any relevant insolvency
laws affecting creditors’ rights generally.

 

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

 

	(a)	the Borrower which is a party to that Finance Document 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.

 

	10.7 	No conflicts. The execution by the Borrower of each Finance Document to which it is a party,
and the borrowing by the Borrower of the Loan, and its compliance with each Finance Document to which it is a party will not involve
or lead to a contravention of:

 

	(a)	any law or regulation; or

 

	(b)	the constitutional documents of the Borrower; or

    	30 

    	 

    

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

 

		10.8	No withholding taxes. All payments which the Borrower is liable to make under the Finance
Documents to which it is a party may be made without deduction or withholding for or on account of any tax payable under any law
of any Pertinent Jurisdiction.

 

		10.9	No default. No Event of Default has occurred and is continuing.

 

		10.10	Information. All information which has been provided in writing by or on behalf of the Borrower
or any Security Party to the Agent in connection with any Finance Document satisfied the requirements of Clause 11.4; all audited
and unaudited accounts which have been so provided satisfied the requirements of Clause 11.6.

 

		10.11	No litigation. No legal or administrative action involving the Borrower or any Owner (including
action relating to any alleged or actual breach of the ISM Code or the ISPS Code) has been commenced or taken which, would be likely
to have a material adverse effect on the Borrower’s or an Owner’s financial position.

 

		10.12	Validity and completeness of Shipbuilding Contracts. 

 

		(a)	The copies of the Shipbuilding Contracts delivered to the Agent before the date of this Agreement
are true and complete copies (and include all amendments or additions to each Shipbuilding Contract made on or before the date
of this Agreement);

 

		(b)	each Shipbuilding Contract constitutes valid, binding and enforceable obligations of the relevant
Owner in accordance with its terms; and

 

		(c)	neither the Owners nor, to the best of the Borrower’s knowledge, the Builder have waived
any of their respective rights under the Shipbuilding Contracts.

 

		10.13	Compliance with certain undertakings. At the date of this Agreement, the Borrower is in
compliance with Clauses 11.2, 11.4, 11.8 and 11.12.

 

		10.14	Taxes paid. The Borrower has paid all taxes applicable to, or imposed on or in relation
to the Borrower and its business.

 

		10.15	No money laundering. Without prejudice to the generality of Clause 2.3, in relation to the
borrowing by the Borrower of the Loan, 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 the Borrower is a party,
the Borrower confirms (i) that it is acting for its own account; (ii) that it will use the proceeds of the Loan for the benefit
of the Borrower’s Group, under its full responsibility and exclusively for the purposes specified in this Agreement; and
(iii) that 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).

 

		11	GENERAL UNDERTAKINGS

 

		11.1	General. The Borrower undertakes with each Creditor Party to comply with the following provisions
of this Clause 11 at all times during the Security Period except as the Agent may, with the authorisation of the Majority Lenders,
otherwise permit.

 

		11.2	Title; negative pledge and pari passu ranking. The Borrower will:

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		(a)	hold the entire legal and beneficial interest in each Owner free from all Security Interests and
other interests and rights of every kind, except for Permitted Security Interests; and

 

		(b)	procure that its liabilities under the Finance Documents to which it is a party do and will rank
at least pari passu with all its other present and future unsecured liabilities, except for liabilities which are mandatorily preferred
by law.

 

		11.3	No disposal of assets. The Borrower will not transfer, lease or otherwise dispose of all or substantially all of its assets (including, without limitation, the share capital of the Owners), whether by one transaction or a number of transactions, whether related or not

 

		11.4	Information provided to be accurate. All financial and other information which is provided
in writing by or on behalf of the Borrower under or in connection with any Finance Document will be true and not misleading and
will not omit any material fact or consideration.

 

		11.5	Provision of financial statements. The Borrower will send to the Agent:

 

		(a)	as soon as possible, but in no event later than 180 days after the end of each Financial Year of
the Borrower (commencing with the Financial Year ended 31 December 2010), the audited consolidated accounts of the Borrower’s
Group for that Financial Year; and

 

		(b)	as soon as possible, but in no event later than 90 days after the end of each 3-month period in
each Financial Year of the Borrower ending on 31 March, 30 June, 30 September and 31 December, the unaudited consolidated accounts
of the Borrower’s Group for that 3-month period.

 

		11.6	Form of financial statements. All accounts (audited and unaudited) delivered under Clause
11.5 will:

 

		(a)	be prepared in accordance with all applicable laws and USGAAP consistently applied;

 

		(b)	give a true and fair view of the state of affairs of the Borrower’s Group at the date of
those accounts and of its profit for the period to which those accounts relate; and

 

		(c)	fully disclose or provide for all significant liabilities of the Borrower’s Group.

 

	11.7	Shareholder and creditor notices. The Borrower will send to the Agent, at
               the same time as they are despatched, copies of all material communications which are despatched to the Borrower’s
               shareholders or creditors in general (unless prohibited by law or regulation to do so) unless such communications
               are available through the internet whereupon the Borrower shall discharge its obligations under this Clause 11.7
               by directing the Agent or any Lender in this way.
	 	 
	 	In this Clause 11.7, “material communication” means any communication
               which shows that there has been a material adverse change in the financial position of the Borrower or that an
               Event of Default has occurred
	 	 
	11.8	Consents. The Borrower will maintain in force and promptly obtain or renew, and will promptly
following the Agent’s request send certified copies to the Agent of, all consents required:

 

		(a)	for the Borrower and each Owner to perform its obligations under any Finance Document to which
it is a party;

 

		(b)	for the validity or enforceability of any Finance Document to which it is a party;

 

		(c)	for each Owner to continue to own and operate the Ship owned by it,

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and the Borrower will comply
with the terms of all such consents unless a waiver in relation thereto has been obtained.

 

		11.9	Maintenance of Security Interests. The Borrower will:

 

		(a)	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

 

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

 

		11.10	Notification of litigation. The Borrower will provide the Agent with details of any legal
or administrative action involving the Borrower, any Security Party, the Approved Manager (subject to such action, in the case
of the Approved Manager, being connected to either of the Ships, their Owners, their Earnings or their Insurances) or either Ship,
her Earnings or her Insurances as soon as such action is instituted, unless it is clear that the legal or administrative action
cannot be considered material in the context of any Finance Document.

 

		11.11	No amendment to Shipbuilding Contracts or Refund Guarantees. The Borrower shall ensure that
no Owner will agree to any material amendment or supplement to, or waive or fail to enforce, either Shipbuilding Contract or either
Refund Guarantee to which it is a party or any of their respective provisions.

 

		11.12	Principal place of business. The Borrower will keep its corporate documents and records,
at the address stated at Clause 28.2(a); and the Borrower will not establish, or do anything as a result of which it would be deemed
to have, a place of business in England and Wales or the United States of America.

 

		11.13	Notification of default. The Borrower will notify the Agent as soon as the Borrower becomes
aware of the occurrence of an Event of Default which is continuing and will keep the Agent fully up-to-date with all developments
while such Event of Default is continuing.

 

		11.14	Provision of further information. The Borrower will, as soon as practicable after receiving
the request, provide the Agent with any additional financial or other information relating:

 

		(a)	to the Borrower, each Ship, her Earnings or her Insurances; or

 

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

 

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

 

		11.15	Provision of copies and translation of documents. The Borrower will supply the Agent with
a sufficient number of copies of the documents referred to above to provide 1 copy for each Creditor Party; and if the Agent so
requires in respect of any of those documents, the Borrower will provide a certified English translation prepared by a translator
approved by the Agent.

 

		11.16	“Know your customer” checks. If:

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		(a)	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;

 

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

 

		(c)	an 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 (c), any 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 Borrower 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 (c), on behalf of any new Lender) in order for the Agent, or the Lender concerned or, in the case of the
event described in paragraph (c), any 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. To the extent the Borrower can satisfy any request of the Agent or a Lender under this Clause 11.16 by referring
the Agent, or, as the case may be, the Lender concerned to its website or its filing with the U.S. Securities and Exchange Commission,
the Agent and each other Creditor Party agree that the Borrower shall have satisfied its obligations under this Clause 11.16 upon
directing such Creditor Party in this way.

 

		12	CORPORATE UNDERTAKINGS

 

		12.1	General. The Borrower also undertakes with each Creditor Party to comply with the following
provisions of this Clause 12 at all times during the Security Period except as the Agent may, with the authorisation of the Majority
Lenders, otherwise permit.

 

		12.2	Maintenance of status. The Borrower will maintain its separate corporate existence and remain
in good standing under the laws of the Marshall Islands.

 

		12.3	Negative undertakings. The Borrower will not:

 

		(a)	change the nature of its business; or

 

		(b)	pay any dividend or make any other form of distribution at any time when an Event of Default has
occurred and is continuing or will result from the payment of any dividend or the making of any other form of distribution;

 

		(c)	commence any action or procedure to effect any form of redemption, purchase or return of share
capital at any time while an Event of Default has occurred and is continuing or will result from any form of redemption, purchase
or return of share capital; or

 

		(d)	provide any form of credit or financial assistance to:

 

		(i)	a person who is directly or indirectly interested in the Borrower’s share or loan capital; or

 

		(ii)	any company in or with which such a person is directly or indirectly interested or connected

 

			or enter into any transaction with or involving such a person or company on terms which are, in
any respect, less favourable to the Borrower than those which it could obtain in a bargain made at arms’ length; or

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		(e)	enter into any form of amalgamation, merger or de-merger or any form of reconstruction or reorganisation
unless, in each case, the Borrower is the surviving entity and such action shall not result in the occurrence of an Event of Default;

 

		(f)	cause the shares of the Borrower to cease to be listed on the New York Stock Exchange unless there
is no material adverse change in the financial position of the Borrower as a result of, or following, such de-listing.

 

		12.4	Financial covenants. The Borrower shall ensure that:

 

		(a)	on each Compliance Date, the ratio of EBITDA to Net Interest Expense shall not be less than 2.5:1;
and

 

		(b)	at all times, the aggregate of all Cash and Cash Equivalents shall not be less than the higher
of:

 

		(i)	$30,000,000 (or the equivalent in any other currency); and

 

		(ii)	an amount equal to 3 per cent. of the Total Bank Debt.

 

		12.5	Compliance check. Compliance with the undertakings contained in Clause 12.4 shall be determined
by reference to:

 

		(a)	in the case of each Compliance Date falling on 30 June, the unaudited Applicable Accounts of the
Borrower’s Group for the 6-month period ending on that Compliance Date; and

 

		(b)	in the case of each Compliance Date falling on 31 December, the annual audited Applicable Accounts
of the Borrower’s Group for the Financial Year ending on that Compliance Date.

 

At the same time as it
delivers the Applicable Accounts referred to in paragraphs (a) and (b) of this Clause 12.5, the Borrower shall deliver to the Agent
a certificate in the form set out in Schedule 6 demonstrating its compliance (or not, as the case may be) with the provisions of
Clause 12.4 signed by the chief financial officer of the Borrower.

 

		12.6	Subordination of rights of Borrower. All rights which the Borrower at any time has against
any Owner or their respective assets shall be fully subordinated to the rights of the Creditor Parties under the Finance Documents;
and in particular, the Borrower shall not during the Security Period:

 

		(a)	claim, or in a bankruptcy of any Owner prove for, any amount payable to the Borrower by an Owner
in priority to the Creditor Parties; or

 

		(b)	take or enforce any Security Interest for any such amount; or

 

		(c)	claim to set-off any such amount against any amount payable by the Borrower to any Owner.

 

		12.7	Maintenance of ownership of Owners. The Borrower shall remain the direct or indirect legal
owner of the entire issued and allotted share capital of each Owner which at the relevant time is party to a Guarantee free from
any Security Interest.

 

		12.8	Hedging of interest rate risks. The Borrower may, from time to time, enter into Designated
Transactions with the Swap Bank for the purpose of hedging all or the major part of the interest rate risk under this Agreement
throughout the Security Period. The 
	

    	35

    	

    

	 	 	Borrower shall discuss with the Swap Bank any hedging strategy for the Loan and shall give
the Swap Bank a right of first refusal to quote for all hedging related services.

 

		13	INSURANCE

 

		13.1	General. The Borrower also undertakes with each Creditor Party to procure that each Owner
complies with the following provisions of this Clause 13 at all times during the Security Period (after the later of (i) the Delivery
Date of that Owner’s Ship and (ii) the Drawdown Date for the Delivery Advance in respect of that Owner’s Ship) except
as the Agent may, with the authorisation of the Majority Lenders, otherwise permit.

 

		13.2	Maintenance of obligatory insurances. The Borrower shall procure that each Owner shall keep
the Ship owned by it insured at the expense of that Owner against:

 

		(a)	fire and usual marine risks (including hull and machinery and excess risks);

 

		(b)	war risks;

 

		(c)	protection and indemnity risks (including, without limitation, pollution risks) for the full tonnage
of that Ship as an entry with a protection and indemnity association being a member of the International Group of Protection and
Indemnity Clubs; and

 

		(d)	any other risks against, or additional insurance (other than loss of hire or political risks),
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 Owner to insure or to effect and which are specified by the Security
Trustee by notice to that Owner.

 

		13.3	Terms of obligatory insurances. The Borrower shall procure that each Owner shall effect
such insurances:

 

		(a)	in Dollars;

 

		(b)	in the case of fire and usual marine risks and war risks, in an amount on an agreed value basis
at least the greater of (i) the Market Value of the Ship owned by it and (ii) an amount, which when aggregated with the amount
for which the other Ship which is subject to a Mortgage at the relevant time is insured pursuant to this Agreement, equal to 120
per cent. of the aggregate of the Loan and the Swap Exposure;

 

		(c)	in the case of oil pollution liability risks, for an aggregate amount equal to the highest level
of cover from time to time available under basic protection and indemnity club entry from a member of the International Group of
Protection and Indemnity Clubs;

 

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

 

		(e)	on approved terms (and, for the time being (and until such time as the Agent may advise otherwise),
the standard insurance terms arranged by the Approved Manager as at the date of this Agreement for vessels managed by it are considered
approved for the purpose of this Clause 13); and

 

		(f)	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, in each
case if other than the Swedish Club.

 

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

    	36

    	

    

		(a)	subject always to paragraph (b), name that Owner 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

 

		(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 Owner and every other named assured in proportion to the gross 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)	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)	unless already named as an additional assured, name the Security Trustee as 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; and

 

		(f)	provide that the Security Trustee may make proof of loss if that Owner fails to do so.

 

		13.5	Renewal of obligatory insurances. The Borrower shall procure that each Owner shall:

 

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

 

		(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 Owner 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 14 days before the expiry of any obligatory insurance effected by it, renew that obligatory
insurance in accordance with the Security Trustee’s approval pursuant to paragraph (a); and

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		(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.

 

		13.6	Copies of policies; letters of undertaking. The Borrower shall procure that each Owner shall
ensure that all approved brokers provide the Security Trustee with pro forma copies of all policies relating to the obligatory
insurances which they are to effect or renew and of a letter or letters or undertaking in a form which is customary in major marine
insurance markets.

 

		13.7	Copies of certificates of entry. The Borrower shall procure that each Owner 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 the form usually issued by such protection and indemnity
and/or war risks association; 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 that Ship.

 

		13.8	Deposit of original policies. The Borrower shall procure that each Owner shall ensure that
all policies relating to obligatory insurances effected by it are deposited with the approved brokers through which the insurances
are effected or renewed.

 

		13.9	Payment of premiums. The Borrower shall procure that each Owner shall punctually pay all
premiums or other sums payable in respect of the obligatory insurances effected by it and produce all relevant receipts when so
required by the Security Trustee unless contested in good faith so long as it does not, in the reasonable opinion of the Security
Trustee, affect the relevant obligatory insurances effected.

 

		13.10	Guarantees. The Borrower shall procure that each Owner 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. The Borrower shall procure that no Owner 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 Owner 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 Owner shall make any changes relating to the classification or classification society or manager
or operator of the Ship owned by it approved by the underwriters of the obligatory insurances;

 

		(c)	each Owner 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

    	38

    	

    

		(d)	no Owner 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. The Borrower shall procure that no Owner 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. The Borrower shall procure that no Owner 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. Following the occurrence of an Event of Default and
while the same is continuing, the Borrower shall provide the Security Trustee, at the time of each such communication, copies of
all written communications between each Owner and:

 

		(a)	the approved brokers;

 

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

 

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

 

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

 

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

 

		13.15	Provision of information. In addition, the Borrower shall procure that each Owner shall
promptly provide the Security Trustee (or any persons which it may designate) with any information which the Security Trustee (or
any such designated person) reasonably 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 the Borrower shall,
forthwith upon demand, indemnify the Security Trustee in respect of all reasonable and documented 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 insurances. The Security Trustee shall be entitled from time
to time to effect, maintain and renew a mortgagee’s interest marine insurance in respect of each Ship in an amount equal
to 110 per cent. of the aggregate of the Loan and the Swap Exposure (if, at the time of calculating the Swap Exposure an amount
would be payable by the Borrower to the Swap Bank pursuant to the Master Agreement), on such terms, through such insurers and generally
in such manner as the Security Trustee may from time to time reasonably consider appropriate and the Borrower shall upon demand
fully 
	

    	39

    	

    

	 	 	indemnify the Security Trustee in respect of all premiums and other reasonable and documented 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.

 

		14	SHIP COVENANTS

 

		14.1	General. The Borrower also undertakes with each Creditor Party to procure that each Owner
complies with the following provisions of this Clause 14 at all times during the Security Period (after the later of (i) the Delivery
Date of that Owner’s Ship and (ii) the Drawdown Date for the Delivery Advance in respect of that Owner’s Ship) except
as the Agent, with the authorisation of the Majority Lenders, may otherwise permit.

 

		14.2	Ship’s name and registration. The Borrower shall procure that each Owner shall keep
the Ship owned by it registered in its name under an Approved Flag; shall not do, omit to do or allow to be done anything as a
result of which such registration might be cancelled or imperilled.

 

		14.3	Repair and classification. The Borrower shall procure that each Owner shall keep the Ship
owned by it in a good and safe condition and state of repair:

 

		(a)	so as to maintain the highest classification available for vessels the same type, age and specification
as the relevant Ship with a classification society acceptable to the Security Trustee free of overdue recommendations and conditions
affecting that Ship’s class (and the Agent confirms that the classification of “+100A5, Container Ship, DG, IW, BWM,
RSD, +MC AUT, NAV-O, EP” with Germanischer Lloyd to be maintained by each Ship on its Delivery Date is accepted by it for
the purposes of this Clause 14.3(a)); and

 

		(b)	so as to comply with all laws and regulations applicable to vessels registered at ports in the
applicable Approved Flag State or to vessels trading to any jurisdiction to which that Ship may trade from time to time, including
but not limited to the ISM Code and the ISPS Code unless a waiver has been obtained by the relevant Owner.

 

		14.4	Classification society undertaking. Following the occurrence of an Event of Default and
while the same is continuing, the Borrower shall, following a written request from the Agent, procure that each Owner shall instruct
the classification society referred to in Clause 14.3 (and will use reasonable endeavours to 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 the Ship owned by it;

 

		(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 Owner and that Ship at the offices of the classification society and to take copies
of them;

 

		(c)	to notify the Security Trustee immediately in writing if the classification society:

 

		(i)	receives notification from that Owner or any person that that Ship’s classification society
is to be changed; or

 

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

 

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

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		(i)	to confirm that that 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

 

		(ii)	if that Owner 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. The Borrower shall procure that no Owner shall make any modification or repairs
to, or replacement of, the Ship owned by it or equipment installed on it which would materially and adversely alter the structure,
type or performance characteristics of that Ship or materially reduce its value.

 

		14.6	Removal of parts. The Borrower shall procure that no Owner shall remove any material part
of the Ship owned by it, or any item of equipment installed on, the Ship unless the part or item so removed is replaced in a timely
manner by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free
from any Security Interest or any right in favour of any person other than the Security Trustee and, if it was the property of
the relevant Owner prior to its removal, becomes on installation on the relevant Ship the property of the relevant Owner and subject
to the security constituted by the relevant Mortgage and/or the relevant Deed of Covenant Provided that an Owner may install
equipment owned by a third party if the equipment can be removed without any risk of damage to the Ship owned by it and provided
further that an Owner can remove obsolete equipment or equipment no longer required to ensure compliance with the rules and regulations
of the classification society of that Ship.

 

		14.7	Surveys. The Borrower shall procure that each Owner shall submit the Ship owned by it to
all periodical or other surveys which may be required for classification purposes (but, which for the avoidance of doubt, shall
not restrict an Owner asking for, and obtaining, an extension of a survey wherever it considers appropriate to do so) and, if so
required by the Security Trustee provide the Security Trustee, with copies of all survey reports.

 

		14.8	Inspection. The Borrower shall procure that each Owner shall permit the Security Trustee
(by surveyors or other persons appointed by it for that purpose) to board the Ship owned by it at all reasonable times upon provision
of timely advance notice to inspect its condition or to satisfy themselves about proposed or executed repairs and shall afford
all proper facilities for such inspections.

 

		14.9	Prevention of and release from arrest. The Borrower shall procure that each Owner shall
discharge within 10 Business Days 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 and, forthwith upon receiving notice of the arrest of the Ship owned
by it, or of its detention in exercise or purported exercise of any lien or claim, that Owner shall procure its release within
5 Business Days of the date of receipt of such notice of the arrest or detention of the Ship owned by it by providing bail or otherwise
as the circumstances may require.

 

		14.10	Compliance with laws etc. The Borrower shall procure that each Owner shall:

 

		(a)	comply, or procure compliance with the ISM Code, the ISPS Code, all Environmental Laws and all
other laws or regulations relating to the Ship owned by it, its ownership, operation and management or to the business of that
Owner unless a waiver in relation thereto has been obtained by the relevant Owner;

 

		(b)	not employ the Ship owned by it nor allow its employment in any manner contrary to any law or regulation
in any relevant jurisdiction including but not limited to the ISM Code 

    	41

    	

    

	 	 	and the ISPS Code unless a waiver in relation thereto has
been obtained by the relevant Owner; 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 the Ship’s
war risks insurers unless that Owner has (at its expense) effected any special, additional or modified insurance cover which the
relevant Ship’s underwriters may require.

 

		14.11	Provision of information. The Borrower shall procure that each Owner shall promptly provide
the Security Trustee with any information which it reasonably requests regarding:

 

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

 

		(b)	the Earnings and payments and amounts due to the master and crew of the Ship owned by it;

 

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

 

		(d)	any towages and salvages; and

 

		(e)	its compliance, the Approved Manager’s compliance and the compliance of the Ship owned by
it, in each case with the ISM Code and the ISPS Code as regards the relevant Ship,

 

and, upon the Security
Trustee’s request, provide copies of any current charter relating to the Ship owned by it, of any current charter guarantee
and copies of the Owner’s or the Approved Manager’s Document of Compliance.

 

		14.12	Notification of certain events. The Borrower shall procure that each Owner shall immediately
notify the Security Trustee by fax of:

 

		(a)	any casualty which is 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 recommendation made by any insurer or classification society or by any competent
authority which is not complied with in accordance with its terms;

 

		(d)	any arrest or detention of the Ship owned by it, any exercise or purported exercise of any lien
on that Ship or its Earnings or any requisition of that Ship for hire unless in the case of an arrest or detention or the exercise
or purported exercise of any lien, the Borrower has, within 5 Business Days from the occurrence of the relevant event, discharged
the arrest, detention or lien;

 

		(e)	any intended dry docking of the Ship owned by it which is expected to last at least 30 days;

 

		(f)	any Environmental Claim for an amount exceeding $2,000,000 (or the equivalent in any other currency)
made against that Owner or in connection with the Ship owned by it, or any Environmental Incident which may or is likely to result
in an Environmental Claim for an amount exceeding $2,000,000 (or the equivalent in any other currency);

 

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

    	42

    	

    

	 	 	result in the withdrawal of the Safety Management Certificate,
the Document of Compliance or the ISSC applicable to that Ship, the relevant Owner or, as the case may be, the Approved Manager;
or

 

		(h)	any other matter, event or incident, actual or threatened, the effect of which will or could lead
to the withdrawal of the Safety Management Certificate, the Document of Compliance or the ISSC applicable to any Ship, an Owner
or, as the case may be, the Approved Manager,

 

and that Owner shall keep
the Security Trustee advised in writing on a regular basis and in such detail as the Security Trustee shall reasonably require
of that Owner’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. The Borrower shall procure that
no Owner shall, in relation to the Ship owned by it:

 

		(a)	let that Ship on demise charter for any period;

 

		(b)	enter into any time or consecutive voyage charter in respect of that Ship for a term which exceeds, or which by virtue of any optional extensions may exceed, 13 months;

 

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

 

		(d)	charter that Ship otherwise than on bona fide arm’s length terms;

 

		(e)	appoint a manager of that Ship other than an Approved Manager; or

 

		(f)	de-activate or lay up that Ship if the Ship is scheduled to be de-activated or laid up for a period exceeding 6 months unless the de-activation or lay-up is being made at the request of the charterer of the Ship and the charterer shall continue performing its obligations under the relevant charter during the de-activation or lay-up period; or 

 

		(g)	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 $2,000,000 (or the equivalent in any other currency) unless that person has (i) first given to the Security Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on that Ship or its Earnings for the cost of such work or for any other reason or (ii) entered into an agreement with the relevant Owner pursuant to which that person agrees that the Ship may depart the relevant shipyard or repair yard in consideration of a payment of part, but not all, of the costs of the relevant work.

 

		14.14	Notice of Mortgage. The Borrower shall procure that each Owner shall keep the relevant Mortgage
registered against the Ship owned by it as a valid first priority or preferred mortgage, carry on board that Ship a certified copy
of the relevant 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 that Ship is mortgaged by that Owner to the Security Trustee.

 

		14.15	Sharing of Earnings. The Borrower shall procure that no Owner enter into any agreement or
arrangement for the sharing of any Earnings.

 

		15	SECURITY COVER

 

		15.1	Minimum required security cover. Clause 15.2 applies if the Agent notifies the Borrower
that:

 

		(a)	the Market Value of a Ship subject to a Mortgage at the relevant time; plus

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		(b)	the net realisable value of any additional security previously provided under this Clause 15 (and
such additional security shall be attributed to the Tranche to which this Clause 15.1 applies at the relevant time unless at that
time this Clause 15.1 applies to both Tranches in which case the market value of such additional security (as determined pursuant
to Clause 15.5) shall be allocated equally between the two Tranches),

 

is below 120 per cent.
of the aggregate of the Tranche applicable to that Ship (i) minus the Relevant Percentage of the Swap Exposure, if an amount would
be owing to the Borrower by the Swap Bank pursuant to the terms of the Master Agreement when such Swap Exposure is calculated or
(ii) plus the Relevant Percentage of the Swap Exposure, if an amount would be owing by the Borrower to the Swap Bank pursuant to
the terms of the Master Agreement when such Swap Exposure is calculated Provided that this Clause 15.1 shall apply, in respect
of a Tranche and the Ship financed by that Tranche, after that Ship has been delivered to its Owner and then only during
any period when the Ship is for more than 60 consecutive days not
subject to, and operating under, an Approved Charter.

 

		15.2	Provision of additional security; prepayment. If the Agent serves a notice on the Borrower
under Clause 15.1, the Borrower shall prepay such part (at least) of the relevant Tranche as will eliminate the shortfall on or
before the date falling 1 month after the date on which the Agent’s notice is served under Clause 15.1 (the “Prepayment
Date”) unless at least 1 Business Day before the Prepayment Date it has provided, or ensured that a third party has
provided, additional security which, in the opinion of the Agent, has a market value (which shall be determined in accordance with
Clause 15.5) at least equal to the shortfall and which has been documented in such terms as the Agent may approve or require.

 

		15.3	Valuation of Ships. The Market Value of a Ship at any date is that shown by taking the arithmetic
mean of two valuations each prepared:

 

		(a)	as at a date not more than 30 days previously;

 

		(b)	by an Approved Shipbroker appointed by the Borrower (subject to such valuation being addressed
to the Agent);

 

		(c)	with or without physical inspection of the Ship (as the Agent may require); and

 

		(d)	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms
as between a willing seller and a willing buyer, free of any existing charter or other contract of employment,

 

Provided that if
such two valuations differ by more than 10 per cent., then the Agent will obtain a third valuation from an Approved Shipbroker
which the Borrower has appointed for this purpose, to be prepared in accordance with paragraphs (a) to (d) of this Clause 15.3
and the Market Value of the relevant Ship will be the arithmetic mean of all three such valuations.

 

		15.4	Frequency of valuations. The Borrower acknowledges and agrees that the Agent may commission
valuations of either Ship 60 days after the expiration of an Approved Charter relative to that Ship and for so long as such Ship is not subject to any Approved Charter at such other times during such period as the Agent shall deem necessary
but in any event not more than twice during each 12-month period of the Security Period when either Ship is not subject to an Approved Charter.

 

		15.5	Value of additional security. The market value of any additional security which is provided
under Clause 15.2 shall be as follows:

 

		(a)	if it consists of a Security Interest over a vessel, shall be that shown by a valuation complying
with the requirements of Clause 15.3 but if such vessel is, on the date of its 
	

    	44

    	

    

	 	 	valuation, subject to a charter having an unexpired
duration of at least 12 months with a charterer acceptable to the Agent, the valuation shall be adjusted to take account of that
charter;

 

		(b)	if it consists of a Security Interest over a Dollar cash deposit, shall be that of the amount standing
to the credit of the relevant account at that time on a “Dollar for Dollar” basis; and

 

		(c)	if it consists of a Security Interest over any other asset, shall be that reasonably determined
by the Agent.

 

		15.6	Valuations binding. Any valuation under Clause 15.3 or 15.5 shall be binding and conclusive
as regards the Borrower, as shall be any valuation which the Agent reasonably makes of any additional security.

 

		15.7	Provision of information. The Borrower shall promptly provide the Agent and any shipbroker
or expert acting under Clauses 15.3 or 15.5 with any information which the Agent or the shipbroker or expert may request for the
purposes of the valuation; and, if the Borrower fails to provide the information by the date specified in the request, the valuation
may be made on any basis and assumptions which the shipbroker or the Majority Lenders (or the expert appointed by them) consider
prudent.

 

		15.8	Payment of valuation expenses. Without prejudice to the generality of the Borrower’s
obligations under Clauses 20.2, 20.3 and 21.3, the Borrower shall, on demand, pay the Agent the amount of the reasonable and documented
fees and expenses of any shipbroker or expert instructed by the Agent under this Clause (provided that no more than one set of
valuations of each Ship in each calendar year shall be payable by the Borrower unless an Event of Default has occurred which is
continuing in which case the Borrower shall be liable to pay for all valuations that take place during the period such Event of
Default is continuing) and all legal and other expenses incurred by any Creditor Party in connection with any matter arising out
of this Clause.

 

		15.9	Application of prepayment. Clause 8 shall apply in relation to any prepayment pursuant to
Clause 15.2.

 

		15.10	Release of additional security. If the amounts calculated under Clause 15.1 in respect of
a Ship or the Tranche applicable to it shall at any time exceed the minimum required Individual Asset Cover Ratio for that Ship
and Tranche, and the Borrower shall previously have provided further security pursuant to this Clause 15, the Agent, after receiving
a notice from the Borrower to do so (such notice to include evidence satisfactory to the Agent that the relevant Individual Asset
Cover Ratio specified in Clause 15.1 has been maintained for a period of 30 consecutive days (or a shorter period as the Agent
may in its discretion accept) prior to such notice (without taking account of the additional security whose release the Borrower
is requesting pursuant to this Clause 15.10)) will, subject to being indemnified to its satisfaction against the cost of doing
so, release any such further security specified by the Borrower to the extent that the minimum required Individual Asset Cover
Ratio specified in Clause 15.1 for the relevant Ship and Tranche would be maintained following such release Provided that
at the relevant time no Event of Default is in existence or will result from such release.

 

		16	PAYMENTS AND CALCULATIONS

 

		16.1	Currency and method of payments. All payments to be made by the Lenders or by the Borrower
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;

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		(b)	in same day Dollar funds settled through the New York Clearing House Interbank Payments System
(or in such other Dollar funds and/or settled in such other manner as the Agent shall specify as being customary at the time for
the settlement of international transactions of the type contemplated by this Agreement);

 

		(c)	in the case of an amount payable by a Lender to the Agent or by the Borrower to the Agent or any
Lender, to the account of the Agent at JP Morgan Chase Bank, New York, N.Y., U.S.A. (SWIFT Code: CHAS US33; Account No. 001-1-938123)
with reference “Costamare Inc. – US$140m facility”, or to such other account with such other bank as the Agent
may from time to time notify to the Borrower 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 Borrower and the other Creditor Parties.

 

		16.2	Payment on non-Business Day. If any payment by the Borrower under a Finance Document would
otherwise fall due on a day which is not a Business Day:

 

		(a)	the due date shall be extended to the next succeeding Business Day; or

 

		(b)	if the next succeeding Business Day falls in the next calendar month, the due date shall be brought
forward to the immediately preceding Business Day,

 

and interest shall be payable
during any extension under paragraph (a) at the rate payable on the original due date.

 

		16.3	Basis for calculation of periodic payments. All interest and 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.

 

		16.4	Distribution of payments to Creditor Parties. Subject to Clauses 16.5, 16.6 and 16.7:

 

		(a)	any amount received by the Agent under a Finance Document for distribution or remittance to a Lender
or the Security Trustee shall be made available by the Agent to that Lender or, as the case may be, the Security Trustee by payment,
with funds having the same value as the funds received, to such account as the Lender or the Security Trustee may have notified
to the Agent not less than 5 Business Days previously; and

 

		(b)	amounts to be applied in satisfying amounts of a particular category which are due to the Lenders
generally shall be distributed by the Agent to each Lender pro rata to the amount in that category which is due to it.

 

		16.5	Permitted deductions by Agent. Notwithstanding any other provision of this Agreement or
any other Finance Document, the Agent may, before making an amount available to a Lender, deduct and withhold from that amount
any sum which is then due and payable to the Agent from that Lender under any Finance Document or any sum which the Agent is then
entitled under any Finance Document to require that Lender to pay on demand.

 

		16.6	Agent only obliged to pay when monies received. Notwithstanding any other provision of this
Agreement or any other Finance Document, the Agent shall not be obliged to make available to the Borrower or any Lender any sum
which the Agent is expecting to receive for remittance or distribution to the Borrower or that Lender until the Agent has satisfied
itself that it has received that sum.

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		16.7	Refund
                                         to Agent of monies not received. If and to the extent that the Agent makes available
                                         a sum to the Borrower or a Lender, without first having received that sum, the Borrower
                                         or (as the case may be) the Lender concerned shall, on demand:

 

		(a)	refund
                                         the sum in full to the Agent; and

 

		(b)	pay
                                         to the Agent the amount (as certified by the Agent) which will indemnify the Agent against
                                         any funding or other loss, liability or expense incurred by the Agent as a result of
                                         making the sum available before receiving it.

 

		16.8	Agent
                                         may assume receipt. Clause 16.7 shall not affect any claim which the Agent has under
                                         the law of restitution, and applies irrespective of whether the Agent had any form of
                                         notice that it had not received the sum which it made available.

 

		16.9	Creditor
                                         Party accounts. Each Creditor Party shall maintain accounts showing the amounts owing
                                         to it by the Borrower and each Security Party under the Finance Documents and all payments
                                         in respect of those amounts made by the Borrower and any Security Party.

 

		16.10	Agent’s
                                         memorandum account. The Agent shall maintain a memorandum account showing the amounts
                                         advanced by the Lenders and all other sums owing to the Agent, the Security Trustee and
                                         each Lender from the Borrower and each Security Party under the Finance Documents and
                                         all payments in respect of those amounts made by the Borrower and any Security Party.

 

		16.11	Accounts
                                         prima facie evidence. If any accounts maintained under Clauses 16.9 and 16.10 show
                                         an amount to be owing by the Borrower or a Security Party to a Creditor Party, those
                                         accounts shall be prima facie evidence that that amount is owing to that Creditor Party.

 

		17	APPLICATION
                                         OF RECEIPTS

 

		17.1	Normal
                                         order of application. Except as any Finance Document may otherwise provide, any sums
                                         which are received or recovered by any Creditor Party under or by virtue of any Finance
                                         Document shall be applied:

 

		(a)	FIRST:
                                         in or towards satisfaction of any amounts then due and payable under the Finance Documents
                                         and the Master Agreement 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 Borrower
                                         under Clauses 20, 21 and 22 of this Agreement or by the Borrower or any Security Party
                                         under any corresponding or similar provision in any other Finance Document or in the
                                         Master Agreement);

 

		(ii)	secondly,
                                         in or towards satisfaction pro rata of any and all amounts of interest or default interest
                                         payable to the Creditor Parties under the Finance Documents and the Master Agreement
                                         (and, for this purpose, the expression “interest” shall include any
                                         net amount which the Borrower shall have become liable to pay or deliver under section
                                         2(e) (Obligations) of the Master Agreement but shall have failed to pay or deliver to
                                         the Swap Bank at the time of application or distribution under this Clause 17); and

 

		(iii)	thirdly,
                                         in or towards satisfaction pro rata of the Loan and, if a sum is payable by the Borrower
                                         to the Swap Bank, the Swap Exposure (in the case of the latter, calculated as at the actual Early
Termination Date applying to each particular Designated Transaction, or if no such Early Termination Date shall have

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occurred, calculated
as if an Early Termination Date occurred on the date of application or distribution hereunder);

 

		(b)	SECONDLY:
                                         (if an Event of Default has occurred and is continuing at the time any sums received
                                         or recovered are being applied in accordance with this Clause 17.1) in retention of an
                                         amount equal to any amount not then due and payable under any Finance Document or the
                                         Master Agreement but which the Agent, by notice to the Borrower, the Security Parties
                                         and the other Creditor Parties, states in its opinion will or may become due and payable
                                         in the future and, upon those amounts becoming due and payable, in or towards satisfaction
                                         of them in accordance with the provisions of Clause 17.1(a); and

 

		(c)	THIRDLY:
                                         any surplus shall be paid to the Borrower or to any other person appearing to be entitled
                                         to it.

 

		17.2	Variation
                                         of order of application. The Agent may, with the authorisation of all the Lenders
                                         and the Swap Bank, by notice to the Borrower, the Security Parties and the other Creditor
                                         Parties provide for a different manner of application from that set out in Clause 17.1
                                         either as regards a specified sum or sums or as regards sums in a specified category
                                         or categories.

 

		17.3	Notice
                                         of variation of order of application. The Agent may give notices under Clause 17.1(a)
                                         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
                                         and which have not yet been applied.

 

		17.4	Appropriation
                                         rights overridden. This Clause 17 and any notice which the Agent gives under Clause
                                         17.1(a) shall override any right of appropriation possessed, and any appropriation made,
                                         by the Borrower or any Security Party.

 

		18	APPLICATION
                                         OF EARNINGS

 

		18.1	Payment
                                         of Earnings. The Borrower undertakes with each Creditor Party to ensure that, throughout
                                         the Security Period (and subject only to the provisions of the General Assignments),
                                         all the Earnings of each Ship are paid to the Earnings Account for that Ship.

 

		18.2	Monthly
                                         retentions. The Borrower undertakes with each Creditor Party to ensure that, in each
                                         calendar month of the Security Period after the relevant Ship has been delivered to its
                                         Owner under the relevant Shipbuilding Contract, on such dates as the Agent may from time
                                         to time specify, there is paid to the Retention Account:

 

		(a)	one-sixth
                                         of the amount of the Six-monthly Instalment in respect of the Tranche which was used
                                         to finance the relevant Ship falling due under Clause 8 on the next Repayment Date; and

 

	(b)	the
relevant fraction of the aggregate amount of interest on that Tranche which is payable on the next due date for payment of interest
in respect of that Tranche under this Agreement.
	 	 
	 	In this Clause 18.2, the
                                                                “relevant fraction”, in relation to paragraph (b), is a fraction of which the numerator is 1 and the
                                                                denominator the number of months comprised in the then current Interest Period for the relevant Tranche (or, if the current
                                                                Interest Period ends after the next due date for payment of interest under this Agreement for the relevant Tranche, the
                                                                number of months from the later of the commencement of the current Interest Period for the relevant Tranche or the last due
                                                                date for payment of interest for that Tranche to the next due date for payment of interest for that Tranche under this
                                                                Agreement).

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		18.3	Application
                                         of retentions. Until an Event of Default occurs and whilst it is continuing, the Agent
                                         shall on each Repayment Date and on each due date for the payment of interest under this
                                         Agreement distribute to the Lenders in accordance with Clause 16.4 so much of the then
                                         balance on the Retention Account as equals:

 

		(a)	the
                                         Six-monthly Instalment due on that Repayment Date; or

 

		(b)	the
                                         amount of interest payable on that interest payment date,

 

in discharge of the
Borrower’s liability for that Six-monthly Instalment or that interest.

 

		18.4	Interest
                                         accrued on Accounts. Any credit balance on an Account shall bear interest at the
                                         rate from time to time offered by the Agent to its customers for Dollar deposits of similar
                                         amounts and for periods similar to those for which such balances appear to the Agent
                                         likely to remain on that Account.

 

		18.5	No
                                         release of accrued interest. Interest accruing under Clause 18.4 shall be credited
                                         to the Retention Account and shall, immediately after the satisfaction by the Borrower
                                         of its payment obligations pursuant to Clauses 5 and 8 on each Repayment Date, be transferred
                                         on a pro rata basis to each Earnings Account.

 

		18.6	Location
                                         of accounts. The Borrower shall procure that each Owner shall promptly:

 

		(a)	comply
                                         with any reasonable requirement of the Agent as to the location or re-location of the
                                         Earnings Accounts (or either of them); and

 

		(b)	execute
                                         any documents which the Agent specifies to create or maintain in favour of the Security
                                         Trustee a Security Interest over (and/or rights of set-off, consolidation or other rights
                                         in relation to) the Earnings Accounts.

 

		18.7	Earnings
                                         Account: withdrawals. Unless and until an Event of Default shall occur which is continuing
                                         and the Agent shall direct to the contrary, each Owner shall freely withdraw moneys from
                                         its Earnings Account Provided that if an Owner wishes to make a withdrawal during
                                         either of the grace periods referred to in Clause 19.1(a), it may only make such withdrawal
                                         with the prior written consent of the Agent unless during such grace period the relevant
                                         payment referred to in Clause 19.1(a) has been made rendering such grace period redundant.

 

		18.8	Account
                                         terms. Each Owner shall, unless and until an Event of Default shall occur and be
                                         continuing and the Agent shall direct to the contrary, be entitled from time to time
                                         to require that moneys for the time being standing to the credit of the Earnings Accounts
                                         be transferred in such amounts and for such periods as the relevant Owner selects to
                                         fixed-term deposit accounts (“deposit accounts”) opened in the name of such
                                         Owner with the Agent. Each Owner shall not be entitled to withdraw moneys standing to
                                         the credit of its Earnings Account which is the subject of a fixed term deposit until
                                         the expiry of the period of such deposit unless such Owner shall, on withdrawing such
                                         moneys pay to the Agent on demand any loss or expense which the Agent shall certify that
                                         it has sustained or incurred as a result of such withdrawal being made prior to the expiry
                                         of the period of the relevant deposit and the Agent shall be entitled to debit the relevant
                                         Earnings Account for the amount so certified prior to such withdrawal being made. Any
                                         deposit accounts shall, for all the purposes of the Finance Documents, be deemed to be
                                         sub-accounts of the Earnings Account from which the moneys deposited in the deposit accounts
                                         were transferred and all references in the Security Documents to the Earnings Account
                                         shall be deemed to include the deposit accounts deemed as aforesaid to be sub-accounts
                                         thereof.

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		19	EVENTS
                                         OF DEFAULT

 

		19.1	Events
                                         of Default. An Event of Default occurs if:

 

		(a)	the
                                         Borrower or any Security Party fails to pay any sum payable under a Finance Document
                                         when due or, in the case of any sum expressed to be payable on demand, within 3 Business
                                         Days of the Agent’s written demand, unless such failure to pay is caused by an
                                         administrative error in the banking system and payment of the relevant sum is made within
                                         5 days of its due date; or

 

		(b)	any
                                         breach occurs of Clause 9.2, 11.2, 11.3, 12.2, 12.3, 12.4, 13.7 or 15.2; or

 

		(c)	any
                                         breach by the Borrower or any Security Party occurs of any provision of a Finance Document
                                         (other than a breach covered by paragraphs (a) or (b)) which, in the opinion of the Majority
                                         Lenders, is capable of remedy, and such default continues unremedied 15 days after written
                                         notice from the Agent requesting action to remedy the same; or

 

		(d)	(subject
                                         to any applicable grace period specified in the Finance Document) any breach by the Borrower
                                         or any Security Party occurs of any provision of a Finance Document (other than a breach
                                         falling within paragraphs (a), (b) or (c)); or

 

		(e)	any
                                         representation, warranty or statement made or repeated by, or by an officer of, the Borrower
                                         or a 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 and the effect of which will be adverse to the Security Interests created pursuant
                                         to the Finance Documents or will have a material adverse effect on the performance of the
                                         obligations undertaken by the Borrower and the other Security Parties pursuant to this
                                         Agreement, the Master Agreement or any of the other Finance Documents; or

 

		(f)	any
                                         of the following occurs in relation to any Financial Indebtedness of a Relevant Person
                                         which, in the case of the Borrower, exceeds $3,000,000 (or the equivalent in any other
                                         currency) and, in the case of either Owner, exceeds (only with respect to any Financial
                                         Indebtedness arising under any hire purchase agreement or under a guarantee) $1,000,000
                                         (or the equivalent in any other currency) or, as regards Financial Indebtedness arising
                                         under different documents or transactions, an aggregate amount of $3,000,000 (or the
                                         equivalent in any other currency) or more):

 

		(i)	any
                                         Financial Indebtedness of a Relevant Person is not paid when due (after taking into account
                                         any applicable grace periods); or

 

		(ii)	any
                                         Financial Indebtedness of a Relevant Person is declared due and payable prior to its
                                         stated maturity date as a consequence of any event of default; or

 

		(iii)	a
                                         lease, hire purchase agreement or charter (other than an Initial Approved Charter) creating
                                         any Financial Indebtedness of a Relevant Person is terminated by the lessor or owner as
                                         a consequence of any termination event; or

 

		(iv)	any long-term loan and/or guarantee facility (which is to be used in financing one or more ships or newbuildings) relating to any Financial Indebtedness of a Relevant Person becomes capable of being terminated as a result of any event of default, or cash cover is required (and is not provided in accordance with its terms) in respect of such a facility as a result of any event of default; or

 

		(v)	any
                                         Security Interest securing any Financial Indebtedness of a Relevant Person becomes enforceable
                                         and such enforcement is not cancelled, terminated, withdrawn or suspended within 30 days
                                         of being commenced; or

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

 

		(i)	a Relevant Person becomes unable to pay its debts as they fall due; or

 

		(ii)	any
                                         assets of a Relevant Person are subject to any form of execution, attachment, arrest,
                                         sequestration or distress in respect of a sum of, or sums aggregating, $2,000,000 or
                                         more or the equivalent in another currency; or

 

		(iii)	any
                                         administrative or other receiver is appointed over all or a substantial part of the assets
                                         of a Relevant Person; or

 

		(iv)	an
                                         administrator is appointed (whether by the court or otherwise) in respect of a Relevant
                                         Person; or

 

		(v)	any
                                         formal declaration of bankruptcy or any formal statement to the effect that a Relevant
                                         Person is insolvent is made by a Relevant Person or by the directors of a Relevant Person
                                         or, in any proceedings, by a lawyer acting for a Relevant Person; or

 

		(vi)	a
                                         provisional liquidator is appointed in respect of a Relevant Person, a winding up order
                                         is made in relation to a Relevant Person or a winding up resolution is passed by a Relevant
                                         Person; or

 

		(vii)	a
                                         resolution is passed, an administration notice is given or filed, an application or petition
                                         to a court is made or presented or any other step is taken by (aa) a Relevant Person,
                                         (bb) the members or directors of a Relevant Person, (cc) a holder of Security Interests
                                         which together relate to all or substantially all of the assets of a Relevant Person,
                                         or (dd) a government minister or public or regulatory authority of a Pertinent Jurisdiction
                                         for or with a view to the winding up of that or another Relevant Person or the appointment
                                         of a provisional liquidator or administrator in respect of that or another Relevant Person,
                                         or that or another Relevant Person ceasing or suspending business operations or payments
                                         to creditors, save that this paragraph does not apply to a fully solvent winding up of
                                         a Relevant Person other than the Borrower or an Owner which is, or is to be, effected
                                         for the purposes of an amalgamation or reconstruction previously approved by the Majority
                                         Lenders and effected not later than 3 months after the commencement of the winding up
                                         and save further that the provisions of this Clause 19.1(g)(vii) do not apply in the
                                         cases of paragraphs (cc) and (dd) if the proposed winding up, appointment of a provisional
                                         liquidator or administration is being contested in good faith, on substantial grounds
                                         and not with a view to some other insolvency law procedure being implemented instead
                                         and either (aa) the application or petition is dismissed or withdrawn within 60 days
                                         of it being made or presented, or (bb) within 60 days of the administration notice being
                                         given or filed, or other relevant steps are being taken or other action is taken which
                                         will ensure that there will be no administration and (in both cases (aa) or (bb)) the
                                         Security Party will continue to carry on its business in the ordinary course and without
                                         being the subject of any actual, interim or pending insolvency law procedure; or

 

		(viii)	an
                                         administration notice is given or filed, an application or petition to a court is made
                                         or presented or any other step is taken by a creditor of a Relevant Person (other than
                                         a holder of Security Interests which together relate to all or substantially all of the
                                         assets of a Relevant Person) for the winding up of a Relevant Person or the appointment
                                         of a provisional liquidator or administrator in respect of a Relevant Person in any Pertinent
                                         Jurisdiction, unless the proposed winding up, appointment of a provisional liquidator
                                         or administration is being contested in good faith, on substantial
grounds and not with a view to some other insolvency law procedure being implemented instead and either (aa) the

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application
or petition is dismissed or withdrawn within 60 days of being made or presented, or (bb) within 60 days of the administration
notice being given or filed, or the other relevant steps being taken, other action is taken which will ensure that there will
be no administration and (in both cases (aa) or (bb)) the Relevant Person will continue to carry on business in the ordinary way
and without being the subject of any actual, interim or pending insolvency law procedure; or

 

		(ix)	a Relevant Person or its directors take any steps (whether by making or presenting an application or petition to a court, or submitting or presenting a document setting out a proposal or proposed terms, or otherwise) with a view to obtaining, in relation to that or another Relevant Person, any form of moratorium, suspension or deferral of payments, reorganisation of debt (or certain debt) or arrangement with all or a substantial proportion (by number or value) of creditors or of any class of them or any such moratorium, suspension or deferral of payments, reorganisation or arrangement is effected by court order, by the filing of documents with a court, by means of a contract or in any other way at all; or

 

		(x)	in
                                         a Pertinent Jurisdiction other than England, any event occurs, any proceedings are opened
                                         or commenced or any step is taken which, in the reasonable opinion of the Majority Lenders
                                         (having previously received advice of counsel) is similar to any of the foregoing; or

 

		(h)	the
                                         Borrower ceases or suspends carrying on its business or a part of its business which,
                                         in the reasonable opinion of the Majority Lenders, is material in the context of this
                                         Agreement; or

 

		(i)	it
                                         becomes unlawful in any Pertinent Jurisdiction or impossible:

 

		(i)	for
                                         the Borrower or 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; or

 

		(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,

 

unless the
Majority Lenders are satisfied that through the implementation of alternative arrangements satisfactory to the Majority Lenders
the unlawfulness or impossibility will be overcome or rectified within a period of 20 days without jeopardising in any way the
position of the Creditor Parties under this Agreement, the Master Agreement or any of the other Finance Documents or the Security
Interests created pursuant to the Finance Documents; or

 

		(j)	any
                                         official consent necessary to enable any Owner to own, operate or charter the Ship owned
                                         by it or to enable any Owner or any Security Party to comply with any provision which
                                         the Majority Lenders reasonably consider material of a Finance Document or a Shipbuilding
                                         Contract is not granted, expires without being renewed, is revoked or becomes liable
                                         to revocation or any condition of such a consent is not fulfilled unless the Owner or
                                         other relevant Security Party has obtained a waiver thereof from the relevant authorities;
                                         or

 

		(k)	if,
                                         without the prior consent of the Majority Lenders, members of the Konstantakopoulos Family
                                         own and control less than 40 per cent. of the issued share capital of the Borrower; or

 

		(l)	without
                                         the prior consent of the Majority Lenders, the direct legal ownership of any of the shares
                                         in either Owner has changed from that approved by the Agent on the date of this Agreement;

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		(m)	any
                                         provision which the Majority Lenders reasonably consider material of a Finance Document
                                         proves to have been or becomes invalid or unenforceable, or a Security Interest created
                                         by a Finance Document proves to have been or becomes invalid or unenforceable or such
                                         a Security Interest proves to have ranked after, or loses its priority to, another Security
                                         Interest or any other third party claim or interest; or

 

		(n)	the
                                         security constituted by a Finance Document is in any way imperilled or in jeopardy; or

 

		(o)	whilst a Designated Transaction is outstanding, the Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in full force and effect for any reason except with the consent of the Agent, acting with the authorisation of the Majority Lenders; or

 

		(p)	whilst a Designated Transaction is outstanding, the Borrower fails to satisfy in a timely manner any payment obligation imposed upon it pursuant to the Master Agreement as a consequence of the occurrence of an Event of Default (as defined in Section 14 of the Master Agreement); or

 

		(q)	any other event occurs or any other circumstances arise or develop including, without limitation, a material
adverse change in the financial position of any Relevant Person in the light of which the Majority Lenders reasonably consider
that there is a significant risk that the Borrower or any Security Party is, or will later become, unable to discharge its liabilities
under the Finance Documents as they fall due.

 

		19.2	Actions
                                         following an Event of Default. On, or at any time after, the occurrence of an Event
                                         of Default and while the same is continuing:

 

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

 

		(i)	serve
                                         on the Borrower a notice stating that the Commitments and all other obligations of each
                                         Lender to the Borrower under this Agreement are cancelled; and/or

 

		(ii)	serve
                                         on the Borrower a notice stating that the Loan, all accrued interest and all other amounts
                                         accrued or owing under this Agreement are immediately due and payable or are due and
                                         payable on demand; and/or

 

		(iii)	take
                                         any other action which, as a result of the Event of Default or any notice served under
                                         paragraph (i) or (ii), the Agent and/or the Lenders are entitled to take under any Finance
                                         Document or any applicable law and the Agent may, without being instructed by the Majority
                                         Lenders, take any action (other than that referred to in paragraphs (i) and (ii)) which,
                                         as a result of the Event of Default, the Agent is entitled to take under any Finance
                                         Document or any applicable law; and/or

 

		(b)	the
                                         Security Trustee shall, if so instructed by the Agent, acting with the authorisation
                                         of the Majority Lenders, take any action which, as a result of the Event of Default or
                                         any notice served under paragraph (a)(i) or (a)(ii), the Security Trustee, the Agent
                                         and/or the Lenders are entitled to take under any Finance Document or any applicable
                                         law and the Security Trustee may, without being instructed by the Agent or the Majority
                                         Lenders, take any action which, as a result of the Event of Default, the Security Trustee
                                         is entitled to take under any Finance Document or any applicable law.

 

		19.3	Termination
                                         of Commitments. On the service of a notice under Clause 19.2(a)(i), the Commitments
                                         and all other obligations of each Lender to the Borrower under this Agreement shall be
                                         cancelled.

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		19.4	Acceleration
                                         of Loan. On the service of a notice under Clause 19.2(a)(ii), the Loan, all accrued
                                         interest and all other amounts accrued or owing from the Borrower or any Security Party
                                         under this Agreement and every other Finance Document shall become immediately due and
                                         payable or, as the case may be, payable on demand.

 

		19.5	Multiple
                                         notices. The Agent may serve notices under Clauses 19.2(a)(i) or 19.2(a)(ii) simultaneously
                                         or on different dates and it and/or the Security Trustee may take any action referred
                                         to in Clause 19.2 simultaneously with or at any time after the service of both or either
                                         of such notices.

 

		19.6	Notification
                                         of Creditor Parties and Security Parties. The Agent shall send to each Lender, the
                                         Security Trustee, the Swap Bank and each Security Party a copy or the text of any notice
                                         which the Agent serves on the Borrower under Clause 19.2; but the notice shall become
                                         effective when it is served on the Borrower, 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 Borrower or any Security Party with any form of claim or defence.

 

		19.7	Creditor
                                         Party rights unimpaired. Nothing in this Clause shall be taken to impair or restrict
                                         the exercise of any right given to individual Creditor Parties under a Finance Document
                                         or the general law; and, in particular, this Clause is without prejudice to Clause 3.1.

 

		19.8	Exclusion
                                         of Creditor Party liability. No Creditor Party, and no receiver or manager appointed
                                         by the Security Trustee, shall have any liability to the Borrower or a Security Party:

 

		(a)	for
                                         any loss caused by an exercise of rights under, or enforcement of a Security Interest
                                         created by, a Finance Document or by any failure or delay to exercise such a right or
                                         to enforce such a Security Interest; or

 

		(b)	as
                                         mortgagee in possession or otherwise, for any income or principal amount which might
                                         have been produced by or realised from any asset comprised in such a Security Interest
                                         or for any reduction (however caused) in the value of such an asset,

 

except that this does not exempt
a Creditor Party or a receiver or manager from liability for losses shown to have been caused by the dishonesty, the gross negligence
or the wilful misconduct of such Creditor Party’s own officers and employees or (as the case may be) such receiver’s
or manager’s own partners or employees unless the Borrower or any Security Party is privy to such conduct.

 

		19.9	Relevant
                                         Persons. In this Clause 19, a “Relevant Person” means the Borrower and
                                         any Security Party.

 

		19.10	Interpretation.
                                         In Clause 19.1(f) references to an event of default or a termination event include
                                         any event, howsoever described, which is similar to an event of default in a facility
                                         agreement or a termination event in a finance lease; and in Clause 19.1(g) “petition”
                                         includes an application.

 

		20	FEES
                                         AND EXPENSES

 

		20.1	Arrangement
                                         and commitment fees. The Borrower shall pay (or, as the case may be, has paid), to
                                         the Agent:

 

		(a)	on
                                         the date of this Agreement, the following non-refundable fees:

 

		(i)	an
                                         arrangement fee in the amount of $400,000;

 

		(ii)	a
                                         structuring fee in the amount of $400,000; and

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		(iii)	an
                                         upfront participation fee in the amount of $250,000,

 

representing, in aggregate, 0.75
per cent. of the Total Commitments; and

 

		(b)	quarterly
                                         in arrears during the period from (and including) the date of this Agreement to the earlier
                                         of (i) the final Drawdown Date and (ii) the last day of the Availability Period (and
                                         on the last day of that period) for the account of the Lenders, a commitment fee at the
                                         rate of 1 per cent. per annum on the undrawn amount of the Total Commitments for distribution
                                         among the Lenders pro rata to their Commitments.

 

		20.2	Costs
                                         of negotiation, preparation etc. The Borrower shall pay to the Agent on its demand
                                         the amount of all reasonable and documented 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.

 

		20.3	Costs
                                         of variations, amendments, enforcement etc. The Borrower shall pay to the Agent,
                                         on the Agent’s demand, for the account of the Creditor Party concerned the amount
                                         of all documented 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 which results from a request made by the Borrower, the occurrence of an Event
                                         of Default or a change of law (including, without limitation, the application or interpretation
                                         thereof).

 

		(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 security provided or offered under Clause 15 or any other matter relating
                                         to such security; or

 

		(d)	any
                                         step taken by the Creditor Party concerned with a view to the protection, exercise or
                                         enforcement of any right or Security Interest created by a Finance Document or for any
                                         similar purpose.

 

There shall be recoverable under
paragraph (d) the full amount of all legal expenses, whether or not such as would be allowed under rules of court or any taxation
or other procedure carried out under such rules.

 

		20.4	Documentary
                                         taxes. The Borrower shall promptly pay any tax payable on or by reference to any
                                         Finance Document, and shall, on the Agent’s demand, fully indemnify each Creditor
                                         Party against any claims, expenses, liabilities and losses resulting from any failure
                                         or delay by the Borrower to pay such a tax.

 

		20.5	Certification
                                         of amounts. A notice which is signed by 2 officers of a Creditor Party, which states
                                         that a specified amount, or aggregate amount, is due to that Creditor Party under this
                                         Clause 20 and which indicates 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. Upon request by the Borrower, the Agent shall provide details of the relevant amounts
                                         together with supporting documents.

 

		21	INDEMNITIES

 

		21.1	Indemnities
                                         regarding borrowing and repayment of Loan. The Borrower 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

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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;

 

		(c)	any
                                         failure (for whatever reason) by the Borrower to make payment of any amount due under
                                         a Finance Document on the due date or, if so payable, on demand (after giving credit
                                         for any default interest paid by the Borrower on the amount concerned under Clause 7);
                                         and

 

		(d)	the
                                         occurrence of an Event of Default and/or the acceleration of repayment of the Loan under
                                         Clause 19,

 

and in respect of any tax (other
than tax on its overall net income and the Bank Levy) for which a Creditor Party is liable in connection with any amount paid
or payable to that Creditor Party (whether for its own account or otherwise) under any Finance Document.

 

		21.2	Break
                                         Costs. The Borrower shall, within 3 Business Days of demand by a Finance Party, pay
                                         to that Finance Party its Break Costs attributable to all or any part of the Loan being
                                         paid by the Borrower on a day other than the last day of an Interest Period for a Tranche
                                         or relevant part of it. Each Lender shall, as soon as reasonably practicable after a
                                         demand by the Agent, provide a certificate confirming the amount of its Break Costs for
                                         any Interest Period in which they accrue

 

		21.3	Miscellaneous
                                         indemnities. The Borrower 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 any Environmental Claim or otherwise howsoever arising
                                         out of any Environmental Incident.

 

		21.4	Currency
                                         indemnity. If any sum due from the Borrower or any Security Party to a Creditor Party
                                         under a Finance Document or under any order or judgment relating to a Finance Document
                                         has to be converted from the currency in which the Finance Document provided for the
                                         sum to be paid (the “Contractual Currency”) into another currency
                                         (the “Payment Currency”) for the purpose of:

 

		(a)	making
                                         or lodging any claim or proof against the Borrower or any Security Party, whether in
                                         its liquidation, any arrangement involving it or otherwise; or

 

		(b)	obtaining
                                         an order or judgment from any court or other tribunal; or

 

		(c)	enforcing
                                         any such order or judgment,

 

the Borrower shall indemnify
the Creditor Party concerned against the loss arising when the amount of the payment actually received by that Creditor Party
is converted at the available rate of exchange into the Contractual Currency.

 

In this Clause 21.4 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.

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This Clause 21.4 creates a separate
liability of the Borrower which is distinct from its other liabilities under the Finance Documents and which shall not be merged
in any judgment or order relating to those other liabilities.

 

		21.5	Application
                                         to Master Agreement. For the avoidance of doubt, Clause 21.4 does not apply in respect
                                         of sums due from the Borrower to the Swap Bank under or in connection with the Master
                                         Agreement as to which sums the provisions of section 8 (Contractual Currency) of the
                                         Master Agreement shall apply.

 

		21.6	Certification
                                         of amounts. A notice which is signed by 2 officers of a Creditor Party, which states
                                         that a specified amount, or aggregate amount, is due to that Creditor Party under this
                                         Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the
                                         matters in respect of which the amount, or aggregate amount, is due shall be prima facie
                                         evidence that the amount, or aggregate amount, is due. Upon request by the Borrower,
                                         the Agent shall provide details of the relevant amounts together with supporting documents.

 

		21.7	Sums
                                         deemed due to a Lender. For the purposes of this Clause 21, a sum payable by the
                                         Borrower to the Agent or the Security Trustee for distribution to a Lender shall be treated
                                         as a sum due to that Lender.

 

		22	NO
                                         SET-OFF OR TAX DEDUCTION

 

		22.1	No
                                         deductions. All amounts due from the Borrower under a Finance Document shall be paid:

 

		(a)	without
                                         any form of set-off, cross-claim or condition; and

 

		(b)	free
                                         and clear of any tax deduction except a tax deduction which the Borrower is required
                                         by law to make.

 

		22.2	Grossing-up
                                         for taxes. If the Borrower is required by law to make a tax deduction from any payment:

 

		(a)	the
                                         Borrower shall notify the Agent as soon as it becomes aware of the requirement;

 

		(b)	the
                                         Borrower shall pay the tax deducted to the appropriate taxation authority promptly, and
                                         in any event before any fine or penalty arises;

 

		(c)	the
                                         amount due in respect of the payment shall be increased by the amount necessary to ensure
                                         that each Creditor Party receives and retains (free from any liability relating to the
                                         tax deduction) a net amount which, after the tax deduction, is equal to the full amount
                                         which it would otherwise have received.

 

		22.3	Evidence
                                         of payment of taxes. Within 1 month after making any tax deduction, the Borrower
                                         concerned shall deliver to the Agent documentary evidence satisfactory to the Agent that
                                         the tax had been paid to the appropriate taxation authority.

 

		22.4	Exclusion
                                         of tax on overall net income. In this Clause 22 “tax deduction”
                                         means any deduction or withholding for or on account of any present or future tax except
                                         tax on a Creditor Party’s overall net income.

 

		22.5	Claw-back
                                         of tax benefit. If, following any such deduction or withholding as is referred to
                                         in Clause 22.2 from any payment by the Borrower, a Lender shall receive or be granted
                                         a credit against or remission for any taxes payable by it, such Lender shall, subject
                                         to the Borrower having made any increased payment in accordance with Clause 22.2 and
                                         to the extent that such Lender can do
so without prejudicing the retention of the amount of such credit or remission and without prejudice to the right of such Lender
to obtain any other

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relief or allowance
which may be available to it, reimburse the Borrower with such amount as such Lender shall certify (attaching supporting documentation
unless the relevant Lender is prohibited from disclosing any such documentation) to be the proportion of such credit or remission
as will leave such Lender (after such reimbursement) in no worse position than it would have been in had there been no such deduction
or withholding from the payment by the Borrower as aforesaid. Such reimbursement shall be made forthwith upon such Lender certifying
that the amount of such credit or remission has been received by it. Nothing contained in this Agreement shall oblige a Lender
to rearrange its tax affairs or to disclose any information regarding its tax affairs and computations. Without prejudice to the
generality of the foregoing, the Borrower shall not, by virtue of this Clause 22.5, be entitled to enquire about a Lender’s
tax affairs.

 

		22.6	Application
                                         to the Master Agreement. For the avoidance of doubt, Clause 22 does not apply in
                                         respect of sums due from the Borrower to the Swap Bank under or in connection with the
                                         Master Agreement as to which sums the provisions of section 2(d) (Deduction or Withholding
                                         for Tax) of the Master Agreement shall apply.

 

		23	ILLEGALITY,
                                         ETC

 

		23.1	Illegality.
                                         This Clause 23 applies if a Lender (the “Notifying Lender”) notifies
                                         the Agent that it has become, or will with effect from a specified date, become:

 

		(a)	unlawful
                                         or prohibited as a result of the introduction of a new law, an amendment to an existing
                                         law or a change in the manner in which an existing law is or will be interpreted or applied;
                                         or

 

		(b)	contrary
                                         to, or inconsistent with, any regulation,

 

for the Notifying Lender to maintain
or give effect to any of its obligations under this Agreement in the manner contemplated by this Agreement.

 

		23.2	Notification
                                         of illegality. The Agent shall promptly notify the Borrower, the Security Parties,
                                         the Security Trustee and the other Lenders of the notice under Clause 23.1 which the
                                         Agent receives from the Notifying Lender.

 

		23.3	Prepayment;
                                         termination of Commitment. On the Agent notifying the Borrower under Clause 23.2,
                                         the Notifying Lender’s Commitment shall terminate; and thereupon or, if later,
                                         on the date specified in the Notifying Lender’s notice under Clause 23.1 as the
                                         date on which the notified event would become effective the Borrower shall prepay the
                                         Notifying Lender’s Contribution in accordance with Clause 8.

 

		23.4	Mitigation.
                                         If circumstances arise which would result in a notification under Clause 23.1 then, without
                                         in any way limiting the rights of the Notifying Lender under Clause 23.3, the Notifying
                                         Lender shall use reasonable endeavours 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.

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		24	INCREASED
                                         COSTS

 

		24.1	Increased
                                         costs. This Clause 24 applies if a Lender (the “Notifying Lender”)
                                         notifies the Agent that the Notifying Lender considers that as a result of:

 

		(a)	the
                                         introduction or alteration after the date of this Agreement of a law or 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 tax on the Lender’s overall net income); or

 

		(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; or

 

		(c)	the
                                         implementation or application of or compliance with the “International Convergence
                                         of Capital Measurement and Capital Standards, a Revised Framework” published by
                                         the Basel Committee on Banking Supervision in June 2004 in the form existing on the date
                                         of this Agreement (the “Basel II Accord”) or any other law or regulation
                                         implementing the Basel II Accord or any of the approaches provided for and allowed to
                                         be used by banks under or in connection with the Basel II Accord in each case as from
                                         time to time implemented by any Creditor Party (whether such implementation, application
                                         or compliance is by a government, regulator, supervisory authority, the Lender or its
                                         holding company),

 

the Notifying Lender has incurred
or will incur an “increased cost”.

 

		24.2	Meaning
                                         of “increased cost”. In this Clause 24, “increased cost”
                                         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 a Transfer Certificate,
                                         of funding or maintaining its Commitment or Contribution or performing its obligations
                                         under this Agreement, or of having outstanding all or any part of its Contribution or
                                         other unpaid sums;

 

		(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 (aa) an item attributable
to a change in the rate of tax on the overall net income of the Notifying Lender or the Bank Levy or (bb) an item covered by the
indemnity for tax in Clause 21.1 or by Clause 22 or (cc) an item:

 

		(i)	attributable
                                         to a change in the weighting approach adopted by the Notifying Lender pursuant to the
                                         Basel II Accord; or

 

		(ii)	arises
                                         from a decision by the Notifying Lender to adopt or implement a law or regulation which
                                         is not mandatorily applicable to it at the time it adopts such law or regulation; or

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		(iii)	which arises
                                                                                                                                                   from a law or regulation applicable only to the Notifying Lender if the imposition of
                                                                                                                                                   such law or regulation arises from the Notifying Lender’s own behaviour. 
	 	 	 
	 	but only to the extent that the Notifying Lender determines it did or would have occurred the same level of increased costs as at the date of this Agreement and by reference to the facts and circumstances prevailing at that time.

 

		24.3	Exception.
                                         Clause 24.1 does not apply to the extent any increased cost is compensated for by the
                                         payment of the Mandatory Cost.

 

		24.4	Notification
                                         to Borrower of claim for increased costs. The Agent shall promptly notify the Borrower
                                         and the Security Parties of the notice which the Agent received from the Notifying Lender
                                         under Clause 24.1.

 

		24.5	Payment
                                         of increased costs. The Borrower 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 Borrower that the Notifying Lender has specified to be necessary to compensate
                                         the Notifying Lender for the increased cost (subject to providing the Borrower with supporting
                                         documentation unless the Notifying Lender is prohibited from disclosing such documentation).

 

		24.6	Notice
                                         of prepayment. If the Borrower is not willing to continue to compensate the Notifying
                                         Lender for the increased cost under Clause 24.5, the Borrower may give the Agent not
                                         less than 3 days’ notice of its intention to prepay the Notifying Lender’s
                                         Contribution at the end of an Interest Period.

 

		24.7	Prepayment;
                                         termination of Commitment. A notice under Clause 24.6 shall be irrevocable; the Agent
                                         shall promptly notify the Notifying Lender of the Borrower’s 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 Borrower shall prepay (without
                                         premium or penalty) the Notifying Lender’s Contribution, together with accrued
                                         interest thereon at the applicable rate plus the applicable Margin and the Mandatory
                                         Cost (if any).

 

		24.8	Application
                                         of prepayment. Clause 8 shall apply in relation to the prepayment.

 

		25	SET-OFF

 

		25.1	Application
                                         of credit balances. Each Creditor Party may with prior written notice to the Borrower
                                         (other than at any time following the occurrence of an Event of Default and while the
                                         same is continuing in which case no such notice shall be required):

 

		(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 Borrower at any office in any country of that Creditor Party in or
                                         towards satisfaction of any sum then due from the Borrower 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 the Borrower;

 

		(ii)	convert
                                         or translate all or any part of a deposit or other credit balance into Dollars; and

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		(iii)	enter
                                         into any other transaction or make any entry with regard to the credit balance which
                                         the Creditor Party concerned considers appropriate.

 

		25.2	Existing
                                         rights unaffected. No Creditor Party shall be obliged to exercise any of its rights
                                         under Clause 25.1; and those rights shall be without prejudice and in addition to any
                                         right of set-off, combination of accounts, charge, lien or other right or remedy to which
                                         a Creditor Party is entitled (whether under the general law or any document).

 

		25.3	Sums
                                         deemed due to a Lender. For the purposes of this Clause 25, a sum payable by the
                                         Borrower to the Agent or the Security Trustee for distribution to, or for the account
                                         of, a Lender shall be treated as a sum due to that Lender; and each Lender’s proportion
                                         of a sum so payable for distribution to, or for the account of, the Lenders shall be
                                         treated as a sum due to such Lender.

 

		25.4	No
                                         Security Interest. This Clause 25 gives the Creditor Parties a contractual right
                                         of set-off only, and does not create any equitable charge or other Security Interest
                                         over any credit balance of the Borrower.

 

		26	TRANSFERS
                                         AND CHANGES IN LENDING OFFICES

 

		26.1	Transfer
                                         by Borrowers. The Borrower may not, 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.

 

		26.2	Transfer
                                         by a Lender.  Subject to Clause 26.4, a Lender  (the “Transferor Lender”) may at any time
                                         cause:

 

		(a)	its
                                         rights in respect of all or part of its Contribution; or

 

		(b)	its
                                         obligations in respect of all or part of its Commitment; or

 

		(c)	a
                                         combination of (a) and (b),

 

to be (in the case of its
rights) transferred to, or (in the case of its obligations) assumed by, another bank or financial institution (a
“Transferee Lender”) by delivering to the Agent a completed certificate in the form set out in Schedule 4
with any modifications approved or required by the Agent (a “Transfer Certificate”) executed by the
Transferor Lender and the Transferee Lender.

 

However any rights and obligations
of the Transferor Lender in its capacity as Agent or Security Trustee will have to be dealt with separately in accordance with
the Agency and Trust Agreement.

 

Provided that a transfer
pursuant to this Clause 26.2 shall:

 

		(i)	be
                                         effected without the consent of the Borrower (subject to no additional costs being incurred
                                         by any Security Party):

 

		(A)	if
                                         such transfer is effected whilst an Event of Default is continuing; or

 

		(B)	if
                                         such transfer is to a subsidiary or any other company or financial institution which
                                         is in the same ownership or control as the Transferor Lender; and

 

		(ii)	in
                                         all other circumstances, require the prior written consent of the Borrower (such consent
                                         not to be unreasonably withheld or delayed).

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		26.3	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 Borrower, the Security Parties, the
                                         Security Trustee and each of the other Lenders;

 

		(b)	on
                                         behalf of the Transferee Lender, send to the Borrower and each Security Party letters
                                         or faxes notifying them of the Transfer Certificate and attaching a copy of it; and

 

		(c)	send
                                         to the Transferee Lender copies of the letters or faxes sent under paragraph (b) above,

 

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
in relation to the transfer to that Transferee Lender.

 

		26.4	Effective
                                         Date of Transfer Certificate. A Transfer Certificate becomes effective on the date,
                                         if any, specified in the Transfer Certificate as its effective date Provided that
                                         it is signed by the Agent under Clause 26.3 on or before that date.

 

		26.5	No
transfer without Transfer Certificate. Except as provided in Clause 26.17, 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 Borrower, any Security Party, the Agent
or the Security Trustee unless it is effected, evidenced or perfected by a Transfer Certificate.

 

		26.6	Lender
                                         re-organisation; waiver of Transfer Certificate. However, if a Lender enters into
                                         any merger, de-merger or other reorganisation as a result of which all its rights or
                                         obligations vest in another person (the “successor”), the Agent may,
                                         if it sees fit, by notice to the successor and the Borrower 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.

 

		26.7	Effect
                                         of Transfer Certificate. A Transfer Certificate takes effect in accordance with English
                                         law as follows:

 

		(a)	to
                                         the extent specified in the Transfer Certificate, all rights and interests (present,
                                         future or contingent) which the Transferor Lender has under or by virtue of the Finance
                                         Documents are assigned to the Transferee Lender absolutely, free of any defects in the
                                         Transferor Lender’s title and of any rights or equities which the Borrower or any
                                         Security Party had against the Transferor Lender;

 

		(b)	the
                                         Transferor Lender’s Commitment is discharged to the extent specified in the Transfer
                                         Certificate;

 

		(c)	the
                                         Transferee Lender becomes a Lender with the Contribution previously held by the Transferor
                                         Lender and a Commitment of an amount specified in the Transfer Certificate;

 

		(d)	the
                                         Transferee Lender becomes bound by all the provisions of the Finance Documents which
                                         are applicable to the Lenders generally, including those about pro-rata sharing and the
                                         exclusion of liability on the part of, and the indemnification of, the Agent and the
                                         Security Trustee and, to the extent that the Transferee Lender becomes bound by those
                                         provisions (other than those relating to exclusion of liability), the Transferor Lender
                                         ceases to be bound by them;

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		(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 Lender, assuming that any defects in the
                                         Transferor Lender’s title and any rights or equities of the Borrower or any Security
                                         Party against the Transferor Lender had not existed;

 

		(f)	the
                                         Transferee Lender becomes entitled to all the rights under the Finance Documents which
                                         are applicable to the Lenders generally, including but not limited to those relating
                                         to the Majority Lenders and those under Clause 5.7 and Clause 20, and to the extent that
                                         the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to
                                         be entitled to them; and

 

		(g)	in
                                         respect of any breach of a warranty, undertaking, condition or other provision of a Finance
                                         Document or any misrepresentation made in or in connection with a Finance Document, the
                                         Transferee Lender shall be entitled to recover damages by reference to the loss incurred
                                         by it as a result of the breach or misrepresentation provided the original Lender would
                                         have incurred a loss of that kind or amount.

 

The rights and equities of the
Borrower or any Security Party referred to above include, but are not limited to, any right of set off and any other kind of cross-claim.

 

		26.8	Maintenance
                                         of register of Lenders. During the Security Period the Agent shall maintain a register
                                         in which it shall record the name, Commitment, Contribution and administrative details
                                         (including the lending office) from time to time of each Lender holding a Transfer Certificate
                                         and the effective date (in accordance with Clause 26.4) of the Transfer Certificate;
                                         and the Agent shall make the register available for inspection by any Lender, the Security
                                         Trustee and the Borrower during normal banking hours, subject to receiving at least 3
                                         Business Days’ prior notice.

 

		26.9	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.

 

		26.10	Authorisation
                                         of Agent to sign Transfer Certificates. The Borrower, the Security Trustee, the Swap
                                         Bank and each Lender irrevocably authorise the Agent to sign Transfer Certificates on
                                         its behalf.

 

		26.11	Registration
                                         fee. In respect of any Transfer Certificate, the Agent shall be entitled to recover
                                         a registration fee of $2,500 from the Transferor Lender or (at the Agent’s option)
                                         the Transferee Lender. Such fee is not to be reimbursed to the payee by the Borrower
                                         or any Security Party.

 

		26.12	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 subject to the prior
                                         written consent (which shall not be unreasonably withheld or delayed) of the Borrower;
                                         and the Lenders may assign, in any manner and terms agreed by the Majority Lenders, the
                                         Agent, the Borrower and the Security Trustee, all or any part of those rights to an insurer
                                         or surety who has become subrogated to them.

 

		26.13	Disclosure
                                         of information. A Lender may disclose to a potential Transferee Lender or sub-participant
                                         any information which the Lender has received in relation to the Borrower, any Security
                                         Party or their affairs under or in connection with any Finance Document, unless the information
                                         is clearly of a confidential nature and subject always to such potential Transferee Lender
or sub-participant signing a confidentiality agreement in the form set out in Schedule 8.

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		26.14	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.

 

		26.15	Notification.
                                         On receiving such a notice, the Agent shall notify the Borrower 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.

 

	26.16	Replacement
                                         of Reference Bank. If the Reference Bank ceases to be a Lender or is unable on a
                                         continuing basis to supply quotations for the purposes of Clause 5 then, the Agent, acting
                                         on the instructions of the Majority Lenders, and after consulting the Borrower, shall
                                         appoint another bank (whether or not a Lender) to be the replacement Reference Bank;
                                         and, when that appointment comes into effect, the first-mentioned Reference Bank’s
                                         appointment shall cease to be effective.
	 	 
	26.17	Security
                                         over Lenders’ rights. In addition to the other rights provided to Lenders under this
                                         Clause 26, each Lender may without consulting with or obtaining consent from the Borrower
                                         or any 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 to a federal reserve or central
                                         bank (including, without limitation by way of any charge, assignment or other Security
                                         Interest) except that no such charge, assignment or Security Interest shall:
	 	 
	(a)	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
	 	 
	(b)	require any payments to be made by the Borrower or any 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.

 

		26.18	No
                                         additional costs. If at the time of, or immediately after, any transfer by a Lender
                                         of any part of its rights, benefits and/or obligations under this Agreement, or any change
                                         in the office through which a Lender lends for the purposes of this Agreement or a Lender’s
                                         re-organisation under Clause 26.6, the Borrower would be obliged to pay to the Transferee
                                         Lender or the successor (as defined in Clause 26.6) or (in the case of a change of lending
                                         office) such Lender under Clauses 5.7, 22.2 or 24.1 any sum in excess of the sum (if
                                         any) which it would have been obliged to pay to such Lender under the relevant clauses
                                         in the absence of such transfer, re-organisation or change of office, the Borrower shall
                                         not be obliged to pay that excess.

 

		27	VARIATIONS
                                         AND WAIVERS

 

		27.1	Variations,
                                         waivers etc. by Majority Lenders. Subject to Clause 27.2, 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, by the Borrower, 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.

 

		27.2	Variations,
                                         waivers etc. requiring agreement of all Lenders. However, as regards the following,
                                         Clause 27.1 applies as if the words “by the Agent on behalf of the Majority

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Lenders”
were replaced by the words “by or on behalf of every Lender and the Swap Bank”:

 

		(a)	a
                                         reduction in the 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;

 

		(c)	an
                                         increase in any Lender’s Commitment;

 

		(d)	a
                                         change to the definition of “Majority Lenders”;

 

		(e)	a
                                         change to Clause 3 or this Clause 27;

 

		(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.

 

		27.3	Exclusion
                                         of other or implied variations. Except for a document which satisfies the requirements
                                         of Clauses 27.1 and 27.2, 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 Borrower or a 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,

 

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.

 

		28	NOTICES

 

		28.1	General.
                                         Unless otherwise specifically provided, any notice under or in connection with any
                                         Finance Document shall be given by letter or fax; and references in the Finance Documents
                                         to written notices, notices in writing and notices signed by particular persons shall
                                         be construed accordingly.

 

		28.2	Addresses
                                         for communications. A notice by letter or fax shall be sent:

 

 

	(a)	to
the Borrower:	60 Zephyrou Street and Syngrou Avenue
	 	 	175 64 Athens
	 	 	Greece
	 	 	 
	 	 	Fax No: +30 210
940 9051
	 	 	 
	(b)	to
a Lender:	At the address below its name in Schedule 1 or (as the case may require) in the relevant Transfer Certificate.

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	(c)	to
the Agent,	ING Bank N.V., London Branch
	 	the Security	60 London Wall
	 	Trustee or	London EC2M 5TQ
	 	the Swap Bank:	England
	 	 	 
	 	 	Attn: Shipping
Department
	 	 	Fax No: +44(0)
207 767 7324

 

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 Borrower, the Lenders,
the Swap Bank and the Security Parties.

 

		28.3	Effective
                                         date of notices. Subject to Clauses 28.4 and 28.5:

 

		(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; and

 

		(b)	a
                                         notice which is sent by fax shall be deemed to be served, and shall take effect, 2 hours
                                         after its transmission is completed.

 

		28.4	Service
                                         outside business hours. However, if under Clause 28.3 a notice would be deemed to
                                         be served:

 

		(a)	on
                                         a day which is not a business day in the place of receipt; or

 

		(b)	on
                                         such a business day, but after 5 p.m. local time,

 

the notice shall (subject to
Clause 28.5) be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a business day.

 

		28.5	Illegible
                                         notices. Clauses 28.3 and 28.4 do not apply if the recipient of a notice notifies
                                         the sender within 1 hour after the time at which the notice would otherwise be deemed
                                         to be served that the notice has been received in a form which is illegible in a material
                                         respect.

 

		28.6	Valid
                                         notices. A notice under or in connection with a Finance Document shall not be invalid
                                         by reason that its contents or the manner of serving it do not comply with the requirements
                                         of this Agreement or, where appropriate, any other Finance Document under which it is
                                         served if:

 

		(a)	the
                                         failure to serve it in accordance with the requirements of this Agreement or other Finance
                                         Document, as the case may be, has not caused any party to suffer any significant loss
                                         or prejudice; or

 

		(b)	in
                                         the case of incorrect and/or incomplete contents, it should have been reasonably clear
                                         to the party on which the notice was served what the correct or missing particulars should
                                         have been.

 

		28.7	Electronic
                                         communication. Any communication to be made between the Agent and a Lender or the
                                         Swap Bank under or in connection with the Finance Documents may be made by electronic
                                         mail or other electronic means, if the Agent and the relevant Lender or the Swap Bank:

 

		(a)	agree
                                         that, unless and until notified to the contrary, this is to be an accepted form of communication;

 

		(b)	notify
                                         each other in writing of their electronic mail address and/or any other information required
                                         to enable the sending and receipt of information by that means; and

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		(c)	notify
                                         each other of any change to their respective addresses or any other such information
                                         supplied to them.

 

Any electronic communication
made between the Agent and a Lender or the Swap Bank will be effective only when actually received in readable form and, in the
case of any electronic communication made by a Lender or the Swap Bank to the Agent, only if it is addressed in such a manner
as the Agent shall specify for this purpose.

 

		28.8	English
                                         language. Any notice under or in connection with a Finance Document shall be in English.

 

		28.9	Meaning
                                         of “notice”. In this Clause 28, “notice” includes
                                         any demand, consent, authorisation, approval, instruction, waiver or other communication.

 

		29	SUPPLEMENTAL

 

		29.1	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.

 

		29.2	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.

 

		29.3	Counterparts.
                                         A Finance Document may be executed in any number of counterparts.

 

		29.4	Third
                                         party rights. A person who is not a party to this Agreement has no right under the
                                         Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any
                                         term of this Agreement.

 

		30	LAW
                                         AND JURISDICTION

 

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

 

		30.2	Exclusive
                                         English jurisdiction. Subject to Clause 30.3, the courts of England shall have exclusive
                                         jurisdiction to settle any Dispute.

 

		30.3	Choice
                                         of forum for the exclusive benefit of the Creditor Parties. Clause 30.2 is for the
                                         exclusive benefit of the Creditor Parties, each of which reserves the right:

 

		(a)	to
                                         commence proceedings in relation to any Dispute in the courts of any country other than
                                         England and which have or claim jurisdiction to that Dispute; and

 

		(b)	to
                                         commence such proceedings in the courts of any such country or countries concurrently
                                         with or in addition to proceedings in England or without commencing proceedings in England.

 

The Borrower shall not commence
any proceedings in any country other than England in relation to a Dispute.

    	67

    	

    

		30.4	Process
                                         agent. The Borrower irrevocably appoints Mr. Richard Coleman c/o H. Clarkson and
                                         Co. Ltd. at its office for the time being, presently at 3 Lower Thames Street, London
                                         EC3R 6HE, England, to act as its agent to receive and accept on its behalf any process
                                         or other document relating to any proceedings in the English courts which are connected
                                         with a Dispute.

 

		30.5	Creditor
                                         Party rights unaffected. Nothing in this Clause 30 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.

 

		30.6	Meaning
                                         of “proceedings”. In this Clause 30, “proceedings”
                                         means proceedings of any kind, including an application for a provisional or protective
                                         measure and a “Dispute” means any dispute arising out of or in connection
                                         with this Agreement (including a dispute relating to the existence, validity or termination
                                         of this Agreement) or any non-contractual obligation arising out of or in connection
                                         with this Agreement.

 

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

    	68

    	

    

SCHEDULE
1

LENDERS AND COMMITMENTS

 

	Lender	 	Lending
    Office	 	Commitment

    (US Dollars)
	ING Bank N.V., London Branch	 	60 London Wall 

    London EC2M 5TQ 

    England	 	140,000,000

    	69

    	

    

SCHEDULE
2

DRAWDOWN NOTICE

 

	To:	ING Bank N.V., London Branch
	 	60 London Wall
	 	London EC2M 5TQ
	 	England

 

Attention: [Loans Administration]

 

[●]

 

DRAWDOWN NOTICE

 

	1	We
                                                                                                                                                   refer
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   loan
                                                                                                                                                   agreement
                                                                                                                                                   (the
                                                                                                                                                   “Loan
                                                                                                                                                   Agreement”)
                                                                                                                                                   dated
                                                                                                                                                   [●]
                                                                                                                                                   2011
                                                                                                                                                   and
                                                                                                                                                   made
                                                                                                                                                   between
                                                                                                                                                   ourselves,
                                                                                                                                                   as
                                                                                                                                                   Borrower,
                                                                                                                                                   the
                                                                                                                                                   Lenders
                                                                                                                                                   referred
                                                                                                                                                   to
                                                                                                                                                   therein,
                                                                                                                                                   and
                                                                                                                                                   yourselves
                                                                                                                                                   as
                                                                                                                                                   Agent,
                                                                                                                                                   Mandated
                                                                                                                                                   Lead
                                                                                                                                                   Arranger,
                                                                                                                                                   Security
                                                                                                                                                   Trustee
                                                                                                                                                   and
                                                                                                                                                   Swap
                                                                                                                                                   Bank
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   a
                                                                                                                                                   facility
                                                                                                                                                   of
                                                                                                                                                   up
                                                                                                                                                   to
                                                                                                                                                   US$140,000,000.
                                                                                                                                                   Terms
                                                                                                                                                   defined
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Loan
                                                                                                                                                   Agreement
                                                                                                                                                   have
                                                                                                                                                   their
                                                                                                                                                   defined
                                                                                                                                                   meanings
                                                                                                                                                   when
                                                                                                                                                   used
                                                                                                                                                   in
                                                                                                                                                   this
                                                                                                                                                   Drawdown
                                                                                                                                                   Notice.

 

	2	We
                                                                                                                                                   request
                                                                                                                                                   to
                                                                                                                                                   borrow
                                                                                                                                                   an
                                                                                                                                                   Advance
                                                                                                                                                   as
                                                                                                                                                   follows:

 

	(a)	Amount:
                                                                                                                                              US$[●]
                                                                                                                                              which
                                                                                                                                              shall
                                                                                                                                              be
                                                                                                                                              used
                                                                                                                                              to
                                                                                                                                              [finance]
                                                                                                                                              [re-finance]
                                                                                                                                              [the
                                                                                                                                              [●]
                                                                                                                                              pre-delivery
                                                                                                                                              instalment
                                                                                                                                              payable
                                                                                                                                              pursuant
                                                                                                                                              to
                                                                                                                                              the
                                                                                                                                              Ship
                                                                                                                                              [●]
                                                                                                                                              Shipbuilding
                                                                                                                                              Contract]
                                                                                                                                              [the
                                                                                                                                              delivery
                                                                                                                                              instalment
                                                                                                                                              payable
                                                                                                                                              pursuant
                                                                                                                                              to
                                                                                                                                              the
                                                                                                                                              Ship
                                                                                                                                              [●]
                                                                                                                                              Shipbuilding
                                                                                                                                              Contract];

 

	(b)	Drawdown
                                                                                                                                              Date:
                                                                                                                                              [●];

 

	(c)	Duration
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              first
                                                                                                                                              Interest
                                                                                                                                              Period
                                                                                                                                              shall
                                                                                                                                              be
                                                                                                                                              [●]
                                                                                                                                              months;
                                                                                                                                              and

 

	(d)	Payment
                                                                                                                                              instructions:
                                                                                                                                              account
                                                                                                                                              of
                                                                                                                                              [●]
                                                                                                                                              and
                                                                                                                                              numbered
                                                                                                                                              [●]
                                                                                                                                              with
                                                                                                                                              [●]
                                                                                                                                              of
                                                                                                                                              [●].

 

	3	We
                                                                                                                                                   represent
                                                                                                                                                   and
                                                                                                                                                   warrant
                                                                                                                                                   that:

 

	(a)	the
                                                                                                                                              representations
                                                                                                                                              and
                                                                                                                                              warranties
                                                                                                                                              in
                                                                                                                                              Clause
                                                                                                                                              10
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Loan
                                                                                                                                              Agreement
                                                                                                                                              would
                                                                                                                                              remain
                                                                                                                                              true
                                                                                                                                              and
                                                                                                                                              not
                                                                                                                                              misleading
                                                                                                                                              if
                                                                                                                                              repeated
                                                                                                                                              on
                                                                                                                                              the
                                                                                                                                              date
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              notice
                                                                                                                                              with
                                                                                                                                              reference
                                                                                                                                              to
                                                                                                                                              the
                                                                                                                                              circumstances
                                                                                                                                              now
                                                                                                                                              existing;
                                                                                                                                              and

 

	(b)	no
                                                                                                                                              Event
                                                                                                                                              of
                                                                                                                                              Default
                                                                                                                                              or Potential Event of Default has
                                                                                                                                              occurred
                                                                                                                                              or
                                                                                                                                              will
                                                                                                                                              result
                                                                                                                                              from
                                                                                                                                              the
                                                                                                                                              borrowing
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Advance.

 

	4	This
                                                                                                                                                   notice
                                                                                                                                                   cannot
                                                                                                                                                   be
                                                                                                                                                   revoked
                                                                                                                                                   without
                                                                                                                                                   the
                                                                                                                                                   prior
                                                                                                                                                   consent
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Majority
                                                                                                                                                   Lenders.

 

[Name of Signatory]

	 	 	 

[Director] [Attorney-in-fact]

for and on behalf of

COSTAMARE INC.

    	70

    	

    

SCHEDULE
3

CONDITION PRECEDENT DOCUMENTS

 

In this Schedule 2: “Relevant
Ship” means, in relation to a Pre-delivery Advance or Delivery Advance, the Ship which is to be financed by that Advance
and “Stage of Construction” means, in relation to a Pre-delivery Advance, the stage of construction (if any)
of a Ship to be achieved in order for the instalment being financed or refinanced by that Pre-delivery Advance becoming due and
payable under the relevant Shipbuilding Contract.

 

PART A

 

The following are the documents referred
to in Clause 9.1(a).

 

	1	A
                                                                                                                                                   duly
                                                                                                                                                   executed
                                                                                                                                                   original
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement,
                                                                                                                                                   the
                                                                                                                                                   Agency
                                                                                                                                                   and
                                                                                                                                                   Trust
                                                                                                                                                   Agreement,
                                                                                                                                                   each
                                                                                                                                                   Guarantee,
                                                                                                                                                   the
                                                                                                                                                   Master
                                                                                                                                                   Agreement,
                                                                                                                                                   the
                                                                                                                                                   Master
                                                                                                                                                   Agreement
                                                                                                                                                   Assignment
                                                                                                                                                   and
                                                                                                                                                   each
                                                                                                                                                   Pre-delivery
                                                                                                                                                   Security
                                                                                                                                                   Assignment
                                                                                                                                                   (and
                                                                                                                                                   of
                                                                                                                                                   each
                                                                                                                                                   document
                                                                                                                                                   required
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   delivered
                                                                                                                                                   pursuant
                                                                                                                                                   thereto).

 

	2	Certified
                                                                                                                                                   copies
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   certificate
                                                                                                                                                   of
                                                                                                                                                   incorporation
                                                                                                                                                   and
                                                                                                                                                   constitutional
                                                                                                                                                   documents
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Borrower
                                                                                                                                                   and
                                                                                                                                                   each
                                                                                                                                                   Owner.

 

	3	Copies
                                                                                                                                                   of
                                                                                                                                                   resolutions
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   directors
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Borrower
                                                                                                                                                   and
                                                                                                                                                   each
                                                                                                                                                   Owner
                                                                                                                                                   authorising
                                                                                                                                                   the
                                                                                                                                                   execution
                                                                                                                                                   of
                                                                                                                                                   each
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Finance
                                                                                                                                                   Documents
                                                                                                                                                   to
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   Borrower
                                                                                                                                                   or
                                                                                                                                                   that
                                                                                                                                                   Owner
                                                                                                                                                   is
                                                                                                                                                   a
                                                                                                                                                   party
                                                                                                                                                   and,
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   case
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Borrower,
                                                                                                                                                   authorising
                                                                                                                                                   named
                                                                                                                                                   officers
                                                                                                                                                   to
                                                                                                                                                   give
                                                                                                                                                   the
                                                                                                                                                   Drawdown
                                                                                                                                                   Notices
                                                                                                                                                   and
                                                                                                                                                   other
                                                                                                                                                   notices
                                                                                                                                                   under
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   case
                                                                                                                                                   of
                                                                                                                                                   each
                                                                                                                                                   Owner
                                                                                                                                                   authorising
                                                                                                                                                   the
                                                                                                                                                   execution
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contracts.

 

	4	The
                                                                                                                                                   original
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   power
                                                                                                                                                   of
                                                                                                                                                   attorney
                                                                                                                                                   under
                                                                                                                                                   which
                                                                                                                                                   any
                                                                                                                                                   Finance
                                                                                                                                                   Document
                                                                                                                                                   is
                                                                                                                                                   executed
                                                                                                                                                   on
                                                                                                                                                   behalf
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Borrower
                                                                                                                                                   or
                                                                                                                                                   each
                                                                                                                                                   Owner.

 

	5	Copies
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   consents
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   Borrower
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   Security
                                                                                                                                                   Party
                                                                                                                                                   requires
                                                                                                                                                   to
                                                                                                                                                   enter
                                                                                                                                                   into,
                                                                                                                                                   or
                                                                                                                                                   make
                                                                                                                                                   any
                                                                                                                                                   payment
                                                                                                                                                   under,
                                                                                                                                                   any
                                                                                                                                                   Finance
                                                                                                                                                   Document
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract
                                                                                                                                                   to
                                                                                                                                                   which
                                                                                                                                                   it
                                                                                                                                                   is
                                                                                                                                                   a
                                                                                                                                                   party.

 

	6	The
                                                                                                                                                   originals
                                                                                                                                                   of
                                                                                                                                                   any
                                                                                                                                                   mandates
                                                                                                                                                   or
                                                                                                                                                   other
                                                                                                                                                   documents
                                                                                                                                                   required
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   opening
                                                                                                                                                   or
                                                                                                                                                   operation
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Earnings
                                                                                                                                                   Accounts.

 

	7	Copies
                                                                                                                                                   of
                                                                                                                                                   each
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract
                                                                                                                                                   and
                                                                                                                                                   of
                                                                                                                                                   all
                                                                                                                                                   documents
                                                                                                                                                   signed
                                                                                                                                                   or
                                                                                                                                                   issued
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Owner
                                                                                                                                                   or
                                                                                                                                                   the
                                                                                                                                                   Builder
                                                                                                                                                   (or
                                                                                                                                                   either
                                                                                                                                                   of
                                                                                                                                                   them)
                                                                                                                                                   under
                                                                                                                                                   or
                                                                                                                                                   in
                                                                                                                                                   connection
                                                                                                                                                   with
                                                                                                                                                   it
                                                                                                                                                   evidencing
                                                                                                                                                   a
                                                                                                                                                   Contract
                                                                                                                                                   Price
                                                                                                                                                   of
                                                                                                                                                   not
                                                                                                                                                   more
                                                                                                                                                   than
                                                                                                                                                   $95,500,000
                                                                                                                                                   in
                                                                                                                                                   respect
                                                                                                                                                   of
                                                                                                                                                   each
                                                                                                                                                   Ship.

 

	8	The
                                                                                                                                                   original
                                                                                                                                                   Refund
                                                                                                                                                   Guarantees,
                                                                                                                                                   each
                                                                                                                                                   duly
                                                                                                                                                   executed
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Refund
                                                                                                                                                   Guarantor.

 

	9	Documentary
                                                                                                                                                   evidence
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   agent
                                                                                                                                                   for
                                                                                                                                                   service
                                                                                                                                                   of
                                                                                                                                                   process
                                                                                                                                                   named
                                                                                                                                                   in
                                                                                                                                                   Clause
                                                                                                                                                   30
                                                                                                                                                   has
                                                                                                                                                   accepted
                                                                                                                                                   its
                                                                                                                                                   appointment.

 

	10	Such
                                                                                                                                                    documents
                                                                                                                                                    as
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    may
                                                                                                                                                    require
                                                                                                                                                    for
                                                                                                                                                    its
                                                                                                                                                    “know
                                                                                                                                                    your
                                                                                                                                                    customer”
                                                                                                                                                    and
                                                                                                                                                    other
                                                                                                                                                    customary
                                                                                                                                                    money
                                                                                                                                                    laundering
                                                                                                                                                    checks.

 

	11	Favourable
                                                                                                                                                    legal
                                                                                                                                                    opinions
                                                                                                                                                    from
                                                                                                                                                    lawyers
                                                                                                                                                    appointed
                                                                                                                                                    by
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    on
                                                                                                                                                    such
                                                                                                                                                    matters
                                                                                                                                                    concerning
                                                                                                                                                    the
                                                                                                                                                    laws
                                                                                                                                                    of
                                                                                                                                                    the
                                                                                                                                                    Marshall
                                                                                                                                                    Islands,
                                                                                                                                                    Liberia-and
                                                                                                                                                    such
                                                                                                                                                    other
                                                                                                                                                    relevant
                                                                                                                                                    jurisdictions
                                                                                                                                                    as
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    may
                                                                                                                                                    require.

 

	12	If
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    so
                                                                                                                                                    requires,
                                                                                                                                                    in
                                                                                                                                                    respect
                                                                                                                                                    of
                                                                                                                                                    any
                                                                                                                                                    of
                                                                                                                                                    the
                                                                                                                                                    documents
                                                                                                                                                    referred
                                                                                                                                                    to
                                                                                                                                                    above
                                                                                                                                                    not
                                                                                                                                                    being
                                                                                                                                                    English,
                                                                                                                                                    a
                                                                                                                                                    certified
                                                                                                                                                    English
                                                                                                                                                    translation
                                                                                                                                                    prepared
                                                                                                                                                    by
                                                                                                                                                    a
                                                                                                                                                    translator
                                                                                                                                                    approved
                                                                                                                                                    by
                                                                                                                                                    the
                                                                                                                                                    Agent.

    	71

    	

    

PART B

 

The following are the documents referred
to in Clause 9.1(b):

 

	1	Documentary
                                                                                                                                                   evidence
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Stage
                                                                                                                                                   of
                                                                                                                                                   Construction
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship
                                                                                                                                                   has
                                                                                                                                                   commenced
                                                                                                                                                   or,
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract
                                                                                                                                                   may
                                                                                                                                                   require,
                                                                                                                                                   completed
                                                                                                                                                   in
                                                                                                                                                   accordance
                                                                                                                                                   with
                                                                                                                                                   such
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract.

 

	2	A
                                                                                                                                                   duly
                                                                                                                                                   issued
                                                                                                                                                   invoice
                                                                                                                                                   from
                                                                                                                                                   the
                                                                                                                                                   Builder
                                                                                                                                                   showing
                                                                                                                                                   all
                                                                                                                                                   sums
                                                                                                                                                   due
                                                                                                                                                   and
                                                                                                                                                   payable
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Builder
                                                                                                                                                   pursuant
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   applicable
                                                                                                                                                   Article
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract
                                                                                                                                                   upon
                                                                                                                                                   commencement
                                                                                                                                                   or,
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract
                                                                                                                                                   may
                                                                                                                                                   require,
                                                                                                                                                   completion
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Stage
                                                                                                                                                   of
                                                                                                                                                   Construction
                                                                                                                                                   (or,
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   case
                                                                                                                                                   may
                                                                                                                                                   be,
                                                                                                                                                   the
                                                                                                                                                   signing
                                                                                                                                                   of
                                                                                                                                                   that
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract)
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Ship.

 

	3	In
                                                                                                                                                   the
                                                                                                                                                   case
                                                                                                                                                   of
                                                                                                                                                   each
                                                                                                                                                   Pre-delivery
                                                                                                                                                   Advance
                                                                                                                                                   (other
                                                                                                                                                   than
                                                                                                                                                   one
                                                                                                                                                   to
                                                                                                                                                   finance
                                                                                                                                                   or
                                                                                                                                                   refinance
                                                                                                                                                   the
                                                                                                                                                   instalment
                                                                                                                                                   payable
                                                                                                                                                   upon
                                                                                                                                                   signing
                                                                                                                                                   of
                                                                                                                                                   a
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract),
                                                                                                                                                   a
                                                                                                                                                   stage
                                                                                                                                                   certificate
                                                                                                                                                   issued
                                                                                                                                                   by
                                                                                                                                                   such
                                                                                                                                                   classification
                                                                                                                                                   society
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   Agent
                                                                                                                                                   may
                                                                                                                                                   approve
                                                                                                                                                   in
                                                                                                                                                   a
                                                                                                                                                   form
                                                                                                                                                   acceptable
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Agent,
                                                                                                                                                   confirming
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Stage
                                                                                                                                                   of
                                                                                                                                                   Construction
                                                                                                                                                   has
                                                                                                                                                   commenced
                                                                                                                                                   or,
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Shipbuilding
                                                                                                                                                   Contract
                                                                                                                                                   may
                                                                                                                                                   require,
                                                                                                                                                   completed
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   satisfaction
                                                                                                                                                   of
                                                                                                                                                   such
                                                                                                                                                   classification
                                                                                                                                                   society.
	 	 
	4	In the case of a Pre-delivery Advance which is to be used in financing or re-financing a pre-delivery
instalment payable upon the laying of the first keel block or launching of the Relevant Ship written confirmation from the relevant
Owner and the Approved Manager that they have irrevocably accepted and approved the building works which have been completed on
the Relevant Ship up to the date of the relevant Stage of Construction.

 

PART C

 

The following are the documents referred
to in Clause 9.1(c).

 

	1	A
                                                                                                                                                   duly
                                                                                                                                                   executed
                                                                                                                                                   original
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Mortgage,
                                                                                                                                                   the
                                                                                                                                                   Deed
                                                                                                                                                   of
                                                                                                                                                   Covenant
                                                                                                                                                   (if
                                                                                                                                                   applicable),
                                                                                                                                                   the
                                                                                                                                                   General
                                                                                                                                                   Assignment,
                                                                                                                                                   the
                                                                                                                                                   Account
                                                                                                                                                   Charges
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   Earnings
                                                                                                                                                   Accounts
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Approved
                                                                                                                                                   Charterparty
                                                                                                                                                   Assignment
                                                                                                                                                   (and
                                                                                                                                                   of
                                                                                                                                                   each
                                                                                                                                                   document
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   delivered
                                                                                                                                                   under
                                                                                                                                                   each
                                                                                                                                                   of
                                                                                                                                                   them)
                                                                                                                                                   in
                                                                                                                                                   respect
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship
                                                                                                                                                   and,
                                                                                                                                                   if
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship
                                                                                                                                                   is
                                                                                                                                                   the
                                                                                                                                                   first
                                                                                                                                                   Ship
                                                                                                                                                   whose
                                                                                                                                                   delivery
                                                                                                                                                   instalment
                                                                                                                                                   is
                                                                                                                                                   being
                                                                                                                                                   financed
                                                                                                                                                   under
                                                                                                                                                   this
                                                                                                                                                   Agreement,
                                                                                                                                                   additionally,
                                                                                                                                                   the
                                                                                                                                                   Account
                                                                                                                                                   Charge
                                                                                                                                                   in
                                                                                                                                                   respect
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Retention
                                                                                                                                                   Account.

 

	2	Documentary
                                                                                                                                                   evidence
                                                                                                                                                   that:

 

	(a)	on
                                                                                                                                              the
                                                                                                                                              Delivery
                                                                                                                                              Date,
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              has
                                                                                                                                              been
                                                                                                                                              unconditionally
                                                                                                                                              delivered
                                                                                                                                              by
                                                                                                                                              the
                                                                                                                                              Builder
                                                                                                                                              to,
                                                                                                                                              and
                                                                                                                                              accepted
                                                                                                                                              by,
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              Owner
                                                                                                                                              under
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              Shipbuilding
                                                                                                                                              Contract,
                                                                                                                                              and
                                                                                                                                              the
                                                                                                                                              full
                                                                                                                                              purchase
                                                                                                                                              price
                                                                                                                                              payable
                                                                                                                                              under
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              Shipbuilding
                                                                                                                                              Contract
                                                                                                                                              (in
                                                                                                                                              addition
                                                                                                                                              to
                                                                                                                                              the
                                                                                                                                              part
                                                                                                                                              being
                                                                                                                                              financed
                                                                                                                                              or
                                                                                                                                              refinanced
                                                                                                                                              by
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              Delivery
                                                                                                                                              Advance)
                                                                                                                                              has
                                                                                                                                              been
                                                                                                                                              duly
                                                                                                                                              paid;

 

	(b)	the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              shall,
                                                                                                                                              on
                                                                                                                                              or
                                                                                                                                              immediately
                                                                                                                                              after
                                                                                                                                              its
                                                                                                                                              Delivery
                                                                                                                                              Date,
                                                                                                                                              be
                                                                                                                                              registered
                                                                                                                                              permanently
                                                                                                                                              or
                                                                                                                                              (as
                                                                                                                                              the
                                                                                                                                              case
                                                                                                                                              may
                                                                                                                                              be)
                                                                                                                                              provisionally
                                                                                                                                              in
                                                                                                                                              the
                                                                                                                                              name
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              Owner
                                                                                                                                              under
                                                                                                                                              an
                                                                                                                                              Approved
                                                                                                                                              Flag;

 

	(c)	the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              shall
                                                                                                                                              be
                                                                                                                                              in
                                                                                                                                              the
                                                                                                                                              absolute
                                                                                                                                              and
                                                                                                                                              unencumbered
                                                                                                                                              ownership
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              Owner
                                                                                                                                              save
                                                                                                                                              as
                                                                                                                                              contemplated
                                                                                                                                              by
                                                                                                                                              the
                                                                                                                                              Finance
                                                                                                                                              Documents
                                                                                                                                              on
                                                                                                                                              or
                                                                                                                                              immediately
                                                                                                                                              after
                                                                                                                                              its
                                                                                                                                              Delivery
                                                                                                                                              Date;

 

	(d)	the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              maintains
                                                                                                                                              the
                                                                                                                                              classification
                                                                                                                                              society
                                                                                                                                              referred
                                                                                                                                              to
                                                                                                                                              in
                                                                                                                                              Clause
                                                                                                                                              14.3(a)
                                                                                                                                              free
                                                                                                                                              of
                                                                                                                                              all
                                                                                                                                              overdue
                                                                                                                                              recommendations
                                                                                                                                              and
                                                                                                                                              conditions
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              classification
                                                                                                                                              society
                                                                                                                                              affecting
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Ship’s
                                                                                                                                              class;

    	72

    	

    

	(e)	the
                                                                                                                                              Mortgage
                                                                                                                                              and
                                                                                                                                              (if
                                                                                                                                              applicable)
                                                                                                                                              the
                                                                                                                                              Deed
                                                                                                                                              of
                                                                                                                                              Covenant
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              has
                                                                                                                                              or
                                                                                                                                              have
                                                                                                                                              been
                                                                                                                                              duly
                                                                                                                                              registered
                                                                                                                                              against
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              as
                                                                                                                                              a
                                                                                                                                              valid
                                                                                                                                              first
                                                                                                                                              preferred
                                                                                                                                              or
                                                                                                                                              priority
                                                                                                                                              ship
                                                                                                                                              mortgage
                                                                                                                                              and
                                                                                                                                              (if
                                                                                                                                              applicable)
                                                                                                                                              collateral
                                                                                                                                              deed
                                                                                                                                              of
                                                                                                                                              covenant
                                                                                                                                              in
                                                                                                                                              accordance
                                                                                                                                              with
                                                                                                                                              the
                                                                                                                                              laws
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              applicable
                                                                                                                                              Approved
                                                                                                                                              Flag
                                                                                                                                              State
                                                                                                                                              immediately
                                                                                                                                              after
                                                                                                                                              the
                                                                                                                                              later
                                                                                                                                              of
                                                                                                                                              (i)
                                                                                                                                              the
                                                                                                                                              Drawdown
                                                                                                                                              Date
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              relevant
                                                                                                                                              Delivery
                                                                                                                                              Advance
                                                                                                                                              and
                                                                                                                                              (ii)
                                                                                                                                              the
                                                                                                                                              Delivery
                                                                                                                                              Date
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Ship;
                                                                                                                                              and

 

	(f)	the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              is
                                                                                                                                              insured
                                                                                                                                              in
                                                                                                                                              accordance
                                                                                                                                              with
                                                                                                                                              the
                                                                                                                                              provisions
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              Agreement
                                                                                                                                              and
                                                                                                                                              all
                                                                                                                                              requirements
                                                                                                                                              therein
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              of
                                                                                                                                              insurances
                                                                                                                                              have
                                                                                                                                              been
                                                                                                                                              complied
                                                                                                                                              with.

 

	3	A
                                                                                                                                                   copy
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Management
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   duly
                                                                                                                                                   executed
                                                                                                                                                   original
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Manager’s
                                                                                                                                                   Undertaking
                                                                                                                                                   in
                                                                                                                                                   relation
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship.

 

	4	Copies
                                                                                                                                                   of:

 

	(a)	the
                                                                                                                                              document
                                                                                                                                              of
                                                                                                                                              compliance
                                                                                                                                              (DOC)
                                                                                                                                              and
                                                                                                                                              safety
                                                                                                                                              management
                                                                                                                                              certificate
                                                                                                                                              (SMC)
                                                                                                                                              referred
                                                                                                                                              to
                                                                                                                                              in
                                                                                                                                              paragraph
                                                                                                                                              (a)
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              definition
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              ISM
                                                                                                                                              Code
                                                                                                                                              Documentation
                                                                                                                                              or,
                                                                                                                                              if
                                                                                                                                              not
                                                                                                                                              yet
                                                                                                                                              issued,
                                                                                                                                              the
                                                                                                                                              application
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              thereof,
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              and
                                                                                                                                              the
                                                                                                                                              Approved
                                                                                                                                              Manager
                                                                                                                                              certified
                                                                                                                                              as
                                                                                                                                              true
                                                                                                                                              and
                                                                                                                                              in
                                                                                                                                              effect
                                                                                                                                              by
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Owner;
                                                                                                                                              and

 

	(c)	the
                                                                                                                                              ISPS
                                                                                                                                              Code
                                                                                                                                              Documentation
                                                                                                                                              or,
                                                                                                                                              if
                                                                                                                                              not
                                                                                                                                              yet
                                                                                                                                              issued,
                                                                                                                                              the
                                                                                                                                              application
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              thereof,
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Ship
                                                                                                                                              and
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Owner
                                                                                                                                              certified
                                                                                                                                              as
                                                                                                                                              true
                                                                                                                                              and
                                                                                                                                              in
                                                                                                                                              effect
                                                                                                                                              by
                                                                                                                                              the
                                                                                                                                              Relevant
                                                                                                                                              Owner.

 

	5	If
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship
                                                                                                                                                   is
                                                                                                                                                   the
                                                                                                                                                   first
                                                                                                                                                   Ship
                                                                                                                                                   whose
                                                                                                                                                   delivery
                                                                                                                                                   instalment
                                                                                                                                                   is
                                                                                                                                                   being
                                                                                                                                                   financed
                                                                                                                                                   under
                                                                                                                                                   this
                                                                                                                                                   Agreement,
                                                                                                                                                   evidence
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   Retention
                                                                                                                                                   Account
                                                                                                                                                   has
                                                                                                                                                   been
                                                                                                                                                   duly
                                                                                                                                                   opened
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   Agent
                                                                                                                                                   by
                                                                                                                                                   the
                                                                                                                                                   Borrower.

 

	6	Evidence
                                                                                                                                                   satisfactory
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Agent
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   relevant
                                                                                                                                                   Owner
                                                                                                                                                   is
                                                                                                                                                   a
                                                                                                                                                   direct
                                                                                                                                                   or,
                                                                                                                                                   as
                                                                                                                                                   the
                                                                                                                                                   case
                                                                                                                                                   may
                                                                                                                                                   be,
                                                                                                                                                   indirect
                                                                                                                                                   wholly
                                                                                                                                                   owned
                                                                                                                                                   subsidiary
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Borrower,

 

	7	If
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   subject
                                                                                                                                                   to
                                                                                                                                                   an
                                                                                                                                                   Approved
                                                                                                                                                   Charter,
                                                                                                                                                   two
                                                                                                                                                   valuations
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship
                                                                                                                                                   addressed
                                                                                                                                                   to
                                                                                                                                                   the
                                                                                                                                                   Agent,
                                                                                                                                                   stated
                                                                                                                                                   to
                                                                                                                                                   be
                                                                                                                                                   for
                                                                                                                                                   the
                                                                                                                                                   purposes
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   prepared
                                                                                                                                                   in
                                                                                                                                                   accordance
                                                                                                                                                   with
                                                                                                                                                   Clause
                                                                                                                                                   15.

 

	8	A
                                                                                                                                                   copy
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Approved
                                                                                                                                                   Charterparty,
                                                                                                                                                   if
                                                                                                                                                   any,
                                                                                                                                                   in
                                                                                                                                                   respect
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Ship.

 

	9	Documentary
                                                                                                                                                   evidence
                                                                                                                                                   that
                                                                                                                                                   the
                                                                                                                                                   agent
                                                                                                                                                   for
                                                                                                                                                   service
                                                                                                                                                   of
                                                                                                                                                   process
                                                                                                                                                   named
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Finance
                                                                                                                                                   Documents
                                                                                                                                                   to
                                                                                                                                                   which
                                                                                                                                                   the
                                                                                                                                                   Relevant
                                                                                                                                                   Owner
                                                                                                                                                   is
                                                                                                                                                   a
                                                                                                                                                   party
                                                                                                                                                   has
                                                                                                                                                   accepted
                                                                                                                                                   its
                                                                                                                                                   appointment.

 

	10	A
                                                                                                                                                    favourable
                                                                                                                                                    opinion
                                                                                                                                                    (at
                                                                                                                                                    the
                                                                                                                                                    cost
                                                                                                                                                    of
                                                                                                                                                    the
                                                                                                                                                    Borrower)
                                                                                                                                                    from
                                                                                                                                                    an
                                                                                                                                                    independent
                                                                                                                                                    insurance
                                                                                                                                                    consultant
                                                                                                                                                    acceptable
                                                                                                                                                    to
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    on
                                                                                                                                                    such
                                                                                                                                                    matters
                                                                                                                                                    relating
                                                                                                                                                    to
                                                                                                                                                    the
                                                                                                                                                    insurances
                                                                                                                                                    for
                                                                                                                                                    the
                                                                                                                                                    Relevant
                                                                                                                                                    Ship
                                                                                                                                                    as
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    may
                                                                                                                                                    require.

 

	11	Favourable
                                                                                                                                                    legal
                                                                                                                                                    opinions
                                                                                                                                                    from
                                                                                                                                                    lawyers
                                                                                                                                                    appointed
                                                                                                                                                    by
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    on
                                                                                                                                                    such
                                                                                                                                                    matters
                                                                                                                                                    concerning
                                                                                                                                                    the
                                                                                                                                                    laws
                                                                                                                                                    of
                                                                                                                                                    the
                                                                                                                                                    applicable
                                                                                                                                                    Approved
                                                                                                                                                    Flag
                                                                                                                                                    State
                                                                                                                                                    and
                                                                                                                                                    such
                                                                                                                                                    other
                                                                                                                                                    relevant
                                                                                                                                                    jurisdictions
                                                                                                                                                    as
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    may
                                                                                                                                                    require.

 

	12	If
                                                                                                                                                    the
                                                                                                                                                    Agent
                                                                                                                                                    so
                                                                                                                                                    requires,
                                                                                                                                                    in
                                                                                                                                                    respect
                                                                                                                                                    of
                                                                                                                                                    any
                                                                                                                                                    of
                                                                                                                                                    the
                                                                                                                                                    documents
                                                                                                                                                    referred
                                                                                                                                                    to
                                                                                                                                                    above
                                                                                                                                                    not
                                                                                                                                                    in
                                                                                                                                                    the
                                                                                                                                                    English
                                                                                                                                                    language,
                                                                                                                                                    a
                                                                                                                                                    certified
                                                                                                                                                    English
                                                                                                                                                    translation
                                                                                                                                                    prepared
                                                                                                                                                    by
                                                                                                                                                    a
                                                                                                                                                    translator
                                                                                                                                                    approved
                                                                                                                                                    by
                                                                                                                                                    the
                                                                                                                                                    Agent.

 

Every
copy document delivered under this Schedule shall be certified as a true and up to date copy by a director or the secretary
(or equivalent officer) of the Borrower or the relevant Owner.

    	73

    	

    

SCHEDULE
4

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:	ING
                                                                                                                                              Bank
                                                                                                                                              N.V.,
                                                                                                                                              London
                                                                                                                                              Branch
                                                                                                                                              for
                                                                                                                                              itself
                                                                                                                                              and
                                                                                                                                              for
                                                                                                                                              and
                                                                                                                                              on
                                                                                                                                              behalf
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Borrower,
                                                                                                                                              each
                                                                                                                                              Security
                                                                                                                                              Party,
                                                                                                                                              the
                                                                                                                                              Security
                                                                                                                                              Trustee,
                                                                                                                                              the
                                                                                                                                              Swap
                                                                                                                                              Bank
                                                                                                                                              and
                                                                                                                                              each
                                                                                                                                              Lender,
                                                                                                                                              as
                                                                                                                                              defined
                                                                                                                                              in
                                                                                                                                              the
                                                                                                                                              Loan
                                                                                                                                              Agreement
                                                                                                                                              referred
                                                                                                                                              to
                                                                                                                                              below.

 

[●]

 

	1	This
                                                                                                                                                   Certificate
                                                                                                                                                   relates
                                                                                                                                                   to
                                                                                                                                                   a
                                                                                                                                                   Loan
                                                                                                                                                   Agreement
                                                                                                                                                   dated
                                                                                                                                                   [●]
                                                                                                                                                   2011
                                                                                                                                                   (as
                                                                                                                                                   amended
                                                                                                                                                   and/or
                                                                                                                                                   supplemented
                                                                                                                                                   from
                                                                                                                                                   time
                                                                                                                                                   to
                                                                                                                                                   time,
                                                                                                                                                   the
                                                                                                                                                   “Loan
                                                                                                                                                   Agreement”)
                                                                                                                                                   and
                                                                                                                                                   made
                                                                                                                                                   between
                                                                                                                                                   (1)
                                                                                                                                                   Costamare
                                                                                                                                                   Inc.
                                                                                                                                                   (the
                                                                                                                                                   “Borrower”),
                                                                                                                                                   (2)
                                                                                                                                                   certain
                                                                                                                                                   banks
                                                                                                                                                   and
                                                                                                                                                   financial
                                                                                                                                                   institutions
                                                                                                                                                   as
                                                                                                                                                   lenders
                                                                                                                                                   (together
                                                                                                                                                   in
                                                                                                                                                   such
                                                                                                                                                   capacity,
                                                                                                                                                   the
                                                                                                                                                   “Lenders”),
                                                                                                                                                   (3)
                                                                                                                                                   ING
                                                                                                                                                   Bank
                                                                                                                                                   N.V.
                                                                                                                                                   as
                                                                                                                                                   swap
                                                                                                                                                   bank
                                                                                                                                                   (in
                                                                                                                                                   such
                                                                                                                                                   capacity,
                                                                                                                                                   the
                                                                                                                                                   “Swap
                                                                                                                                                   Bank”)
                                                                                                                                                   and
                                                                                                                                                   (4)
                                                                                                                                                   ING
                                                                                                                                                   Bank
                                                                                                                                                   N.V.,
                                                                                                                                                   London
                                                                                                                                                   Branch
                                                                                                                                                   as
                                                                                                                                                   mandated
                                                                                                                                                   lead
                                                                                                                                                   arranger,
                                                                                                                                                   as
                                                                                                                                                   agent
                                                                                                                                                   (in
                                                                                                                                                   such
                                                                                                                                                   capacity,
                                                                                                                                                   the
                                                                                                                                                   “Agent”)
                                                                                                                                                   and
                                                                                                                                                   as
                                                                                                                                                   security
                                                                                                                                                   trustee
                                                                                                                                                   (in
                                                                                                                                                   such
                                                                                                                                                   capacity,
                                                                                                                                                   the
                                                                                                                                                   “Security
                                                                                                                                                   Trustee”)
                                                                                                                                                   for
                                                                                                                                                   a
                                                                                                                                                   loan
                                                                                                                                                   facility
                                                                                                                                                   of
                                                                                                                                                   up
                                                                                                                                                   to
                                                                                                                                                   $140,000,000.

 

	2	In
                                                                                                                                                   this
                                                                                                                                                   Certificate,
                                                                                                                                                   terms
                                                                                                                                                   defined
                                                                                                                                                   in
                                                                                                                                                   the
                                                                                                                                                   Loan
                                                                                                                                                   Agreement
                                                                                                                                                   shall,
                                                                                                                                                   unless
                                                                                                                                                   the
                                                                                                                                                   contrary
                                                                                                                                                   intention
                                                                                                                                                   appears,
                                                                                                                                                   have
                                                                                                                                                   the
                                                                                                                                                   same
                                                                                                                                                   meanings
                                                                                                                                                   and:

 

“Relevant Parties”
means the Agent, the Borrower, each Security Party, the Security Trustee, the Swap Bank and each Lender;

 

“Transferor”
means [full name] of [lending office]; and

 

“Transferee”
means [full name] of [lending office].

 

	3	The
                                                                                                                                                   effective
                                                                                                                                                   date
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Certificate
                                                                                                                                                   is
                                                                                                                                                   [●]
                                                                                                                                                   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
                                                                                                                                                   Loan
                                                                                                                                                   Agreement
                                                                                                                                                   and
                                                                                                                                                   every
                                                                                                                                                   other
                                                                                                                                                   Finance
                                                                                                                                                   Document
                                                                                                                                                   in
                                                                                                                                                   relation
                                                                                                                                                   to
                                                                                                                                                   [●]
                                                                                                                                                   per
                                                                                                                                                   cent.
                                                                                                                                                   of
                                                                                                                                                   its
                                                                                                                                                   Contribution,
                                                                                                                                                   which
                                                                                                                                                   percentage
                                                                                                                                                   represents
                                                                                                                                                   $[●].

 

	5	By
                                                                                                                                                   virtue
                                                                                                                                                   of
                                                                                                                                                   this
                                                                                                                                                   Certificate
                                                                                                                                                   and
                                                                                                                                                   Clause
                                                                                                                                                   26
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Loan
                                                                                                                                                   Agreement,
                                                                                                                                                   the
                                                                                                                                                   Transferor
                                                                                                                                                   is
                                                                                                                                                   discharged
                                                                                                                                                   [entirely
                                                                                                                                                   from
                                                                                                                                                   its
                                                                                                                                                   Commitment
                                                                                                                                                   which
                                                                                                                                                   amounts
                                                                                                                                                   to
                                                                                                                                                   $[●]]
                                                                                                                                                   [from
                                                                                                                                                   [●]
                                                                                                                                                   per
                                                                                                                                                   cent.
                                                                                                                                                   of
                                                                                                                                                   its
                                                                                                                                                   Commitment,
                                                                                                                                                   which
                                                                                                                                                   percentage
                                                                                                                                                   represents
                                                                                                                                                   $[●]]
                                                                                                                                                   and
                                                                                                                                                   the
                                                                                                                                                   Transferee
                                                                                                                                                   acquires
                                                                                                                                                   a
                                                                                                                                                   Commitment
                                                                                                                                                   of
                                                                                                                                                   $[●].]

 

	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
                                                                                                                                                   26
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Loan
                                                                                                                                                   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
                                                                                                                                                   26
                                                                                                                                                   of
                                                                                                                                                   the
                                                                                                                                                   Loan
                                                                                                                                                   Agreement.

    	74

    	

    

	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
                                                                                                                                                 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
                                                                                                                                              above;
                                                                                                                                              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:

 

	(b)	confirms
                                                                                                                                              that
                                                                                                                                              it
                                                                                                                                              has
                                                                                                                                              received
                                                                                                                                              a
                                                                                                                                              copy
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Loan
                                                                                                                                              Agreement
                                                                                                                                              and
                                                                                                                                              each
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              other
                                                                                                                                              Finance
                                                                                                                                              Documents;

 

	(d)	agrees
                                                                                                                                              that
                                                                                                                                              it
                                                                                                                                              will
                                                                                                                                              have
                                                                                                                                              no
                                                                                                                                              rights
                                                                                                                                              of
                                                                                                                                              recourse
                                                                                                                                              on
                                                                                                                                              any
                                                                                                                                              ground
                                                                                                                                              against
                                                                                                                                              either
                                                                                                                                              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
                                                                                                                                                  Borrower
                                                                                                                                                  or
                                                                                                                                                  any
                                                                                                                                                  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
                                                                                                                                                   realise
                                                                                                                                                   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
                                                                                                                                                   Borrower
                                                                                                                                                   or
                                                                                                                                                   Security
                                                                                                                                                   Party
                                                                                                                                                   under
                                                                                                                                                   the
                                                                                                                                                   Finance
                                                                                                                                                   Documents;

 

	(e)	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;

 

	(f)	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)	this
                                                                                                                                                  Certificate
                                                                                                                                                  is
                                                                                                                                                  valid
                                                                                                                                                  and
                                                                                                                                                  binding
                                                                                                                                                  as
                                                                                                                                                  regards
                                                                                                                                                  the
                                                                                                                                                  Transferee;
                                                                                                                                                  and

 

	(g)	confirms
                                                                                                                                              the
                                                                                                                                              accuracy
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              administrative
                                                                                                                                              details
                                                                                                                                              set
                                                                                                                                              out
                                                                                                                                              below
                                                                                                                                              regarding
                                                                                                                                              the
                                                                                                                                              Transferee.

 

	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
                                                                                                                                                    and
                                                                                                                                                    culpable
                                                                                                                                                    negligence
                                                                                                                                                    or
                                                                                                                                                    dishonesty
                                                                                                                                                    of
                                                                                                                                                    the
                                                                                                                                                    Agent’s
                                                                                                                                                    or
                                                                                                                                                    the
                                                                                                                                                    Security
                                                                                                                                                    Trustee’s
                                                                                                                                                    own
                                                                                                                                                    officers
                                                                                                                                                    or
                                                                                                                                                    employees.

    	75

    	

    

	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.

 

	12	This
                                                                                                                                                    Certificate
                                                                                                                                                    shall
                                                                                                                                                    be
                                                                                                                                                    governed
                                                                                                                                                    by,
                                                                                                                                                    and
                                                                                                                                                    construed
                                                                                                                                                    in
                                                                                                                                                    accordance
                                                                                                                                                    with,
                                                                                                                                                    English
                                                                                                                                                    law.

 

[Name of Transferor][Name of Transferee]

 

	By:	By:
	 	 
	Date:	Date:

 

Agent

 

Signed for itself and for and on behalf
of itself

as Agent and for every other Relevant Party

ING BANK N.V., LONDON BRANCH

 

By:

 

Date:

    	76

    	

    

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.

    	77

    	

    

SCHEDULE
5

DESIGNATION NOTICE

 

	To:	ING Bank N.V., London Branch
	 	60 London Wall
	 	London EC2M 5TQ
	 	England

 

[●]

 

Dear Sirs

 

Loan agreement dated [●] 2011 (as amended
and/or supplemented from time to time, the “Loan Agreement”) made between (inter alia) (i) ourselves as Borrower,
(ii) the Lenders, (iii) yourselves as Mandated Lead Arranger, Agent and Security Trustee and (iv) ING Bank N.V. as Swap Bank in
respect of a loan facility of up to US$140,000,000.

 

We refer to:

 

	1	the
                                                                                                                                            Loan
                                                                                                                                            Agreement;

 

	2	the
                                                                                                                                            Master
                                                                                                                                            Agreement
                                                                                                                                            dated
                                                                                                                                            [●]
                                                                                                                                            2011
                                                                                                                                            (the
                                                                                                                                            “Master
                                                                                                                                            Agreement”)
                                                                                                                                            made
                                                                                                                                            between
                                                                                                                                            ourselves
                                                                                                                                            and
                                                                                                                                            ING
                                                                                                                                            Bank
                                                                                                                                            N.V.;
                                                                                                                                            and

 

	3	a
                                                                                                                                            Confirmation
                                                                                                                                            delivered
                                                                                                                                            pursuant
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            Master
                                                                                                                                            Agreement
                                                                                                                                            and
                                                                                                                                            addressed
                                                                                                                                            by
                                                                                                                                            ING
                                                                                                                                            Bank
                                                                                                                                            N.V.
                                                                                                                                            to
                                                                                                                                            us.

 

In accordance with the terms of the Loan
Agreement, we hereby give you notice of the said Confirmation and hereby confirm that the Transaction evidenced by it will be
designated as a “Designated Transaction” for the purposes of the Loan Agreement and the other Finance Documents.

 

Yours faithfully

	 	 

for and on behalf of

COSTAMARE INC.

    	78

    	

    

SCHEDULE
6

FORM OF COMPLIANCE CERTIFICATE

 

	To:	ING Bank N.V., London Branch
	 	60 London Wall
	 	London EC2M 5TQ
	 	England

 

[●]

 

Dear Sirs,

 

We refer to a loan agreement dated [●]
2011 (as amended and/or supplemented from time to time, the “Loan Agreement”) made between (amongst others)
yourselves and ourselves in relation to a loan facility of up to $140,000,000.

 

Words and expressions defined in the Loan
Agreement shall have the same meaning when used in this compliance certificate.

 

We enclose with this certificate a copy
of the audited consolidated accounts for the Borrower’s Group for the Financial Year ended [●].

 

The Borrower represents that, to the best of its knowledge,
no Event of Default has occurred which is continuing as at the date of this certificate except for the following matter or event
[set out all material details of matter or event].

 

We now certify that, as at [●]:

 

	(a)	the
                                                                                                                                              ratio
                                                                                                                                              of
                                                                                                                                              EBITDA
                                                                                                                                              to
                                                                                                                                              Net
                                                                                                                                              Interest
                                                                                                                                              Expense
                                                                                                                                              is
                                                                                                                                              [●]:[●];
                                                                                                                                              and

 

	(b)	the
                                                                                                                                              aggregate
                                                                                                                                              of
                                                                                                                                              all
                                                                                                                                              Cash
                                                                                                                                              and
                                                                                                                                              Cash
                                                                                                                                              Equivalents
                                                                                                                                              is
                                                                                                                                              $[●]
                                                                                                                                              which
                                                                                                                                              represents
                                                                                                                                              [●]
                                                                                                                                              per
                                                                                                                                              cent.
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Total
                                                                                                                                              Bank
                                                                                                                                              Debt.

 

This certificate shall be governed by, and construed in accordance with, English law.

	 	 
	For and on behalf of	 
	Costamare Inc.	 
	by [●]	 
	(Chief Financial Officer)	 

    	79

    	

    

SCHEDULE
7

MANDATORY COST FORMULA

 

	1	The
                                                                                                                                            Mandatory
                                                                                                                                            Cost
                                                                                                                                            is
                                                                                                                                            an
                                                                                                                                            addition
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            interest
                                                                                                                                            rate
                                                                                                                                            to
                                                                                                                                            compensate
                                                                                                                                            Lenders
                                                                                                                                            for
                                                                                                                                            the
                                                                                                                                            cost
                                                                                                                                            of
                                                                                                                                            compliance
                                                                                                                                            with
                                                                                                                                            (a)
                                                                                                                                            the
                                                                                                                                            requirements
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            Financial
                                                                                                                                            Services
                                                                                                                                            Authority
                                                                                                                                            (or
                                                                                                                                            any
                                                                                                                                            other
                                                                                                                                            authority
                                                                                                                                            which
                                                                                                                                            replaces
                                                                                                                                            all
                                                                                                                                            or
                                                                                                                                            any
                                                                                                                                            of
                                                                                                                                            its
                                                                                                                                            functions)
                                                                                                                                            or
                                                                                                                                            (b)
                                                                                                                                            the
                                                                                                                                            requirements
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            European
                                                                                                                                            Central
                                                                                                                                            Bank.

 

	2	On
                                                                                                                                            the
                                                                                                                                            first
                                                                                                                                            day
                                                                                                                                            of
                                                                                                                                            each
                                                                                                                                            Interest
                                                                                                                                            Period
                                                                                                                                            (or
                                                                                                                                            as
                                                                                                                                            soon
                                                                                                                                            as
                                                                                                                                            possible
                                                                                                                                            thereafter)
                                                                                                                                            the
                                                                                                                                            Agent
                                                                                                                                            shall
                                                                                                                                            calculate,
                                                                                                                                            as
                                                                                                                                            a
                                                                                                                                            percentage
                                                                                                                                            rate,
                                                                                                                                            a
                                                                                                                                            rate
                                                                                                                                            (the
                                                                                                                                            “Additional
                                                                                                                                            Cost
                                                                                                                                            Rate”)
                                                                                                                                            for
                                                                                                                                            each
                                                                                                                                            Lender,
                                                                                                                                            in
                                                                                                                                            accordance
                                                                                                                                            with
                                                                                                                                            the
                                                                                                                                            paragraphs
                                                                                                                                            set
                                                                                                                                            out
                                                                                                                                            below.
                                                                                                                                            The
                                                                                                                                            Mandatory
                                                                                                                                            Cost
                                                                                                                                            will
                                                                                                                                            be
                                                                                                                                            calculated
                                                                                                                                            by
                                                                                                                                            the
                                                                                                                                            Agent
                                                                                                                                            as
                                                                                                                                            a
                                                                                                                                            weighted
                                                                                                                                            average
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            Lenders’
                                                                                                                                            Additional
                                                                                                                                            Cost
                                                                                                                                            Rates
                                                                                                                                            (weighted
                                                                                                                                            in
                                                                                                                                            proportion
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            percentage
                                                                                                                                            participation
                                                                                                                                            of
                                                                                                                                            each
                                                                                                                                            Lender
                                                                                                                                            in
                                                                                                                                            the
                                                                                                                                            relevant
                                                                                                                                            Advance)
                                                                                                                                            and
                                                                                                                                            will
                                                                                                                                            be
                                                                                                                                            expressed
                                                                                                                                            as
                                                                                                                                            a
                                                                                                                                            percentage
                                                                                                                                            rate
                                                                                                                                            per
                                                                                                                                            annum.

 

	3	The
                                                                                                                                            Additional
                                                                                                                                            Cost
                                                                                                                                            Rate
                                                                                                                                            for
                                                                                                                                            any
                                                                                                                                            Lender
                                                                                                                                            lending
                                                                                                                                            from
                                                                                                                                            a
                                                                                                                                            lending
                                                                                                                                            office
                                                                                                                                            in
                                                                                                                                            a
                                                                                                                                            Participating
                                                                                                                                            Member
                                                                                                                                            State
                                                                                                                                            will
                                                                                                                                            be
                                                                                                                                            the
                                                                                                                                            percentage
                                                                                                                                            notified
                                                                                                                                            by
                                                                                                                                            that
                                                                                                                                            Lender
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            Agent.
                                                                                                                                            This
                                                                                                                                            percentage
                                                                                                                                            will
                                                                                                                                            be
                                                                                                                                            certified
                                                                                                                                            by
                                                                                                                                            that
                                                                                                                                            Lender
                                                                                                                                            in
                                                                                                                                            its
                                                                                                                                            notice
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            Agent
                                                                                                                                            to
                                                                                                                                            be
                                                                                                                                            its
                                                                                                                                            reasonable
                                                                                                                                            determination
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            cost
                                                                                                                                            (expressed
                                                                                                                                            as
                                                                                                                                            a
                                                                                                                                            percentage
                                                                                                                                            of
                                                                                                                                            that
                                                                                                                                            Lender’s
                                                                                                                                            participation
                                                                                                                                            in
                                                                                                                                            all
                                                                                                                                            Advances
                                                                                                                                            made
                                                                                                                                            from
                                                                                                                                            that
                                                                                                                                            lending
                                                                                                                                            office)
                                                                                                                                            of
                                                                                                                                            complying
                                                                                                                                            with
                                                                                                                                            the
                                                                                                                                            minimum
                                                                                                                                            reserve
                                                                                                                                            requirements
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            European
                                                                                                                                            Central
                                                                                                                                            Bank
                                                                                                                                            in
                                                                                                                                            respect
                                                                                                                                            of
                                                                                                                                            loans
                                                                                                                                            made
                                                                                                                                            from
                                                                                                                                            that
                                                                                                                                            lending
                                                                                                                                            office.

 

	4	The
                                                                                                                                            Additional
                                                                                                                                            Cost
                                                                                                                                            Rate
                                                                                                                                            for
                                                                                                                                            any
                                                                                                                                            Lender
                                                                                                                                            lending
                                                                                                                                            from
                                                                                                                                            a
                                                                                                                                            lending
                                                                                                                                            office
                                                                                                                                            in
                                                                                                                                            the
                                                                                                                                            United
                                                                                                                                            Kingdom
                                                                                                                                            will
                                                                                                                                            be
                                                                                                                                            calculated
                                                                                                                                            by
                                                                                                                                            the
                                                                                                                                            Agent
                                                                                                                                            as
                                                                                                                                            follows:

 

	 	 	per cent. per annum

 

 

where:

 

		E	is
                                                                                                                                               designed
                                                                                                                                               to
                                                                                                                                               compensate
                                                                                                                                               Lenders
                                                                                                                                               for
                                                                                                                                               amounts
                                                                                                                                               payable
                                                                                                                                               under
                                                                                                                                               the
                                                                                                                                               Fees
                                                                                                                                               Rules
                                                                                                                                               and
                                                                                                                                               is
                                                                                                                                               calculated
                                                                                                                                               by
                                                                                                                                               the
                                                                                                                                               Agent
                                                                                                                                               as
                                                                                                                                               being
                                                                                                                                               the
                                                                                                                                               average
                                                                                                                                               of
                                                                                                                                               the
                                                                                                                                               most
                                                                                                                                               recent
                                                                                                                                               rates
                                                                                                                                               of
                                                                                                                                               charge
                                                                                                                                               supplied
                                                                                                                                               by
                                                                                                                                               the
                                                                                                                                               Lenders
                                                                                                                                               to
                                                                                                                                               the
                                                                                                                                               Agent
                                                                                                                                               pursuant
                                                                                                                                               to
                                                                                                                                               paragraph
                                                                                                                                               6
                                                                                                                                               below
                                                                                                                                               and
                                                                                                                                               expressed
                                                                                                                                               in
                                                                                                                                               pounds
                                                                                                                                               per
                                                                                                                                               £1,000,000.

 

	5	For
                                                                                                                                            the
                                                                                                                                            purposes
                                                                                                                                            of
                                                                                                                                            this
                                                                                                                                            Schedule:

 

	(a)	“Eligible
                                                                                                                                              Liabilities”
                                                                                                                                              and
                                                                                                                                              “Special
                                                                                                                                              Deposits”
                                                                                                                                              have
                                                                                                                                              the
                                                                                                                                              meanings
                                                                                                                                              given
                                                                                                                                              to
                                                                                                                                              them
                                                                                                                                              from
                                                                                                                                              time
                                                                                                                                              to
                                                                                                                                              time
                                                                                                                                              under
                                                                                                                                              or
                                                                                                                                              pursuant
                                                                                                                                              to
                                                                                                                                              the
                                                                                                                                              Bank
                                                                                                                                              of
                                                                                                                                              England
                                                                                                                                              Act
                                                                                                                                              1998
                                                                                                                                              or
                                                                                                                                              (as
                                                                                                                                              may
                                                                                                                                              be
                                                                                                                                              appropriate)
                                                                                                                                              by
                                                                                                                                              the
                                                                                                                                              Bank
                                                                                                                                              of
                                                                                                                                              England;

 

	(b)	“Fees
                                                                                                                                              Rules”
                                                                                                                                              means
                                                                                                                                              the
                                                                                                                                              rules
                                                                                                                                              on
                                                                                                                                              periodic
                                                                                                                                              fees
                                                                                                                                              contained
                                                                                                                                              in
                                                                                                                                              the
                                                                                                                                              FSA
                                                                                                                                              Supervision
                                                                                                                                              Manual
                                                                                                                                              or
                                                                                                                                              such
                                                                                                                                              other
                                                                                                                                              law
                                                                                                                                              or
                                                                                                                                              regulation
                                                                                                                                              as
                                                                                                                                              may
                                                                                                                                              be
                                                                                                                                              in
                                                                                                                                              force
                                                                                                                                              from
                                                                                                                                              time
                                                                                                                                              to
                                                                                                                                              time
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              payment
                                                                                                                                              of
                                                                                                                                              fees
                                                                                                                                              for
                                                                                                                                              the
                                                                                                                                              acceptance
                                                                                                                                              of
                                                                                                                                              deposits;

 

	(c)	“Fee
                                                                                                                                              Tariffs”
                                                                                                                                              means
                                                                                                                                              the
                                                                                                                                              fee
                                                                                                                                              tariffs
                                                                                                                                              specified
                                                                                                                                              in
                                                                                                                                              the
                                                                                                                                              Fees
                                                                                                                                              Rules
                                                                                                                                              under
                                                                                                                                              the
                                                                                                                                              activity
                                                                                                                                              group
                                                                                                                                              A.1
                                                                                                                                              Deposit
                                                                                                                                              acceptors
                                                                                                                                              (ignoring
                                                                                                                                              any
                                                                                                                                              minimum
                                                                                                                                              fee
                                                                                                                                              or
                                                                                                                                              zero
                                                                                                                                              rated
                                                                                                                                              fee
                                                                                                                                              required
                                                                                                                                              pursuant
                                                                                                                                              to
                                                                                                                                              the
                                                                                                                                              Fees
                                                                                                                                              Rules
                                                                                                                                              but
                                                                                                                                              taking
                                                                                                                                              into
                                                                                                                                              account
                                                                                                                                              any
                                                                                                                                              applicable
                                                                                                                                              discount
                                                                                                                                              rate);

 

		(d)	“Participating
                                                                                                                                              Member
                                                                                                                                              State”
                                                                                                                                              means
                                                                                                                                              any
                                                                                                                                              member
                                                                                                                                              state
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              European
                                                                                                                                              Union
                                                                                                                                              that
                                                                                                                                              adopts
                                                                                                                                              or
                                                                                                                                              has
                                                                                                                                              adopted
                                                                                                                                              the
                                                                                                                                              euro
                                                                                                                                              as
                                                                                                                                              its
                                                                                                                                              lawful
                                                                                                                                              currency
                                                                                                                                              in
                                                                                                                                              accordance
                                                                                                                                              with
                                                                                                                                              legislation
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              European
                                                                                                                                              Union
                                                                                                                                              relating
                                                                                                                                              to
                                                                                                                                              European
                                                                                                                                              Monetary
                                                                                                                                              Union;
                                                                                                                                              and

    	80

    	

    

	(e)	“Tariff
                                                                                                                                              Base”
                                                                                                                                              has
                                                                                                                                              the
                                                                                                                                              meaning
                                                                                                                                              given
                                                                                                                                              to
                                                                                                                                              it
                                                                                                                                              in,
                                                                                                                                              and
                                                                                                                                              will
                                                                                                                                              be
                                                                                                                                              calculated
                                                                                                                                              in
                                                                                                                                              accordance
                                                                                                                                              with,
                                                                                                                                              the
                                                                                                                                              Fees
                                                                                                                                              Rules.

 

	6	If
                                                                                                                                            requested
                                                                                                                                            by
                                                                                                                                            the
                                                                                                                                            Agent,
                                                                                                                                            each
                                                                                                                                            Lender
                                                                                                                                            shall,
                                                                                                                                            as
                                                                                                                                            soon
                                                                                                                                            as
                                                                                                                                            practicable
                                                                                                                                            after
                                                                                                                                            publication
                                                                                                                                            by
                                                                                                                                            the
                                                                                                                                            Financial
                                                                                                                                            Services
                                                                                                                                            Authority,
                                                                                                                                            supply
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            Agent,
                                                                                                                                            the
                                                                                                                                            rate
                                                                                                                                            of
                                                                                                                                            charge
                                                                                                                                            payable
                                                                                                                                            by
                                                                                                                                            that
                                                                                                                                            Lender
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            Financial
                                                                                                                                            Services
                                                                                                                                            Authority
                                                                                                                                            pursuant
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            Fees
                                                                                                                                            Rules
                                                                                                                                            in
                                                                                                                                            respect
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            relevant
                                                                                                                                            financial
                                                                                                                                            year
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            Financial
                                                                                                                                            Services
                                                                                                                                            Authority
                                                                                                                                            (calculated
                                                                                                                                            for
                                                                                                                                            this
                                                                                                                                            purpose
                                                                                                                                            by
                                                                                                                                            that
                                                                                                                                            Lender
                                                                                                                                            as
                                                                                                                                            being
                                                                                                                                            the
                                                                                                                                            average
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            Fee
                                                                                                                                            Tariffs
                                                                                                                                            applicable
                                                                                                                                            to
                                                                                                                                            that
                                                                                                                                            Lender
                                                                                                                                            for
                                                                                                                                            that
                                                                                                                                            financial
                                                                                                                                            year)
                                                                                                                                            and
                                                                                                                                            expressed
                                                                                                                                            in
                                                                                                                                            pounds
                                                                                                                                            per
                                                                                                                                            £1,000,000
                                                                                                                                            of
                                                                                                                                            the
                                                                                                                                            Tariff
                                                                                                                                            Base
                                                                                                                                            of
                                                                                                                                            that
                                                                                                                                            Lender.

 

	7	Each
                                                                                                                                            Lender
                                                                                                                                            shall
                                                                                                                                            supply
                                                                                                                                            any
                                                                                                                                            information
                                                                                                                                            required
                                                                                                                                            by
                                                                                                                                            the
                                                                                                                                            Agent
                                                                                                                                            for
                                                                                                                                            the
                                                                                                                                            purpose
                                                                                                                                            of
                                                                                                                                            calculating
                                                                                                                                            its
                                                                                                                                            Additional
                                                                                                                                            Cost
                                                                                                                                            Rate.
                                                                                                                                            In
                                                                                                                                            particular,
                                                                                                                                            but
                                                                                                                                            without
                                                                                                                                            limitation,
                                                                                                                                            each
                                                                                                                                            Lender
                                                                                                                                            shall
                                                                                                                                            supply
                                                                                                                                            the
                                                                                                                                            following
                                                                                                                                            information
                                                                                                                                            in
                                                                                                                                            writing
                                                                                                                                            on
                                                                                                                                            or
                                                                                                                                            prior
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            date
                                                                                                                                            on
                                                                                                                                            which
                                                                                                                                            it
                                                                                                                                            becomes
                                                                                                                                            a
                                                                                                                                            Lender:

 

	(a)	the
                                                                                                                                              jurisdiction
                                                                                                                                              of
                                                                                                                                              its
                                                                                                                                              lending
                                                                                                                                              office;
                                                                                                                                              and

 

	(b)	any
                                                                                                                                              other
                                                                                                                                              information
                                                                                                                                              that
                                                                                                                                              the
                                                                                                                                              Agent
                                                                                                                                              may
                                                                                                                                              reasonably
                                                                                                                                              require
                                                                                                                                              for
                                                                                                                                              such
                                                                                                                                              purpose.

 

Each Lender shall promptly notify
the Agent in writing of any change to the information provided by it pursuant to this paragraph.

 

	8	The
                                                                                                                                            rates
                                                                                                                                            of
                                                                                                                                            charge
                                                                                                                                            of
                                                                                                                                            each
                                                                                                                                            Lender
                                                                                                                                            for
                                                                                                                                            the
                                                                                                                                            purpose
                                                                                                                                            of
                                                                                                                                            E
                                                                                                                                            above
                                                                                                                                            shall
                                                                                                                                            be
                                                                                                                                            determined
                                                                                                                                            by
                                                                                                                                            the
                                                                                                                                            Agent
                                                                                                                                            based
                                                                                                                                            upon
                                                                                                                                            the
                                                                                                                                            information
                                                                                                                                            supplied
                                                                                                                                            to
                                                                                                                                            it
                                                                                                                                            pursuant
                                                                                                                                            to
                                                                                                                                            paragraph
                                                                                                                                            6
                                                                                                                                            above
                                                                                                                                            and
                                                                                                                                            on
                                                                                                                                            the
                                                                                                                                            assumption
                                                                                                                                            that,
                                                                                                                                            unless
                                                                                                                                            a
                                                                                                                                            Lender
                                                                                                                                            notifies
                                                                                                                                            the
                                                                                                                                            Agent
                                                                                                                                            to
                                                                                                                                            the
                                                                                                                                            contrary,
                                                                                                                                            each
                                                                                                                                            Lender’s
                                                                                                                                            obligations
                                                                                                                                            in
                                                                                                                                            relation
                                                                                                                                            to
                                                                                                                                            cash
                                                                                                                                            ratio
                                                                                                                                            deposits
                                                                                                                                            and
                                                                                                                                            special
                                                                                                                                            Deposits
                                                                                                                                            are
                                                                                                                                            the
                                                                                                                                            same
                                                                                                                                            as
                                                                                                                                            those
                                                                                                                                            of
                                                                                                                                            a
                                                                                                                                            typical
                                                                                                                                            bank
                                                                                                                                            from
                                                                                                                                            its
                                                                                                                                            jurisdiction
                                                                                                                                            of
                                                                                                                                            incorporation
                                                                                                                                            with
                                                                                                                                            a
                                                                                                                                            lending
                                                                                                                                            office
                                                                                                                                            in
                                                                                                                                            the
                                                                                                                                            same
                                                                                                                                            jurisdiction
                                                                                                                                            as
                                                                                                                                            its
                                                                                                                                            lending
                                                                                                                                            office.

 

	9	The
                                                                                                                                            Agent
                                                                                                                                            shall
                                                                                                                                            have
                                                                                                                                            no
                                                                                                                                            liability
                                                                                                                                            to
                                                                                                                                            any
                                                                                                                                            person
                                                                                                                                            if
                                                                                                                                            such
                                                                                                                                            determination
                                                                                                                                            results
                                                                                                                                            in
                                                                                                                                            an
                                                                                                                                            Additional
                                                                                                                                            Cost
                                                                                                                                            Rate
                                                                                                                                            which
                                                                                                                                            over
                                                                                                                                            or
                                                                                                                                            under
                                                                                                                                            compensates
                                                                                                                                            any
                                                                                                                                            Lender
                                                                                                                                            and
                                                                                                                                            shall
                                                                                                                                            be
                                                                                                                                            entitled
                                                                                                                                            to
                                                                                                                                            assume
                                                                                                                                            that
                                                                                                                                            the
                                                                                                                                            information
                                                                                                                                            provided
                                                                                                                                            by
                                                                                                                                            any
                                                                                                                                            Lender
                                                                                                                                            pursuant
                                                                                                                                            to
                                                                                                                                            paragraphs
                                                                                                                                            3,
                                                                                                                                            6
                                                                                                                                            and
                                                                                                                                            7
                                                                                                                                            above
                                                                                                                                            is
                                                                                                                                            true
                                                                                                                                            and
                                                                                                                                            correct
                                                                                                                                            in
                                                                                                                                            all
                                                                                                                                            respects.

 

	10	The
                                                                                                                                             Agent
                                                                                                                                             shall
                                                                                                                                             distribute
                                                                                                                                             the
                                                                                                                                             additional
                                                                                                                                             amounts
                                                                                                                                             received
                                                                                                                                             as
                                                                                                                                             a
                                                                                                                                             result
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Mandatory
                                                                                                                                             Cost
                                                                                                                                             to
                                                                                                                                             the
                                                                                                                                             Lenders
                                                                                                                                             on
                                                                                                                                             the
                                                                                                                                             basis
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Additional
                                                                                                                                             Cost
                                                                                                                                             Rate
                                                                                                                                             for
                                                                                                                                             each
                                                                                                                                             Lender
                                                                                                                                             based
                                                                                                                                             on
                                                                                                                                             the
                                                                                                                                             information
                                                                                                                                             provided
                                                                                                                                             by
                                                                                                                                             each
                                                                                                                                             Lender
                                                                                                                                             pursuant
                                                                                                                                             to
                                                                                                                                             paragraphs
                                                                                                                                             3,
                                                                                                                                             6
                                                                                                                                             and
                                                                                                                                             7
                                                                                                                                             above.

 

	11	Any
                                                                                                                                             determination
                                                                                                                                             by
                                                                                                                                             the
                                                                                                                                             Agent
                                                                                                                                             pursuant
                                                                                                                                             to
                                                                                                                                             this
                                                                                                                                             Schedule
                                                                                                                                             in
                                                                                                                                             relation
                                                                                                                                             to
                                                                                                                                             a
                                                                                                                                             formula,
                                                                                                                                             the
                                                                                                                                             Mandatory
                                                                                                                                             Cost,
                                                                                                                                             an
                                                                                                                                             Additional
                                                                                                                                             Cost
                                                                                                                                             Rate
                                                                                                                                             or
                                                                                                                                             any
                                                                                                                                             amount
                                                                                                                                             payable
                                                                                                                                             to
                                                                                                                                             a
                                                                                                                                             Lender
                                                                                                                                             shall,
                                                                                                                                             in
                                                                                                                                             the
                                                                                                                                             absence
                                                                                                                                             of
                                                                                                                                             manifest
                                                                                                                                             error,
                                                                                                                                             be
                                                                                                                                             conclusive
                                                                                                                                             and
                                                                                                                                             binding
                                                                                                                                             on
                                                                                                                                             all
                                                                                                                                             parties.

 

	12	The
                                                                                                                                             Agent
                                                                                                                                             may
                                                                                                                                             from
                                                                                                                                             time
                                                                                                                                             to
                                                                                                                                             time,
                                                                                                                                             after
                                                                                                                                             consultation
                                                                                                                                             with
                                                                                                                                             the
                                                                                                                                             Borrower
                                                                                                                                             and
                                                                                                                                             the
                                                                                                                                             Lenders,
                                                                                                                                             determine
                                                                                                                                             and
                                                                                                                                             notify
                                                                                                                                             to
                                                                                                                                             all
                                                                                                                                             parties
                                                                                                                                             any
                                                                                                                                             amendments
                                                                                                                                             which
                                                                                                                                             are
                                                                                                                                             required
                                                                                                                                             to
                                                                                                                                             be
                                                                                                                                             made
                                                                                                                                             to
                                                                                                                                             this
                                                                                                                                             Schedule
                                                                                                                                             in
                                                                                                                                             order
                                                                                                                                             to
                                                                                                                                             comply
                                                                                                                                             with
                                                                                                                                             any
                                                                                                                                             change
                                                                                                                                             in
                                                                                                                                             law,
                                                                                                                                             regulation
                                                                                                                                             or
                                                                                                                                             any
                                                                                                                                             requirements
                                                                                                                                             from
                                                                                                                                             time
                                                                                                                                             to
                                                                                                                                             time
                                                                                                                                             imposed
                                                                                                                                             by
                                                                                                                                             the
                                                                                                                                             Financial
                                                                                                                                             Services
                                                                                                                                             Authority
                                                                                                                                             or
                                                                                                                                             the
                                                                                                                                             European
                                                                                                                                             Central
                                                                                                                                             Bank
                                                                                                                                             (or,
                                                                                                                                             in
                                                                                                                                             any
                                                                                                                                             case,
                                                                                                                                             any
                                                                                                                                             other
                                                                                                                                             authority
                                                                                                                                             which
                                                                                                                                             replaces
                                                                                                                                             all
                                                                                                                                             or
                                                                                                                                             any
                                                                                                                                             of
                                                                                                                                             its
                                                                                                                                             functions)
                                                                                                                                             and
                                                                                                                                             any
                                                                                                                                             such
                                                                                                                                             determination
                                                                                                                                             shall,
                                                                                                                                             in
                                                                                                                                             the
                                                                                                                                             absence
                                                                                                                                             of
                                                                                                                                             manifest
                                                                                                                                             error,
                                                                                                                                             be
                                                                                                                                             conclusive
                                                                                                                                             and
                                                                                                                                             binding
                                                                                                                                             on
                                                                                                                                             all
                                                                                                                                             parties.

    	81

    	

    

SCHEDULE
8

FORM OF CONFIDENTIALITY AGREEMENT

 

[Letterhead of Agent]

 

To:

	 

 
	  [insert name of Potential Lender]

 

Re:US$140,000,000 facility

	Company: COSTAMARE
    INC. (the “Company”)

    Date: [●] 2011

    Amount: US$140,000,000

    Agent: ING Bank N.V., London Branch 	 

 

Dear Sirs

 

We understand that you are considering
participating in the Facility. In consideration of us agreeing to make available to you certain information, by your signature
of a copy of this letter you agree as follows:

 

	(A)	CONFIDENTIALITY

 

	1	Confidentiality
                                                                                                                                                   Undertaking

 

		You
                                                                                                                                              undertake:

 

	(a)	to
                                                                                                                                                 keep
                                                                                                                                                 all
                                                                                                                                                 Confidential
                                                                                                                                                 Information
                                                                                                                                                 confidential
                                                                                                                                                 and
                                                                                                                                                 not
                                                                                                                                                 to
                                                                                                                                                 disclose
                                                                                                                                                 it
                                                                                                                                                 to
                                                                                                                                                 anyone,
                                                                                                                                                 save
                                                                                                                                                 to
                                                                                                                                                 the
                                                                                                                                                 extent
                                                                                                                                                 permitted
                                                                                                                                                 by
                                                                                                                                                 paragraph
                                                                                                                                                 (A)2
                                                                                                                                                 below
                                                                                                                                                 and
                                                                                                                                                 to
                                                                                                                                                 ensure
                                                                                                                                                 that
                                                                                                                                                 all
                                                                                                                                                 Confidential
                                                                                                                                                 Information
                                                                                                                                                 is
                                                                                                                                                 protected
                                                                                                                                                 with
                                                                                                                                                 security
                                                                                                                                                 measures
                                                                                                                                                 and
                                                                                                                                                 a
                                                                                                                                                 degree
                                                                                                                                                 of
                                                                                                                                                 care
                                                                                                                                                 that
                                                                                                                                                 would
                                                                                                                                                 apply
                                                                                                                                                 to
                                                                                                                                                 your
                                                                                                                                                 own
                                                                                                                                                 confidential
                                                                                                                                                 information;

 

	(b)	to
                                                                                                                                                 keep
                                                                                                                                                 confidential
                                                                                                                                                 and
                                                                                                                                                 not
                                                                                                                                                 disclose
                                                                                                                                                 to
                                                                                                                                                 anyone
                                                                                                                                                 except
                                                                                                                                                 as
                                                                                                                                                 provided
                                                                                                                                                 for
                                                                                                                                                 by
                                                                                                                                                 paragraph
                                                                                                                                                 (A)2
                                                                                                                                                 below
                                                                                                                                                 the
                                                                                                                                                 fact
                                                                                                                                                 that
                                                                                                                                                 the
                                                                                                                                                 Confidential
                                                                                                                                                 Information
                                                                                                                                                 has
                                                                                                                                                 been
                                                                                                                                                 made
                                                                                                                                                 available
                                                                                                                                                 or
                                                                                                                                                 that
                                                                                                                                                 discussions
                                                                                                                                                 or
                                                                                                                                                 negotiations
                                                                                                                                                 are
                                                                                                                                                 taking
                                                                                                                                                 place
                                                                                                                                                 or
                                                                                                                                                 have
                                                                                                                                                 taken
                                                                                                                                                 place
                                                                                                                                                 between
                                                                                                                                                 us
                                                                                                                                                 in
                                                                                                                                                 connection
                                                                                                                                                 with
                                                                                                                                                 the
                                                                                                                                                 Facility;
                                                                                                                                                 and

 

	(c)	to
                                                                                                                                                 use
                                                                                                                                                 the
                                                                                                                                                 Confidential
                                                                                                                                                 Information
                                                                                                                                                 only
                                                                                                                                                 for
                                                                                                                                                 the
                                                                                                                                                 Permitted
                                                                                                                                                 Purpose.

 

	2	Permitted
                                                                                                                                                   Disclosure

 

		We
                                                                                                                                              agree
                                                                                                                                              that
                                                                                                                                              you
                                                                                                                                              may
                                                                                                                                              disclose
                                                                                                                                              such
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              and
                                                                                                                                              such
                                                                                                                                              of
                                                                                                                                              those
                                                                                                                                              matters
                                                                                                                                              referred
                                                                                                                                              to
                                                                                                                                              in
                                                                                                                                              paragraph
                                                                                                                                              (A)1.2
                                                                                                                                              above
                                                                                                                                              as
                                                                                                                                              you
                                                                                                                                              shall
                                                                                                                                              consider
                                                                                                                                              appropriate:

 

	(a)	to
                                                                                                                                              members
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Participant
                                                                                                                                              Group
                                                                                                                                              and
                                                                                                                                              their
                                                                                                                                              officers,
                                                                                                                                              directors,
                                                                                                                                              employees,
                                                                                                                                              professional
                                                                                                                                              advisers
                                                                                                                                              and
                                                                                                                                              auditors
                                                                                                                                              if
                                                                                                                                              any
                                                                                                                                              person
                                                                                                                                              to
                                                                                                                                              whom
                                                                                                                                              the
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              is
                                                                                                                                              to
                                                                                                                                              be
                                                                                                                                              given
                                                                                                                                              pursuant
                                                                                                                                              to
                                                                                                                                              this
                                                                                                                                              paragraph
                                                                                                                                              (A)2(a)
                                                                                                                                              is
                                                                                                                                              informed
                                                                                                                                              in
                                                                                                                                              writing
                                                                                                                                              of
                                                                                                                                              its
                                                                                                                                              confidential
                                                                                                                                              nature
                                                                                                                                              and
                                                                                                                                              that
                                                                                                                                              some
                                                                                                                                              or
                                                                                                                                              all
                                                                                                                                              of
                                                                                                                                              such
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              may
                                                                                                                                              be
                                                                                                                                              price-sensitive
                                                                                                                                              information,
                                                                                                                                              except
                                                                                                                                              that
                                                                                                                                              there
                                                                                                                                              shall
                                                                                                                                              be
                                                                                                                                              no
                                                                                                                                              such
                                                                                                                                              requirement
                                                                                                                                              to
                                                                                                                                              so
                                                                                                                                              inform
                                                                                                                                              if
                                                                                                                                              the
                                                                                                                                              recipient
                                                                                                                                              is
                                                                                                                                              subject
                                                                                                                                              to
                                                                                                                                              professional
                                                                                                                                              obligations
                                                                                                                                              to
                                                                                                                                              maintain
                                                                                                                                              the
                                                                                                                                              confidentiality
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              information
                                                                                                                                              or
                                                                                                                                              is
                                                                                                                                              otherwise
                                                                                                                                              bound
                                                                                                                                              by
                                                                                                                                              requirements
                                                                                                                                              of
                                                                                                                                              confidentiality
                                                                                                                                              in
                                                                                                                                              relation
                                                                                                                                              to
                                                                                                                                              the
                                                                                                                                              Confidential
                                                                                                                                              Information;

    	82

    	

    

	(b)	to
                                                                                                                                              any
                                                                                                                                              person
                                                                                                                                              to
                                                                                                                                              whom
                                                                                                                                              information
                                                                                                                                              is
                                                                                                                                              required
                                                                                                                                              or
                                                                                                                                              requested
                                                                                                                                              to
                                                                                                                                              be
                                                                                                                                              disclosed
                                                                                                                                              by
                                                                                                                                              any
                                                                                                                                              governmental,
                                                                                                                                              banking,
                                                                                                                                              taxation
                                                                                                                                              or
                                                                                                                                              other
                                                                                                                                              regulatory
                                                                                                                                              authority
                                                                                                                                              or
                                                                                                                                              similar
                                                                                                                                              body,
                                                                                                                                              the
                                                                                                                                              rules
                                                                                                                                              of
                                                                                                                                              any
                                                                                                                                              relevant
                                                                                                                                              stock
                                                                                                                                              exchange
                                                                                                                                              or
                                                                                                                                              pursuant
                                                                                                                                              to
                                                                                                                                              any
                                                                                                                                              applicable
                                                                                                                                              law
                                                                                                                                              or
                                                                                                                                              regulation;
                                                                                                                                              and

 

	(c)	with
                                                                                                                                              the
                                                                                                                                              prior
                                                                                                                                              written
                                                                                                                                              consent
                                                                                                                                              of
                                                                                                                                              us
                                                                                                                                              and
                                                                                                                                              the
                                                                                                                                              Company.

 

	3	Notification
                                                                                                                                                   of
                                                                                                                                                   Disclosure

 

You agree (to the extent permitted
by law and regulation) to inform us:

 

	(a)	of
                                                                                                                                              the
                                                                                                                                              circumstances
                                                                                                                                              of
                                                                                                                                              any
                                                                                                                                              disclosure
                                                                                                                                              of
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              made
                                                                                                                                              pursuant
                                                                                                                                              to
                                                                                                                                              paragraph
                                                                                                                                              (A)2(b)
                                                                                                                                              above
                                                                                                                                              except
                                                                                                                                              where
                                                                                                                                              such
                                                                                                                                              disclosure
                                                                                                                                              is
                                                                                                                                              made
                                                                                                                                              to
                                                                                                                                              any
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              persons
                                                                                                                                              referred
                                                                                                                                              to
                                                                                                                                              in
                                                                                                                                              that
                                                                                                                                              paragraph
                                                                                                                                              during
                                                                                                                                              the
                                                                                                                                              ordinary
                                                                                                                                              course
                                                                                                                                              of
                                                                                                                                              its
                                                                                                                                              supervisory
                                                                                                                                              or
                                                                                                                                              regulatory
                                                                                                                                              function;
                                                                                                                                              and

 

	(b)	upon
                                                                                                                                              becoming
                                                                                                                                              aware
                                                                                                                                              that
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              has
                                                                                                                                              been
                                                                                                                                              disclosed
                                                                                                                                              in
                                                                                                                                              breach
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              letter.

 

	4	Return
                                                                                                                                                   of
                                                                                                                                                   Copies

 

If you do not participate
in the Facility and we so request in writing, you shall return all Confidential Information supplied to you by us and destroy
or permanently erase (to the extent technically practicable) all copies of Confidential Information made by you and use your reasonable
endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases (to the
extent technically practicable) such Confidential Information and any copies made by them, in each case save to the extent that
you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by
any competent judicial, governmental, supervisory or regulatory body or in accordance with internal policy, or where the Confidential
Information has been disclosed under paragraph (A)2(b) above.

 

	5	Continuing
                                                                                                                                                   Obligations

 

The obligations in this letter
are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us. Notwithstanding
the previous sentence, the obligations in Part A of this letter shall cease on the earlier of (a) the date on which you become
a party to the Facility Agreement or (b) twelve months after the date of this letter.

 

	6	No
                                                                                                                                                   Representation;
                                                                                                                                                   Consequences
                                                                                                                                                   of
                                                                                                                                                   Breach,
                                                                                                                                                   etc

 

You acknowledge
and agree that:

 

	(a)	neither
                                                                                                                                              we
                                                                                                                                              nor
                                                                                                                                              any
                                                                                                                                              of
                                                                                                                                              our
                                                                                                                                              officers,
                                                                                                                                              employees
                                                                                                                                              or
                                                                                                                                              advisers
                                                                                                                                              (each
                                                                                                                                              a
                                                                                                                                              “Relevant
                                                                                                                                              Person”)
                                                                                                                                              (i)
                                                                                                                                              make
                                                                                                                                              any
                                                                                                                                              representation
                                                                                                                                              or
                                                                                                                                              warranty,
                                                                                                                                              express
                                                                                                                                              or
                                                                                                                                              implied,
                                                                                                                                              as
                                                                                                                                              to,
                                                                                                                                              or
                                                                                                                                              assume
                                                                                                                                              any
                                                                                                                                              responsibility
                                                                                                                                              for,
                                                                                                                                              the
                                                                                                                                              accuracy,
                                                                                                                                              reliability
                                                                                                                                              or
                                                                                                                                              completeness
                                                                                                                                              of
                                                                                                                                              any
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              or
                                                                                                                                              any
                                                                                                                                              other
                                                                                                                                              information
                                                                                                                                              supplied
                                                                                                                                              by
                                                                                                                                              us
                                                                                                                                              or
                                                                                                                                              any
                                                                                                                                              member
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Group
                                                                                                                                              or
                                                                                                                                              the
                                                                                                                                              assumptions
                                                                                                                                              on
                                                                                                                                              which
                                                                                                                                              it
                                                                                                                                              is
                                                                                                                                              based
                                                                                                                                              or
                                                                                                                                              (ii)
                                                                                                                                              shall
                                                                                                                                              be
                                                                                                                                              under
                                                                                                                                              any
                                                                                                                                              obligation
                                                                                                                                              to
                                                                                                                                              update
                                                                                                                                              or
                                                                                                                                              correct
                                                                                                                                              any
                                                                                                                                              inaccuracy
                                                                                                                                              in
                                                                                                                                              the
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              or
                                                                                                                                              any
                                                                                                                                              other
                                                                                                                                              information
                                                                                                                                              supplied
                                                                                                                                              by
                                                                                                                                              us
                                                                                                                                              or
                                                                                                                                              any
                                                                                                                                              member
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Group
                                                                                                                                              or
                                                                                                                                              be
                                                                                                                                              otherwise
                                                                                                                                              liable
                                                                                                                                              to
                                                                                                                                              you
                                                                                                                                              or
                                                                                                                                              any
                                                                                                                                              other
                                                                                                                                              person
                                                                                                                                              in
                                                                                                                                              respect
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              or
                                                                                                                                              any
                                                                                                                                              such
                                                                                                                                              information;
                                                                                                                                              and

 

	(b)	we
                                                                                                                                              or
                                                                                                                                              members
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Group
                                                                                                                                              may
                                                                                                                                              be
                                                                                                                                              irreparably
                                                                                                                                              harmed
                                                                                                                                              by
                                                                                                                                              the
                                                                                                                                              breach
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              terms
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              and
                                                                                                                                              damages
                                                                                                                                              may
                                                                                                                                              not
                                                                                                                                              be
                                                                                                                                              an
                                                                                                                                              adequate
                                                                                                                                              remedy;
                                                                                                                                              each
                                                                                                                                              Relevant
                                                                                                                                              Person
                                                                                                                                              or
                                                                                                                                              member
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Group
                                                                                                                                              may
                                                                                                                                              be
                                                                                                                                              granted
                                                                                                                                              an
                                                                                                                                              injunction
                                                                                                                                              or
                                                                                                                                              specific
                                                                                                                                              performance
                                                                                                                                              for
                                                                                                                                              any
                                                                                                                                              threatened
                                                                                                                                              or
                                                                                                                                              actual
                                                                                                                                              breach
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              provisions
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              by
                                                                                                                                              you.

 

	7	Entire
                                                                                                                                                   Agreement;
                                                                                                                                                   No
                                                                                                                                                   Waiver;
                                                                                                                                                   Amendments,
                                                                                                                                                   etc

    	83

    	

    

	(a)	This
                                                                                                                                              letter
                                                                                                                                              constitutes
                                                                                                                                              the
                                                                                                                                              entire
                                                                                                                                              agreement
                                                                                                                                              between
                                                                                                                                              us
                                                                                                                                              in
                                                                                                                                              relation
                                                                                                                                              to
                                                                                                                                              your
                                                                                                                                              obligations
                                                                                                                                              regarding
                                                                                                                                              Confidential
                                                                                                                                              Information
                                                                                                                                              and
                                                                                                                                              supersedes
                                                                                                                                              any
                                                                                                                                              previous
                                                                                                                                              agreement,
                                                                                                                                              whether
                                                                                                                                              express
                                                                                                                                              or
                                                                                                                                              implied,
                                                                                                                                              regarding
                                                                                                                                              Confidential
                                                                                                                                              Information.

 

	(b)	No
                                                                                                                                              failure
                                                                                                                                              or
                                                                                                                                              delay
                                                                                                                                              in
                                                                                                                                              exercising
                                                                                                                                              any
                                                                                                                                              right
                                                                                                                                              or
                                                                                                                                              remedy
                                                                                                                                              under
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              will
                                                                                                                                              operate
                                                                                                                                              as
                                                                                                                                              a
                                                                                                                                              waiver
                                                                                                                                              thereof
                                                                                                                                              nor
                                                                                                                                              will
                                                                                                                                              any
                                                                                                                                              single
                                                                                                                                              or
                                                                                                                                              partial
                                                                                                                                              exercise
                                                                                                                                              of
                                                                                                                                              any
                                                                                                                                              right
                                                                                                                                              or
                                                                                                                                              remedy
                                                                                                                                              preclude
                                                                                                                                              any
                                                                                                                                              further
                                                                                                                                              exercise
                                                                                                                                              thereof
                                                                                                                                              or
                                                                                                                                              the
                                                                                                                                              exercise
                                                                                                                                              of
                                                                                                                                              any
                                                                                                                                              other
                                                                                                                                              right
                                                                                                                                              or
                                                                                                                                              remedy
                                                                                                                                              under
                                                                                                                                              this
                                                                                                                                              letter.

 

	(c)	The
                                                                                                                                              terms
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              and
                                                                                                                                              your
                                                                                                                                              obligations
                                                                                                                                              under
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              may
                                                                                                                                              only
                                                                                                                                              be
                                                                                                                                              amended
                                                                                                                                              or
                                                                                                                                              modified
                                                                                                                                              by
                                                                                                                                              written
                                                                                                                                              agreement
                                                                                                                                              between
                                                                                                                                              us.

 

	8	Inside
                                                                                                                                                   Information

 

You acknowledge that some
or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated
or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and you undertake
not to use any Confidential Information for any unlawful purpose.

 

	9	Nature
                                                                                                                                                   of
                                                                                                                                                   Undertakings

 

The undertakings given by
you under Part A of this letter are given to us and (without implying any fiduciary obligations on our part) are also given for
the benefit of the Company and each other member of the Group.

 

	(B)	MISCELLANEOUS

 

	1	Third
                                                                                                                                                   Party
                                                                                                                                                   Rights
                                                                                                                                                   

 

	(a)	Subject
                                                                                                                                              to
                                                                                                                                              this
                                                                                                                                              paragraph
                                                                                                                                              (B)1
                                                                                                                                              and
                                                                                                                                              to
                                                                                                                                              paragraphs
                                                                                                                                              (A)6
                                                                                                                                              and
                                                                                                                                              (A)9,
                                                                                                                                              a
                                                                                                                                              person
                                                                                                                                              who
                                                                                                                                              is
                                                                                                                                              not
                                                                                                                                              a
                                                                                                                                              party
                                                                                                                                              to
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              has
                                                                                                                                              no
                                                                                                                                              right
                                                                                                                                              under
                                                                                                                                              the
                                                                                                                                              Contracts
                                                                                                                                              (Rights
                                                                                                                                              of
                                                                                                                                              Third
                                                                                                                                              Parties)
                                                                                                                                              Act
                                                                                                                                              1999
                                                                                                                                              (the
                                                                                                                                              “Third
                                                                                                                                              Parties
                                                                                                                                              Act”)
                                                                                                                                              to
                                                                                                                                              enforce
                                                                                                                                              or
                                                                                                                                              to
                                                                                                                                              enjoy
                                                                                                                                              the
                                                                                                                                              benefit
                                                                                                                                              of
                                                                                                                                              any
                                                                                                                                              term
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              letter.

 

	(b)	The
                                                                                                                                              Relevant
                                                                                                                                              Persons
                                                                                                                                              and
                                                                                                                                              each
                                                                                                                                              member
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Group
                                                                                                                                              may
                                                                                                                                              enjoy
                                                                                                                                              the
                                                                                                                                              benefit
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              terms
                                                                                                                                              of
                                                                                                                                              paragraphs
                                                                                                                                              (A)6
                                                                                                                                              and
                                                                                                                                              (A)9
                                                                                                                                              subject
                                                                                                                                              to
                                                                                                                                              and
                                                                                                                                              in
                                                                                                                                              accordance
                                                                                                                                              with
                                                                                                                                              this
                                                                                                                                              paragraph
                                                                                                                                              (B)1
                                                                                                                                              and
                                                                                                                                              the
                                                                                                                                              provisions
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Third
                                                                                                                                              Parties
                                                                                                                                              Act.

 

	(c)	Notwithstanding
                                                                                                                                              any
                                                                                                                                              provisions
                                                                                                                                              of
                                                                                                                                              this
                                                                                                                                              letter,
                                                                                                                                              the
                                                                                                                                              parties
                                                                                                                                              to
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              do
                                                                                                                                              not
                                                                                                                                              require
                                                                                                                                              the
                                                                                                                                              consent
                                                                                                                                              of
                                                                                                                                              any
                                                                                                                                              Relevant
                                                                                                                                              Person
                                                                                                                                              or
                                                                                                                                              any
                                                                                                                                              member
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Group
                                                                                                                                              to
                                                                                                                                              rescind
                                                                                                                                              or
                                                                                                                                              vary
                                                                                                                                              this
                                                                                                                                              letter
                                                                                                                                              at
                                                                                                                                              any
                                                                                                                                              time.

 

	2	Governing
                                                                                                                                                   Law
                                                                                                                                                   and
                                                                                                                                                   Jurisdiction
                                                                                                                                                   

 

	(a)	This
                                                                                                                                              letter
                                                                                                                                              and
                                                                                                                                              the
                                                                                                                                              agreement
                                                                                                                                              constituted
                                                                                                                                              by
                                                                                                                                              your
                                                                                                                                              acknowledgement
                                                                                                                                              of
                                                                                                                                              its
                                                                                                                                              terms
                                                                                                                                              (the
                                                                                                                                              “Letter”)
                                                                                                                                              and
                                                                                                                                              any
                                                                                                                                              non-contractual
                                                                                                                                              obligations
                                                                                                                                              arising
                                                                                                                                              out
                                                                                                                                              of
                                                                                                                                              or
                                                                                                                                              in
                                                                                                                                              connection
                                                                                                                                              with
                                                                                                                                              it
                                                                                                                                              (including
                                                                                                                                              any
                                                                                                                                              non-contractual
                                                                                                                                              obligations
                                                                                                                                              arising
                                                                                                                                              out
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              negotiation
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              transaction
                                                                                                                                              contemplated
                                                                                                                                              by
                                                                                                                                              this
                                                                                                                                              Letter)
                                                                                                                                              are
                                                                                                                                              governed
                                                                                                                                              by
                                                                                                                                              English
                                                                                                                                              law.

 

	(b)	The
                                                                                                                                              courts
                                                                                                                                              of
                                                                                                                                              England
                                                                                                                                              have
                                                                                                                                              non-exclusive
                                                                                                                                              jurisdiction
                                                                                                                                              to
                                                                                                                                              settle
                                                                                                                                              any
                                                                                                                                              dispute
                                                                                                                                              arising
                                                                                                                                              out
                                                                                                                                              of
                                                                                                                                              or
                                                                                                                                              in
                                                                                                                                              connection
                                                                                                                                              with
                                                                                                                                              this
                                                                                                                                              Letter
                                                                                                                                              (including
                                                                                                                                              a
                                                                                                                                              dispute
                                                                                                                                              relating
                                                                                                                                              to
                                                                                                                                              any
                                                                                                                                              non-contractual
                                                                                                                                              obligation
                                                                                                                                              arising
                                                                                                                                              out
                                                                                                                                              of
                                                                                                                                              or
                                                                                                                                              in
                                                                                                                                              connection
                                                                                                                                              with
                                                                                                                                              either
                                                                                                                                              this
                                                                                                                                              Letter
                                                                                                                                              or
                                                                                                                                              the
                                                                                                                                              negotiation
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              transaction
                                                                                                                                              contemplated
                                                                                                                                              by
                                                                                                                                              this
                                                                                                                                              Letter).

 

		3	Definitions
                                                                                                                                                   

 

In this letter (including
the acknowledgement set out below):

    	84

    	

    

“Confidential Information”
means all information relating to the Company, any Obligor, the Group, the Facility which is provided to you in relation to the
Finance Documents or Facility by us or any of our affiliates or advisers, in whatever form, and includes information given orally
and any document, electronic file or any other way of representing or recording information which contains or is derived or copied
from such information but excludes information that:

 

		(i)	is
                                                                                                                                                 or
                                                                                                                                                 becomes
                                                                                                                                                 public
                                                                                                                                                 information
                                                                                                                                                 other
                                                                                                                                                 than
                                                                                                                                                 as
                                                                                                                                                 a
                                                                                                                                                 direct
                                                                                                                                                 or
                                                                                                                                                 indirect
                                                                                                                                                 result
                                                                                                                                                 of
                                                                                                                                                 any
                                                                                                                                                 breach
                                                                                                                                                 by
                                                                                                                                                 you
                                                                                                                                                 of
                                                                                                                                                 this
                                                                                                                                                 letter;
                                                                                                                                                 or

 

		(ii)	is
                                                                                                                                                  identified
                                                                                                                                                  in
                                                                                                                                                  writing
                                                                                                                                                  at
                                                                                                                                                  the
                                                                                                                                                  time
                                                                                                                                                  of
                                                                                                                                                  delivery
                                                                                                                                                  as
                                                                                                                                                  non-confidential
                                                                                                                                                  by
                                                                                                                                                  us
                                                                                                                                                  or
                                                                                                                                                  our
                                                                                                                                                  advisers;
                                                                                                                                                  or

 

		(iii)	is
                                                                                                                                                   known
                                                                                                                                                   by
                                                                                                                                                   you
                                                                                                                                                   before
                                                                                                                                                   the
                                                                                                                                                   date
                                                                                                                                                   the
                                                                                                                                                   information
                                                                                                                                                   is
                                                                                                                                                   disclosed
                                                                                                                                                   to
                                                                                                                                                   you
                                                                                                                                                   by
                                                                                                                                                   us
                                                                                                                                                   or
                                                                                                                                                   any
                                                                                                                                                   of
                                                                                                                                                   our
                                                                                                                                                   affiliates
                                                                                                                                                   or
                                                                                                                                                   advisers
                                                                                                                                                   or
                                                                                                                                                   is
                                                                                                                                                   lawfully
                                                                                                                                                   obtained
                                                                                                                                                   by
                                                                                                                                                   you
                                                                                                                                                   after
                                                                                                                                                   that
                                                                                                                                                   date,
                                                                                                                                                   from
                                                                                                                                                   a
                                                                                                                                                   source
                                                                                                                                                   which
                                                                                                                                                   is,
                                                                                                                                                   as
                                                                                                                                                   far
                                                                                                                                                   as
                                                                                                                                                   you
                                                                                                                                                   are
                                                                                                                                                   aware,
                                                                                                                                                   unconnected
                                                                                                                                                   with
                                                                                                                                                   the
                                                                                                                                                   Group
                                                                                                                                                   and
                                                                                                                                                   which,
                                                                                                                                                   in
                                                                                                                                                   either
                                                                                                                                                   case,
                                                                                                                                                   as
                                                                                                                                                   far
                                                                                                                                                   as
                                                                                                                                                   you
                                                                                                                                                   are
                                                                                                                                                   aware,
                                                                                                                                                   has
                                                                                                                                                   not
                                                                                                                                                   been
                                                                                                                                                   obtained
                                                                                                                                                   in
                                                                                                                                                   breach
                                                                                                                                                   of,
                                                                                                                                                   and
                                                                                                                                                   is
                                                                                                                                                   not
                                                                                                                                                   otherwise
                                                                                                                                                   subject
                                                                                                                                                   to,
                                                                                                                                                   any
                                                                                                                                                   obligation
                                                                                                                                                   of
                                                                                                                                                   confidentiality.

 

“Facility Agreement”
means the facility agreement entered into or to be entered into in relation to the Facility.

 

“Facility Interest”
means a legal, beneficial or economic interest acquired or to be acquired expressly and specifically in or in relation to the
Facility, whether as initial lender or by way of assignment, transfer, novation, sub-participation (whether disclosed, undisclosed,
risk or funded) or any other similar method.

 

“Finance Documents”
means the documents defined in the Facility Agreement as Finance Documents.

 

“Group” has
the meaning give to the term “Borrower’s Group” in the Facility Agreement.

 

“Obligor” means
the Company and any Security Party (as that term is defined in the Facility Agreement).

 

“Participant Group”
means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such
term is defined in the Companies Act 2006).

 

“Permitted Purpose”
means considering and evaluating whether to enter into the Facility.

 

“Syndication”
means the primary syndication of the Facility.

 

Please acknowledge your agreement to the
above by signing and returning the enclosed copy.

 

Yours faithfully

	 	 	 

 

For and on behalf of

ING Bank N.V., London Branch 

(in its capacity as Agent)

    	85

    	

    

	To:	ING Bank N.V., London Branch 
	 	The Company

 

We acknowledge and agree to the above:

 

	 	 

 

For and on behalf of

[Potential Lender]

 

Date: [●]

    	86

    	

    

EXECUTION
PAGE

 

BORROWER

 

	SIGNED
    by	)
	for
    and on behalf of	)
	COSTAMARE
    INC.	)
	 	 
	LENDERS	 
	 	 
	SIGNED
    by	)
	for
    and on behalf of	)
	ING
    BANK N.V., LONDON BRANCH	)
	 	 
	SWAP
    BANK	 
	 	 
	SIGNED
    by	)
	for
    and on behalf of	)
	ING
    BANK N.V.	)
	 	 
	MANDATED
    LEAD ARRANGER	 
	 	 
	SIGNED
    by	)
	for
    and on behalf of	)
	ING
    BANK N.V., LONDON BRANCH	)
	 	 
	AGENT
    AND SECURITY TRUSTEE	 
	 	 
	SIGNED
    by	)
	for
    and on behalf of	)
	ING
    BANK N.V., LONDON BRANCH	)
	 	 
	Witness
    to the above	)
	signatures:	)

 

Name:

 

Address:

    	87Exhibit 10.24

 

Private & Confidential

 

FACILITY AGREEMENT

for a

Loan of up to US$152,800,000

to

 

RAYMOND SHIPPING CO.

and

TERANCE SHIPPING CO.

 

provided by

THE BANKS AND FINANCIAL INSTITUTIONS SET
OUT IN SCHEDULE 1

 

Agent, Arranger, Security Agent, Account
Bank

DNB NOR BANK ASA

 

Swap Provider

DNB NOR BANK ASA

    	 

    	

    

Contents

 

	Clause	 	Page
	 	 	 
	1	Purpose and definitions	1
	 	 	 
	2	The Total Commitment and the Advances	21
	 	 	 
	3	Interest and Interest Periods	25
	 	 	 
	4	Repayment and prepayment	27
	 	 	 
	5	Fees, commitment commission and expenses	29
	 	 	 
	6	Payments and taxes; accounts and calculations	30
	 	 	 
	7	Representations and warranties	34
	 	 	 
	8	Undertakings	39
	 	 	 
	9	Conditions	47
	 	 	 
	10	Events of Default	48
	 	 	 
	11	Indemnities	54
	 	 	 
	12	Unlawfulness, increased costs and mitigation	56
	 	 	 
	13	Security, set-off and pro-rata payments	58
	 	 	 
	14	Operating Accounts	60
	 	 	 
	15	Assignment, transfer and lending office	61
	 	 	 
	16	Agent and Security Agent	64
	 	 	 
	17	Notices and other matters	73
	 	 	 
	18	Governing law and jurisdiction	76
	 	 	 
	Schedule 1 The Banks and their Commitments	77
	 	 
	Schedule 2 Form of Drawdown Notice	79
	 	 
	Schedule 3 Documents and evidence required as conditions precedent	80
	 	 
	Schedule 4 Form of Transfer Certificate	89

    	 

    	

    

	Schedule 5 Contract Instalment Advances per Ship	93
	 	 
	Schedule 6 Form of Trust Deed	94
	 	 
	Schedule 7 Mandatory Cost formula	95

    	 

    	

    

THIS AGREEMENT is dated October 12, 2011
and made BETWEEN:

 

	(1)	RAYMOND SHIPPING CO., and TERANCE SHIPPING CO. as joint and several Borrowers;
	 	 
	(2)	DNB NOR BANK ASA as Agent, Arranger, Security Agent and Account Bank;
	 	 
	(3)	DNB NOR BANK ASA as Swap Provider; and
	 	 
	(4)	THE BANKS AND FINANCIAL INSTITUTIONS whose names and addresses are set out in schedule 1 as Banks.

 

IT IS AGREED as follows:

 

	1	Purpose and definitions
	 	 
	1.1	Purpose

 

This Agreement sets out the
terms and conditions upon and subject to which the Banks agree, according to their several obligations, to make available to the
Borrowers, jointly and severally, a loan facility of up to one hundred and fifty two million eight hundred thousand Dollars ($152,800,000)
in eight (8) Advances, for the purpose of pre- and post-delivery financing or refinancing part of the construction and acquisition
cost of the Ships.

 

	1.2	Definitions

 

In this Agreement, unless the
context otherwise requires:

 

“Account Bank”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or such
other person as may be appointed as Account Bank by the Agent for the purposes of this Agreement and includes its successors in
title;

 

“Advance”
means each borrowing of a portion of the Total Commitment by the Borrowers or (as the context may require) the outstanding principal
amount of such borrowing at any relevant time, and it includes each Raymond Contract Instalment Advance, the Raymond Delivery Advance,
each Terance Contract Instalment Advance, the Terance Delivery Advance, and also:

 

	 	(a)	in relation to the Raymond Ship and/or the Raymond Borrower and/or the  Raymond Tranche, it means the Raymond Contract Instalment Advances and the Raymond Delivery Advance; or
	 	 	 
	 	(b)	in relation to the Terance Ship and/or the Terance Borrower and/or the Terance Tranche, it means the Terance Contract Instalment Advances and the Terance Delivery Advance,

 

and “Advances”
means any or all of them;

 

“Agent” means
DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107 Oslo,
Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England (or
of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or such
other person as may be appointed as agent by the Banks, and the Swap Provider pursuant to clause 16.13 and includes its successors
in title;

 

“Applicable Accounting
Principles” means the most recent and up-to-date US GAAP at any relevant time;

    	1

    	

    

“Applicable Fraction”
means, at any time and in relation to a Ship which is then subject to a Charterer Event or a New Charterer Event, a fraction having
(a) as its numerator the then outstanding balance of the Tranche relating to such Ship and (b) as its denominator the then outstanding
amount of the Loan;

 

“Approved Shipbrokers”
means, together, H. Clarkson and Company Ltd of London, England, Arrow Research Ltd. of London, England, Braemar Seascope of London,
England, Simpson Spence & Young of London, England, Maersk Brokers of London, England and Howe Robinson of London, England
and any other independent firm of shipbrokers nominated by the Borrowers and approved in writing by the Agent in its absolute discretion
from time to time and “Approved Shipbroker” means any of them;

 

“Arranger”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or such
other person as may be appointed as arranger by the Banks for the purposes of this Agreement and includes its successors in title;

 

“Assigned Contract”
means, at any relevant time, a Contract which is at such time subject to a Pre-delivery Security Assignment and a Contract shall,
for the purposes of this Agreement, be deemed to be an Assigned Contract as from whichever shall be the earlier of (a) the Drawdown
Date of the first Contract Instalment Advance to be drawn down for the Ship to which such Contract relates and (b) the date that
the Pre-delivery Security Assignment relevant to that Ship shall have been executed in accordance with this Agreement until the
earlier of (i) the date when the Borrowers have complied with all their obligations under clause 4.4.2 following the assignment,
transfer or novation of such Contract and (ii) the Drawdown Date of the Delivery Advance for the Ship to which such Contract relates;

 

“Assigned Refund Guarantee”
means, at any relevant time, any Refund Guarantee which is at such time subject to a Pre-delivery Security Assignment and a Refund
Guarantee shall, for the purposes of this Agreement, be deemed to be an Assigned Refund Guarantee as from whichever shall be the
earlier of (a) the Drawdown Date of the first Contract Instalment Advance to be drawn down for the Ship to which such Refund Guarantee
relates and (b) the date that the Pre-delivery Security Assignment relevant to that Ship shall have been executed in accordance
with this Agreement until the earlier of (i) the date when the Borrowers have complied with all their obligations under clause
4.4.2 following the assignment, transfer or novation of the Contract to which such Refund Guarantee relates or the Total Loss of
the relevant Ship and (ii) the Drawdown Date of the Delivery Advance for the Ship to which such Refund Guarantee relates;

 

“Balloon Instalment”
has, in respect of each Tranche, the meaning ascribed thereto in clause 4.1 and “Balloon Instalments” means
either or both of them;

 

“Banking Day”
means a day on which dealings in deposits in Dollars are carried on in the London Interbank Eurocurrency Market and (other than
Saturday or Sunday) on which banks are open for business in London, Athens, Taipei and New York City (or any other relevant place
of payment under clause 6);

 

“Banks” means
the banks and financial institutions set out in schedule 1 and includes their respective successors in title and Transferee Banks
and “Bank” means any of them;

 

“Basel 2 Accord”
means the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by
the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement;

 

“Basel 2 Approach”
means, in relation to each Bank, either the Standardised Approach or the relevant Internal Ratings Based Approach (each as defined
in the Basel 2 Accord) adopted by such Bank (or its holding company) for the purposes of implementing or complying with the Basel
2 Accord;

    	2

    	

    

“Basel 2 Regulation”
means, in relation to each Bank, (a) any law or regulation implementing the Basel 2 Accord or (b) any Basel 2 Approach adopted
by such Bank;

 

“Borrowed Money”
means Indebtedness in respect of (i) money borrowed or raised and debit balances at banks, (ii) any bond, note, loan stock, debenture
or similar debt instrument, (iii) acceptance or documentary credit facilities, (iv) receivables sold or discounted (otherwise than
on a non-recourse basis), (v) deferred payments for assets or services acquired (except assets or services obtained on normal commercial
terms in the ordinary course of business), (vi) finance leases and hire purchase contracts (other than in respect of equipment
used in the ordinary course of its business, the payments of which do not exceed the amount of $500,000 per year per Security Party),
(vii) swaps, forward exchange contracts, futures and other derivatives (and when calculating the value of any such transaction
where the term “Borrowed Money” is used, only the marked-to-market value shall be taken into account), (viii) any other
transaction (including without limitation forward sale or purchase agreements) having the commercial effect of a borrowing or raising
of money or of any of (ii) to (vii) above and (ix) guarantees in respect of Indebtedness of any person falling within any of (i)
to (viii) above;

 

“Borrower”:

 

	 	(a)	in relation to the Raymond Ship and/or the Raymond Tranche (or any Advance thereof), means the Raymond Borrower; or
	 	 	 
	 	(b)	in relation to the Terance Ship and/or the Terance Tranche (or any Advance thereof), means the Terance Borrower,

 

and “Borrowers”
means either or both of them;

 

“Borrowers’ Security
Documents” means, at any relevant time, such of the Security Documents as shall have been executed by any of the Borrowers
at such time;

 

“Builder”
means Sungdong Shipbuilding & Marine Engineering Co. Ltd of 1609-2, Hwang-li, Gwangdo-myeon, Tongyoung-si, Gyeongnam, Korea
and includes its successors in title;

 

“Capital Adequacy Law”
means any law or any regulation (whether or not having the force of law, but, if not having the force of law, with which a Bank
or, as the case may be, its holding company, habitually complies), including (without limitation) those relating to Taxation, capital
adequacy, liquidity, reserve assets, cash ratio deposits and special deposits or other banking or monetary controls or requirements
which affect the manner in which a Bank allocates capital resources to its obligations hereunder (including, without limitation,
those resulting from the implementation or application of or compliance with the Basel 2 Accord or any Basel 2 Regulation);

 

“Casualty Amount”
means, in relation to each Ship, two million Dollars ($2,000,000) or the equivalent in any other currency;

 

“Charter”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Charter; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Charter,

 

and “Charters”
means either or both of them;

 

“Charter Assignment”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Charter Assignment; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Charter Assignment,

 

and “Charter Assignments”
means either or both of them;

    	3

    	

    

“Charter Guarantee
Assignment” means:

 

	 	(c)	in relation to the Raymond Ship, the Raymond Charter Guarantee Assignment; or
	 	 	 
	 	(d)	in relation to the Terance Ship, the Terance Charter Guarantee Assignment,

 

and “Charter Guarantee
Assignments” means either or both of them;

 

“Charterer”
means Italia Maritima S.p.A. of Passeggio Sant’ Andrea 4, 34123 Trieste, Republic of Italy, and includes its successors in
title;

 

“Charterer
Event” means, in relation to a Ship, the termination, cancellation, rescission or repudiation for any reason whatsoever
of the Charter for that Ship unless, within 90 days from such event the relevant Borrower has entered into a Qualifying Charter
and within 30 days from the entry into the Qualifying Charter that Ship has been delivered for service under such Qualifying Charter
and the Borrowers have delivered to the Agent such Qualifying Charter duly executed together with such executed documents and evidence
in respect of such Qualifying Charter (including a charter assignment of the same, as the Agent may require) and such other documents
and evidence, as are specified in clause 8.1.16 in respect of charterparties or other contracts of employment in respect of the
Ships;

 

“Charter
Guarantor” means Evergreen International S.A., of 2nd Floor, MMG Tower, East 53rd Street, Panama,
Republic of Panama, and includes its respective successors in title;

 

“Ciel
Management” means Ciel Shipmanagement S.A. of 80 Broad Street, Republic of Liberia and it includes its successors in
title;

 

“Classification”
means, in relation to each Ship, the highest class available for a vessel of her type and her specification as at her Delivery,
with the relevant Classification Society or such other classification as the Agent shall, at the request of a Borrower, have agreed
in writing shall be treated as the Classification in relation to such Borrower’s Ship for the purposes of the relevant Ship
Security Documents;

 

“Classification Society”
means, in relation to each Ship, such classification society (being a member of the International Association of Classification
Societies (“IACS”) or any successor organisation) which the Agent shall at the request of the Borrower owning
such Ship have agreed in writing shall be treated as the Classification Society in relation to such Ship for the purposes of the
relevant Ship Security Documents;

 

“Code” means
the International Management Code for the Safe Operation of Ships and for Pollution Prevention constituted pursuant to Resolution
A. 741 (18) of the International Maritime Organisation and incorporated into the Safety of Life at Sea Convention (as amended)
and includes any amendments or extensions thereto and any regulation issued pursuant thereto;

 

“Commercial Parties”
means, together, the Builder, the Charterer, the Charter Guarantor and the Refund Guarantor and “Commercial Party”
means any of them;

 

“Commitment”
means, in relation to each Bank, the amount set out opposite its name in the column headed “Commitment” in schedule
1 and/or, in the case of a Transferee Bank, the amount transferred as specified in the relevant Transfer Certificate, as reduced
in each case by any relevant term of this Agreement;

 

“Compliance Certificate”
means each certificate received or (as the context may require) to be received by the Agent pursuant to clause 5.1 of the Corporate
Guarantee in the form set out in the schedule to the Corporate Guarantee;

 

“Compulsory Acquisition”
means requisition for title or other compulsory acquisition, requisition, appropriation, expropriation, deprivation, forfeiture
or confiscation for any reason of a Ship by any Government Entity or other competent authority, whether de jure or de facto, but
shall exclude requisition for use or hire not involving requisition of title;

    	4

    	

    

“Confirmation”
shall have, in relation to any continuing Designated Transaction, the meaning ascribed to it in the Master Swap Agreement;

 

“Contract”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract,

 

and “Contracts”
means either or both of them;

 

“Contract Assignment
Consent and Acknowledgement” means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract Assignment Consent and Acknowledgement; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract Assignment Consent and Acknowledgement,

 

and “Contract Assignment
Consents and Acknowledgements” means either or both of them;

 

“Contract Instalment
Advance” means each Raymond Contract Instalment Advance and each Terance Contract Instalment Advance, and also it means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract Instalment Advances; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract Instalment Advances,

 

and “Contract Instalment
Advances” means any or all of them;

 

“Contract Price”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract Price; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract Price,

 

and “Contract Prices”
means either or both of them;

 

“Contribution”
means, in relation to each Bank, the principal amount owing to such Bank at any relevant time;

 

“Corporate Guarantee”
means the corporate guarantee executed or (as the context may require) to be executed by the Corporate Guarantor in favour of the
Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Corporate Guarantor”
means Costamare Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 and includes its
successors in title;

 

“Costamare Shipping”
means Costamare Shipping Company S.A., a company incorporated under the laws of Panama and having a place of business at 60 Zephyrou
Street & Syngrou Avenue, 175 64 Athens, Greece and it includes its successors in title;

 

“Creditors”
means, together, the Agent, the Arranger, the Security Agent, the Swap Provider, the Account Bank and the Banks and “Creditor”
means any of them;

 

“Deed of Covenant”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Deed of Covenant; or

    	5

    	

    

	 	(b)	in relation to the Terance Ship, the Terance Deed of Covenant,

 

and “Deeds of Covenant”
means either or both of them;

 

“Default”
means any Event of Default or any event or circumstance which with the giving of notice or lapse of time (or any combination thereof)
would constitute an Event of Default;

 

“Delivery”
means, in relation to each Ship, the delivery of such Ship from the Builder to the relevant Borrower pursuant to the relevant Contract;

 

“Delivery Advance”:

 

	 	(a)	in relation to the Raymond Ship and/or the Raymond Tranche, means the Raymond Delivery Advance; or
	 	 	 
	 	(b)	in relation to the Terance Ship and/or the Terance Tranche, means the Terance Delivery Advance,

 

and “Delivery Advances”
means either or both of them;

 

“Delivery Date”
means, in relation to each Ship, the date on which the Delivery of such Ship occurs;

 

“Designated Transaction”
means a transaction which is entered into by the Borrowers with the Swap Provider pursuant to the Master Swap Agreement as contemplated
by clause 2.9;

 

“DOC” means
a document of compliance issued to an Operator in accordance with rule 13 of the Code;

 

“Dollars”
and “$” mean the lawful currency of the United States of America and in respect of all payments to be made under
any of the Security Documents mean funds which are for same day settlement in the New York Clearing House Interbank Payments System
(or such other US dollar funds as may at the relevant time be customary for the settlement of international banking transactions
denominated in U.S. dollars);

 

“Drawdown Date”
means, in relation to each Advance, any date, being a Banking Day falling during the Drawdown Period for such Advance, on which
the relevant Advance is, or is to be, made available;

 

“Drawdown Notice”
means, in relation to each Advance, a notice substantially in the form of schedule 2 in respect of such Advance;

 

“Drawdown Period”
means, in relation to each Advance, the period commencing on the date of this Agreement and ending on the earlier of:

 

	 	(a)	the Final Availability Date for the Tranche of which such Advance forms part; or
	 	 	 
	 	(b)	the date on which the relevant Advance has been drawn down; or
	 	 	 
	 	(c)	the date when the Total Commitment is reduced to zero pursuant to clauses 10.2 or 12; or
	 	 	 
	 	(d)	(only in relation to each Delivery Advance) the Delivery Date of the Ship relevant to such Delivery Advance; or
	 	 	 
	 	(e)	the date on which a Tranche is cancelled by the Borrowers pursuant to clause 4.3;

 

“Early Termination
Date” shall have, in relation to any continuing Designated Transaction, the meaning ascribed to it in the Master Swap
Agreement;

    	6

    	

    

“Earnings”
means, in relation to a Ship, all moneys whatsoever from time to time due or payable to the relevant Borrower during the Security
Period arising out of the use or operation of such Ship including (but without limiting the generality of the foregoing) all freight,
hire and passage moneys, income arising out of pooling arrangements, compensation payable to such Borrower in the event of requisition
of such Borrower’s Ship for hire, remuneration for salvage or towage services, demurrage and detention moneys and damages
for breach (or payment for variation or termination) of any charterparty or other contract for the employment of such Borrower’s
Ship;

 

“Encumbrance”
means any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security
interest or other encumbrance of any kind securing any obligation of any person or any type of preferential arrangement (including
without limitation title transfer arrangements having a similar effect);

 

“Environmental Affiliate”
means any agent or employee of any Borrower or any person having a contractual relationship with any Borrower, in each case in
connection with any Ship or its operation or the carriage of cargo thereon and/or the provision of goods and/or services on or
from such Ship;

 

“Environmental Approval”
means any consent, authorisation, licence or approval of any governmental or public body or authorities or courts applicable to
any Ship or its operation or the carriage of cargo and/or passengers thereon and/or the provision of goods and/or services on or
from such Ship required under any Environmental Law;

 

“Environmental Claim”
means:

 

	 	(a)	any and all enforcement, clean-up, removal or other governmental or regulatory actions or orders or claims instituted or made pursuant to any Environmental Law or any Environmental Approval, in respect of an amount or (as the case may be) the cost of which is, in excess of two million Dollars ($2,000,000); and/or
	 	 	 
	 	(b)	any claim made by any third party in excess of two million Dollars ($2,000,000) relating to damage, contribution, loss or injury,

 

resulting in any such case,
from any actual or threatened emission, spill, release or discharge of a Pollutant from any Ship;

 

“Environmental Laws”
means all national, international and state laws, rules, regulations, treaties and conventions applicable to any Ship pertaining
to the pollution or protection of human health or the environment including, without limitation, the carriage of Pollutants and
actual or threatened emissions, spills, releases or discharges of Pollutants;

 

“Event of Default”
means any of the events or circumstances described in clause 10.1;

 

“Fee Letter”
means each letter of even date herewith made between (inter alios) the Borrowers and the Agent in respect of certain of the fees
payable under clause 5.1 and “Fee Letters” means any or all of them;

 

“Final Availability
Date” means:

 

	 	(a)	in relation to the Raymond Tranche and each Advance thereof, 27 October 2013, if and provided that (i) the Raymond Refund Guarantee continues to remain valid and effective from its issue date until that date and (ii) the Raymond Charter remains unaltered and in full force and effect; and
	 	 	 
	 	(b)	in relation to the Terance Tranche and each Advance thereof, 26 January 2014, if and provided that (i) the Terance Refund Guarantee continues to remain valid and effective from its issue date until that date and (ii) the Terrance Charter remains unaltered and in full force and effect;

 

“Final
Maturity Date” means the date falling seven (7) years from the Drawdown Date of the

    	7

    	

    

Delivery
Advance in respect of the Tranche in question;

 

“Flag State”
means, in relation to each Ship, any of Liberia, Marshall Islands or Panama as being the “Flag State” of such
Borrower’s Ship for the purposes of the relevant Ship Security Documents;

 

“General Assignment”
means:

 

	 	(e)	in relation to the Raymond Ship, the Raymond General Assignment; or
	 	 	 
	 	(f)	in relation to the Terance Ship, the Terance General Assignment,

 

and “General Assignments”
means either or both of them;

 

“Government Entity”
means and includes (whether having a distinct legal personality or not) any national or local government authority, board, commission,
department, division, organ, instrumentality, court or agency and any association, organisation or institution of which any of
the foregoing is a member or to whose jurisdiction any of the foregoing is subject or in whose activities any of the foregoing
is a participant;

 

“Group” means,
together, the Corporate Guarantor and its Subsidiaries from time to time (including, for the avoidance of doubt, the Borrowers)
and “member of the Group” shall be construed accordingly;

 

“Indebtedness”
means any obligation for the payment or repayment of money, whether as principal or as surety and whether present or future, actual
or contingent;

 

“Insurances”
means, in relation to a Ship, all policies and contracts of insurance (which expression includes all entries of that Ship in a
protection and indemnity or war risks association) which are from time to time during the Security Period in place or taken out
or entered into by or for the benefit of the relevant Borrower (whether in the sole name of such Borrower, or in the joint names
of such Borrower and the Security Agent and/or any other Creditors or otherwise) in respect of such Borrower’s Ship and,
if applicable, her Earnings, or otherwise howsoever in connection with such Ship and all benefits thereof (including claims of
whatsoever nature and return of premiums);

 

“Interest Payment Date”
means the last day of an Interest Period;

 

“Interest Period”
means, in relation to an Advance or (as the case may be) Tranche or Sub-Tranche, each period for the calculation of interest in
respect of such Advance or (as the case may be) Tranche or Sub-Tranche, ascertained in accordance with clauses 3.2 and 3.3;

 

“ISPS Code”
means the International Ship and Port Facility Security Code constituted pursuant to resolution A.924(22) of the International
Maritime Organization now set out in Chapter XI-2 of the International Convention for the Safety of Life at Sea 1974 (as amended)
as adopted by a Diplomatic conference of the International Maritime Organisation on Maritime Security in December 2002 and includes
any amendments or extensions thereto and any regulation issued pursuant thereto;

 

“ISSC” means
an International Ship Security Certificate issued in respect of a Ship pursuant to the ISPS Code;

 

“Konstantakopoulos
Family” means, together, each of the following:

 

	 	(a)	Mr Vasileios Konstantakopoulos;
	 	 	 
	 	(b)	Mr Kostantinos V. Kostantakopoulos;
	 	 	 
	 	(c)	Mr Achillefs V. Kostantakopoulos;
	 	 	 
	 	(d)	Mr Christos V. Kostantakopoulos;

    	8

    	

    

	 	(e)	all the lineal descendants in direct line of any of the said Messrs. Vasileios Konstantakopoulos, Achillefs V. Kostantakopoulos, Kostantinos V. Kostantakopoulos and Christos V. Konstantakopoulos;
	 	 	 
	 	(f)	a husband or wife, or former husband or wife, or widower or widow of any of the above persons;
	 	 	 
	 	(g)	the estates, trusts, foundations or legal representatives of any of the above persons (whether controlled by any of them or being the beneficiaries of any of them); and
	 	 	 
	 	(h)	each company (other than a member of the Borrower’s Group) legally or beneficially owned or (as the case may be) controlled by one or more of the persons or entities which would fall within paragraphs (a) to (f) above,

 

and each one
of the above shall be referred to as “a member of the Konstantakopoulos Family”;

 

“LIBOR” means
in relation to a particular period:

 

	 	(a)	the rate for deposits of the relevant currency for a period equivalent to such period at or about 11:00 a.m. on the Quotation Date for such period as displayed on Reuters page LIBOR 01 (British Bankers’ Association Interest Settlement Rates) (or such other page as may replace such page LIBOR 01 on such system or on any other system of the information vendor for the time being designated by the British Bankers’ Association to calculate the BBA Interest Settlement Rate (as defined in the British Bankers’ Association’s Recommended Terms and Conditions (“BBAIRS” terms) applicable at the relevant time)); or
	 	 	 
	 	(b)	provided that if on such date no such rate is so displayed, LIBOR for such period shall be the rate quoted to the Agent by the Reference Bank at the request of the Agent, as the Reference Bank’s offered rate for deposits of the relevant currency in an amount approximately equal to the amount in relation to which LIBOR is to be determined for a period equivalent to such period to prime banks in the London Interbank Market at or about 11:00 a.m. on the Quotation Date for such period;

 

“Loan” means
the aggregate principal amount owing to the Banks under this Agreement at any relevant time;

 

“Majority
Banks” means, at any relevant time, Banks (a) the aggregate of whose Contributions exceeds sixty six point six seven
per cent (66.67%) of each of Sub-Tranche A and Sub-Tranche B or (b) (if no principal amounts are outstanding under this Agreement
by way of Advances) the aggregate of whose Commitments exceeds sixty six point six seven per cent (66.67%) of each of Sub-Tranche
A and Sub-Tranche B;

 

“Management Agreement”
means:

 

	 	(a)	in relation to the Raymond Ship, each Raymond Management Agreement; or
	 	 	 
	 	(b)	in relation to the Terance Ship, each Terance Management Agreement,

 

and “Management Agreements”
means any or all of them;

 

“Manager”
means, in relation to a Ship:

 

	 	(a)	any one (or more) of Costamare Shipping, Ciel Management or Shanghai Costamare; and/or
	 	 	 
	 	(b)	any other company which the Agent may (acting on the instructions of the Majority Banks) approve from time to time as the manager of that Ship,

    	9

    	

    

provided such person has executed
a Manager’s Undertaking in relation to that Ship in accordance with clause 8.1.18 and the Borrowers are in compliance with
such clause on or prior to its appointment, and “Managers” shall mean any or all of them;

 

“Manager’s Undertakings”
means, collectively, each of the manager’s undertakings executed or (as the context may require) to be executed by any Manager
in favour of the Security Agent in respect of each of the Ships each in such form as the Agent may require in its reasonable discretion
and, singly, each a “Manager’s Undertaking”;

 

“Mandatory Cost”
means, in relation to any period, a percentage calculated by the Agent for such period at an annual rate determined by the application
of the formula set out in schedule 7;

 

“Margin”
means, in relation to (a) each Sub-Tranche A one point five zero per cent (1.50%) per annum and (b) each Sub-Tranche B two point
five zero per cent (2.50) per annum;

 

“Master Swap Agreement”
means the agreement made or (as the context may require) to be made between the Swap Provider and the Borrowers, comprising an
ISDA Master Agreement (including its schedule thereto) in a form previously agreed between the Swap Provider and the Borrowers
and includes any Designated Transactions from time to time entered into thereunder and any Confirmations from time to time exchanged
thereunder and governed thereby;

 

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

 

“Mortgage”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Mortgage; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Mortgage,

 

and “Mortgages”
means either or both of them;

 

“Mortgaged Ship”
means, at any relevant time, any Ship which is at such time subject to a Mortgage and/or the Earnings, Insurances and Requisition
Compensation of which are subject to an Encumbrance pursuant to the relevant Ship Security Documents and a Ship shall, for the
purposes of this Agreement, be deemed to be a Mortgaged Ship as from whichever shall be the earlier of (a) the Drawdown Date of
the Delivery Advance relating to that Ship and (b) the date that the Mortgage of that Ship shall have been executed and registered
in accordance with this Agreement until whichever shall be the earlier of (i) the payment in full of the amount required to be
paid by the Borrowers pursuant to clause 4.4 following the sale or Total Loss of such Ship and (ii) the date on which all moneys
owing under the Security Documents have been repaid in full;

 

“New Charterer”
means, in relation to a Qualifying Charter for a Ship, the charterer of that Ship under such Qualifying Charter and it includes
its successors in title;

 

“New Charterer Event”
means the termination, cancellation, rescission or repudiation for any reason whatsoever of a Qualifying Charter in respect of
a Ship, unless within 90 days from such event, the relevant Borrower has entered into another Qualifying Charter and within 30
days from the entry into of such other Qualifying Charter that Ship has been delivered for service under such other Qualifying
Charter and the Borrowers have delivered to the Agent such other Qualifying Charter duly executed together with such executed documents
and evidence in respect of such other Qualifying Charter (including a charter assignment of the

    	10

    	

    

same, as the Agent may require)
and such other documents and evidence, as are specified in clause 8.1.16 in respect of charterparties or other contracts of employment
in respect of the Ships;

 

“Operating Account”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Operating Account; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Operating Account,

 

and “Operating Accounts”
means either or both of them;

 

“Operating Account
Assignment” means:

 

	 	(a)	in relation to the Raymond Operating Account, the Raymond Operating Account Assignment; or
	 	 	 
	 	(b)	in relation to the Terance Operating Account, the Terance Operating Account Assignment,

 

and “Operating
Account Assignments” means either or both of them;

 

“Operator”
means any person who is from time to time during the Security Period concerned in the operation of a Ship and falls within the
definition of “Company” set out in rule 1.1.2 of the Code;

 

“Permitted Encumbrance”
means:

 

	 	(a)	any Encumbrance in favour of the Security Agent and/or any of the other Creditors created pursuant to the Security Documents;
	 	 	 
	 	(b)	Permitted Liens;
	 	 	 
	 	(c)	any Encumbrance over goods and products of a Borrower, or documents of title to goods and products of the Borrower, arising in the ordinary course of trading in connection with letters of credit and similar transactions where such Encumbrance secures only Indebtedness representing the acquisition cost or selling price (and amounts incidental thereto) of such goods and products required to be paid within 180 days after the date upon which such Indebtedness was first incurred;
	 	 	 
	 	(d)	any Encumbrance arising by operation of law or which arises pursuant to any order of attachment, distraint or similar legal process arising in connection with court proceedings provided that the execution or other enforcement thereof is effectively stayed and the claims served thereby are being contested at the time in good faith by appropriate proceedings; and
	 	 	 
	 	(e)	any liens arising in the ordinary course of trading by operation of law in respect of obligations which are not overdue or which are being contested in good faith by appropriate proceedings (and for the payment of which adequate reserves have been provided);

 

“Permitted Liens”
means, in relation to each Ship;

 

	 	(a)	any lien on that Ship for master’s, officer’s or crew’s wages outstanding in the ordinary course of trading;
	 	 	 
	 	(b)	any lien on that Ship for salvage; and
	 	 	 
	 	(c)	any ship repairer’s or outfitter’s possessory lien on that Ship for a sum not (except with the prior written consent of the Agent) exceeding the Casualty Amount for that Ship;

    	11

    	

    

“Pollutant”
means and includes oil and its products, any other polluting, toxic or hazardous substance and any other substance whose release
into the environment is regulated or penalised by Environmental Laws;

 

“Pre-delivery Security
Assignment” means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Pre-delivery Security Assignment; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Pre-delivery Security Assignment,

 

and “Pre-delivery Security
Assignments” means either or both of them;

 

“Qualifying Charter”
means, in relation to a Ship any charterparty in respect of that Ship (other than the Charter for that Ship) entered by the relevant
Borrower and which is:

 

	 	(a)	with such charterer (which is not a Related Company of the Corporate Guarantor);
	 	 	 
	 	(b)	providing for such charterhire and tenor; and
	 	 	 
	 	(c)	otherwise on such other terms and conditions,

 

as are acceptable
in all respects to the Agent (acting on the instructions of the Majority Banks in their absolute discretion);

 

“Quotation Date”
means, in respect of any period for which LIBOR is to be determined under this Agreement, the second Banking Day before the first
day of such period;

 

“Raymond Borrower”
means Raymond Shipping Co. of 80 Broad Street, Monrovia, Liberia and includes its successors in title;

 

“Raymond Charter”
means the time charterparty dated 30 March 2011 in respect of the Raymond Ship made between the Charterer and the Raymond Borrower,
and as the same may be further amended, supplemented and/or novated from time to time;

 

“Raymond Charter Assignment”
means the specific assignment of the Raymond Charter executed or (as the context may require) to be executed by the Raymond Borrower
in favour of the Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Raymond Charter Guarantee
Assignment” means the specific assignment of the Raymond Charter Guarantee executed or (as the context may require) to
be executed by the Raymond Borrower in favour of the Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Raymond Charter Guarantee”
means the unconditional and irrevocable guarantee contained in clause 78 of the Raymond Charter granted by the Charter Guarantor
in favour of the Raymond Borrower;

 

“Raymond Contract”
means the shipbuilding contract dated 20 April 2011 made between the Builder and the Raymond Borrower, as may be amended and supplemented
from time to time, relating to the construction and sale by the Builder, and the purchase by the Raymond Borrower, of the Raymond
Ship;

 

“Raymond Contract Assignment
Consent and Acknowledgement” means the acknowledgement of notice of, and consent to, the assignment in respect of the
Raymond Contract given or (as the context may require) to be given in the form scheduled to the Raymond Pre-delivery Security Assignment;

 

“Raymond Contract Instalment
Advance” means, in relation to the Raymond Ship, each of the three (3) Advances of the Total Commitment, each in the
maximum amount in Dollars specified in the second column of schedule 5 opposite the name of the relevant Advance and

    	12

    	

    

each made or (as the context
may require) to be made to finance in part or re-finance in part (as the case may be) the payment of an instalment of the Raymond
Contract Price falling due before the Delivery Date for the Raymond Ship at the time specified in the third column of schedule
5 opposite the relevant Advance, and “Raymond Contract Instalment Advances” means any or all of them;

 

“Raymond Contract Price”
means the purchase price for the Raymond Ship under the Raymond Contract, being ninety five million five hundred thousand Dollars
($95,500,000) or such other lesser sum in Dollars as may be payable as the purchase price for the Raymond Ship by the Raymond Borrower
to the Builder pursuant to the Raymond Contract;

 

“Raymond Deed of Covenant”
means the deed of covenant and/or (as the case may be) the general assignment collateral to the Raymond Mortgage executed or (as
the context may require) to be executed by the Raymond Borrower in favour of the Security Agent and/or any of the other Creditors
in such form as the Agent may reasonably require;

 

“Raymond Delivery Advance”
means an Advance of up to $53,480,000 made or (as the context may require) to be made available to the Borrowers on the Delivery
Date of the Raymond Ship for the purpose of financing part of the construction and acquisition cost of the Raymond Ship by the
Raymond Borrower pursuant to the Raymond Contract;

 

“Raymond General Assignment”
means the specific assignment of the Earnings, Insurances and Requisition Compensation for the Raymond Ship executed or (as the
context may require) to be executed by the Raymond Borrower in favour of the Security Agent in such form as the Agent may require
in its reasonable discretion;

 

“Raymond Management
Agreement” means each agreement made or (as the context may require) to be made between the Raymond Borrower and any
Manager in the Standard Form or, if in any other form, in a form acceptable to the Agent (acting on the instructions of the Majority
Banks), providing (inter alia) for that Manager to carry out the commercial and/or the technical management of the Raymond
Ship;

 

“Raymond Mortgage”
means the first priority or (as the case may be) preferred mortgage of the Raymond Ship executed or (as the context may require)
to be executed by the Raymond Borrower in favour of the Security Agent and/or any of the other Creditors in such form as the Agent
may require in its reasonable discretion;

 

“Raymond Operating
Account” means an interest bearing Dollar account of the Raymond Borrower opened or (as the context may require) to be
opened with the Account Bank and includes any sub-accounts thereof;

 

“Raymond Operating
Account Assignment” means the first priority assignment of the Raymond Operating Account executed or (as the context
may require) to be executed by the Raymond Borrower in favour of the Security Agent in a form previously agreed between the Agent
and the Borrowers;

 

“Raymond Pre-delivery
Security Assignment” means the assignment of the Raymond Contract and the Raymond Refund Guarantee executed or (as the
context may require) to be executed by the Raymond Borrower in favour of the Security Agent in a form previously agreed between
the Agent and the Borrowers;

 

“Raymond Refund Guarantee”
means each letter of guarantee issued or (as the context may require) to be issued by the Refund Guarantor in favour of the Raymond
Borrower in respect of the Builder’s obligations under the Raymond Contract, each in the form prescribed in the Raymond Contract,
and any further guarantee(s) to be issued by the Refund Guarantor in respect of such obligations pursuant to any agreement supplemental
to the Raymond Contract, and any extensions, renewals or replacements thereto or thereof;

 

“Raymond Refund Guarantee
Assignment Consent and Acknowledgement” means, in relation to each Raymond Refund Guarantee, an acknowledgement of notice
of, and consent to, the assignment in respect of that Raymond Refund Guarantee given or (as the context may

    	13

    	

    

require) to be given by the
Refund Guarantor in the form scheduled to the Raymond Pre-delivery Security Assignment and “Raymond Refund Guarantee Assignment
Consents and Acknowledgements” means either or both of them;

 

“Raymond Ship”
means the approximately 9,000 teu container ship known on the date of this Agreement as Hull No. S4021 at the Builder’s yard,
to be constructed and sold by the Builder to the Raymond Borrower pursuant to the Raymond Contract and to be registered on its
Delivery Date in the ownership of the Raymond Borrower through the relevant Registry under the laws and flag of the relevant Flag
State;

 

“Raymond Sub-Tranche
A” means an amount up to the lesser of (i) $57,300,000 and (ii) 75% of the Raymond Tranche to be advanced by the Banks
to the Borrowers on a joint and several basis;

 

“Raymond Sub-Tranche
B” means an amount up to the lesser of (i) $19,100,000 and (ii) 25% of the Raymond Tranche to be advanced by DNB NOR
BANK ASA to the Borrowers on a joint and several basis;

 

“Raymond Tranche”
means a tranche of the Total Commitment and the Loan consisting of the aggregate of the Raymond Sub-Tranche A and Raymond Sub-Tranche
B of up to the lesser or (i) $76,400,000 and (ii) eighty per cent (80%) of the Contract Price of the Raymond Ship, comprising the
three (3) Raymond Contract Instalment Advances and the Raymond Delivery Advance, or (as the context may require) the aggregate
principal amount of such Tranche outstanding at any relevant time;

 

“Reference Bank”
means the Agent;

 

“Refund Guarantee”
means:

 

	 	(a)	in relation to the Raymond Ship, each Raymond Refund Guarantee; or
	 	 	 
	 	(b)	in relation to the Terance Ship, each Terance Refund Guarantee,

 

and “Refund Guarantees”
means either or both of them;

 

“Refund Guarantee Assignment
Consent and Acknowledgement” means:

 

	 	(a)	in relation to the Raymond Ship, each Raymond Refund Guarantee Assignment Consent and Acknowledgement; or
	 	 	 
	 	(b)	in relation to the Terance Ship, each Terance Refund Guarantee Assignment Consent and Acknowledgement,

 

and “Refund Guarantee
Assignment Consents and Acknowledgements” means either or both of them;

 

“Refund Guarantor”
means The Export-Import Bank of Korea, of 16-1, Yoido-Dong, Yeongdeungpo-Gu, Seoul 150-996, Korea or such other entity as the Agent
(acting on the instructions of the Majority Banks in their absolute discretion) may approve in writing, and it includes its successors
in title;

 

“Registry”
means, in respect of a Ship, such registrar, commissioner or representative of the relevant Flag State who is duly authorised and
empowered to register such Ship, the relevant Borrower’s title to such Ship and the relevant Mortgage under the laws and
flag of the relevant Flag State;

 

“Related Company”
of a person means any Subsidiary of such person, any company or other entity of which such person is a Subsidiary and any Subsidiary
of any such company or entity;

    	14

    	

    
“Relevant Jurisdiction”
means any jurisdiction in which or where any Security Party is incorporated, resident, domiciled, has a permanent establishment,
carries on, or has a place of business or is otherwise effectively connected;

 

“Repayment Dates”
means, subject to clause 6.3 and in respect of the Tranche for each Ship, the date falling three (3) months after the Drawdown
Date of the Delivery Advance for such Ship and each of the dates falling at three (3) monthly intervals after such date up to
and including the date falling eighty four (84) months after the Drawdown Date of the Delivery Advance for such Ship;

 

“Requisition Compensation”
means, in relation to a Ship, all sums of money or other compensation from time to time payable during the Security Period by
reason of the Compulsory Acquisition of such Ship;

 

“Residual Value”
of the relevant Mortgaged Ship means the current charter-free market value (determined in accordance with clause 8.2.2) of a vessel
with identical characteristics to such Mortgaged Ship other than its age which shall be considered to be the age of such Mortgaged
Ship at the expiration of the relevant Charter to which such Mortgaged Ship is subject at the relevant time (excluding any charterers’
option but including owners’ option periods);

 

“Security Agent”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or
such other person as may be appointed as security agent and trustee by the Banks, the Agent and the Swap Provider pursuant to
clause 16.14 and includes its successors in title;

 

“Security Documents”
means this Agreement, the Master Swap Agreement, the Fee Letters, the Mortgages, the Deeds of Covenant, the General Assignments,
the Charter Assignments, the Charter Guarantee Assignments, the Operating Account Assignments, the Corporate Guarantee, the Swap
Assignment and the Pre-delivery Security Assignments and any other documents as may have been or shall from time to time after
the date of this Agreement be executed to guarantee and/or secure all or any part of the Loan, interest thereon and other moneys
from time to time owing by the Borrowers and/or any other Security Party pursuant to this Agreement and/or the Master Swap Agreement
or any other Security Documents (whether or not any such document also secures moneys from time to time owing pursuant to any
other document or agreement) (other than the Manager’s Undertakings);

 

“Security Party”
means the Borrowers, the Corporate Guarantor or any other person who may at any time be a party to any of the Security Documents
(other than the Creditors, any Manager and the Commercial Parties);

 

“Security Period”
means the period commencing on the date hereof and terminating upon the discharge of the security created by the Security Documents
by payment of all monies payable thereunder;

 

“Security Requirement”
means, in relation to a Ship, the amount in Dollars (as certified by the Agent whose certificate shall, in the absence of manifest
error, be conclusive and binding on the Borrowers and the other Creditors) which is at any relevant time:

 

(i) if such Ship is employed
under a Charter or a Qualifying Charter, one hundred per cent (100%) of the Tranche outstanding for such Ship at that time, or

 

(ii) if such Ship is not
employed under a Charter or a Qualifying Charter and for a period commencing on the date falling ninety (90) days after such Ship
is no longer employed under a Charter or, as the case may be, a Qualifying Charter and ending on the date the Vessel is employed
under a Qualifying Charter or, as the case may be, another Qualifying Charter whereupon sub-paragraph (i) above shall apply, one
hundred and twenty five per cent (125%) of the Tranche outstanding for such Ship at that time, and

    	15

    	

    

(iii) on the date falling
ninety (90) days prior to the Final Maturity Date of the relevant Tranche, one hundred and twenty five per cent (125%) of the
Tranche outstanding for such Ship at that time;

 

“Security
Value” means, in relation to a Shipthe amount in Dollars (as certified by the Agent whose certificate shall, in
the absence of manifest error, be conclusive and binding on the Borrowers and the other Creditors) which is, at any relevant time,
the aggregate of (a) the market value of such Ship as most recently determined in accordance with clause 8.2.2 and (b) the market
value of any additional security for the time being actually provided to the Creditors or any of them pursuant to clause 8.2.1(b)
in connection with the Security Requirement relating to such Ship;

 

“Shanghai Costamare”
means Shanghai Costamare Ship Management Co., Ltd., a company incorporated in the People’s Republic of China and having
its principal place of business at 38F Sino Life Tower, 707 Zhangyanglu, Pudong New District, Shangai, People’s Republic
of China and it includes its successors in title;

 

“Ship”:

 

		(a)	in relation to the Raymond
                                                             Tranche and/or the Raymond Borrower, means the Raymond Ship; or

 

		(b)	in relation to the Terance
                                                             Tranche and/or the Terance Borrower, means the Terance Ship,

 

and
“Ships” means either or both of them;

 

“Ship
Security Documents”:

 

		(a)	in relation to the Raymond Ship,
                                                             means the Raymond Mortgage, the Raymond Deed of Covenant, the Raymond
                                                             General Assignment, the Raymond Charter Assignment and the Raymond
                                                             Charter Guarantee Assignment; or

 

		(b)	in relation to the Terance Ship,
                                                             means the Terance Mortgage, the Terance Deed of Covenant, the Terance
                                                             General Assignment, the Terance Charter Assignment and the Terance
                                                             Charter Guarantee Assignment;

 

“SMC”
means a safety management certificate issued in respect of a Ship in accordance with rule 13 of the Code;

 

“Standard Form”
means, in relation to any Ship, the Group’s standard form of Group management agreement for vessels of the Group (including
the individual form of management agreement per vessel) which includes the amounts of remuneration payable to a Manager for its
services thereunder), as submitted by or on behalf of the Borrowers to the Agent prior to this Agreement;

 

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

 

“Sub-Tranche”
means any of Sub-Tranche A or Sub-Tranche B and “Sub-Tranches” means either or both of them;

 

“Sub-Tranche A”
means any of the Raymond Sub-Tranche A and Terance Sub-Tranche A;

 

“Sub-Tranche B”
means any of the Raymond Sub-Tranche B and Terance Sub-Tranche B;

 

“Swap Assignment”
means the assignment executed or (as the context may require) to be executed by the Borrowers in favour of the Security Agent
in connection with certain of the

    	16

    	

    

rights of the Borrowers
under the Master Swap Agreement in a form previously agreed between the Swap Provider and the Borrowers;

 

“Swap Exposure”
means, as at any relevant time, the amount certified by the Swap Provider to the Agent to be the aggregate net amount in Dollars
which would be payable by the Borrowers to the Swap Provider under (and calculated in accordance with) section 6(e) (Payments
on Early Termination) of the Master Swap Agreement if an Early Termination Date had occurred at the relevant time in relation
to all continuing Designated Transactions;

 

“Swap Provider”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) and
includes its successors in title;

 

“Taxes”
includes all present and future taxes, levies, imposts, duties, fees or charges of whatever nature together with interest thereon
and penalties in respect thereof and “Taxation” shall be construed accordingly;

 

“Total Commitment”
means, at any relevant time, the aggregate of all the Banks’ Commitments at such time;

 

“Terance Borrower”
means Terance Shipping Co. of 80 Broad Street, Monrovia, Liberia and includes its successors in title;

 

“Terance Charter”
means the time charterparty dated 30 March 2011 in respect of the Terance Ship made between the Charterer and the Terance Borrower,
and as the same may be further amended, supplemented and/or novated from time to time;

 

“Terance Charter
Assignment” means the specific assignment of the Terance Charter executed or (as the context may require) to be executed
by the Terance Borrower in favour of the Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Terance Charter
Guarantee Assignment” means the specific assignment of the Terance Charter Guarantee executed or (as the context may
require) to be executed by the Terance Borrower in favour of the Security Agent in a form previously agreed between the Agent
and the Borrowers;

 

“Terance Charter
Guarantee” means the unconditional and irrevocable guarantee contained in clause 78 of the Terance Charter granted by
the Charter Guarantor in favour of the Terance Borrower;

 

“Terance Contract”
means the shipbuilding contract dated 20 April 2011 made between the Builder and the Terance Borrower, as may be amended and supplemented
from time to time, relating to the construction and sale by the Builder, and the purchase by the Terance Borrower, of the Terance
Ship;

 

“Terance Contract
Assignment Consent and Acknowledgement” means the acknowledgement of notice of, and consent to, the assignment in respect
of the Terance Contract given or (as the context may require) to be given in the form scheduled to the Terance Pre-delivery Security
Assignment;

 

“Terance Contract
Instalment Advance” means, in relation to the Terance Ship, each of the three (3) Advances of the Total Commitment,
each in the maximum amount in Dollars specified in the second column of schedule 5 opposite the name of the relevant Advance and
each made or (as the context may require) to be made to finance in part or re-finance in part (as the case may be) the payment
of an instalment of the Terance Contract Price falling due before the Delivery Date for the Terance Ship at the time specified
in the third column of schedule 5 opposite the relevant Advance, and “Terance Contract Instalment Advances”
means any or all of them;

    	17

    	

    

“Terance Contract
Price” means the purchase price for the Terance Ship under the Terance Contract, being ninety five million five hundred
thousand Dollars ($95,500,000) or such other lesser sum in Dollars as may be payable as the purchase price for the Terance Ship
by the Terance Borrower to the Builder pursuant to the Terance Contract;

 

“Terance Deed
of Covenant” means the deed of covenant and/or (as the case may be) the general assignment collateral to the Terance
Mortgage executed or (as the context may require) to be executed by the Terance Borrower in favour of the Security Agent and/or
any of the other Creditors in such form as the Agent may reasonably require;

 

“Terance Delivery
Advance” means an Advance of up to $53,480,000 made or (as the context may require) to be made available to the Borrowers
on the Delivery Date of the Terance Ship for the purpose of financing part of the construction and acquisition cost of the Terance
Ship by the Terance Borrower pursuant to the Terance Contract;

 

“Terance General
Assignment” means the specific assignment of the Earnings, Insurances and Requisition Compensation for the Terance Ship
executed or (as the context may require) to be executed by the Terance Borrower in favour of the Security Agent in such form as
the Agent may require in its reasonable discretion;

 

“Terance Management
Agreement” means each agreement made or (as the context may require) to be made between the Terance Borrower and any
Manager in the Standard Form or, if in any other form, in a form acceptable to the Agent (acting on the instructions of the Majority
Banks), providing (inter alia) for that Manager to carry out the commercial and/or the technical management of the Terance
Ship;

 

“Terance Mortgage”
means the first priority or (as the case may be) preferred mortgage of the Terance Ship executed or (as the context may require)
to be executed by the Terance Borrower in favour of the Security Agent and/or any of the other Creditors in such form as the Agent
may require in its reasonable discretion;

 

“Terance Operating
Account” means an interest bearing Dollar account of the Terance Borrower opened or (as the context may require) to
be opened with the Account Bank and includes any sub-accounts thereof;

 

“Terance Operating
Account Assignment” means the first priority assignment of the Terance Operating Account executed or (as the context
may require) to be executed by the Terance Borrower in favour of the Security Agent in a form previously agreed between the Agent
and the Borrowers;

 

“Terance Pre-delivery
Security Assignment” means the assignment of the Terance Contract and the Terance Refund Guarantee executed or (as the
context may require) to be executed by the Terance Borrower in favour of the Security Agent in a form previously agreed between
the Agent and the Borrowers;

 

“Terance Refund
Guarantee” means each letter of guarantee issued or (as the context may require) to be issued by the Refund Guarantor
in favour of the Terance Borrower in respect of the Builder’s obligations under the Terance Contract, each in the form prescribed
in the Terance Contract, and any further guarantee(s) to be issued by the Refund Guarantor in respect of such obligations pursuant
to any agreement supplemental to the Terance Contract, and any extensions, renewals or replacements thereto or thereof;

 

“Terance Refund
Guarantee Assignment Consent and Acknowledgement” means, in relation to each Terance Refund Guarantee, an acknowledgement
of notice of, and consent to, the assignment in respect of that Terance Refund Guarantee given or (as the context may require)
to be given by the Refund Guarantor in the form scheduled to the Terance Pre-delivery Security Assignment and “Terance
Refund Guarantee Assignment Consents and Acknowledgements” means either or both of them;

 

“Terance Ship”
means the approximately 9,000 teu container ship known on the date of this Agreement as Hull No. S4023 at the Builder’s
yard, to be constructed and sold by the Builder

    	18

    	

    

to the Terance Borrower
pursuant to the Terance Contract and to be registered on its Delivery Date in the ownership of the Terance Borrower through the
relevant Registry under the laws and flag of the relevant Flag State;

 

“Terance Sub-Tranche
A” means an amount up to the lesser of (i) $57,300,000 and (ii) 75% of the Terance Tranche to be advanced by the Banks
to the Borrowers on a joint and several basis;

 

“Terance Sub-Tranche
B” means an amount up to the lesser of (i) $19,100,000 and (ii) 25% of the Terance Tranche to be advanced by DNB NOR
BANK ASA to the Borrowers on a joint and several basis;

 

“Terance Tranche”
means a tranche of the Total Commitment and the Loan consisting of the aggregate of the Terance Sub-Tranche A and Terance Sub-Tranche
B of up to the lesser or (i) $76,400,000 and (ii) eighty per cent (80%) of the Contract Price of the Terance Ship, comprising
the three (3) Terance Contract Instalment Advances and the Terance Delivery Advance, or (as the context may require) the aggregate
principal amount of such Tranche outstanding at any relevant time;

 

“Time Charter
Income” means, in relation to a Ship, the aggregate charter hire due and payable to the relevant Borrower for the remaining
unexpired term of the Charter or the Qualifying Charter relative to that Ship at the relevant time (excluding any charterers’
option but including owners’ option periods) less the aggregate operating expenses of that Ship as determined by the relevant
Borrower and certified to the satisfaction of the Agent for the same period;

 

“Total Commitment”
means, at any relevant time, the aggregate of all the Banks’ Commitments at such time;

 

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

 

		(a)	the actual, constructive, compromised
                                                             or arranged total loss of such Ship; or

 

		(b)	the Compulsory Acquisition of such
                                                             Ship; or

 

		(c)	the hijacking, theft, condemnation,
                                                             capture, seizure, arrest, detention or confiscation
                                                             (other than where the same amounts to the Compulsory Acquisition
                                                             of such Ship) by any Government Entity, or by persons acting or purporting
                                                             to act on behalf of any Government Entity, unless such Ship be released
                                                             and restored to the relevant Borrower from such hijacking, theft,
                                                             condemnation, capture, seizure, arrest, detention, or confiscation
                                                             within ninety (90) days after the occurrence thereof;

 

“Tranche”:

 

		(a)	in relation to the Raymond
                                                             Ship and/or the Raymond Borrower, means the Raymond Tranche; or

 

		(b)	in relation to the Terance
                                                             Ship and/or the Terance Borrower, means the Terance Tranche,

 

and “Tranches”
means either or both of them;

 

“Transaction”
has the meaning given to it in the Master Swap Agreement;

 

“Transfer Certificate”
means a certificate in substantially the form set out in schedule 4;

 

“Transferee Bank”
has the meaning ascribed thereto in clause 15.3;

 

“Transferor Bank”
has the meaning ascribed thereto in clause 15.3;

    	19

    	

    

“Trust Deed”
means a trust deed in the form, or substantially in the form, set out in schedule 6;

 

“Trust Property”
means (i) the security, powers, rights, titles, benefits and interests (both present and future) constituted by and conferred
on the Security Agent under or pursuant to the Security Documents (including, without limitation, the benefit of all covenants,
undertakings, representations, warranties and obligations given, made or undertaken to the Security Agent in the Security Documents),
(ii) all moneys, property and other assets paid or transferred to or vested in the Security Agent or any agent of the Security
Agent or any receiver or received or recovered by the Security Agent or any agent of the Security Agent or any receiver pursuant
to, or in connection with, any of the Security Documents whether from any Security Party or any other person and (iii) all moneys,
investments, property and other assets at any time representing or deriving from any of the foregoing, including all interest,
income and other sums at any time received or receivable by the Security Agent or any agent of the Security Agent or any receiver
in respect of the same (or any part thereof);

 

“Underlying Documents”
means, together, the Contracts, the Refund Guarantees, the Charters, the Qualifying Charters and the Management Agreements and
“Underlying Document” means any of them.

 

	1.3	Headings

 

Clause headings and
the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Agreement.

 

	1.4	Construction
                                                                         of certain terms

 

In this Agreement, unless
the context otherwise requires:

 

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

 

		1.4.2	references to (or to any specified
                                                             provision of) this Agreement or any other document shall be construed
                                                             as references to this Agreement, that provision or that document
                                                             as in force for the time being and as amended in accordance with
                                                             terms thereof, or, as the case may be, with the agreement of the
                                                             relevant parties;

 

		1.4.3	references to a “regulation”
                                                             include any present or future regulation, rule, directive, requirement,
                                                             request or guideline (whether or not having the force of law, but
                                                             if not having the force of law, one with which the relevant person
                                                             habitually complies) of any agency, authority, central bank or government
                                                             department or any self-regulatory or other national or supra-national
                                                             authority and, for the avoidance of doubt, shall include any Basel
                                                             2 Regulation;

 

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

 

		1.4.5	references to a time of day are to
                                                             London time;

 

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

 

		1.4.7	“control” means,
                                                             in relation to a body corporate:

 

		(a)	the power (whether by way of ownership
                                                             of shares, proxy, contract, agency or otherwise, directly or indirectly)
                                                             to:

 

		(i)	cast, or control the casting of,
                                                             more than 50 per cent of the maximum number of votes that might be
                                                             cast at a general meeting of such body corporate; or

    	20

    	

    

		(ii)	appoint or remove all, or the majority,
                                                              of the directors or other equivalent officers of such body corporate;
                                                              or

 

		(iii)	give directions with respect to
                                                               the operating and financial policies of such body corporate with
                                                               which the directors or other equivalent officers of such body corporate
                                                               are obliged to comply; or

 

		(b)	the holding beneficially of more
                                                             than 50 per cent of the issued share capital of such body corporate
                                                             (excluding any part of that issued share capital that carries no
                                                             right to participate beyond a specified amount in a distribution
                                                             of either profits or capital),

 

and “controlled”
shall be construed accordingly;

 

		1.4.8	two or more persons are “acting
                                                             in concert” if, pursuant to an agreement or understanding
                                                             (whether formal or informal), they actively co-operate, through the
                                                             acquisition (directly or indirectly) of shares in the Corporate Guarantor
                                                             by any of them, either directly or indirectly to obtain or consolidate
                                                             control of the Corporate Guarantor;

 

		1.4.9	references to a “guarantee”
                                                             include references to an indemnity or other assurance against financial
                                                             loss including, without limitation, an obligation to purchase assets
                                                             or services as a consequence of a default by any other person to
                                                             pay any Indebtedness and “guaranteed” shall be
                                                             construed accordingly;

 

		1.4.10	references to the “equivalent”
                                                              of an amount specified in a particular currency (the “first
                                                              amount”), shall be construed as a reference to the net
                                                              amount of any other currency which the Agent determines can be purchased
                                                              with the first amount in the London foreign exchange market at or
                                                              about 11.00 a.m. on the day on which the calculation falls to be
                                                              made for spot delivery; and

 

		1.4.11	references to any enactment shall
                                                              be deemed to include references to such enactment as re-enacted,
                                                              amended or extended.

 

		1.5	Majority
                                                                                                                                             Banks

 

Where this Agreement or
any other Security Document provides for any matter to be determined by reference to the opinion of the Majority Banks or to be
subject to the consent or request of the Majority Banks or for any action to be taken on the instructions in writing of the Majority
Banks, such opinion, consent, request or instructions shall (as between the Banks) only be regarded as having been validly given
or issued by the Majority Banks if all the Banks shall have received prior notice of the matter on which such opinion, consent,
request or instructions are required to be obtained and the relevant majority of such Banks shall have given or issued such opinion,
consent, request or instructions but so that (as between the Borrowers and the Creditors) the Borrowers shall be entitled (and
bound) to assume that such notice shall have been duly received by each relevant Bank and that the relevant majority shall have
been obtained to constitute Majority Banks whether or not this is in fact the case.

 

		1.6	Banks’
                                                                                                                                             Commitments

 

For the purposes of the
definition of “Majority Banks” in clause 1.5, references to the Commitment of a Bank shall, if the Total
Commitment has, at any relevant time, been reduced to zero, be deemed to be a reference to the Commitment of that Bank immediately
prior to such reduction to zero.

 

		1.7	Continuing
                                                                                                                                             Defaults

 

For the purposes of this
Agreement and the other Security Documents, a Default or an Event of Default is “continuing” if it has not
been remedied or waived.

 

		2	The
                                                                                                                                           Total
                                                                                                                                           Commitment
                                                                                                                                           and
                                                                                                                                           the
                                                                                                                                           Advances

    	21

    	

    

		2.1	Agreement
                                                                                                                                             to
                                                                                                                                             lend

 

The Banks,
relying upon each of the representations and warranties in clause 7, agree to lend to the Borrowers, jointly and severally,
upon and subject to the terms of this Agreement, the principal sum of up to one hundred and fifty two million eight hundred thousand
Dollars ($152,800,000) in eight (8) Advances comprising two (2) Tranches each of which comprises two (2) Sub-Tranches. The obligation
of each Bank under this Agreement shall be to contribute that proportion of each Advance which, as at the Drawdown Date of such
Advance, its Commitment bears to the Total Commitment, where each Sub-Tranche A shall be advanced by the Banks and each Sub-Tranche
B shall be advanced by DNB NOR BANK ASA only.

 

		2.2	Obligations
                                                                                                                                             several

 

The obligations
of the Banks under this Agreement are several according to their respective Commitments and/or Contributions; the failure of any
Bank to perform such obligations or the failure of the Swap Provider to perform its obligations under the Master Swap Agreement
shall not relieve any other Creditor or the Borrowers or any of them of any of their respective obligations or liabilities under
this Agreement or, as the case may be, the Master Swap Agreement nor shall any Creditor be responsible for the obligations of
any other Creditor (except for its own obligations, if any, as a Bank or Swap Provider) under this Agreement or the Master Swap
Agreement.

 

		2.3	Interests
                                                                                                                                             several

 

Notwithstanding
any other term of this Agreement (but without prejudice to the provisions of this Agreement relating to or requiring action by
the Majority Banks) the interests of the Creditors are several and the amount due to any Creditor is a separate and independent
debt. No Creditor however shall have the right to protect and enforce its rights arising out of this Agreement except with the
prior written consent of the Majority Banks. If however such consent by the Majority Banks is given and a Creditor takes any such
action, it shall not be necessary for any other Creditor to be joined as an additional party in any proceedings for this purpose.

 

		2.4	Drawdown

 

Subject
to the terms and conditions of this Agreement, each Advance shall be made to the Borrowers following receipt by the Agent from
the Borrowers of a Drawdown Notice not later than 10:00 a.m. (London time) on the third Banking Day before the date, which shall
be a Banking Day falling within the Drawdown Period for such Advance, on which the Borrowers propose such Advance is made. A Drawdown
Notice (i) shall be effective on actual receipt by the Agent and (ii) once given, shall, subject as provided in clause 3.6.1,
be irrevocable.

 

		2.5	Timing,
                                                                                                                                             restrictions
                                                                                                                                             and
                                                                                                                                             limitation
                                                                                                                                             of
                                                                                                                                             Advances

 

		2.5.1	The aggregate amount of the Loan
                                                             shall not exceed the lower of (a) one hundred and fifty two million
                                                             eight hundred thousand Dollars ($152,800,000) and (b) the amount
                                                             in Dollars which is eighty per cent (80%) of the aggregate Contract
                                                             Prices for all Ships. Each Advance shall, subject to the following
                                                             provisions of this clause 2.5, be for such amount as is specified
                                                             in the Drawdown Notice for that Advance.

 

		2.5.2	The aggregate amount of the Tranche
                                                             for each Ship shall not exceed the lower of (a) $76,400,000 and (b)
                                                             the amount in Dollars which is eighty per cent (80%) of the Contract
                                                             Price for such Ship.

 

		2.5.3	The aggregate amount of each Contract
                                                             Instalment Advance shall be as follows:

 

each
of the first, second and third Contract Instalment Advances for each Ship shall not exceed the lower of (i) $7,640,000 (comprising
(a) Sub-Tranche A in an amount up to the lesser of (1) $5,730,000 and (2) 75% of the relevant Contract Instalment Advance to be
advanced by the Banks to the Borrowers and (b) Sub-Tranche B in an amount up to the

    	22

    	

    

lesser
of (1) $1,910,000 and (2) 25% of the relevant Contract Instalment Advance to be advanced by DNB NOR BANK ASA to the Borrowers)
and (ii) the amount in Dollars which is equal to eighty per cent (80%) of the “1st Instalment” or (as the case may
be), the “2nd Instalment” or (as the case may be) the “3rd Instalment” of the Contract Price for the Ship
relevant to such Contract Instalment Advance, which is payable at the time specified in the third column of schedule 5 opposite
the relevant Contract Instalment Advance,

 

and each
Contract Instalment Advance for a Ship shall be applied in or towards payment to the Builder or, in reimbursement to the Borrowers,
of the relevant aforesaid instalment of the Contract Price payable or paid (as the case may be) under the Contract for the Ship
relevant to such Contract Instalment Advance, and shall be made available to the Borrowers when such instalment has become due
and payable under the relevant Contract or, if already paid by the Borrowers to the Builder.

 

		2.5.4	Each Delivery Advance:

 

		(a)	shall not exceed the lower of (i)
                                                             $53,480,000 (comprising (a) Sub-Tranche A in an amount up to the
                                                             lesser of (1) $40,110,000 and (2) 75% of the relevant Delivery Advance
                                                             to be advanced by the Banks to the Borrowers and (b) Sub-Tranche
                                                             B in an amount up to the lesser of (1) of $13,370,000 and (2) 25%
                                                             of the relevant Delivery Advance to be advanced by DNB NOR BANK ASA
                                                             to the Borrowers), (ii) the amount in Dollars which is equal to eighty
                                                             per cent (80%) of the “4th Instalment” of the Contract
                                                             Price for the Ship relevant to such Advance, (iii) the amount in
                                                             Dollars which, when added to the total amount of the Contract Instalment
                                                             Advances for such Ship actually drawn down, is equal to 80% of the
                                                             Contract Price of such Ship and (iv) the amount in Dollars which,
                                                             when added to the total amount of the Contract Instalment Advances
                                                             for such Ship actually drawn down, is equal to $76,400,000; and

 

		(b)	shall be applied in or towards payment
                                                             to the Builder of the “4th Instalment” of the Contract
                                                             Price for such Ship falling due on the relevant Delivery Date, and
                                                             shall be made available to the Borrowers when such instalment has
                                                             become due and payable.

 

		2.6	Availability

 

Following a Drawdown
Notice

 

Upon receipt of a Drawdown
Notice complying with the terms of this Agreement, the Agent shall promptly notify each Bank and, subject to the provisions of
clause 9, each Bank shall, on the Drawdown Date for the relevant Advance, make available to the Agent its portion of the relevant
Advance for payment by the Agent in accordance with clause 6.2. The Borrowers acknowledge that payment of any Advance or
part thereof to the Builder or to the Borrowers or any of them in accordance with clause 6.2, shall satisfy the obligation of
the Banks to lend that Advance to the Borrowers under this Agreement.

 

		2.7	Termination
                                                                                                                                                    of
                                                                                                                                                    Total
                                                                                                                                                    Commitment

 

Any part of the Total Commitment
undrawn and uncancelled at the end of the relevant Drawdown Period shall thereupon be automatically cancelled.

 

		2.8	Application
                                                                                                                                                    of
                                                                                                                                                    proceeds

 

Without prejudice to the
Borrowers’ obligations under clause 8.1.3, no Creditor shall have any responsibility for the application of the proceeds
of the Loan or any part thereof by the Borrowers.

 

		2.9	Derivative transactions

 

		2.9.1	If, at any time during the Security
                                                             Period, the Borrowers wish to enter into interest rate swap or other
                                                             derivative transactions so as to hedge all or any part of their exposure
                                                             under this Agreement to interest rate fluctuations, they shall advise
                                                             the Swap Provider in writing.

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		2.9.2	Any such swap or other derivative
                                                             transaction shall be concluded with the Swap Provider under the Master
                                                             Swap Agreement provided however that no such swap or other derivative
                                                             transaction shall be concluded unless the Swap Provider first agrees
                                                             to it in writing. For the avoidance of doubt, other than the Swap
                                                             Provider’s agreement in writing referred to in the preceding
                                                             sentence no prior approval is required by the Borrowers from any
                                                             other Creditor before concluding any such transaction. If and when
                                                             any such swap or other derivative transaction has been concluded,
                                                             it shall constitute a Designated Transaction, and the Borrowers and
                                                             the Corporate Guarantor shall sign a Confirmation with the Swap Provider
                                                             and advise the Banks through the Agent promptly after concluding
                                                             any Designated Transaction.

 

		2.10	“Pre-placement”
                                                                                                                                              of
                                                                                                                                              Delivery
                                                                                                                                              Advances

 

		2.10.1	Notwithstanding that the Borrowers
                                                              may have not yet satisfied all of the conditions precedent set out
                                                              in schedule 3, Part 3 in relation to a Ship, in order to facilitate
                                                              compliance by the relevant Borrower with Article X.4(a) of the Contract
                                                              relevant to that Ship, and provided that:

 

		(a)	the Borrowers have submitted a relevant
                                                             Drawdown Notice in accordance with clause 2.4; and

 

		(b)	in the Agent’s opinion the
                                                             Borrowers are reasonably likely to satisfy all such conditions precedent
                                                             in relation to that Ship within 4 Banking Days from the Drawdown
                                                             Date and in any event upon the Release (as defined below in clause
                                                             2.10.2),

 

the Banks
may, subject to the other terms and conditions of this clause 2.10 and the other provisions of this Agreement, make available
to the Agent the Delivery Advance for that Ship, on the date specified in the relevant Drawdown Notice, being the date on which
the “4th Instalment” for that Ship is required to be deposited in accordance with Article X.4(ii) of the Contract
with the relevant builder’s bank referred to in that Contract (the “Builder’s Bank”).

 

		2.10.2	Any such Delivery Advance drawn
                                                              down pursuant to this clause 2.10 (a “Pre-placed Advance”)
                                                              shall (subject to the other provisions of this Agreement) be remitted
                                                              by the Agent to the Builder’s Bank as a cash deposit in the
                                                              Agent’s name with the Builder’s Bank (the “Agent
                                                              Account”) with its correspondent bank in New York, and
                                                              will be held by the Builder’s Bank to the order of the Agent
                                                              for release by the Agent to the Builder (the “Release”)
                                                              and only subject to such irrevocable instructions (the “Irrevocable
                                                              Instructions”) addressed from the Agent to the Builder’s
                                                              Bank as are acceptable to the Agent (acting on the instructions
                                                              of the Majority Banks).

 

		2.10.3	The Irrevocable Instructions shall
                                                              provide (inter alia) that the Pre-placed Advance shall not be released
                                                              to the Builder or to its order, and the Agent shall not agree to
                                                              release a Pre-placed Advance to the Builder or its order, unless
                                                              and until the Agent is satisfied that the “Protocol of Delivery
                                                              and Acceptance” in respect of the relevant Ship has been signed
                                                              by the Builder and the relevant Borrower and counter-signed by the
                                                              Agent or one of its duly authorised representatives.

 

		2.10.4	The Borrowers hereby irrevocably
                                                              and unconditionally undertake that none of the Borrowers shall give
                                                              any instructions to the Builder’s Bank that are inconsistent
                                                              with any Irrevocable Instructions in respect of a Pre-placed Advance.

 

		2.10.5	The Borrowers shall immediately
                                                              prepay a Pre-placed Advance, together with interest thereon (calculated
                                                              in accordance with clause 3.1), on the date on which the Builder’s
                                                              Bank is required to return the moneys funded by that Pre-placed
                                                              Advance to the Agent in accordance with the Irrevocable Instructions
                                                              (and regardless of whether the Builder’s Bank has then carried
                                                              out such instructions), provided that any moneys actually returned
                                                              to the Agent from the Agent Account shall be applied by the Agent
                                                              in satisfaction of such prepayment obligation of the Borrowers and
                                                              in payment of any amounts payable by the Borrowers under clause
                                                              4.4 as a result of such prepayment.

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		2.10.6	In case of application of this clause
                                                              2.10 in respect of a Pre-placed Advance, that Pre-placed Advance
                                                              shall accrue interest in accordance with the terms of clause 3.1
                                                              from its Drawdown Date.

 

		3	Interest
                                                                                                                                           and
                                                                                                                                           Interest
                                                                                                                                           Periods

 

		3.1	Normal
                                                                                                                                             interest
                                                                                                                                             rate

 

The Borrowers shall pay
interest on each Advance or (as the case may be) Tranche or Sub-Tranche, in respect of each Interest Period relating thereto on
each Interest Payment Date (or, in the case of Interest Periods of more than three (3) months, by instalments, the first instalment
three (3) months from the commencement of the Interest Period and the subsequent instalments at intervals of three (3) months
or, if shorter, the period from the date of the preceding instalment until the Interest Payment Date relative to such Interest
Period) at the rate per annum determined by the Agent to be the aggregate of (a) the relevant Margin, (b)  LIBOR for such
Interest Period and (c) Mandatory Cost (if any).

 

		3.2	Selection
                                                                                                                                             of
                                                                                                                                             Interest
                                                                                                                                             Periods

 

Subject to clause 3.3,
the Borrowers may by notice received by the Agent not later than 10:00 a.m. on the second Banking Day before the beginning of
each Interest Period specify whether such Interest Period shall have a duration of three (3), six (6), nine (9) or twelve (12)
months or, subject to availability, such other period as the Borrowers may select and the Agent may agree in its absolute discretion,
acting on the instructions of the Majority Banks.

 

		3.3	Determination
                                                                                                                                             of
                                                                                                                                             Interest
                                                                                                                                             Periods

 

Every Interest Period shall
be of the duration specified by the Borrowers pursuant to clause 3.2 but so that:

 

		3.3.1	the initial Interest Period in respect
                                                             of each Advance shall commence on the date such Advance is made and
                                                             each subsequent Interest Period in respect of such Advance shall
                                                             commence on the last day of the previous Interest Period in respect
                                                             of such Advance;

 

		3.3.2	the initial Interest Period in respect
                                                             of each Advance for a Ship drawn down after the first Advance for
                                                             such Ship to be drawn down shall end on the same day as the then
                                                             current Interest Period for the other drawn Advances of the same
                                                             Tranche and, on such day, all such Advances shall be consolidated
                                                             into, and shall thereafter constitute, the Tranche for that Ship;

 

		3.3.3	if any Interest Period for a Tranche
                                                             would otherwise overrun a Repayment Date for such Tranche, then,
                                                             in the case of the last Repayment Date for such Tranche, such Interest
                                                             Period shall end on such Repayment Date, and in the case of any other
                                                             Repayment Date or Repayment Dates for such Tranche, the relevant
                                                             Tranche shall be divided into parts so that there is one part in
                                                             the amount of the repayment instalment or instalments due on each
                                                             Repayment Date for such Tranche falling during that Interest Period
                                                             and having an Interest Period ending on the relevant Repayment Date
                                                             and another part in the amount of the balance of such Tranche having
                                                             an Interest Period ascertained in accordance with clause 3.2 and
                                                             the other provisions of this clause 3.3; and

 

		3.3.4	if the Borrowers fail to specify
                                                             the duration of an Interest Period in accordance with the provisions
                                                             of clause 3.2 or this clause 3.3 such Interest Period shall
                                                             have a duration of three (3) months or such other period as shall
                                                             comply with this clause 3.3.

 

		3.4	Default
                                                                                                                                             interest

 

If the Borrowers fail to
pay any sum (including, without limitation, any sum payable pursuant to this clause 3.4) on its due date for payment under
any of the Security Documents (except the Master Swap Agreement), the Borrowers shall pay interest on such sum on demand from
the due date up to the date of actual payment (as well after as before judgment) at a rate determined by the Agent pursuant to
this clause 3.4. The period beginning on such due date

    	25

    	

    

and ending on such date
of payment shall be divided into successive periods of not more than three (3) months as selected by the Agent each of which (other
than the first, which shall commence on such due date) shall commence on the last day of the preceding such period. The rate of
interest applicable to each such period shall be the aggregate (as determined by the Agent) of (a) two per cent (2%) per annum,
(b) the Margin, (c) LIBOR for such period and (d) the Mandatory Cost (if any). Such interest shall be due and payable on the last
day of each such period as determined by the Agent and each such day shall, for the purposes of this Agreement, be treated as
an Interest Payment Date, provided that (i) if such unpaid sum is an amount of principal which became due and payable by reason
of a declaration by the Agent under clause 10.2.2 or a prepayment pursuant to clauses  2.10, 4.4, 8.2.1(a) or 12.1,
on a date other than an Interest Payment Date relating thereto, the first such period selected by the Agent shall be of a duration
equal to the period between the due date of such principal sum and such Interest Payment Date and interest shall be payable on
such principal sum during such period at a rate of two per cent (2%) above the rate applicable thereto immediately before it shall
have become so due and payable and (ii) if the Agent selects under this clause 3.4 Interest Periods which are shorter than 3 months,
interest under this clause shall (notwithstanding such selection) only be compounded and paid not more frequently than at 3 monthly
intervals. If, for the reasons specified in clause 3.6.1, the Agent is unable to determine a rate in accordance with the
foregoing provisions of this clause 3.4, each Bank shall promptly notify the Agent of the cost of funds to such Bank and
interest on any sum not paid on its due date for payment shall be calculated at a rate determined by the Agent to be two per cent
(2%) per annum above the aggregate of the Margin and the cost of funds to such Bank (including Mandatory Cost, if any).

 

		3.5	Notification
                                                                                                                                             of
                                                                                                                                             Interest
                                                                                                                                             Periods
                                                                                                                                             and
                                                                                                                                             interest
                                                                                                                                             rate

 

The Agent shall notify
the Borrowers and the Banks promptly of the duration of each Interest Period and of each rate of interest (or, as the case may
be default interest) determined by it under this clause 3.

 

		3.6	Market
                                                                                                                                             disruption;
                                                                                                                                             non-availability

 

		3.6.1	If and whenever, at any time prior
                                                             to the commencement of any Interest Period:

 

		(a)	the Agent shall have determined (which
                                                             determination shall, in the absence of manifest error, be conclusive)
                                                             that adequate and fair means do not exist for ascertaining LIBOR
                                                             during such Interest Period due to circumstances affecting the London
                                                             interbank market generally (and provided always that if the screen
                                                             rate referred to in paragraph (a) of the definition of LIBOR in clause
                                                             1.2 is available at any relevant time, no person may argue under
                                                             this paragraph (a) that adequate and fair means did not exist for
                                                             ascertaining LIBOR during the relevant Interest Period); or

 

		(b)	where applicable the Reference Bank
                                                             does not supply the Agent with a quotation for the purpose of calculating
                                                             LIBOR; or

 

		(c)	the Agent shall have received notification
                                                             from Banks whose aggregate Contributions are not less than fifty
                                                             per cent (50%) of the Loan or, prior to the first drawdown, from
                                                             Banks whose aggregate Commitments are not less than fifty per cent
                                                             (50%) of the Total Commitment, that deposits in Dollars are not available
                                                             to such Banks in the London Interbank Market in the ordinary course
                                                             of business in sufficient amounts to fund their Commitments or their
                                                             Contributions for such Interest Period or that LIBOR does not accurately
                                                             reflect the cost to such Banks of obtaining such deposits,

 

the Agent shall forthwith
give notice (a “Determination Notice”) thereof to the Borrowers and to each of the Banks and the Swap Provider.
A Determination Notice shall contain particulars of the relevant circumstances giving rise to its issue. After the giving of any
Determination Notice the undrawn amount of the Total Commitment shall not be borrowed, until notice to the contrary is given to
the Borrowers by the Agent.

 

		3.6.2	During the period of thirty (30)
                                                             days after any Determination Notice has been given by the Agent under
                                                             clause 3.6.1, the Borrowers and the Banks shall negotiate in
                                                             good faith with a

    	26

    	

    
		view to arriving at a mutually acceptable alternative basis for each Bank to maintain its Contribution.
If, within such 30 day period, no such mutually acceptable alternative basis is reached for all the Banks, each Bank shall certify
an alternative basis (the “Alternative Basis”) for maintaining its Contribution. The Alternative Basis may at
the relevant Bank’s sole and unfettered discretion (without limitation) include alternative interest periods, alternative
currencies or alternative rates of interest but shall include a margin above the cost of funds (including Mandatory Cost, if any)
to such Bank equivalent to the Margin. The Agent shall calculate the arithmetic mean of the Alternative Bases provided by the relevant
Banks (the “Substitute Basis”) and certify the same to the Borrowers, the Banks and the Swap Provider. The Substitute
Basis so certified shall be binding upon the Borrowers and shall take effect in accordance with its terms from the date specified
in the Determination Notice until such time as the Agent notifies the Borrowers that none of the circumstances specified in clause 3.6.1
continues to exist whereupon the normal interest rate fixing provisions of this Agreement shall apply. For so long as any Substitute
Basis is in force, the Agent shall from time to time (but at least on a monthly basis) and in consultation with the Banks, review
whether or not the circumstances that have caused the application of the Substitute Basis have ceased to exist, and if the Majority
Banks and the Agent conclude that they have so ceased to exist and that such Substitute Basis shall no longer apply, the Agent
shall notify the Borrowers and the Banks that the Substitute Basis shall case to be effective from such date as the Agent shall
reasonably specify.

 

	4	Repayment
                                                                       and prepayment

 

	4.1	Repayment

 

	4.1.1	Subject to the other provisions of this clause 4.1, the Borrowers shall repay each Tranche by twenty
eight (28) consecutive quarterly repayment instalments, one such instalment to be repaid on each of the Repayment Dates for such
Tranche. Subject to the provisions of this Agreement, the amount of each of the first to twenty seventh (27th) instalments
(inclusive) in respect of each such Tranche shall be $1,364,300 and the amount of the twenty eighth (28th) and final
instalment in respect of each such Tranche shall be $39,563,900 (comprising a repayment instalment of $1,364,300 and a balloon
payment of $38,199,600 (each such balloon payment in relation to a Tranche, a “Balloon Instalment”)).

 

	4.1.2	If the Total Commitment in respect of any Tranche is not drawn down in full, the amount of each
repayment instalment in respect of the relevant Tranche (including the relevant Balloon Instalment) shall be reduced proportionately.

 

	4.2	Voluntary prepayment

 

	4.2.1	The Borrowers may prepay any Tranche in whole or part (such part being in an amount of Five hundred
thousand Dollars ($500,000) or any larger sum which is an integral multiple of Five hundred thousand Dollars ($500,000)) on any
day, without premium or penalty, but subject always to their obligations under clause 4.4 (including, without limitation, their
obligations under clause 11.1 if any such prepayment is made on a day which is not an Interest Payment Date relating to the part
of the Loan to be prepaid).

 

	4.2.2	The Borrowers may also prepay (in whole but not in part only), without premium or penalty, but
without prejudice to their obligations under clauses 3.6, 6.6 and 12.2, and subject to their obligations under clause 4.4:

 

		(a)	the Contribution of any Bank to which the Borrower shall have become obliged to pay additional
amounts under clauses 6.6 or 12.2; or

 

		(b)	the Contribution of any Bank who has certified an Alternative Basis under clause 3.6.

 

Upon any notice of such prepayment
being given under this clause 4.2.2, the Commitment of the relevant Bank shall be reduced to zero.

 

	4.3	Cancellation of a Tranche

    	27

    	

    

The Borrowers may cancel the
whole or any part of an undrawn Tranche, without premium or penalty subject to giving to the Agent not less than five (5) Banking
Days’ (or such shorter period as the Agent may require) prior notice in writing.

 

	4.4	Prepayment on Total Loss, transfers or sales

 

	4.4.1	Before first drawdown

 

Immediately prior to the completion
of the novation, transfer or assignment of a Contract by the relevant Borrower to another person (with the prior written consent
of the Creditors as and when required by the Security Documents), in each case before any Advance for such Ship is drawn down,
then (a) the obligation of the Banks to advance any Advance for such Ship (or part thereof) shall immediately cease and (b) the
Total Commitment shall be reduced by the amount of the Tranche relevant to such Ship.

 

	4.4.2	Following first drawdown but prior to Delivery

 

Immediately
prior to the completion of the novation, transfer or assignment of a Contract by the relevant Borrower to another person (with
the prior written consent of the Creditors as and when required by the Security Documents), (a) if any Advance relating to such
Ship has been drawn down, the Borrowers shall prepay each such Advance in full and (b) (if applicable) the obligation of the Banks
to advance any other Advance for that Ship shall immediately cease and the Total Commitment shall be reduced accordingly.

 

	4.4.3	Thereafter - Mortgaged Ships

 

On the date falling one hundred
and eighty (180) days after that on which a Mortgaged Ship became a Total Loss or, if earlier, on the date upon which the insurance
proceeds in respect of such Total Loss are, or Requisition Compensation is, received by the relevant Borrower (or the Agent or
any other Creditor pursuant to the Security Documents), the Borrowers shall prepay in full the Tranche relating to such Mortgaged
Ship.

 

	4.4.4	Total Loss

 

For the purpose of this Agreement
and the other Security Documents, a Total Loss in respect of a Ship shall be deemed to have occurred:

 

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

 

		(b)	in the case of a constructive total loss of a Ship, upon the date and at the time notice of abandonment
of such Ship is given to the insurers of such Ship for the time being;

 

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

 

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

 

		(e)	in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation
of a Ship (other than where the same amounts to Compulsory Acquisition of such Ship) by any Government Entity, or by persons purporting
to act on behalf of any Government Entity, which deprives the relevant Borrower of the use of such Ship for more than ninety (90)
days, upon the expiry of the period of ninety (90) days after the date upon which the relevant hijacking, theft, condemnation,
capture, seizure, arrest, detention or confiscation occurred.

 

	4.5	Amounts payable on prepayment

    	28

    	

    

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

 

	4.5.1	accrued interest on the amount to be prepaid to the date of such prepayment;

 

	4.5.2	any additional amount payable under clauses 6.6 or 12.2; and

 

	4.5.3	all other sums payable by the Borrowers to the Creditors under this Agreement or any of the other
Security Documents including, without limitation, any accrued commitment commission payable under clause 5.1 and any amounts payable
under clause 4.7 or clause 11.

 

	4.6	Notice of prepayment; reduction of repayment instalments

 

	4.6.1	No prepayment may be effected under clause 4.2 unless the Borrowers shall have given the Agent
at least five (5) days’ prior written notice of their intention to make such prepayment. Every notice of prepayment shall
be effective only on actual receipt by the Agent, shall be irrevocable (unless otherwise agreed by the Banks), shall specify the
Tranche and the amount thereof to be prepaid and shall oblige the Borrowers to make such prepayment on the date specified.

 

	4.6.2	Any amount prepaid pursuant to clause 4.2 or clause 8.2.1(a) in respect of all the Tranches, shall
be applied in prepayment of all Tranches proportionately as between them and in reduction of the repayment instalments of each
Tranche under clause 4.1.1 (including each Balloon Instalment) proportionately.

 

	4.6.3	Any amounts prepaid pursuant to clause 4.2 or clause 8.2.1(a) in respect of a single Tranche shall
be applied in reducing the repayment instalments of that Tranche under clause 4.1.1 (including the relevant Balloon Instalment)
proportionately.

 

	4.6.4	The Borrowers may not prepay the Loan or any part thereof save as expressly provided in this Agreement.

 

	4.6.5	No amount prepaid under this Agreement may be reborrowed.

 

	4.7	Unwinding of Designated Transactions

 

On or prior to any repayment
or prepayment of all or part of the Loan (including, without limitation, pursuant to clauses 2.10, 4.1, 4.2, 4.4, 8.2.1(a), 10.2,
12, 13 or any other provision of this Agreement), the Borrowers shall, upon the request of the Agent and the Swap Provider, wholly
or partially reverse, offset, unwind, cancel, close out, net out or otherwise terminate one or more of the continuing Designated
Transactions so that the notional principal amount of the continuing Designated Transactions thereafter remaining under the Master
Swap Agreement does not, and will not in the future (taking into account the scheduled amortisation), exceed the amount of the
Loan as reducing from time to time thereafter pursuant to clause 4.1.

 

	5	Fees,
                                                                       commitment commission and expenses

 

	5.1	Fees

 

The Borrowers shall pay to the
Agent:

 

	5.1.1	for the account of the Banks pro rata in accordance with their Commitments, on the date of this
Agreement, an up-front participation fee of such amount as specified in the relevant Fee Letter (for further sharing and distribution
between the Banks as separately agreed between them);

 

	5.1.2	for the account of the Agent on the date of this Agreement and at twelve (12) monthly intervals
thereafter until all moneys owing under the Security Documents have been repaid in full, an annual agency fee of such amount as
is specified in the relevant Fee Letter; and

    	29

    	

    

	5.1.3	for the account of each Bank, on each of the dates falling at three (3) monthly intervals after
the date of this Agreement until the last day of the last Drawdown Period, and on the last day of the last Drawdown Period, commitment
commission computed from the date of this Agreement (in the case of the first payment of commission) and from the due date of the
preceding payment of commission (in the case of each subsequent payment) at the rate of zero point two five per cent (0.25%) per
annum on the daily undrawn and available amount of such Bank’s Commitment.

 

The fees and
commissions referred to in clause 5.1 shall be payable by the Borrowers to the Agent, whether or not any part of the Total Commitment
is ever advanced. All such fees and commissions referred to in clause 5.1 shall be non-refundable.

 

	5.2	Expenses

 

The Borrowers shall pay to the
Agent on a full indemnity basis on demand all expenses (including legal, printing and out-of-pocket expenses):

 

	5.2.1	incurred by the Agent in connection with the negotiation, preparation, execution and, where relevant,
registration of:

 

		(a)	the Security Documents; and

 

		(b)	any amendment (except where such amendment is unilaterally requested by the Agent while no Event
of Default has occurred) or extension of, or the granting of any waiver or consent under, any of the Security Documents;

 

provided that
any such expenses incurred prior to an Event of Default or for as long as no Event of Default is continuing shall be reasonable
and documented; and

 

	5.2.2	incurred by the Agent or any of the Creditors in contemplation of, or otherwise in connection with,
the enforcement of, or preservation of any rights under, any of the Security Documents, or otherwise in respect of the moneys owing
under any of the Security Documents,

 

together with interest at the
rate referred to in clause 3.4 from the date on which such expenses were incurred to the date of payment (as well after as
before judgment).

 

	5.3	Value added tax

 

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

 

	5.4	Stamp and other duties

 

The Borrowers shall pay all
stamp, documentary, registration or other like duties or taxes (including any duties or taxes payable by, or assessed against,
any of the Creditors) imposed on or in connection with any of the Underlying Documents, the Security Documents, the Loan, (but
not duties or taxes as a result of a transfer under clause 15.3) and shall indemnify the Creditors or any of them against any liability
arising by reason of any delay or omission by the Borrowers to pay such duties or taxes.

 

	6	Payments
                                                                       and taxes; accounts and calculations

 

	6.1	No set-off or counterclaim

 

The Borrowers acknowledge that
in performing their respective obligations under this Agreement, the Banks will be incurring liabilities to third parties in relation
to the funding of amounts to the Borrowers, such liabilities matching the liabilities of the Borrowers to the Banks

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and that it is reasonable for
the Banks to be entitled to receive payments from the Borrowers gross on the due date in order that each of the Banks is put in
a position to perform its matching obligations to the relevant third parties. Accordingly, all payments to be made by the Borrowers
under any of the Security Documents shall be made in full, without any set-off or counterclaim whatsoever and, subject as provided
in clause 6.6, free and clear of any deductions or withholdings, in Dollars on the due date to such account at such bank and
in such place as the Agent may from time to time specify for this purpose. Save for payments which are for the account of the Swap
Provider and save as otherwise provided in this Agreement or any relevant Security Documents, such payments shall be for the account
of all Banks, and the Agent shall distribute such payments in like funds as are received by the Agent to the Banks rateably, in
accordance with their respective Commitment or (if after the first drawdown) Contribution as the case may be.

 

	6.2	Payment by the Banks

 

All sums to
be advanced by the Banks to the Borrowers under this Agreement shall be remitted in Dollars on the Drawdown Date for the relevant
Advance and, in the case of amounts drawn down pursuant to clause 2.6 to the account of the Agent at such bank as the Agent may
have notified to the Banks and shall be paid by the Agent on such date in like funds as are received by the Agent to the account
specified in the Drawdown Notice for such Advance.

 

	6.3	Non-Banking Days

 

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

 

	6.4	Calculations

 

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

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	6.5	Certificates conclusive

 

Any certificate or determination
of the Agent or the Arranger or the Security Agent, or any Bank, or the Swap Provider as to any rate of interest or any other amount
pursuant to and for the purposes of any of the Security Documents shall, in the absence of manifest error, be conclusive and binding
on the Borrowers and, in the case of a certificate or determination by the Agent or the Security Agent, also on the other Creditors.

 

	6.6	Grossing-up for Taxes

 

	6.6.1	If at any time the Borrowers or any of them are required
to make any deduction or withholding in respect of Taxes from any payment due under any of the Security Documents for the account
of any Creditor or if the Agent or, as the case may be, the Security Agent is required to make any such deduction or withholding
from a payment to another Creditor or withholding in respect of Taxes from any payment due under any of the Security Documents,
the sum due from the Borrowers or any of them in respect of such payment shall be increased to the extent necessary to ensure that,
after the making of such deduction or withholding, the relevant Creditor receives on the due date for such payment (and retains,
free from any liability in respect of such deduction or withholding), a net sum equal to the sum which it would have received had
no such deduction or withholding been required to be made and the Borrowers shall indemnify each Creditor against any losses or
costs incurred by it by reason of any failure of the Borrowers or any of them to make any such deduction or withholding or by reason
of any increased payment not being made on the due date for such payment. The Borrowers shall promptly deliver to the Agent any
receipts, certificates or other proof evidencing the amounts (if any) paid or payable in respect of any deduction or withholding
as aforesaid.

 

	6.6.2	If at any time any Bank is required to make any deduction or withholding in respect of Taxes from
any payment due under this Agreement for the account of the Agent, the sum due from such Bank in respect of such payment shall
be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the Agent receives on the
due date for such payment (and retains free from any liability in respect of such deduction or withholding) a net sum equal to
the sum which it would have received had no such deduction or withholding been required to be made and each Bank shall indemnify
the Agent against any losses or costs incurred by any of them by reason of any failure of such Bank to make any such deduction
or withholding or by reason of any increased payment not being made on the due date for such payment.

 

	6.6.3	For the avoidance of doubt, clause 6.6.1 does not apply in respect of sums due from the Borrowers
to the Swap Provider under or in connection with the Master Swap Agreement as to which sums the provisions of section 2(d) (Deduction
or Withholding for Tax) of the Master Swap Agreement shall apply.

 

	6.7	Loan account

 

Each Bank shall maintain, in
accordance with its usual practice, an account evidencing the amounts from time to time lent by, owing to and paid to it under
the Security Documents. The Agent and/or the Security Agent shall maintain a control account (being, in the case of any Mortgage
which is in statutory form, the “Account Current” referred to in such Mortgage) showing the Loan and other sums owing
by the Borrowers under the Security Documents and all payments in respect thereof being made from time to time. The control account
shall, in the absence of manifest error, be conclusive as to the amount from time to time owing by the Borrowers under the Security
Documents.

 

	6.8	Agent may assume receipt

 

Where any sum is to be paid
under the Security Documents to the Agent or, as the case may be, the Security Agent for the account of another person, the Agent
or, as the case may be, the Security Agent may assume that the payment will be made when due and the Agent or, as the case may
be, the Security Agent may (but shall not be obliged to) make such sum available to the person so entitled. If it proves to be
the case that such payment was not made to the Agent or, as the case may be, the Security Agent, then the person to whom such

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sum was so made available shall
on request refund such sum to the Agent or, as the case may be, the Security Agent together with interest thereon sufficient to
compensate the Agent or, as the case may be, the Security Agent for the cost of making available such sum up to the date of such
repayment and the person by whom such sum was payable shall indemnify the Agent or, as the case may be, the Security Agent for
any and all loss or expense which the Agent or, as the case may be, the Security Agent may sustain or incur as a consequence of
such sum not having been paid on its due date.

 

	6.9	Partial payments

 

If, on any date on which a payment
is due to be made by the Borrowers under any of the Security Documents, the amount received by the Agent from the Borrowers falls
short of the total amount of the payment due to be made by the Borrowers on such date then, without prejudice to any rights or
remedies available to the Agent, the Arranger, the Security Agent and the Banks under any of the Security Documents, the Agent
shall apply the amount actually received from the Borrowers pro rata against each Sub-Tranche and the Swap Exposure in or towards
discharge of the obligations of the Borrowers under the Security Documents OR if a notice of an Event of Default has been served
to the Borrowers by the Agent and whilst such Event of Default is continuing all such partial payments received by the Agent and/or
the Security Agent under or pursuant to any of the Security Documents shall be applied in the following manner:

 

	6.9.1	first, in or towards payment of all unpaid costs and expenses which may be owing to
the Agent and/or the Security Agent and/or the Arranger and/or any of them under any of the Security Documents;

 

	6.9.2	secondly, in or towards payment of any unpaid fees and commissions payable to the
Agent and/or the Security Agent and/or the Arranger and/or any of them under any of the Security Documents;

 

	6.9.3	thirdly, in or towards payment of any arrears of interest owing in respect of each
Sub-Tranche A;

 

	6.9.4	fourthly, in or towards repayment of each Sub-Tranche A (whether same has become due
and payable or not);

 

	6.9.5	fifthly, in or towards payment of any arrears of interest owing in respect of each Sub-Tranche
B;

 

	6.9.6	sixthly, in or towards repayment of each Sub-Tranche B (whether same has become due and payable
or not);

 

	6.9.7	seventhly, in or towards payment of all unpaid costs and expenses which may be owing to the Swap
Provider under the Master Swap Agreement;

 

	6.9.8	eighthly, in or towards payment of any unpaid fees and commissions payable to the Swap Provider
under the Master Swap Agreement;

 

	6.9.9	ninethly, in or towards payment to the Swap Provider of any sums owing to it under
the Master Swap Agreement relating to each Sub-Tranche A;

 

	6.9.10	tenthly, in or towards payment to the Swap Provider of any sums owing to it under
the Master Swap Agreement relating to each Sub-Tranche B; and

 

	6.9.11	eleventhly, the surplus (if any) shall be paid to the Borrowers or to whomsoever else may be entitled
to receive such surplus.

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	7	Representations
                                                                       and warranties

 

	7.1	Continuing representations and warranties

 

The Borrowers jointly and severally
represent and warrant to each Creditor that:

 

	7.1.1	Due incorporation

 

each of the Borrowers and each
of the other Security Parties are duly incorporated and validly existing in good standing, in the case of the Borrowers, under
the laws of the Republic of Liberia and, in the case of each of the other Security Parties, under the laws of their respective
countries of incorporation as limited liability companies or (as the case may be) corporations and have power to carry on their
respective businesses as they are now being conducted and to own their respective property and other assets;

 

	7.1.2	Corporate power

 

each of the Borrowers has power
to execute, deliver and perform its obligations under the Underlying Documents and the relevant Borrowers’ Security Documents to
which it is or is to be a party and to borrow the Total Commitment and each of the other Security Parties has power to execute
and deliver and perform its obligations under the Security Documents and the Underlying Documents to which it is or is to be a
party; all necessary corporate, shareholder and other action has been taken to authorise the execution, delivery and performance
of the same and no limitation on the powers of any Borrower to borrow will be exceeded as a result of borrowing the Loan;

 

	7.1.3	Binding obligations

 

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

 

	7.1.4	No conflict with other obligations

 

the execution and delivery of,
the performance of their obligations under, and compliance with the provisions of, the Underlying Documents and the Security Documents
by the relevant Security Parties will not:

 

		(a)	contravene any existing applicable law, statute, rule or regulation or any judgment, decree or
permit to which any of the Borrowers or any other Security Party is subject;

 

		(b)	conflict with, or result in any breach of any of the terms of, or constitute a default under, any
agreement or other instrument to which any of the Borrowers or any other Security Party is a party or is subject or by which it
or any of its property is bound;

 

		(c)	contravene or conflict with any provision of the constitutional documents of any of the Borrowers
or any other Security Party; or

 

		(d)	result in the creation or imposition of or oblige any of the Borrowers or any other Security Party
to create any Encumbrance (other than a Permitted Encumbrance) on any of the undertakings, assets, rights or revenues of any of
the Borrowers or any other Security Party;

 

	7.1.5	No filings required

 

save for the registration of
the Mortgage under the laws of the relevant Flag State through the relevant Registry and any corporate filings with the Hong Kong
companies registry (if applicable), it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence
of any of the Underlying Documents or any of the Security Documents that they or any other instrument be notarised, filed, recorded,
registered or enrolled in any

    	34

    	

    

court, public office or elsewhere
in any Relevant Jurisdiction or that any stamp, registration or similar tax or charge be paid in any Relevant Jurisdiction on or
in relation to any of the Underlying Documents or the Security Documents and each of the Underlying Documents and the Security
Documents is in proper form for its enforcement in the courts of each Relevant Jurisdiction;

 

	7.1.6	Choice of law

 

the choice of English law to
govern the Underlying Documents and the Security Documents (other than the Mortgages) and the choice of the law of the relevant
Flag State to govern each of the Mortgages, and the submissions therein by the Security Parties to the non-exclusive jurisdiction
of the English courts are valid and binding;

 

	7.1.7	No immunity

 

neither the Borrowers nor any
other Security Party nor any of their respective assets is entitled to immunity on the grounds of sovereignty or otherwise from
any legal action or proceeding (which shall include, without limitation, suit, attachment prior to judgement, execution or other
enforcement);

 

	7.1.8	Consents obtained

 

every consent, authorisation,
licence or approval of, or registration with or declaration to, governmental or public bodies or authorities or courts required
by any Security Party to authorise, or required by any Security Party in connection with, the execution, delivery, validity, enforceability
or admissibility in evidence of each of the Underlying Documents and each of the Security Documents to which it is or is to be
a party or the performance by each Security Party of its obligations under the Security Documents or the Underlying Documents to
which it is or is to be a party has been obtained or made and is in full force and effect and there has been no default in the
observance of any of the conditions or restrictions (if any) imposed in, or in connection with, any of the same;

 

	7.1.9	Financial statements correct and complete

 

the audited consolidated financial
statements of the Corporate Guarantor in respect of the financial year ended on 31 December 2010 as delivered to the Agent, have
been prepared in accordance with the Applicable Accounting Principles which have been consistently applied and present fairly and
accurately the consolidated financial position of the Corporate Guarantor as at the date they were prepared and the consolidated
results of the operations of the Corporate Guarantor for the financial period ended on such date and, as at such date, no member
of the Corporate Guarantor had any significant liabilities (contingent or otherwise) or any material unrealised or anticipated
losses which are not disclosed by, or reserved against or provided for in, such financial statements; and

 

	7.1.10	Borrowers’ own account

 

in relation
to the borrowing by each Borrower of the Loan or any part thereof, the performance and discharge of its obligations and liabilities
under the Security Documents and the transactions and other arrangements effected or contemplated by this Agreement, each Borrower
is acting for its own account and that the foregoing will not involve or lead to a contravention of any law, official requirement
or other regulatory measure or procedure which has been implemented to combat “money laundering” (as defined
in Article 1 of the Directive (91/308/EEC) of the Council of the European Communities (as amended)).

 

	7.2	Initial representations and warranties

 

The Borrowers jointly and severally
further represent and warrant to each Creditor that:

 

	7.2.1	Pari passu and subordinated indebtedness

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

 

		(b)	any Indebtedness of the Borrowers or the Corporate Guarantor owing to any of its respective shareholders
or other members of the Group is subordinated in all respects to the Borrowers’ obligations under this Agreement and the
Master Swap Agreement (in the case of the Borrowers) and to the Corporate Guarantor’s obligations under the Corporate Guarantee
(in the case of the Corporate Guarantor);

 

	7.2.2	No default under other Borrowed Money

 

none of the Borrowers nor any
other Security Party is in default under any agreement relating to Borrowed Money to which it is a party or by which it may be
bound;

 

	7.2.3	Information - full disclosure

 

the information, exhibits and
reports furnished by or on behalf of any Security Party to the Agent in connection with the negotiation and preparation of the
Security Documents are true and accurate in all material respects and not misleading; do not omit material facts and all reasonable
enquiries have been made to verify the facts and statements contained therein; there are no other facts the omission of which would
make any fact or statement therein misleading;

 

	7.2.4	No withholding Taxes

 

no Taxes are imposed by withholding
or otherwise on any payment to be made by any of the Borrowers or any other Security Party under the Security Documents to which
such Borrower or any other Security Party is or is to be a party or are imposed on or by virtue of the execution or delivery by
the Borrowers or any other Security Parties of the Security Documents;

 

	7.2.5	No Event of Default

 

no Event of Default has occurred
and is continuing;

 

	7.2.6	No default under Contracts or Refund Guarantees

 

no Borrower is in default of
any of its obligations under the relevant Contract or any of its obligations upon the performance or observance of which depends
the continued liability of the Refund Guarantor in accordance with the terms of any Refund Guarantee;

 

	7.2.7	No Encumbrance in respect of pre-delivery security

 

no Borrower has previously charged,
encumbered or assigned the benefit of any of its rights, title and interest in or to the relevant Contract or any Refund Guarantee
and such benefit and all such rights, title and interest are freely assignable and chargeable in the manner contemplated by the
Security Documents;

 

	7.2.8	The Ships

 

each Ship will, on the Delivery
Date relevant to such Ship, be:

 

		(a)	in the absolute ownership of the relevant Borrower who will, on and after its Delivery Date, be
the sole, legal and beneficial owner of such Ship;

 

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

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		(c)	operationally seaworthy and in every way fit for service; and

 

		(d)	classed with the relevant Classification free of all requirements and recommendations of the relevant
Classification Society;

 

	7.2.9	Ships’ employment

 

save under the Charters, none
of the Ships is nor will, on or before the Drawdown Date of the Delivery Advance relevant to such Ship, be subject to any charter
or contract or to any agreement to enter into any charter or contract which, if entered into after the date of the relevant Ship
Security Documents would have required the consent of the Agent or, as the context may require, the Security Agent and, on or before
the Drawdown Date of the Delivery Advance relevant to such Ship, there will not be any agreement or arrangement whereby the Earnings
may be shared with any other person;

 

	7.2.10	Freedom from Encumbrances

 

no Ship, nor its Earnings, Insurances
or Requisition Compensation nor the Operating Accounts nor the Charters nor any other properties or rights which are, or are to
be, the subject of any of the Security Documents nor any part thereof will be, on the Drawdown Date of the Delivery Advance relevant
to such Ship, subject to any Encumbrance (except Permitted Encumbrances);

 

	7.2.11	Compliance with Environmental Laws and Approvals

 

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

 

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

 

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

 

		(c)	neither the Borrowers nor, to the best of the Borrowers’ knowledge and belief (having made due
enquiry), any of their respective Environmental Affiliates have received notice of any Environmental Claim that any of the Borrowers
or any such Environmental Affiliate is not in compliance with any Environmental Law or any Environmental Approval;

 

	7.2.12	No Environmental Claims

 

except as may already have been
disclosed by the Borrowers in writing to, and acknowledged in writing by, the Agent, there is no Environmental Claim pending against
the Borrowers or any of the Ships or, to the best of the Borrowers’ knowledge and belief (having made due enquiry), any of their
respective Environmental Affiliates;

 

	7.2.13	No potential Environmental Claims

 

except as may already have been
disclosed by the Borrowers in writing to, and acknowledged in writing by, the Agent, there has been no emission, spill, release
or discharge of a Pollutant from any of the Ships;

 

	7.2.14	Underlying Documents

 

the original executed Refund
Guarantees delivered or to be delivered to the Agent pursuant to clause 9.1 are, or will when delivered be, true and complete originals
of such documents and the copies of the other Underlying Documents delivered or to be delivered

    	37

    	

    

to the Agent pursuant to clause 9.1
or any of the other provisions of the Security Documents are, or will when delivered be, true and complete copies of such documents;
and all such documents constitute valid and binding obligations of the Security Parties and, to the Borrowers’ knowledge
and belief, of the other parties thereto, enforceable in accordance with their respective terms and there have been no amendments
or variations thereof or defaults thereunder;

 

	7.2.15	Shareholding

 

		(a)	each of the Borrowers is a wholly-owned direct Subsidiary of the Corporate Guarantor;

 

		(b)	no less than 40% of the total issued share capital and of the total issued voting share capital
of the Corporate Guarantor is ultimately beneficially owned (either directly or indirectly) by members of the Konstantakopoulos
Family;

 

		(c)	the Corporate Guarantor is controlled by members of the Konstantakopoulos Family; and

 

		(d)	each of the Managers is controlled by members of the Konstantakopoulos Family;

 

	7.2.16	No litigation

 

no litigation, arbitration,
investigation or proceeding (administrative or otherwise) is taking place against any of the Borrowers or any other Security Party
which could have a material adverse effect on the financial position, state of affairs or prospects of any of the Borrowers or
the Corporate Guarantor or any other Security Party in light of which there is a significant risk that the Corporate Guarantor
or any Borrower or any other Security Party is, or will later become, unable to discharge its liabilities under the Security Documents
as they fall due;

 

	7.2.17	No material adverse change

 

no event
has occurred or any other circumstances arisen or developed including, without limitation, a material adverse change in the financial
position, state of affairs or prospects of any Security Party, in light of which there is a significant risk that the Corporate
Guarantor or any Borrower or any other Security Party is, or will later become, unable to discharge its liabilities under the Security
Documents as they fall due;

 

	7.2.18	Solvency

 

		(a)	none of the Borrowers nor the Corporate Guarantor is unable, or admits or has admitted its inability,
to pay its debts or has suspended making payments on any of its debts;

 

		(b)	none of the Borrowers nor the Corporate Guarantor by reason of actual financial difficulties has
commenced negotiations with one or more of its creditors with a view to rescheduling any of its Indebtedness; and

 

		(c)	no moratorium has been declared in respect of any Indebtedness of any Borrower or the Corporate
Guarantor;

 

	7.2.19	ISPS Code

 

with effect on the Delivery Date
of a Ship, the relevant Borrower shall have a valid and current ISSC in respect of that Ship and that Ship shall be in compliance
with the ISPS Code; and

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	7.2.20	Application for DOC and SMC

 

the Operator maintains a DOC
for itself and, on the Delivery Date for a Ship, it will have applied for an SMC in respect of such Ship.

 

	7.3	Repetition of representations and warranties

 

On and as of each Drawdown Date
and (except in relation to the representations and warranties in clause 7.2) on each Interest Payment Date, the Borrowers
shall:

 

		(a)	be deemed to repeat the representations and warranties in clauses 7.1 and 7.2 as if made with
reference to the facts and circumstances existing on such day; and

 

		(b)	be deemed to further represent and warrant to each of the Creditors that the then latest management
accounts of the Borrowers delivered to the Agent by the Borrowers under this Agreement (if any) present fairly and accurately the
financial position of the Borrowers as at the end of the financial period to which the same relate and the results of the operations
of the Borrowers for the financial period to which the same relate and, as at the end of such financial period, none of the Borrowers
had any significant liabilities (contingent or otherwise) or any material unrealised or anticipated losses which are not disclosed
by, or reserved against or provided for in, such management accounts.

 

	8	Undertakings

 

	8.1	General

 

The Borrowers jointly and severally
undertake with each Creditor that, from the date of this Agreement and so long as any moneys are owing under any of the Security
Documents and while all or any part of the Total Commitment remains outstanding they will:

 

	8.1.1	Notice of Event of Default

 

		(a)	promptly inform the Agent of any occurrence of which any of them becomes aware which materially
and adversely affects the ability of any Security Party to perform its obligations under any of the Security Documents or any of
the Contracts to which it is or is to be a party and, without limiting the generality of the foregoing, they will inform the Agent
of any Event of Default forthwith upon becoming aware thereof; and

 

		(b)	promptly inform the Agent of any occurrence of which any of them becomes aware which materially
and adversely affects the ability or rights of any Borrower to make any claims under the relevant Contract or any Refund Guarantee
or which might reduce or release any of the obligations of the Builder under such Contract or the Refund Guarantor under any Refund
Guarantee;

 

	8.1.2	Consents and licences

 

without prejudice to clauses 7.1
and 9, obtain or cause to be obtained, maintain in full force and effect and comply in all material respects with the conditions
and restrictions (if any) imposed in, or in connection with, every consent, authorisation, licence or approval of governmental
or public bodies or authorities or courts and do, or cause to be done, all other acts and things which may from time to time be
necessary under applicable law for the continued due performance of all the material obligations of the Security Parties under
each of the Security Documents and the Underlying Documents;

 

	8.1.3	Use of proceeds

 

use the Loan or, as the case
may be, the Advances for their own benefit and under their full responsibility and exclusively for the purposes specified in clauses 1.1
and 2.5;

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	8.1.4	Pari passu and subordination

 

		(a)	ensure that their obligations under this Agreement and the Master Swap Agreement shall, without
prejudice to the provisions of clause 8.3 and the security intended to be created by the Security Documents, at all times rank
at least pari passu with all their other present and future unsecured and unsubordinated Indebtedness with the exception of any
obligations which are mandatorily preferred by law and not by contract; and

 

		(b)	ensure that the obligations (if any) of the Borrowers to repay any loan advanced to them by their
shareholders or any other member of the Group are at all times fully subordinated towards their obligations to the Creditors under
this Agreement and the other Security Documents and that any such loans or advances are and remain at all times on terms and conditions
acceptable to the Agent in all respects;

 

	8.1.5	Financial statements

 

upon the Agent’s
request following the end of a financial year, prepare or cause to be prepared unaudited management accounts of each of the Borrowers
in respect of each financial year (including prior financial years) and deliver as many copies of the same as the Agent may reasonably
require as soon as practicable but not later than the later of (a) [thirty (30)] days from the Agent’s request and (b) one
hundred and eighty (180) days from the end of the financial period to which they relate;

 

	8.1.6	Delivery of reports

 

deliver to the Agent sufficient
copies for all the Banks of every report, circular, notice or like document issued by the Borrowers or the Corporate Guarantor
to their shareholders or creditors generally, at the same time when it is issued or given, unless the Borrowers have already advised
the Agent in writing that such information appears on the official website of any one of the Corporate Guarantor, the New York
Stock Exchange or the Securities and Exchange Commission of the U.S.A.;

 

	8.1.7	Provision of further information

 

provide the Agent with such
financial and other information concerning the Borrowers, the other Security Parties and their respective affairs as the Agent
may from time to time reasonably require, including, without limitation, regarding their financial standing, commitments, operations,
vessel sales or purchases, any new borrowings, any material litigation, arbitration and administrative proceedings and all major
financial developments in relation to each Security Party;

 

	8.1.8	Know your customer information

 

deliver to the Agent such documents
and evidence as the Agent shall from time to time require relating to the verification of identity and knowledge of the Agent’s
or any Bank’s or the Swap Provider’s customers and the compliance by the Agent or any Bank or the Swap Provider (as the case may
be) with all necessary “know your customer” or similar checks, always on the basis of applicable laws and regulations
of the Agent’s or any Bank’s or the Swap Provider’s own internal guidelines, in each case as such laws, regulations or internal
guidelines apply from time to time;

 

	8.1.9	Obligations under Security Documents

 

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

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	8.1.10	Compliance with Code

 

and will procure that any Operator
will, comply with and ensure that the Ships and any Operator at all times complies with the requirements of the Code, including
(but not limited to) the maintenance and renewal of valid certificates pursuant thereto throughout the Security Period;

 

	8.1.11	Withdrawal of DOC and SMC

 

and will procure that any Operator
will, immediately inform the Agent if there is any withdrawal of such Operator’s DOC or the SMC in respect of any of the
Ships;

 

	8.1.12	Issuance of DOC and SMC

 

and will procure that any Operator
will, promptly inform the Agent upon the issue to any of the Borrowers or any Operator of a DOC and to any of the Ships of an SMC
or the receipt by any of the Borrowers or any Operator of notification that its application for the same has been refused;

 

	8.1.13	ISPS Code Compliance

 

and will procure that the relevant
Manager(s) or any Operator will, with effect from the Delivery Date for a Ship and at all times thereafter:

 

		(a)	maintain at all times a valid and current ISSC in respect of that Ship; and

 

		(b)	immediately notify the Agent in writing of any suspension, cancellation or modification of the
ISSC in respect of a Ship;

 

	8.1.14	Conditions subsequent - First Advances; Delivery Advances

 

deliver to the Agent:

 

		(a)	not later than 15 days after the Drawdown Date of the first Advance in respect of a Ship:

 

	 	(i)	the Refund Guarantee Assignment Consent and Acknowledgement in respect of the Refund
Guarantee for all pre-delivery instalments of the Contract Price for that Ship, duly executed by the parties thereto;

 

		(ii)	if available to the Borrowers, evidence in form and substance satisfactory to the Agent of the
authority of the relevant Refund Guarantor executing the above said acknowledgement (except if the same has been sent to the Agent
by swift);

 

		(b)	not later than 60 days after the Drawdown Date of the first Advance in respect of a Ship:

 

	 	(i)	a legal opinion (at the expense of the Borrowers) issued by the Agent’s special
legal advisers on matters of Korean law in form and substance satisfactory to the Agent (it being understood that, as is customary
in banking practice, the procurement of the legal opinion will be the responsibility of the Agent and its legal counsel); and

 

		(c)	not later than 24 hours after the Delivery of a Ship, evidence in form and substance satisfactory
to the Agent that the Charterer has accepted delivery of that Ship under the relevant Charter (it being agreed that evidence that
the first payment of hire under such Charter or written schedule or directions by the Charterer for the employment of that Ship
under such Charter shall constitute such evidence satisfactory to the Agent for the purposes of this paragraph (c)); and

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	8.1.15	Supervision

 

ensure that each Borrower, or
the relevant Manager(s) or any other person appointed by the relevant Manager(s) (but no other person), will supervise and superintend
the construction of its Ship;

 

	8.1.16	Charters etc.

 

advise the Agent promptly of
any charterparty or other contract of employment of a Ship with a tenor exceeding twelve (12) months (other than the Charters),
forthwith after its execution and:

 

		(a)	forthwith after its execution deliver a certified copy of each such charterparty or other contract
of employment to the Agent;

 

		(b)	forthwith following demand by the Agent execute:

 

	 	(i)	a charter assignment of any such charterparty or other contract of employment in favour
of the Security Agent in a form similar to that of the Charter Assignments; and

 

		(ii)	any notice of assignment required in connection therewith in a form acceptable to the Agent in
its reasonable discretion;

 

		(c)	promptly procure the service of any such notice of assignment on the relevant charterer and the
acknowledgement of such notice by the relevant charterer in a form reasonably acceptable to the Agent and the relevant charterer;

 

		(d)	forthwith on the Agent’s request, deliver to the Agent such documents of the type specified
in schedule 3 in relation to any such charterparty, contract, assignment, notice or acknowledgement as the Agent may reasonably
require and which are available to the Borrowers; and

 

		(e)	pay all legal and other costs incurred by the Agent or any other Creditor in connection with any
such charter assignments or any other matters referred to in this clause 8.1.16 forthwith following the Agent’s demand (provided
that any such expenses incurred prior to an Event of Default shall be reasonable and documented);

 

	8.1.17	Taxes

 

and will procure that the Corporate
Guarantor will, pay any and all Taxes owing by it in any jurisdiction at the time they are due; and

 

	8.1.18	Change of Manager

 

Other than
when appointing Costamare Shipping, Ciel Management and/or Shanghai Costamare, which appointment will be subject to the consent
of the Majority Banks, ensure that, on or before the appointment of any person as a manager of a Ship (and subject always to the
consent of the Creditors if and when the same is required under the Security Documents), they will:

 

		(a)	deliver to the Agent a certified copy of the Management Agreement duly executed by that Manager
and the Borrower owning such Ship;

 

		(b)	procure that such Manager will have created and delivered to the Agent a Manager’s Undertaking
in respect of that Ship before such Manager’s appointment has become effective under that Management Agreement; and

 

		(c)	deliver to the Agent any documents and evidence of the type referred to in schedule 3 in relation
to that Manager’s Undertaking and that Manager as the Agent may in its reasonable discretion require,

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each at the cost and expense
of the Borrowers.

 

	8.2	Security value maintenance

 

	8.2.1	Security shortfall

 

If, at
any time after the Drawdown Date of the Delivery Advance in respect of a Ship the Security Value for that Ship shall be less than
the Security Requirement for such Ship, the Agent (acting on the instructions of the Majority Banks) shall give notice to the Borrowers
requiring that such deficiency be remedied and then the Borrowers shall, within a period of thirty (30) days of the date of receipt
by the Borrowers of the Agent’s said notice, either:

 

		(a)	prepay such part of the Tranche relevant to such Ship as will result in the Security Requirement
for such Ship after such prepayment (taking into account any other repayment of that Tranche made between the date of the notice
and the date of such prepayment) being equal to the Security Value for such Ship; or

 

		(b)	constitute in favour of the Agent a first priority cash pledge over a Dollar account in the name
of a member of the Group for an amount standing to the credit of such account which when added to the Security Value for such Ship,
shall not be less than the Security Requirement for such Ship as at such date; or

 

		(c)	constitute to the satisfaction of the Agent such further security for the Loan and any amounts
owing under the Master Swap Agreement as shall be acceptable to the Banks having a value for security purposes (as determined by
the Agent in accordance with clause 8.2.5) at the date upon which such further security shall be constituted which, when added
to the Security Value for such Ship, shall not be less than the Security Requirement for such Ship as at such date.

 

The provisions of clause 4.5
and any relevant provisions of clause 4.6 shall apply to prepayments under clause 8.2.1(a).

 

	8.2.2	Valuation of Mortgaged Ships

 

Each Mortgaged Ship shall, for
the purposes of this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall
require (and at least twice per calendar year), save that in case of termination, cancellation, rescission or repudiation
of the Charter or Qualifying Charter as the case may be for that Ship, no valuation of that Ship or Security Value testing
shall be performed during the period commencing on such termination, cancellation, rescission or repudiation
and ending  90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another
Qualifying Charter as the case may be during such period.

 

Each such valuation for a Mortgaged
Ship shall be made by two (2) Approved Shipbrokers, each nominated by the Borrowers approved by, and addressed to, the Agent. Each
valuation shall be made without, unless required by the Agent or the Borrowers, physical inspection, and on the basis of a sale
for prompt delivery for cash at arm’s length, on normal commercial terms, as between a willing buyer and a willing seller,
without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that,
if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income
and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual Value. The arithmetic
mean of the two valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided
however that if such two (2) valuations in respect of a Ship vary by more than ten per cent (10%) (by reference to the higher
figure), the Agent shall appoint a third Approved Shipbroker to value such Ship on the same basis as the other two (2) valuations
and, in that case, the arithmetic mean of the three (3) valuations shall constitute the value of such Mortgaged Ship for the purposes
of this clause 8.2

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The value of each Mortgaged Ship
determined in accordance with the provisions of this clause 8.2.2 shall be binding upon the parties hereto until such time
as any further such valuation shall be obtained.

 

	8.2.3	Information

 

The Borrowers jointly and severally
undertake with the Creditors to supply to the Agent and to any such Approved Shipbroker such information concerning the relevant
Mortgaged Ship and its condition as such Approved Shipbroker may reasonably require for the purpose of making any such valuation.

 

	8.2.4	Costs

 

All costs in connection with
the Agent obtaining any of the valuations of each of the Mortgaged Ships obtained twice per calendar year and any of the valuations
of each of the Mortgaged Ships obtained pursuant to clause 8.2.2, and all costs in connection with any valuation referred to in
schedule 3, any valuation either of any additional security for the purposes of ascertaining the Security Value in respect of any
Ship at any time while an Event of Default is continuing or necessitated by the Borrowers electing to constitute additional security
pursuant to clause 8.2.1(b), shall be borne by the Borrowers.

 

	8.2.5	Valuation of additional security

 

For the purposes of this clause 8.2,
the market value of any additional security (not being a ship) provided or to be provided to the Creditors or any of them shall
be determined by the Agent in its absolute discretion without any necessity for the Agent assigning any reason therefor. If such
additional security consists of a ship, the value of such ship shall be determined in accordance with clause 8.2.2 (except that
if a ship is subject to a charterparty with a remaining tenor in excess of 12 months, the benefit or detriment of such charterparty
shall be taken into account in that valuation). All costs of each such valuation will be paid by the Borrowers in accordance with
clause 8.2.4. If the additional security is in the form of a Dollar cash deposit, full credit shall be given for such cash on a
“Dollar for Dollar” basis. If the additional security is in the form of traded bonds, shares or other securities, their
market value shall be their quoted trading price at any relevant time of calculation (and the Agent shall be entitled to calculate
their value at any time and from time to time).

 

	8.2.6	Documents and evidence

 

In connection with any additional
security provided in accordance with this clause 8.2, the Agent shall be entitled to receive such evidence and documents of
the kind referred to in schedule 3 as may in the Agent’s reasonable opinion be necessary and such favourable legal opinions
as the Agent shall in its reasonable discretion require.

 

	8.2.7	Release of additional security

 

If, based on valuations obtained
in accordance with the provisions of clause 8.2.2, the Security Value for a Ship shall at any time exceed the Security Requirement
for a Ship, and the Borrowers shall have previously provided further security to the Banks and the other Creditors pursuant to
clause 8.2.1(b), the Agent (acting on the instructions of the Majority Banks) shall, as soon as reasonably practicable after notice
from the Borrowers to do so and subject to being indemnified for its reasonable cost of doing so, release or procure the release
of any such further security specified by the Borrowers provided that the Agent is satisfied that, immediately following such release
(a) the Security Value for each Ship to which clause 8.2.1 is applicable will exceed the Security Requirement for that Ship and
(b) no Event of Default has occurred which is then continuing or will occur as a result of such release. The Borrowers shall be
entitled to obtain and provide the valuations directly to the Agent (to avoid any delay) subject to the valuations being in accordance
with Clause 8.2.2 and at the cost of the Borrowers.

 

	8.3	Negative undertakings

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The Borrowers jointly and severally
undertake with each Creditor that, from the date of this Agreement and so long as any moneys are owing under the Security Documents
and while all or any part of the Total Commitment remains outstanding, they will not, without the prior written consent of the
Agent (acting on the instructions of the Majority Banks):

 

	8.3.1	Negative pledge

 

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

 

	8.3.2	No merger

 

merge or consolidate with any
other person or enter into any demerger, amalgamation or corporate redomiciliation of any type;

 

	8.3.3	Disposals

 

sell, transfer, abandon, lend
or otherwise dispose of or cease to exercise direct control over any part of their present or future undertaking, assets, rights
or revenues (otherwise than by transfers, sales or disposals of assets which are not material, for full consideration in the ordinary
course of trading but, in any event, not in respect of assets or rights which are subject to security created by the Security Documents),
whether by one or a series of transactions related or not;

 

	8.3.4	Other business

 

undertake any type of business
other than the performance of the Contracts and the Charters and the ownership and operation of the Ships and the chartering of
the Ships to third parties;

 

	8.3.5	Acquisitions

 

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

 

	8.3.6	Other obligations

 

incur any obligations except
for obligations arising under the Underlying Documents or the Security Documents to which they are a party or contracts entered
into in the ordinary course of their business of performing the Contracts and owning, operating and chartering the Ships;

 

	8.3.7	No borrowing

 

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

 

	8.3.8	Repayment of borrowings

 

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

 

	8.3.9	Guarantees

 

issue any guarantees or indemnities
or otherwise become directly or contingently liable for the obligations of any person, firm, or corporation except pursuant to
the Security Documents and except for (a) guarantees or indemnities from time to time required in the

    	45

    	

    

ordinary course by any protection
and indemnity or war risks association with which a Ship is entered, (b) guarantees required to procure the release of a Ship from
any arrest, detention, attachment or levy or guarantees or undertakings required for the salvage of a Ship and (c) other guarantees
in the ordinary course of their business but not exceeding the amount of $500,000 per Borrower per calendar year;

 

	8.3.10	Loans

 

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

 

	8.3.11	Sureties

 

permit any of their Indebtedness
to any person (other than the Creditors pursuant to the Security Documents) to be guaranteed by any person (save for (a) guarantees
or indemnities from time to time required in the ordinary course by any protection and indemnity or war risks association with
which a Ship is entered, (b) guarantees required to procure the release of a Ship from any arrest, detention, attachment or levy
or guarantees or undertakings required for the salvage of a Ship or (c) other guarantees in the ordinary course of their business
not exceeding the amount of $500,000 per Borrower per calendar year);

 

	8.3.12	Share capital and distribution

 

purchase or otherwise acquire
for value any shares of their capital or declare or pay any dividends or distribute any of their present or future assets, undertakings,
rights or revenues to any of their shareholders Provided always that each Borrower may declare or pay dividends to its shareholders
if no Event of Default shall have occurred and be continuing at the time of, or would result from, the declaration or payment of
such dividends;

 

	8.3.13	Subsidiaries

 

form or acquire any Subsidiaries;

 

	8.3.14	Manager

 

		(a)	appoint any manager in respect of the Ships or any of them other than a Manager; or

 

		(b)	terminate or materially amend the terms of any Management Agreement, unless in doing so, they remain
in compliance with clause 8.1.18;

 

	8.3.15	Financial year and constitutional documents

 

		(a)	change, cause, permit or agree to any change in, the way of computation of their financial year;
or

 

		(b)	change, amend or vary, or agree to or permit any material change, amendment or variation of or
to, their constitutional documents;

 

	8.3.16	Intra-Group transactions

 

enter into any transactions,
agreements or arrangements with any of their Related Companies or other members of the Group, other than on an arm’s length
basis and for full value and consideration; or

 

	8.3.17	Derivative transactions

 

enter into any interest rate,
currency or other swap, foreign exchange contracts, futures or other derivative transactions, agreements or instruments other than
Designated

    	46

    	

    

Transactions with the Swap Provider
under the Master Swap Agreement and other than on terms and conditions agreed between the Borrowers and the Swap Provider.

 

	8.4	Pre-delivery positive undertakings

 

The Borrowers hereby jointly
and severally undertake and agree with each Creditor that they will:

 

	8.4.1	Conveyance on default

 

where any Ship is (or is to be)
sold in exercise of any power contained in the relevant Pre-delivery Security Assignment or otherwise conferred on the Security
Agent or any other Creditor, procure that the relevant Borrower shall execute, forthwith upon request by the Agent, such form of
conveyance of such Ship as the Agent may require;

 

	8.4.2	Flag State

 

not later than thirty (30) days
prior to the Delivery Date of a Ship, obtain the Agent’s written approval of the Flag State for such Ship (if other than
Liberia, Marshall Islands or Panama); and

 

	8.4.3	Mortgage

 

immediately upon Delivery of
a Ship, execute and procure that the relevant Borrower shall execute, and procure the registration of, the Mortgage for such Ship
under the laws and flag of the relevant Flag State and the other Security Documents in relation to such Ship and otherwise deliver
to the Agent the documents and evidence set out in clause 9.1.3 in respect of such Ship.

 

	8.5	Pre-delivery negative undertaking

 

The Borrowers hereby jointly
and severally further undertake and agree with each Creditor that they will not, without the prior written consent of the Agent
(and then only subject to such conditions as the Agent (acting on the instructions of the Majority Banks) may impose) let or agree
to let any Ship:

 

	8.5.1	on demise charter for any period; or

 

	8.5.2	by any time or consecutive voyage charter for a term which exceeds, or which by virtue of any optional
extensions therein contained may exceed, twelve (12) months’ duration (except under the relevant Charter); or

 

	8.5.3	on terms whereby more than two (2) months’ hire (or the equivalent) is payable in advance;
or

 

	8.5.4	otherwise than on an arm’s length basis.

 

	9	Conditions

 

	9.1	Documents and evidence

 

	9.1.1	Commitments

 

The obligation of each Bank to
make its Commitment available shall be subject to the condition that the Agent or its duly authorised representative shall have
received, not later than two (2) Banking Days before the date of this Agreement, the documents and evidence specified in Part 1
of schedule 3, in form and substance reasonably satisfactory to the Agent.

 

	9.1.2	Contract Instalment Advances

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The obligation of the Banks to
make available a Contract Instalment Advance in respect of a Ship shall be subject to the condition that the Agent or its duly
authorised representative shall have received, on or prior to the drawdown of the relevant Contract Instalment Advance for the
relevant Ship, the relevant documents and evidence specified in Part 2 of schedule 3 in respect of the relevant Contract Instalment
Advance and the relevant Ship, in form and substance reasonably satisfactory to the Agent.

 

	9.1.3	Delivery Advances

 

The obligation of the Banks to
make available the Delivery Advance in respect of a Ship shall be subject to the condition that the Agent or its duly authorised
representative shall have received, on or prior to the drawdown of the Delivery Advance for such Ship, the documents and evidence
specified in Part 3 of schedule 3 in respect of such Ship, in form and substance reasonably satisfactory to the Agent.

 

	9.2	General conditions precedent

 

The obligation of the Banks
to make any Advance available shall be subject to the further conditions that, at the time of the giving of the Drawdown Notice
for such Advance, and at the time of the making of such Advance:

 

	9.2.1	the representations and warranties contained in (a) clauses 7.1, 7.2 and 7.3(b) of this Agreement
and (b) clause [4] of the Corporate Guarantee, are true and correct on and as of each such time as if each was made with respect
to the facts and circumstances existing at such time;

 

	9.2.2	no Charterer Event shall have occurred in respect of the Ship to which the relevant Advance relates;
and

 

	9.2.3	no Default shall have occurred and be continuing or would result from the making of the relevant
Advance.

 

	9.3	Waiver of conditions precedent

 

The conditions specified in
this clause 9 are inserted solely for the benefit of the Banks and may be waived by the Agent (acting on the instructions of the
Majority Banks) in whole or in part and with or without conditions.

 

	10	Events
                                                                        of Default

 

	10.1	Events

 

There shall be an Event of Default
if:

 

	10.1.1	Non-payment: any Security Party fails to pay any sum payable by it under any of the Security
Documents at the time, in the currency and in the manner stipulated in the Security Documents or the Underlying Documents (and
so that, for this purpose, sums payable on demand shall be treated as having been paid at the stipulated time if paid within three
(3) Banking Days of demand), unless any such failure to pay is caused by an administrative or technical error in the banking system,
and payment of the relevant sum is made within 3 days of its due date; or

 

	10.1.2	Breach of Insurance and certain other obligations: any of the Borrowers or any other person
fails to obtain and/or maintain the Insurances for any Mortgaged Ship in accordance with the requirements of the relevant Ship
Security Documents or if any insurer in respect of such Insurances cancels such Insurances or disclaims liability by reason, in
either case, of mis-statement in any proposal for such Insurances or for any other failure or default on the part of any of the
Borrowers or any other person, or any of the Borrowers commits any breach of or omits to observe any of the obligations or undertakings
expressed to be assumed by them under clauses 8.1.5 or 8.1.18 or 8.2 or 8.3 or 8.4 or 8.5 of this Agreement, or which have been
assumed by them pursuant to the proviso at the

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		end of this clause 10.1, or the Corporate Guarantor commits any breach of or omits to observe any
of the obligations or undertakings expressed to be assumed by it under clauses [5.1.4 or 5.1.5 or 5.2 or 5.3] of the Corporate
Guarantee; or

 

	10.1.3	Breach of other obligations: any Security Party or any Manager commits any breach of or
omits to observe any of its obligations or undertakings expressed to be assumed by it under any of the Security Documents or a
Manager’s Undertaking to which it is a party (other than those referred to in clauses 10.1.1 and 10.1.2 above) and,
in respect of any such breach or omission which in the opinion of the Agent (acting on the instructions of the Majority Banks)
is capable of remedy, such action as the Agent (acting on the instructions of the Majority Banks) may require shall not have been
taken within twenty (20) days of the Agent notifying the relevant Security Party or (as the case may be) any Manager of such default
and of such required action; or

 

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

 

	10.1.5	Cross-default: any Borrowed Money of any Security Party is not paid when due or any Borrowed
Money of any Security Party becomes (whether by declaration or automatically in accordance with the relevant agreement or instrument
constituting the same) due and payable prior to the date when it would otherwise have become due (unless as a result of the exercise
by the relevant Security Party of a voluntary or mandatory right of prepayment), or any creditor of any Security Party becomes
entitled to declare any such Borrowed Money due and payable and has sent a notice of default (or similar notice setting out the
event which makes it so entitled), or any facility or commitment available to any Security Party relating to Borrowed Money is
withdrawn, suspended or cancelled by reason of any default (however described) of the person concerned (unless the relevant Security
Party shall have satisfied the Agent that such withdrawal, suspension or cancellation will not affect or prejudice in any material
way the relevant Security Party’s ability to pay its debts as they fall due and fund its commitments), or any guarantee given by
any Security Party in respect of Borrowed Money is not honoured when due and called upon Provided that:

 

		(a)	in the case of each Security Party (other than the Corporate Guarantor), the amount or aggregate
amount at any one time of all Borrowed Money of that Security Party in relation to which any of the foregoing events shall have
occurred and be continuing is equal to or greater than One million Dollars ($1,000,000) or its equivalent in the currency in which
the same is denominated and payable;

 

		(b)	in the case of the Corporate Guarantor only, the amount or aggregate amount at any one time of
all Borrowed Money of the Corporate Guarantor in relation to which any of the foregoing events shall have occurred and be continuing
is equal to or greater than Three million Dollars ($3,000,000) or its equivalent in the currency in which the same is denominated
and payable;

 

For the avoidance
of doubt, for the purposes of this clause 10.1.5, “Borrowed Money” shall not include any amounts owing to the
Creditors under this Agreement and/or any of the other Security Documents; or

 

	10.1.6	Legal process: any judgment or order is made against any Security Party in respect of an
amount exceeding $1,000,000 in the case of the Corporate Guarantor or $3,000,000 in the case of any other Security Party, and the
same is not stayed or complied with within fifteen (15) days; or a creditor attaches or takes possession of, or a distress, execution,
sequestration or other process is levied or enforced upon or sued out against, any of the undertaking, assets, rights or revenues
of any Security Party in respect of an amount exceeding $1,000,000 in the case of the Corporate Guarantor or $3,000,000 in the
case of any other Security Party, and the same is not discharged within fifteen (15) days; or

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	10.1.7	Insolvency: any Security Party or the Refund Guarantor is unable or admits inability to
pay its debts as they fall due; or suspends making payments on any of its debts or announces an intention to do so; or becomes
insolvent; or suffers the declaration of a moratorium in respect of any of its Indebtedness; or any corporate action, legal proceedings
or other procedure or step is taken in relation to any of the above Provided however that:

 

		(a)	mere discussion about the mere possibility of taking any such a step in relation to any of the
above during a board meeting, shall not constitute an Event of Default under this clause 10.1.7;

 

		(b)	a mere petition or legal proceedings initiated by a third party, which the Borrowers can demonstrate
to the satisfaction of the Agent in its absolute discretion, by providing an opinion of leading counsel to that effect, is frivolous,
vexatious or an abuse of the process of the court or relates to a claim to which the relevant Security Party has a good defence
and which is being vigorously contested by the relevant Security Party, shall not constitute an Event of Default under this clause
10.1.7; or

 

	10.1.8	Reduction or loss of capital: a meeting is convened by any Borrower for the purpose of passing
any resolution to reduce or redeem any of its share capital; or

 

	10.1.9	Winding up: any corporate action, legal proceedings or other procedure or step is taken
for the purpose of winding-up any Security Party or the Refund Guarantor; or an order is made or resolution passed for the winding
up of any Security Party or the Refund Guarantor; or a notice is issued convening a meeting for the purpose of passing any such
resolution unless, in the case of an involuntary petition, the petition is being contested in good faith and on substantial grounds
and is dismissed or withdrawn within thirty (30) days of the presentation of the petition above (but mere discussion about the
mere possibility of taking any such a step in relation to any of the above during a board meeting, shall not constitute an Event
of Default); or

 

	10.1.10	Administration: any petition is presented, notice given or other step is taken for the purpose
of the appointment of an administrator of any Security Party or the Refund Guarantor or an administration order is made in relation
to any Security Party or the Refund Guarantor; or

 

	10.1.11	Appointment of receivers, managers etc.: any administrative or other receiver, liquidator,
compulsory manager or other similar officer is appointed of any Security Party or the Refund Guarantor or any part of its assets
and/or undertaking or any other steps are taken to enforce any Encumbrance over all or any part of the assets of any Security Party;
or

 

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

 

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

 

	10.1.14	Cessation of business: any Security Party or the Refund Guarantor suspends or ceases to
carry on its business; or

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

 

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

 

	10.1.17	Unlawfulness: it becomes impossible or unlawful at any time for any Security Party, to fulfil
any of the covenants and obligations expressed to be assumed by it in any of the Security Documents or for a Creditor to exercise
the rights or any of them vested in it under any of the Security Documents or otherwise, unless the Majority Banks are satisfied
that through the implementation of alternative arrangements satisfactory to the Majority Banks, the unlawfulness or impossibility
will be overcome or rectified within 10 days from its occurrence but without in the meantime jeopardising in any way the position
of the Creditors under this Agreement and the other Security Documents or the Encumbrances created by the Security Documents (and
such unlawfulness or impossibility is actually overcome or rectified within such 10 day period); or

 

	10.1.18	Repudiation: any Security Party repudiates any of the Security Documents or threatens, or
expresses an intention, to repudiate any of the Security Documents; or

 

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

 

	10.1.20	Material adverse effect: any other event occurs or any other circumstances arise or develop
including, without limitation, a material adverse change in the financial position, state of affairs or prospects of any Borrower
or the Corporate Guarantor, in light of which the Majority Banks reasonably consider that there is a significant risk that any
Borrower or the Corporate Guarantor or any other Security Party is, or will later become, unable to discharge its liabilities under
the Security Documents as they fall due; or

 

	10.1.21	Arrest: any Ship is arrested, confiscated, seized, taken in execution, impounded, forfeited,
detained in exercise or purported exercise of any possessory lien or other claim or otherwise taken from the possession of the
relevant Borrower and the relevant Borrower shall fail to procure the release of such Ship within a period of ten (10) days thereafter;
or

 

	10.1.22	Registration: the registration of any Ship under the laws and flag of the relevant Flag
State is cancelled or terminated or suspended without the prior written consent of the Majority Banks or the registration of such
Ship is not renewed at least thirty (30) days prior to the expiry of such registration; or

 

	10.1.23	Unrest: the Flag State of any Ship becomes involved in hostilities or civil war or there
is a seizure of power in such Flag State by unconstitutional means if, in any such case:

 

		(a)	such event could in the opinion of the Agent (acting on the instructions of the Majority Banks)
reasonably be expected to have a material adverse effect on the security constituted by any of the Security Documents; and

 

		(b)	the Borrower owning such Ship has failed within thirty (30) days from receiving notice from the
Agent (acting on the instructions of the Majority Banks) to this effect to:

 

	 	(i)	delete the relevant Ship from its existing Flag State;

 

		(ii)	register such Ship under another Flag State through a relevant Registry; and

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		(iii)	execute, at its own cost and expense, such other security (including a mortgage, deed of covenant
and general assignment) in favour of the Creditors over the relevant Ship, its Earnings, Insurances and Requisition Compensation,
as the Agent may in its reasonable discretion require; or

 

	10.1.24	Environment: any Borrower and/or any of their respective Environmental Affiliates fails
to comply with any Environmental Law or any Environmental Approval or any of the Ships is involved in any incident which gives
rise to an Environmental Claim if, in any such case, such non-compliance or incident or the consequences thereof could, in the
opinion of the Majority Banks acting through the Agent, reasonably be expected to have a material adverse effect on the ability
of any Security Party to perform all or any of its obligations under or otherwise to comply with the terms of any of the Security
Documents; or

 

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

 

	10.1.26	Shareholdings: without the prior written consent of the Majority Banks:

 

		(a)	any of the Borrowers ceases at any time to be a wholly-owned direct Subsidiary of the Corporate
Guarantor; or

 

		(b)	at any time members of the Konstantakopoulos Family cease to control any of the Managers; or

 

		(c)	any person, or persons acting in concert (other than any financial institution acting as a passive
investor), at any time (i) control the Corporate Guarantor or (ii) become, directly or indirectly, the legal and/or beneficial
and/or ultimate beneficial owners of a higher percentage of the total issued share capital of the Corporate Guarantor, than the
percentage of the total issued share capital of the Corporate Guarantor ultimately and beneficially owned by all members of the
Konstantakopoulos Family at that time; or

 

		(d)	at any time while the shares of the Corporate Guarantor are listed and trade on the New York Stock
Exchange, members of the Konstantakopoulos Family cease (i) to control the Corporate Guarantor or (ii) to be the ultimate beneficial
owners of at least forty per cent (40%) of the total issued share capital, or of the total issued voting share capital, of the
Corporate Guarantor (either directly or indirectly); or

 

		(e)	at any time after the shares of the Corporate Guarantor are de-listed or cease to trade on the
New York Stock Exchange, members of the Konstantakopoulos Family cease (i) to control the Corporate Guarantor or (ii) to be the
ultimate beneficial owners of one hundred per cent (100%) of the total issued share capital, or of the total issued voting share
capital, of the Corporate Guarantor (either directly or indirectly); or

 

	10.1.27	Termination or variation of Assigned Contracts: any
Assigned Contract is terminated or rescinded for any reason whatsoever (except with the prior written consent of the Majority Banks);
or any Assigned Contract is frustrated; or any Assigned Contract is varied in any manner not permitted by or pursuant to the relevant
Pre-delivery Security Assignment or this Agreement; or

 

	10.1.28	Termination of Assigned Refund Guarantees: any Assigned Refund Guarantee is repudiated,
cancelled, rescinded or otherwise terminated or expires (other than by the return of such Assigned Refund Guarantee by the relevant
Borrower to the Builder and/or the Refund Guarantor following the Delivery of the relevant Ship); or

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	10.1.29	Non-Delivery of Ship or non-drawing of Delivery Advance:
any Ship is not delivered to, and accepted by, the relevant Borrower under the relevant Assigned Contract or the Delivery Advance
for such Ship is not drawn down, in either case, on or before the Final Availability Date for the Delivery Advance relevant to
such Ship; or

 

	10.1.30	Builder’s defaults: any of the events specified
in Article XI.3 of any Assigned Contract occurs in respect of the Builder, unless the relevant Borrower has terminated such Assigned
Contract within 30 days after the earlier of (a) the Borrowers or any of them becoming aware of such event and (b) the Agent notifying
the Borrowers that such event has taken place; or

 

	10.1.31	Payments under Refund Guarantees: any claim made under
any Assigned Refund Guarantee is not paid by the Refund Guarantor, at the time specified by, and in accordance with, the
terms of that Assigned Refund Guarantee after receipt by the Refund Guarantor of the relevant written demand thereunder;
or

 

	10.1.32	Operating Accounts: moneys are withdrawn from any of the Operating Accounts other than in
accordance with clause 14; or

 

	10.1.33	Licences, etc: any licence, authorisation, consent or approval at any time necessary to
enable any Security Party to comply with its material obligations under the Security Documents or the Underlying Documents is revoked
or withheld or modified or is otherwise not granted or fails to remain in full force and effect or if any exchange control or other
law or regulation shall exist which would make any transaction under the Security Documents or the Underlying Documents or the
continuation thereof, unlawful or would prevent the performance by any Security Party of any term of any of the Security Documents
or the Underlying Documents, unless, in the case of unlawfulness referred to above, the Majority Banks are satisfied that through
the implementation of alternative arrangements satisfactory to the Majority Banks, the unlawfulness will be overcome or rectified
within 10 days from its occurrence but without in the meantime jeopardising in any way the position of the Creditors under this
Agreement and the other Security Documents or the Encumbrances created by the Security Documents (and such unlawfulness is actually
overcome or rectified within such 10 day period),

 

Provided however that:

 

		(a)	there shall not be an Event of Default if any of the events or circumstances described in clauses
10.1.7, 10.1.9, 10.1.10, 10.1.11, 10.1.13 and 10.1.14 takes place solely and exclusively with respect to the Refund Guarantor and,
within fifteen (15) days after the earlier of (1) the date when the Borrowers or any of them becomes aware that the relevant event
or the relevant circumstances have occurred or started to exist and (2) the date when the Agent notifies the Borrowers in writing
that the relevant event or the relevant circumstances have occurred or exist:

 

	 	(i)	the Borrowers have (A) arranged the issuing of new substitute refund guarantees for
each Assigned Contract in favour of the relevant Borrower, in form and substance substantially similar to the Assigned Refund
Guarantees and issued by a bank acceptable to the Agent (acting on the instructions of the Majority Banks in their discretion),
(B) assigned in favour of the Security Agent (at the expense of the Borrowers) the benefit of such substitute Refund Guarantees
by executing security assignment agreements in a form similar to the Pre-delivery Security Assignments (and have delivered to
the Security Agent any notices of assignment and have used their best endeavours to deliver to the Security Agent acknowledgements
or further documents required to be delivered pursuant thereto) and (C) provided the Agent (at the expense of the Borrowers) with
any legal opinion in respect of the matters referred to in this paragraph (a)(i) in form and substance satisfactory to the Agent;
or

 

		(ii)	the Borrowers have prepaid the Loan in full;

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		(b)	there shall not be an Event of Default if any of the events or circumstances described in clauses
10.1.27, 10.1.28, 10.1.29, 10.1.30 or 10.1.31 shall occur with respect to an Assigned Contract or an Assigned Refund Guarantee
(as the case may be), and, within fifteen (15) days after the earlier of (1) the date when the Borrowers or any of them becomes
aware that the relevant event or the relevant circumstances have occurred or started to exist and (2) the date when the Agent notifies
the Borrowers in writing that the relevant event or the relevant circumstances have occurred or exist:

 

the Borrowers
have prepaid in full the Tranche for the Ship to which such Assigned Contract or Assigned Refund Guarantee relates;

 

		(c)	the Borrowers shall not be entitled to serve a Drawdown Notice during the fifteen (15) day periods
referred to in paragraphs (a) and (b) above, unless the circumstances referred to therein cease to exist and the Borrowers have
complied with their obligations thereunder.

 

	10.2	Acceleration

 

The Agent may, and if so requested
by the Majority Banks shall, without prejudice to any other rights of the Banks, at any time after the occurrence of an Event of
Default and while the same is then continuing, by notice to the Borrowers:

 

	10.2.1	declare that the obligation of each Bank to make available its Commitment shall be terminated,
whereupon the Total Commitment shall be reduced to zero; and/or

 

	10.2.2	declare that the Loan and all interest and commitment commission accrued and all other sums payable
under the Security Documents have become due and payable, whereupon the same shall, immediately or at any other time specified
in such notice, become due and payable.

 

	10.3	Demand basis

 

If, pursuant to clause 10.2.2,
the Agent declares the Loan to be due and payable on demand, the Agent may (and if so instructed by the Majority Banks shall) by
written notice to the Borrowers call for repayment of the Loan on such date as may be specified whereupon the Loan shall become
due and payable on the date so specified together with all interest and commitment commission accrued and all other sums payable
under this Agreement.

 

	10.4	Position of Swap Provider

 

Neither the Agent nor the Security
Agent shall be obliged, in connection with any action taken or proposed to be taken under or pursuant to the foregoing provisions
of this clause 10, to have any regard to the requirements of the Swap Provider except to the extent that the Swap Provider is also
a Bank.

 

	11	Indemnities

 

	11.1	Miscellaneous indemnities

 

The Borrowers shall on demand
indemnify each Creditor, without prejudice to any of such Creditor’s other rights under any of the Security Documents, against
any loss (but excluding loss of Margin) or expense which such Creditor shall certify as sustained or incurred by it as a consequence
of:

 

	11.1.1	any default by any Security Party in payment of any sum under any of the Security Documents when
due;

 

	11.1.2	the occurrence of any other Event of Default;

 

	11.1.3	any prepayment of an Advance or Tranche (or any part thereof) being made under clauses 2.10, 4.2,
4.4, 8.2.1(a) or 12.1 or any other repayment or prepayment of an Advance or

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Tranche being made otherwise
than on an Interest Payment Date relating to the part of the Advance or Tranche prepaid or repaid (but provided that
any loss payable to a Bank under this clause 11.1.3 shall not exceed the amount (if any) by which (a) the additional interest which
would have been payable to that Bank on the amounts so prepaid had they been repaid on such Interest Payment Date, exceeds (b)
the amount of interest which, in the opinion of that Bank, would be payable to that Bank in respect of a deposit in Dollars in
an amount similar to the amount so prepaid, if placed by that Bank with a prime bank in London for a period starting on the day
of such prepayment and ending on such Interest Payment Date);

 

	11.1.4	any Advance not being made for any reason (excluding any default by the Agent or any Bank) after
the Drawdown Notice for such Advance has been given,

 

including, in any such case,
but not limited to, any loss or expense sustained or incurred by the relevant Creditor in maintaining or funding its Contribution
or, as the case may be, its Commitment (or any part thereof) or in liquidating or re-employing deposits from third parties
acquired to effect or maintain its Contribution or, as the case may be, its Commitment (or any part thereof) or in terminating
or reversing or otherwise in connection with, any interest rate and/or currency swap or other derivative transaction or other arrangement
entered into by a Creditor (whether with another legal entity or with another office or department of such Creditor) to hedge any
exposure arising under this Agreement by the Swap Provider under the Master Agreement or in terminating, reversing, or otherwise
in connection with, any open position arising under this Agreement, or any other amount owing to such Creditor.

 

	11.2	Currency indemnity

 

If any sum due from any of the
Borrowers under any of the Security Documents or any order or judgment given or made in relation thereto has to be converted from
the currency (the “first currency”) in which the same is payable under the relevant Security Document or under
such order or judgment into another currency (the “second currency”) for the purpose of (a) making or filing
a claim or proof against the Borrowers or any of them, (b) obtaining an order or judgment in any court or other tribunal or (c)
enforcing any order or judgment given or made in relation to any of the Security Documents, the Borrowers shall indemnify and hold
harmless each Creditor from and against any loss suffered as a result of any difference between (i) the rate of exchange used for
such purpose to convert the sum in question from the first currency into the second currency and (ii) the rate or rates of exchange
at which the relevant Creditor may in the ordinary course of business purchase the first currency with the second currency upon
receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof. Any amount due from
the Borrowers under this clause 11.2 shall be due as a separate debt and shall not be affected by judgment being obtained
for any other sums due under or in respect of any of the Security Documents and the term “rate of exchange”
includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency.

 

	11.3	Environmental indemnity

 

The Borrowers shall indemnify
each Creditor on demand and hold it harmless from and against all costs, expenses, payments, charges, losses, demands, liabilities,
actions, proceedings (whether civil or criminal), penalties, fines, damages, judgements, orders, sanctions or other outgoings of
whatever nature (including, without limitation, those arising under Environmental Laws) which may be suffered, incurred or paid
by, or made or asserted against such Creditor at any time, whether before or after the repayment in full of all amounts of principal
and interest under this Agreement, relating to, or arising directly or indirectly in any manner or for any cause or reason whatsoever
out of an Environmental Claim made or asserted against such Creditor if such Environmental Claim would or could not have been,
or been capable of being, made or asserted against such Creditor if it had not entered into any of the Security Documents and/or
exercised any of its rights, powers and discretions thereby conferred and/or performed any of its obligations thereunder and/or
been involved in any of the transactions contemplated by the Security Documents.

 

	11.4	Waiver

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In no event shall a Creditor
or any of its Related Companies or any of their respective officers or directors be liable on any theory of liability for any special,
indirect, consequential or punitive damages and each Borrower hereby waives, releases and agrees not to sue upon any such claim
for any such damages, whether or not accrued and whether or not known or suspected to exist in its favour.

 

	11.5	General indemnity

 

The Borrowers jointly and severally
hereby indemnify and agree to hold harmless the Creditors and each of their respective Related Companies and each of their respective
officers, directors, employees, agents, advisors and representatives (each, an “Indemnified Party”) from and
against any and all claims, damages, losses, liabilities, costs, legal and other expenses (altogether the “Losses”),
joint or several, that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or
in connection with or relating to any claim, investigation, litigation or proceeding (or the preparation of any defence with respect
thereto) commenced or threatened in relation to the Security Documents or any of them (or the transactions contemplated hereby
or thereby) or any use made or proposed to be made with the proceeds of the Loan. This indemnity shall apply whether or not such
claims, investigation, litigation or proceeding is brought by the Borrowers or any of them, any other Security Party, any other
member of the Group, any of their respective shareholders or creditors, an Indemnified Party or any other person, or an Indemnified
Party is otherwise a party thereto, except to the extent that such Losses are found in a final, non-appealable judgment by a court
of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or wilful misconduct.

 

	12	Unlawfulness,
                                                                        increased costs and mitigation

 

	12.1	Unlawfulness

 

If it is or becomes contrary
to any law or regulation for any Bank to contribute to an Advance or to maintain its Commitment or fund the Loan or perform any
of its other obligations under this Agreement, such Bank shall promptly, through the Agent, give notice to the Borrowers whereupon:

 

		(a)	such Bank’s Commitment shall be reduced to zero; and

 

		(b)	the Borrowers shall be obliged to prepay such Bank’s Contribution either (A) forthwith or
(B) on a future specified date not being later than the latest date permitted by the relevant law or regulation together with interest
and commissions accrued to the date of prepayment and all other sums payable by the Borrowers under this Agreement and/or the Master
Swap Agreement.

 

	12.2	Increased costs

 

If the result of any change
in, or in the interpretation or application of, or the introduction of, any Capital Adequacy Law or of compliance by a Bank with
any Capital Adequacy Law (excluding a switch of that Bank from one Basel II approach to another unless it is mandatorily required
by law) is to:

 

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

 

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

 

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

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	12.2.4	reduce any Bank’s or its holding company’s
    rate of return on its overall capital by reason of a change in the manner in which it is required to allocate capital resources
    to such Bank’s obligations under any of the Security Documents; and/or
	 	 
	12.2.5	require any Bank or its holding company
    to make a payment or forego a return on or calculated by reference to any amount received or receivable by such Bank under
    any of the Security Documents; and/or
	 	 
	12.2.6	require any Bank or its holding company
    to incur or sustain a loss by reason of being obliged to deduct all or part of its Commitment or the Loan,
	 	 
	 	then and in each such case (subject to clause 12.3):
	 	 
	 	(a)	such Bank shall (through the Agent) notify the Borrowers
    in writing of such event promptly upon its becoming aware of the same; and
	 	 	 
	 	(b)	the Borrowers shall on demand pay to the Agent for
    the account of such Bank at any time after the expiry of the Negotiation Period (and whether or not the Loan or any part thereof
    has then been repaid or prepaid), pay to such Bank the amount which such Bank specifies (in a certificate (which shall be
    conclusive on the Borrowers in the absence of manifest error) setting forth the basis of the computation of such amount but
    not including any matters which such Bank or its holding company regards as confidential) is required to compensate such Bank
    (or its holding company) for such liability to Taxes, alternative funding, increased cost, reduction, payment, loss or foregone
    return (as the case may be).
	 	 	 
	 	For the purposes of this clause 12.2 and clause 12.4, “holding company”
    means the company or entity (if any) within the consolidated supervision of which a Bank is included.
	 	 
	12.3	Exception
	 	 
	 	Nothing in clause 12.2 shall entitle any Bank to receive any amount in respect
    of compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss
    to the extent that the same is the subject of an additional payment under clause 6.6.
	 	 
	12.4	Mitigation and Tax credits
	 	 
	12.4.1	Mitigation
	 	 
	 	If circumstances arise which would, or would upon the giving of notice, result
    in an increased payment required to be made by the Borrowers under clause 6.6 or clause 12.2 then, without in any way limiting
    the obligations of the Borrowers under either of these clauses, the relevant Bank shall use reasonable endeavours to transfer
    its obligations, liabilities and rights under this Agreement and the other Security Documents to another of its offices not
    affected by the circumstances which gave rise to such increased payment, but no Bank shall be under any obligation to take
    any such action, and, in any event, it shall not do so if in its opinion, to do so would or might:
	 	 
	 	(a)	be prejudicial to such Bank (or, as the case may be,
    its holding company); or
	 	 	 
	 	(b)	have an adverse effect on such Bank’s or its
    holding company’s business, operations, administration or financial condition; or
	 	 	 
	 	(c)	involve such Bank or its holding company in any activity
    which is unlawful or prohibited or any activity that is contrary to, or inconsistent, with any regulation or such Bank’s
    general banking policies; or
	 	 	 
	 	(d)	involve such Bank or its holding company in any expense
    (unless indemnified to its satisfaction) or tax disadvantage.

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	12.4.2	Tax credits
	 	 
	 	If a Bank receives for its own account a repayment or credit in respect of tax
    on account for which the Borrowers have made an increased payment under clause 6.6, it shall pay to the Borrowers a sum equal
    to the repayment or credit received, provided always that:
	 	 
	 	(a)	such Bank can do so without prejudicing the retention
    of the amount of such repayment or credit and without prejudice to the right of such Bank to obtain any other relief or allowance
    which may be available to it;
	 	 	 
	 	(b)	such Bank shall not be obliged to allocate to this
    transaction any part of a tax repayment or credit which is referable to a number of transactions if the Loan does not fall
    within such number of transactions;
	 	 	 
	 	(c)	nothing in this clause shall entitle the Borrowers
    to enquire about such Bank’s tax affairs or oblige such Bank to arrange its tax affairs in any particular manner, to
    disclose any information regarding its tax affairs and computations, 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;
	 	 	 
	 	(d)	nothing in this clause shall oblige such Bank to make
    a payment which exceeds any repayment or credit in respect of tax on account of which the Borrowers have made an increased
    payment under clause 6.6; and
	 	 	 
	 	(e)	any allocation or determination made by such Bank under
    or in connection with this clause shall be prima facie evidence of the payment due to the Borrowers under this clause 12.4.2.
	 	 	 
	13	Security, set-off and pro-rata
    payments
	 	 
	13.1	Application of moneys
	 	 
	 	All moneys received by the Agent and/or the Security Agent under or pursuant to
    any of the Security Documents and expressed to be applicable in accordance with the provisions of this clause 13.1 or
    in a manner determined in the Security Agent’s or (as the case may be) the Agent’s discretion, shall be applied
    pro rata against each Sub-Tranche and the Swap Exposure OR if a notice of an Event of Default has been served to the Borrowers
    by the Agent and whilst such Event of Default is continuing all moneys received by the Agent and/or the Security Agent under
    or pursuant to any of the Security Documents shall be applied in the following manner:
	 	 
	13.1.1	first, in or towards payment of all unpaid
    costs and expenses which may be owing to the Agent and/or the Security Agent and/or the Arranger and/or any of them under
    any of the Security Documents;
	 	 
	13.1.2	secondly, in or towards payment of any
    unpaid fees and commissions payable to the Agent and/or the Security Agent and/or the Arranger and/or any of them under any
    of the Security Documents;
	 	 
	13.1.3	thirdly, in or towards payment of any arrears
    of interest owing in respect of each Sub-Tranche A;
	 	 
	13.1.4	fourthly, in or towards repayment of each
    Sub-Tranche A  (whether same has become due and payable or not);
	 	 
	13.1.5	fifthly, in or towards payment of any arrears of interest owing in respect of
    each Sub-Tranche B;
	 	 
	13.1.6	sixthly, in or towards repayment of each Sub-Tranche B  (whether same
    has become due and payable or not);

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	13.1.7	seventhly, in or towards payment of all unpaid costs and expenses which may be
    owing to the Swap Provider under the Master Swap Agreement;
	 	 
	13.1.8	eightly, in or towards payment of any unpaid fees and commissions payable to the
    Swap Provider under the Master Swap Agreement;
	 	 
	13.1.9	ninthly, in or towards payment to the Swap
    Provider of any sums owing to it under the Master Swap Agreement relating to each Sub-Tranche A;
	 	 
	13.1.10	tenthly, in or towards payment to the Swap Provider of any sums owing to it under
    the Master Swap Agreement relating to each Sub-Tranche B; and
	 	 
	13.1.11	eleventhly, the surplus (if any) shall
    be paid to the Borrowers or to whomsoever else may be entitled to receive such surplus.
	 	 
	13.2	Set-off
	 	 
	13.2.1	The Borrowers authorise each Creditor (without
    prejudice to any of such Creditor’s rights at law, in equity or otherwise), at any time following the occurrence of
    an Event of Default and while the same is continuing and with notice to the Borrowers, to apply any credit balance to which
    the Borrowers or any of them is then entitled standing upon any account of the Borrowers or any of them with any branch of
    such Creditor in or towards satisfaction of any sum due and payable from the Borrowers or any of them to such Creditor under
    any of the Security Documents.  For this purpose, each Creditor is authorised to purchase with the moneys standing
    to the credit of such account such other currencies as may be necessary to effect such application.
	 	 
	13.2.2	No Creditor shall be obliged to exercise
    any right given to it by this clause 13.2.  Each Creditor shall notify the Borrowers through the Agent forthwith
    upon the exercise or purported exercise of any right of set-off giving full details in relation thereto and the Agent shall
    inform the other Creditors.
	 	 
	13.2.3	Nothing in this clause 13.2 shall be effective
    to create an Encumbrance or any other security interest.
	 	 
	13.3	Pro rata payments
	 	 
	13.3.1	If at any time any Bank (the “Recovering
    Bank”) receives or recovers any amount owing to it by the Borrowers under this Agreement by direct payment, set-off
    or in any manner other than by payment through the Agent pursuant to clauses 6.1 or 6.9 (not being a payment received
    from a Transferee Bank or a sub-participant in such Bank’s Contribution or any other payment of an amount due to the
    Recovering Bank for its sole account pursuant to clauses 3.6, 5, 6.6, 11.1, 11.2, 12.1, or 12.2), the Recovering Bank
    shall, within two (2) Banking Days of such receipt or recovery (a “Relevant Receipt”) notify the Agent
    of the amount of the Relevant Receipt. If the Relevant Receipt exceeds the amount which the Recovering Bank would have received
    if the Relevant Receipt had been received by the Agent and distributed pursuant to clause 6.1 or 6.9 (as the case may
    be) then:
	 	 
	 	(a)	within two (2) Banking Days of demand by the Agent,
    the Recovering Bank shall pay to the Agent an amount equal (or equivalent) to the excess;
	 	 	 
	 	(b)	the Agent shall treat the excess amount so paid by
    the Recovering Bank as if it were a payment made by the Borrowers and shall distribute the same to the Banks (other than the
    Recovering Bank) in accordance with clause 6.9; and
	 	 	 
	 	(c)	as between the Borrowers and the Recovering Bank the
    excess amount so re-distributed shall be treated as not having been paid but the obligations of the Borrowers to the other
    Banks shall, to the extent of the amount so re-distributed to them, be treated as discharged.

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	13.3.2	If any part of the Relevant Receipt subsequently has to be wholly or partly refunded by the
    Recovering Bank (whether to a liquidator or otherwise) each Bank to which any part of such Relevant Receipt was so re-distributed
    shall on request from the Recovering Bank repay to the Recovering Bank such Bank’s pro-rata share of the amount which
    has to be refunded by the Recovering Bank.
	 	 
	13.3.3	Each Bank shall on request supply to the Agent such
    information as the Agent may from time to time request for the purposes of this clause 13.3.
	 	 
	13.3.4	Notwithstanding the foregoing provisions of this clause 13.3,
    no Recovering Bank shall be obliged to share any Relevant Receipt which it receives or recovers pursuant to legal proceedings
    taken by it to recover any sums owing to it under this Agreement with any other party which has a legal right to, but does
    not, either join in such proceedings or commence and diligently pursue separate proceedings to enforce its rights in the same
    or another court (unless the proceedings instituted by the Recovering Bank are instituted by it without prior notice having
    been given to such party through the Agent).
	 	 
	13.4	No release
	 	 
	 	For the avoidance of doubt it is hereby declared that failure by any Recovering Bank to comply
    with the provisions of clause 13.3 shall not release any other Recovering Bank from any of its obligations or liabilities
    under clause 13.3.
	 	 
	13.5	No charge
	 	 
	 	The provisions of this clause 13 shall not, and shall not be construed so as to, constitute
    a charge by a Bank over all or any part of a sum received or recovered by it in the circumstances mentioned in clause 13.3.
	 	 
	13.6	Further assurance
	 	 
	 	The Borrowers jointly and severally undertake with each Creditor that the Security Documents
    shall both at the date of execution and delivery thereof and so long as any moneys are owing under any of the Security Documents
    be valid and binding obligations of the respective parties thereto and rights of each Bank enforceable in accordance with
    their respective terms and that they will, at their expense, execute, sign, perfect and do, and will procure the execution,
    signing, perfecting and doing by each of the other Security Parties of, any and every such further assurance, document, act
    or thing as in the reasonable opinion of the Majority Banks may be necessary for perfecting the security contemplated or constituted
    by the Security Documents.
	 	 
	13.7	Conflicts
	 	 
	 	In the event of any conflict between this Agreement and any of the other Borrowers’ Security
    Documents (other than the Master Swap Agreement), the provisions of this Agreement shall prevail.
	 	 
	14	Operating Accounts
	 	 
	14.1	General
	 	 
	 	The Borrowers jointly and severally undertake with each Creditor that they will:
	 	 
	14.1.1	on or before the first Drawdown Date, open the Operating
    Accounts; and
	 	 
	14.1.2	procure that all moneys payable to each Borrower in
    respect of the Earnings of such Borrower’s Ship shall, unless and until the Agent (acting on the instructions of the
    Majority Banks) directs to the contrary pursuant to the provisions of the relevant Ship Security Documents, be paid to the
    relevant Operating Account, Provided however that if any of the moneys paid to any of the Operating Accounts are payable in
    a currency other than Dollars, the Account Bank shall (and the Borrowers hereby irrevocably and unconditionally instruct the
    Account Bank to) convert

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	 	such moneys into Dollars at the Account Bank’s spot rate of exchange at
    the relevant time for the purchase of Dollars with such currency and the term “spot rate of exchange” shall
    include any premium and costs of exchange payable in connection with the purchase of Dollars with such currency.
	 	 
	14.2	Operating Accounts: withdrawals
	 	 
	 	Moneys payable to each Operating Account in respect of Earnings of the relevant Ship shall
    be at the free disposal of each Borrower and each Borrower may withdraw moneys from its Operating Account.  However,
    if an Event of Default occurs and while the same is continuing, no Borrower shall be entitled to withdraw any moneys from
    its Operating Account for so long as any moneys are owing under the Security Documents.
	 	 
	14.3	Application of Operating Accounts
	 	 
	14.3.1	At any time after the occurrence of an Event of Default
    and while the same is continuing, the Agent may (and on the instructions of the Majority Banks shall), with notice to the
    Borrowers, instruct the Account Bank to apply all moneys then standing to the credit of an Operating Account, together with
    interest from time to time accruing or accrued thereon in the manner specified in clause 13.1.
	 	 
	14.4	Operating Account terms
	 	 
	 	Amounts standing to the credit of each Operating Account shall (unless otherwise agreed between
    the Account Bank and the Borrowers) bear interest at the rates from time to time offered by the Account Bank to its customers
    for Dollar deposits in comparable amounts for comparable periods. Interest shall accrue on each Operating Account from day
    to day and be calculated on the basis of actual days elapsed and a three hundred and sixty (360) day year and shall be credited
    to the relevant Operating Account at such times as the Account Bank and the Borrowers shall agree.
	 	 
	14.5	Pledging of Operating Accounts
	 	 
	 	The Operating Accounts and all amounts from time to time standing to the credit thereof shall
    be subject to the security constituted and the rights conferred by the Operating Account Assignments.
	 	 
	15	Assignment, transfer and lending
    office
	 	 
	15.1	Benefit and burden
	 	 
	 	This Agreement shall be binding upon, and enure for the benefit of, the Creditors and the
    Borrowers and their respective successors in title.
	 	 
	15.2	No assignment by Borrowers
	 	 
	 	No Borrower may assign or transfer any of its rights or obligations under this Agreement.
	 	 
	15.3	Transfers by Banks
	 	 
	 	Subject to the prior written consent of the Borrowers (which consent shall not be unreasonably
    withheld and the request for which shall be promptly responded to), any Bank (the “Transferor Bank”) may
    at any time, cause all or any part of its rights, benefits and/or obligations under this Agreement and the Security Documents
    to be transferred to any other bank or financial institution (a “Transferee Bank”) by delivering to the
    Agent a Transfer Certificate duly completed and duly executed by the Transferor Bank and the Transferee Bank.  No
    such transfer is binding on, or effective in relation to, the Borrowers or the Agent or the other Creditors unless (i) it
    is effected or evidenced by a Transfer Certificate which

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	 	complies with the provisions of this clause 15.3 and is signed by or on behalf
    of the Transferor Bank, the Transferee Bank and the Agent (on behalf of itself, the Borrowers and the other Creditors) and
    (ii) such transfer of rights under the other Security Documents has been effected and registered to the satisfaction of the
    Agent.  The Borrowers’ consent referred to above shall not be required in respect of a transfer if (1) the relevant
    Transferee Bank is a Related Company of the Transferor Bank and provided that the Borrowers would not pay additional amounts
    under Clause 6.6 and Clause 12.2 compared to the amounts payable by the Borrowers under such Clauses immediately before such
    transfer or (2) an Event of Default has occurred which is continuing at the time of the relevant transfer. Upon signature
    of any such Transfer Certificate by the Agent, which signature shall be effected as promptly as is practicable after such
    Transfer Certificate has been delivered to the Agent, and subject to the terms of such Transfer Certificate, such Transfer
    Certificate shall have effect as set out below.  
	 	 
	 	The following further provisions shall have effect in relation to any Transfer
    Certificate:
	 	 
	15.3.1	a Transfer Certificate may be in respect
    of a Bank’s rights in respect of all, or part of, its Commitment and shall be in respect of the same proportion of its
    Contribution;
	 	 
	15.3.2	a Transfer Certificate shall only be in
    respect of rights and obligations of the Transferor Bank and shall not transfer its rights and obligations as the Agent, or
    in any other capacity, as the case may be and such other rights and obligations may only be transferred in accordance with
    any applicable provisions of this Agreement;
	 	 
	15.3.3	a Transfer Certificate shall take effect
    in accordance with English law as follows:
	 	 
	 	(a)	to the extent specified in the Transfer Certificate,
    the Transferor Bank’s payment rights and all its other rights (other than those referred to in clause 15.3.2 above)
    under this Agreement are assigned to the Transferee Bank absolutely, free of any defects in the Transferor Bank’s title
    and of any rights or equities which the Borrowers had against the Transferor Bank;
	 	 	 
	 	(b)	the Transferor Bank’s obligations are discharged
    to the extent specified in the Transfer Certificate;
	 	 	 
	 	(c)	the Transferee Bank becomes a Bank with a Contribution,
    Commitment and Percentage of the amounts specified in the Transfer Certificate;
	 	 	 
	 	(d)	the Transferee Bank becomes bound by all the provisions
    of this Agreement and the Security Documents which are applicable to the Banks generally, including those about pro-rata sharing
    and the exclusion of liability on the part of, and the indemnification of, the Arranger, the Agent and the Security Agent
    and to the extent that the Transferee Bank becomes bound by those provisions, the Transferor Bank ceases to be bound by them;
	 	 	 
	 	(e)	an Advance or part of an Advance which the Transferee
    Bank makes after the Transfer Certificate comes into effect ranks in point of priority and security in the same way as it
    would have ranked had it been made by the Transferor Bank, assuming that any defects in the Transferor Bank’s title
    and any rights or equities of any Security Party against the Transferor Bank had not existed; and
	 	 	 
	 	(f)	the Transferee Bank becomes entitled to all the rights
    under this Agreement which are applicable to the Banks generally, including but not limited to those relating to the Majority
    Banks and those under clauses 3.6, 5 and 11.3 and to the extent that the Transferee Bank becomes entitled to such rights,
    the Transferor Bank ceases to be entitled to them;
	 	 	 
	15.3.4	the rights and equities of the Borrowers
    or of 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; and
	 	 
	15.3.5	the Borrowers, the Account Bank, the Security
    Agent, the Arranger, the Swap Provider and the Banks hereby irrevocably authorise and instruct the Agent to sign any such
    Transfer

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	 	Certificate on their behalf and undertake not to withdraw, revoke or qualify such authority
    or instruction at any time. Promptly upon its signature of any Transfer Certificate, the Agent shall notify the Borrowers,
    the other Banks, the Transferor Bank and the Transferee Bank.
	 	 
	15.4	Reliance on Transfer Certificate
	 	 
	15.4.1	The Agent shall be entitled to rely on any Transfer
    Certificate believed by it to be genuine and correct and to have been presented or signed by the persons by whom it purports
    to have been presented or signed, and shall not be liable to any of the parties to this Agreement and the Security Documents
    for the consequences of such reliance.
	 	 
	15.4.2	The Agent shall at all times during the continuation
    of this Agreement maintain a register in which it shall record the name, Commitments, Contributions, Percentages and administrative
    details (including the lending office) from time to time of the Banks holding a Transfer Certificate and the date at which
    the transfer referred to in such Transfer Certificate held by each Bank was transferred to such Bank, and the Agent shall
    make the said register available for inspection by any Bank or any Borrower during normal banking hours upon receipt by the
    Agent of reasonable prior notice requesting the Agent to do so.
	 	 
	15.4.3	The entries on the said register shall, in the absence
    of manifest error, be conclusive in determining the identities of the Commitments, Contributions, Percentages and the Transfer
    Certificates held by the Banks from time to time and the principal amounts of such Transfer Certificates and may be relied
    upon by the Agent and the other Security Parties for all purposes in connection with this Agreement and the Security Documents.
	 	 
	15.5	Transfer fees and expenses
	 	 
	 	If any Bank causes the transfer of all or any part of its rights, benefits and/or obligations
    under the Security Documents, the Transferor Bank shall pay to the Agent on demand all costs, fees and expenses (including,
    but not limited to, legal fees and expenses), and all value added tax thereon, verified by the Agent as having been incurred
    by it and any other Bank in connection with such transfer.
	 	 
	15.6	Documenting transfers
	 	 
	 	If any Bank assigns all or any part of its rights or transfers all or any part of its rights,
    benefits and/or obligations as provided in clause 15.3, the Borrowers jointly and severally undertake with each Creditor,
    immediately on being requested to do so by the Agent and at the cost of the Transferor Bank, to enter into, and procure that
    the other Security Parties shall (at the cost of the Transferor Bank) enter into, such documents as may be necessary or desirable
    to transfer to the Transferee Bank all or the relevant part of such Bank’s interest in the Security Documents and all
    relevant references in this Agreement to such Bank shall thereafter be construed as a reference to the Transferor Bank and/or
    its Transferee Bank (as the case may be) to the extent of their respective interests. Any costs, fees and expenses incurred
    in relation to any such transfer will not in any case create any liability whatsoever on the part of the Borrowers for payment
    of the same whether under the Security Documents or otherwise.
	 	 
	15.7	Sub-participation
	 	 
	 	A Bank may sub-participate to any other bank or financial institution all or any part of its
    rights and/or obligations under the Security Documents without the consent of, or notice to, the Borrowers.

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	15.8	Lending office
	 	 
	 	Each Bank shall lend through its office at the address
    specified in schedule 1 or, as the case may be, in any relevant Transfer Certificate, or through any other office of
    such Bank selected from time to time by it through which such Bank wishes to lend for the purposes of this Agreement Provided
    that the Borrowers would not pay additional amounts under clause 6.6 or clause 12.2 compared to the amounts payable
    by the Borrowers under such clauses immediately before such change of lending office. If the office through which a Bank is
    lending is changed pursuant to this clause 15.8, such Bank shall notify the Agent promptly of such change and the Agent
    shall notify the Borrowers, the Security Agent, the Arranger, the Account Bank, the Swap Provider and the other Banks.  
	 	 
	15.9	Disclosure of information by Banks
	 	 
	 	A Bank may, with the prior consent of the Agent in its discretion, disclose to a prospective
    assignee, transferee or to any other person who may propose entering into contractual relations with such Bank in relation
    to this Agreement such information about the Borrowers and/or the other Security Parties as such Bank shall consider appropriate
    Provided that the relevant Bank has entered into a confidentiality agreement with such person in connection with any such
    information.
	 	 
	15.10	No additional costs
	 	 
	 	If at the time of, or after, any assignment by a Bank of all or any part of its rights or
    benefits under this Agreement or any transfer by a Bank of any part of the rights, benefits and/or obligations under this
    Agreement, or any change in the office through which it lends for the purposes of this Agreement, the Borrowers or any of
    them would be obliged to pay to the assignee or the Transferee Bank or (in the case of a change of lending office) such Bank,
    under clauses 6.6 or 12.2 or any other term of a Security Document any sum in excess of the sum (if any) which it would have
    been obliged to pay to such Bank under the relevant clause in the absence of such assignment, transfer or change, the Borrowers
    shall not be obliged to pay that excess.
	 	 
	16	Agent and Security Agent
	 	 
	16.1	Appointment of the Agent
	 	 
	 	Each Bank and the Swap Provider irrevocably appoints the Agent as its agent for the purposes
    of this Agreement and such of the Security Documents to which it may be appropriate for the Agent to be party. By virtue of
    such appointment, each of the Banks and the Swap Provider hereby authorises the Agent:
	 	 
	16.1.1	to execute such documents as may be approved by the
    Majority Banks for execution by the Agent; and
	 	 
	16.1.2	(whether or not by or through employees or agents)
    to take such action on such Bank’s, and the Swap Provider’s behalf and to exercise such rights, remedies, powers
    and discretions as are specifically delegated to the Agent by this Agreement and/or any other Security Document, together
    with such powers and discretions as are reasonably incidental thereto.
	 	 
	16.2	Agent’s actions
	 	 
	 	Any action taken by the Agent under or in relation to this Agreement or any of the other Security
    Documents whether with requisite authority or on the basis of appropriate instructions, received from the Majority Banks and/or
    the Swap Provider (or as otherwise duly authorised) shall be binding on all the Banks and the Swap Provider.
	 	 
	16.3	Agent’s duties
	 	 
	 	The Agent shall:

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	16.3.1	promptly notify each Bank and the Swap Provider of the contents of each notice, certificate
    or other document received by it from the Borrowers under or pursuant to clauses 8.1.1, 8.1.5 and 8.1.7; and
	 	 
	16.3.2	(subject to the other provisions of this clause 16)
    take (or instruct the Security Agent to take) such action or, as the case may be, refrain from taking (or authorise the Security
    Agent to refrain from taking) such action with respect to the exercise of any of its rights, remedies, powers and discretions
    as agent, as the Majority Banks may direct.
	 	 
	16.4	Agent’s rights
	 	 
	 	The Agent may:
	 	 
	16.4.1	in the exercise of any right, remedy, power or discretion
    in relation to any matter, or in any context, not expressly provided for by this Agreement or any of the other Security Documents,
    act or, as the case may be, refrain from acting (or authorise the Security Agent to act or refrain from acting) in accordance
    with the instructions of the Banks and/or the Swap Provider, and shall be fully protected in so doing;
	 	 
	16.4.2	unless and until it shall have received directions
    from the Majority Banks, take such action or, as the case may be, refrain from taking such action (or authorise the Security
    Agent to take or refrain from taking such action) in respect of a Default of which the Agent has actual knowledge as it shall
    deem advisable in the best interests of the Banks and the Swap Provider (but shall not be obliged to do so);
	 	 
	16.4.3	refrain from acting (or authorise the Security Agent
    to refrain from acting) in accordance with any instructions of the Banks and/or the Swap Provider to institute any legal proceedings
    arising out of or in connection with this Agreement or any of the other Security Documents until it and/or the Security Agent
    has been indemnified and/or secured to its satisfaction against any and all costs, expenses or liabilities (including legal
    fees) which it would or might incur as a result;
	 	 
	16.4.4	deem and treat (i) each Bank as the person entitled
    to the benefit of the Contribution of such Bank for all purposes of this Agreement unless and until a notice shall have been
    filed with the Agent pursuant to clause 15.3 and shall have become effective, and (ii) the office set opposite the name
    of each of the Banks in schedule 1 as such Bank’s lending office unless and until a written notice of change of
    lending office shall have been received by the Agent and the Agent may act upon any such notice unless and until the same
    is superseded by a further such notice;
	 	 
	16.4.5	rely as to matters of fact which might reasonably be
    expected to be within the knowledge of any Security Party upon a certificate signed by any director or officer of the relevant
    Security Party on behalf of the relevant Security Party; and
	 	 
	16.4.6	do anything which is in its opinion necessary or desirable
    to comply with any law or regulation in any jurisdiction.
	 	 
	16.5	No liability of the Agent
	 	 
	 	Neither the Agent nor any of its employees and agents shall:
	 	 
	16.5.1	be obliged to make any enquiry as to the use of any
    of the proceeds of the Loan unless (in the case of the Agent) so required in writing by a Bank, in which case the Agent shall
    promptly make the appropriate request to the Borrowers; or
	 	 
	16.5.2	be obliged to make any enquiry as to any breach or
    default by the Borrowers or any of them or any other Security Party in the performance or observance of any of the provisions
    of this Agreement or any of the other Security Documents or as to the existence of a Default unless (in the case of the Agent)
    the Agent has actual knowledge thereof or has been notified in writing thereof by a Bank or the Swap Provider, in which case
    the Agent shall promptly notify the Banks and the Swap Provider of the relevant event or circumstance; or

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	16.5.3	be obliged to enquire whether or not any representation or warranty made by the Borrowers
    or any of them or any other Security Party pursuant to this Agreement or any of the other Security Documents is true; or
	 	 
	16.5.4	be obliged to do anything (including, without limitation,
    disclosing any document or information) which would, or might in its opinion, be contrary to any law or regulation or be a
    breach of any duty of confidentiality or otherwise be actionable or render it liable to any person; or
	 	 
	16.5.5	be obliged to account to any Bank or the Swap Provider
    for any sum or the profit element of any sum received by it for its own account; or
	 	 
	16.5.6	be obliged to institute any legal proceedings arising
    out of or in connection with this Agreement or any of the other Security Documents other than on the instructions of the Majority
    Banks; or
	 	 
	16.5.7	be liable to any Bank or the Swap Provider for any
    action taken or omitted under or in connection with this Agreement or any of the other Security Documents unless caused by
    its gross negligence or wilful misconduct.
	 	 
	 	For the purposes of this clause 16, the Agent shall not be treated as having actual knowledge
    of any matter of which the corporate finance or any other division outside the agency or loan administration department of
    the Agent or the person for the time being acting as the Agent may become aware in the context of corporate finance, advisory
    or lending activities from time to time undertaken by the Agent for any Security Party or any other person which may be a
    trade competitor of any Security Party or may otherwise have commercial interests similar to those of any Security Party.
	 	 
	16.6	Non-reliance on Agent
	 	 
	 	Each Bank and the Swap Provider acknowledges that it has not relied on any statement, opinion,
    forecast or other representation made by the Agent to induce it to enter into this Agreement or any of the other Security
    Documents and that it has made and will continue to make, without reliance on the Agent and based on such documents as it
    considers appropriate, its own appraisal of the creditworthiness of the Security Parties and its own independent investigation
    of the financial condition, prospects and affairs of the Security Parties in connection with the making and continuation of
    such Bank’s Commitment or Contribution under this Agreement.  The Agent shall not have any duty or responsibility,
    either initially or on a continuing basis, to provide any Bank or the Swap Provider with any credit or other information with
    respect to any Security Party whether coming into its possession before the making of the Loan or at any time or times thereafter
    other than as provided in clause 16.3.1.
	 	 
	16.7	No responsibility on Agent for Borrower’s performance
	 	 
	 	The Agent shall not have any responsibility or liability to any Bank or the Swap Provider:
	 	 
	16.7.1	on account of the failure of any Security Party to
    perform its obligations under any of the Security Documents; or
	 	 
	16.7.2	for the financial condition of any Security Party;
    or
	 	 
	16.7.3	for the completeness or accuracy of any statements,
    representations or warranties in any of the Security Documents or any document delivered under any of the Security Documents;
    or
	 	 
	16.7.4	for the execution, effectiveness, adequacy, genuineness,
    validity, enforceability or admissibility in evidence of any of the Security Documents or of any certificate, report or other
    document executed or delivered under any of the Security Documents; or

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	16.7.5	to investigate or make any enquiry into the title of the Borrowers or any other
    Security Party to the Ships or any other security or any part thereof; or
	 	 
	16.7.6	for the failure to register any of the
    Security Documents with any official or regulatory body or office or elsewhere; or
	 	 
	16.7.7	for taking or omitting to take any other
    action under or in relation to any of the Security Documents or any aspect of any of the Security Documents; or
	 	 
	16.7.8	on account of the failure of the Security
    Agent to perform or discharge any of its duties or obligations under the Security Documents; or
	 	 
	16.7.9	otherwise in connection with this Agreement
    or its negotiation or for acting (or, as the case may be, refraining from acting) in accordance with the instructions of the
    Majority Banks or the Swap Provider.
	 	 
	16.8	Reliance on documents and professional advice
	 	 
	 	The Agent shall be entitled to rely on any communication, instrument or document
    believed by it to be genuine and correct and to have been signed or sent by the proper person and shall be entitled to rely
    as to legal or other professional matters on opinions and statements of any legal or other professional advisers selected
    or approved by it (including those in the Agent’s employment).
	 	 
	16.9	Other dealings
	 	 
	 	The Agent may, without any liability to account to the Banks or the Swap Provider,
    accept deposits from, lend money to, and generally engage in any kind of banking or other business with, and provide advisory
    or other services to, any Security Party or any of its Related Companies or any of the Banks or the Swap Provider as if it
    were not the Agent.
	 	 
	16.10	Rights of Agent as Bank; no partnership
	 	 
	 	With respect to its own Commitment and Contribution the Agent shall have the same
    rights and powers under the Security Documents as any other Bank and may exercise the same as though it were not performing
    the duties and functions delegated to it under this Agreement and the term “Banks” shall, unless the context
    clearly otherwise indicates, include the Agent in its individual capacity as a Bank. This Agreement shall not and shall not
    be construed so as to constitute a partnership between the parties or any of them.
	 	 
	16.11	Amendments and waivers
	 	 
	16.11.1	Subject to clauses 16.11.3 and 16.11.4
    the Agent may, with the consent of the Majority Banks (or if and to the extent expressly authorised by the other provisions
    of any of the Security Documents) and, if so instructed by the Majority Banks, the Agent shall:
	 	 
	 	(a)	agree (or authorise the Security Agent to agree) amendments
    or modifications to any of the Security Documents with the Borrowers and/or any other Security Party; and/or
	 	 	 
	 	(b)	vary or waive breaches of, or defaults under, or otherwise
    excuse performance of, any provision of any of the other Security Documents by the Borrowers and/or any other Security Party
    (or authorise the Security Agent to do so).
	 	 	 
	 	Any such action so authorised and effected by the Agent shall be documented in
    such manner as the Agent shall (with the approval of the Majority Banks) determine, shall be promptly notified to the Banks
    and the Swap Provider by the Agent and (without prejudice to the generality of clause 16.2) shall be binding on all the
    Banks and the Swap Provider.
	 	 
	16.11.2	Notwithstanding any provision to the contrary
    in this Agreement or any other Security Documents, none of the matters referred to in clause 16.11.1 nor any other matter
    or action whatsoever in relation to this Agreement, the Security Documents and the

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	 	transactions contemplated thereby, shall require or be deemed to require the instructions
    of all the Banks. In particular, even if a matter or action is interpreted or found to require action by all the Banks (whether
    for practical reasons (e.g. release of any Security Documents which are in the name of all Banks) or otherwise), any Banks
    dissenting with the instructions or decision of the Majority Banks shall take such action or refrain from taking such action,
    as required and instructed by the Majority Banks provided that the relevant instructions and/or decision of the Majority Banks
    apply to all the Banks (and not individual Banks).
	 	 
	16.11.3	The Agent shall be entitled (but not obliged)
    to (or to instruct the Security Agent to) make or grant any amendment, waiver or consent in relation to this Agreement or
    any other Security Documents, without obtaining the consent of the Majority Banks if such matter relates solely to:
	 	 
	 	(a)	the signing of Transfer Certificates;
	 	 	 
	 	(b)	amendments or waivers that the Agent reasonably believes
    to be of a purely mechanical or clerical nature;
	 	 	 
	 	(c)	the correction of manifest errors; or
	 	 	 
	 	(d)	decisions, consents, amendments, directions, waivers
    or any right that the Security Documents expressly state may be made by the Agent or the Security Agent.  
	 	 	 
	 	The Agent shall promptly notify the other parties to this Agreement of any amendment
    or waiver effected by it under this clause 16.11.3.
	 	 
	16.11.4	An amendment or waiver which relates to
    the rights or obligations of the Agent and the Security Agent may not be effected without the consent of the Agent and the
    Security Agent.
	 	 
	16.12	Reimbursement and indemnity by Banks
	 	 
	 	Each Bank shall reimburse the Agent (rateably, if prior to the first drawdown,
    in accordance with such Bank’s aggregate Commitment or, if after the first drawdown, in accordance with such Bank’s
    Contribution), to the extent that the Agent is not reimbursed by the Borrowers, for the costs, charges and expenses incurred
    by the Agent which are expressed to be payable by the Borrowers under clause 5.1 including (in each case) the fees and
    expenses of legal or other professional advisers. Each Bank shall on demand indemnify the Agent (rateably, if prior to the
    first drawdown, in accordance with such Bank’s aggregate Commitment or, if after the first drawdown, in accordance with
    such Bank’s Contribution) against all liabilities, damages, costs and claims whatsoever incurred by the Agent in connection
    with any of the Security Documents or the performance of its duties under any of the Security Documents or any action taken
    or omitted by the Agent under any of the Security Documents, unless such liabilities, damages, costs or claims arise from
    the Agent’s own gross negligence or wilful misconduct.
	 	 
	16.13	Retirement of Agent
	 	 
	16.13.1	The Agent may, having given to the Borrowers
    and each of the Banks and the Swap Provider not less than fifteen (15) days’ notice of its intention to do so, retire
    from its appointment as Agent under this Agreement, provided that no such retirement shall take effect unless there has been
    appointed by the Banks and the Swap Provider as a successor agent:
	 	 
	 	(a)	a reputable and experienced bank nominated by the Borrowers
    and accepted by the Majority Banks in their reasonable discretion or, failing such nomination or acceptance,

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	 	(b)	a Related Company of the Agent nominated by the Agent which the Banks and the Swap Provider
    hereby irrevocably and unconditionally agree to appoint or, failing such nomination,
	 	 	 
	 	(c)	a Bank nominated by the Majority Banks or, failing
    such a nomination,
	 	 	 
	 	(d)	any reputable and experienced bank or financial institution
    nominated by the retiring Agent.
	 	 	 
	 	Any corporation into which the retiring Agent may be merged or converted or any
    corporation with which the Agent may be consolidated or any corporation resulting from any merger, conversion, amalgamation,
    consolidation or other reorganisation to which the Agent shall be a party shall, to the extent permitted by applicable law,
    be the successor Agent under this Agreement and the other Security Documents without the execution or filing of any document
    or any further act on the part of any of the parties to this Agreement and the other Security Documents save that notice of
    any such merger, conversion, amalgamation, consolidation or other reorganisation shall forthwith be given to each Security
    Party, the Banks and the Swap Provider. Prior to any such successor being appointed the Agent agrees to consult with the Borrowers
    as to the identity of the proposed successor.
	 	 
	16.13.2	Upon any such successor as aforesaid being
    appointed, the retiring Agent shall be discharged from any further obligation under the Security Documents (but shall continue
    to have the benefit of this clause 16 in respect of any action it has taken or refrained from taking prior to such discharge)
    and its successor and each of the other parties to this Agreement shall have the same rights and obligations among themselves
    as they would have had if such successor had been a party to this Agreement in place of the retiring Agent. The retiring Agent
    shall (at its own expense) provide its successor with copies of such of its records as its successor reasonably requires to
    carry out its functions under the Security Documents.
	 	 
	16.14	Appointment and retirement of Security Agent
	 	 
	16.14.1	Appointment
	 	 
	 	Each of the Banks, the Agent, the Arranger and the Swap Provider irrevocably appoints
    the Security Agent as its security agent and trustee for the purposes of this Agreement and the other Security Documents,
    in each case on the terms set out in this Agreement. By virtue of such appointment, each of the Banks, the Agent and the Swap
    Provider hereby authorises the Security Agent (whether or not by or through employees or agents) to take such action on its
    behalf and to exercise such rights, remedies, powers and discretions as are specifically delegated to the other Security Agent
    by this Agreement and/or the other Security Documents, together with such powers and discretions as are reasonably incidental
    thereto.
	 	 
	16.14.2	Retirement
	 	 
	 	Without prejudice to clause 16.13, the Security Agent may, having given to the
    Borrowers, the Agent, each of the Banks and the Swap Provider not less than fifteen (15) days’ notice of its intention
    to do so, retire from its appointment as Security Agent under this Agreement and any Trust Deed, provided that no such retirement
    shall take effect unless there has been appointed by the Banks, the Agent and the Swap Provider as a successor security agent
    and trustee:
	 	 
	 	(a)	a reputable and experienced bank nominated by the Borrowers
    and accepted by the Majority Banks in their reasonable discretion or, failing such nomination or acceptance,
	 	 	 
	 	(b)	a Related Company of the Security Agent nominated by
    the Security Agent which the Banks, the Agent, the Arranger and the Swap Provider hereby irrevocably and unconditionally agree
    to appoint or, failing such nomination,

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	 	(c)	a bank or trust corporation nominated by the Majority Banks or, failing such a nomination,
	 	 	 
	 	(d)	any bank or trust corporation nominated by the retiring
    Security Agent,
	 	 	 
	 	and, in any case, such successor security agent and trustee shall have duly accepted
    such appointment by delivering to the Agent (i) written confirmation (in a form acceptable to the Agent) of such acceptance
    agreeing to be bound by this Agreement in the capacity of Security Agent as if it had been an original party to this Agreement
    and (ii) a duly executed Trust Deed and (iii) such successor security agent and trustee shall have duly entered into, whether
    with the retiring Security Agent and/or with the Borrowers and/or with the Creditors or with any of them, such documents in
    connection with the Security Documents as the Agent shall require in its absolute discretion.
	 	 
	 	Any corporation into which the retiring Security Agent may be merged or converted
    or any corporation with which the Security Agent may be consolidated or any corporation resulting from any merger, conversion,
    amalgamation, consolidation or other reorganisation to which the Security Agent shall be a party shall, to the extent permitted
    by applicable law, be the successor Security Agent under this Agreement, any Trust Deed and the other Security Documents without
    the execution or filing of any document or any further act on the part of any of the parties to this Agreement, any Trust
    Deed and the other Security Documents save that notice of any such merger, conversion, amalgamation, consolidation or other
    reorganisation shall forthwith be given to each Security Party and the Banks and the Swap Provider. Prior to any such successor
    being appointed, the Security Agent agrees to consult with the Borrowers as to the identity of the proposed successor.
	 	 
	 	Upon any such successor as aforesaid being appointed, the retiring Security Agent
    shall be discharged from any further obligation under the Security Documents (but shall continue to have the benefit of this
    clause 16 in respect of any action it has taken or refrained from taking prior to such discharge) and its successor and
    each of the other parties to this Agreement shall have the same rights and obligations among themselves as they would have
    had if such successor had been a party to this Agreement in place of the retiring Security Agent. The retiring Security Agent
    shall (at the expense of the Borrowers) provide its successor with copies of such of its records as its successor reasonably
    requires to carry out its functions under the Security Documents.
	 	 
	16.15	Powers and duties of the Security Agent
	 	 
	16.15.1	The Security Agent shall have no duties,
    obligations or liabilities to any of the Banks, the Swap Provider, the Arranger and the Agent beyond those expressly stated
    in any of the Security Documents.  Each of the Agent, the Arranger, the Swap Provider and the Banks hereby authorises
    the Security Agent to enter into and execute:
	 	 
	 	(a)	each of the Security Documents to which the Security
    Agent is or is intended to be a party; and
	 	 	 
	 	(b)	any and all such other Security Documents as may be
    approved by the Agent in writing (acting on the instructions of the Majority Banks) for entry into by the Security Agent,
	 	 	 
	 	and, in each and every case, to hold any and all security thereby created upon
    trust for the Banks and the Agent in the manner contemplated by this Agreement.
	 	 
	16.15.2	Subject to clause 16.15.3 the Security
    Agent may, with the prior consent of the Majority Banks communicated in writing by the Agent, concur with any of the Security
    Parties to:
	 	 
	 	(a)	amend, modify or otherwise vary any provision of the
    Security Documents to which the Security Agent is or is intended to be a party; or

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	 	(b)	waive breaches of, or defaults under, or otherwise excuse performance of, any provision of
    the Security Documents to which the Security Agent is or is intended to be a party.
	 	 	 
	 	Any such action so authorised and effected by the Security Agent shall be promptly
    notified to the Banks, the Swap Provider, the Arranger and the Agent by the Security Agent and shall be binding on the other
    Creditors.
	 	 
	16.15.3	The Security Agent shall (subject to the
    other provisions of this clause 16) take such action or, as the case may be, refrain from taking such action, with respect
    to any of its rights, powers and discretions as security agent and trustee, as the Agent may direct.  Subject as
    provided in the foregoing provisions of this clause, unless and until the Security Agent shall have received such instructions
    from the Agent, the Security Agent may, but shall not be obliged to, take (or refrain from taking) such action under or pursuant
    to the Security Documents referred to in clause 16.14 as the Security Agent shall deem advisable in the best interests
    of the Creditors provided that (for the avoidance of doubt), to the extent that this clause might otherwise be construed
    as authorising the Security Agent to take, or refrain from taking, any action of the nature referred to in clause 16.15.2.
	 	 
	16.15.4	None of the Banks nor the Agent nor the
    Arranger nor the Swap Provider shall have any independent power to enforce any of the Security Documents referred to in clause 16.15.1
    or to exercise any rights, discretions or powers or to grant any consents or releases under or pursuant to such Security Documents
    or any of them or otherwise have direct recourse to the security and/or guarantees constituted by such Security Documents
    or any of them except through the Security Agent.
	 	 
	16.15.5	For the purpose of this clause 16,
    the Security Agent may, rely and act in reliance upon any information from time to time furnished to the Security Agent by
    the Agent (whether pursuant to clause 16.15.6 or otherwise) unless and until the same is superseded by further such information,
    so that the Security Agent shall have no liability or responsibility to any party as a consequence of placing reliance on
    and acting in reliance upon any such information unless the Security Agent has actual knowledge that such information is inaccurate
    or incorrect.
	 	 
	16.15.6	Without prejudice to the foregoing each
    of the Agent, the Swap Provider, the Arranger and the Banks (whether directly or through the Agent) shall provide the Security
    Agent with such written information as it may reasonably require for the purpose of carrying out its duties and obligations
    under the Security Documents referred to in clause 16.15.1.
	 	 
	16.15.7	Each Bank shall reimburse the Security
    Agent (rateably in accordance with such Bank’s Commitment or, after the first drawdown, Contribution), to the extent
    that the Security Agent is not reimbursed by the Borrowers, for the costs, charges and expenses incurred by the Security Agent
    which are expressed to be payable by the Borrowers under clause 5.2 including (in each case) the fees and expenses of legal
    or other professional advisers. Each Bank shall on demand indemnify the Security Agent (rateably in accordance with such Bank’s
    Commitment or, after the first drawdown, Contribution) against all liabilities, damages, costs and claims whatsoever incurred
    by the Security Agent in connection with any of the Security Documents or the performance of its duties under any of the Security
    Documents or any action taken or omitted by the Security Agent under any of the Security Documents, unless such liabilities,
    damages, costs or claims arise from the Security Agent’s own gross negligence or wilful misconduct.

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	16.16	Trust provisions

 

	16.16.1	In its capacity as trustee in relation to the Security Documents specified in clause 16.15.1, the
Security Agent shall, without prejudice to any of the powers, discretions and immunities conferred upon trustees by law (and to
the extent not inconsistent with the provisions of any of those Security Documents), have all the same powers and discretions as
a natural person acting as the beneficial owner of such property and/or as are conferred upon the Security Agent by any of those
Security Documents.

 

	16.16.2	It is expressly declared that, in its capacity as trustee in relation to the Security Documents
specified in clause 16.15.1, the Security Agent shall be entitled to invest moneys forming part of the security and which, in the
opinion of the Security Agent, may not be paid out promptly following receipt in the name or under the control of the Security
Agent in any of the investments for the time being authorised by law for the investment by trustees of trust moneys or in any other
property or investments whether similar to the aforesaid or not or by placing the same on deposit in the name or under the control
of the Security Agent as the Security Agent may think fit without being under any duty to diversify its investments and the Security
Agent may at any time vary or transpose any such property or investments for or into any others of a like nature and shall not
be responsible for any loss due to depreciation in value or otherwise of such property or investments. Any investment of any part
or all of the security may, at the discretion of the Security Agent, be made or retained in the names of nominees.

 

	16.17	Independent action by Creditors

 

None of the Creditors shall
enforce, exercise any rights, remedies or powers or grant any consents or releases under or pursuant to, or otherwise have a direct
recourse to the security and/or guarantees constituted by any of the Security Documents without the prior written consent of the
Majority Banks but, Provided such consent has been obtained, it shall not be necessary for any other Creditor to be joined as an
additional party in any proceedings for this purpose.

 

	16.18	Common Agent and Security Agent

 

The Agent and the Security Agent
have entered into the Security Documents in their separate capacities (a) as agent for the Banks, the Arranger and the Swap Provider
under and pursuant to this Agreement (in the case of the Agent) and (b) as security agent and trustee for the Banks, the Agent,
the Arranger and the Swap Provider under and pursuant to this Agreement, to hold the guarantees and/or security created by the
Security Documents specified in clause 16.15.1 on the terms set out in such Security Documents (in the case of the Security Agent).
However, from time to time the Agent and the Security Agent may be the same entity. When the Agent and the Security Agent are the
same entity and any Security Document provides for the Agent to communicate with or provide instructions to the Security Agent
(and vice versa), it will not be necessary for there to be any such formal communications or instructions on those occasions.

 

	16.19	Co-operation to achieve agreed priorities of application

 

The Banks, the Swap Provider,
the Arranger and the Agent shall co-operate with each other and with the Security Agent and any receiver under the Security Documents
in realising the property and assets subject to the Security Documents and in ensuring that the net proceeds realised under the
Security Documents after deduction of the expenses of realisation are applied in accordance with clause 13.1.

 

	16.20	Prompt distribution of proceeds

 

Moneys received by any of the
Creditors (whether from a receiver or otherwise) pursuant to the exercise of (or otherwise by virtue of the existence of) any rights
and powers under or pursuant to any of the Security Documents shall (after providing for all costs, charges, expenses and liabilities
and other payments ranking in priority) be paid to the Agent for

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distribution (in the case of moneys so received by any of the
Creditors other than the Agent or the Security Agent), and shall be distributed by the Agent or, as the case may be, the Security
Agent (in the case of moneys so received by the Agent or, as the case may be, the Security Agent), in each case in accordance with
clause 13.1. The Agent or, as the case may be, the Security Agent shall make each such application and/or distribution as soon
as is practicable after the relevant moneys are received by, or otherwise become available to, the Agent or, as the case may be,
the Security Agent save that (without prejudice to any other provision contained in any of the Security Documents) the Agent or,
as the case may be, the Security Agent (acting on the instructions of the Majority Banks) or any receiver may credit any moneys
received by it to a suspense account for so long and in such manner as the Agent or such receiver may from time to time determine
with a view to preserving the rights of the Agent and/or the Security Agent and/or the Arranger and/or the Account Bank and/or
the Banks and/or the Swap Provider or any of them to prove for the whole of their respective claims against the Borrowers or any
other person liable.

 

	17	Notices
                                                                        and other matters

 

	17.1	Notices

 

Every notice, request, demand
or other communication under this Agreement or (unless otherwise provided therein) under any of the other Security Documents shall:

 

	17.1.1	be in writing delivered personally or by first-class prepaid letter (airmail if available) or facsimile
transmission or other means of telecommunication in permanent written form;

 

	17.1.2	be deemed to have been received, subject as otherwise provided in the relevant Security Document,
in the case of a letter, when delivered personally or three (3) days after it has been put in to the post and, in the case of a
facsimile transmission or other means of telecommunication in permanent written form, at the time of despatch (provided that if
the date of despatch is not a business day in the country of the addressee or if the time of despatch is after the close of business
in the country of the addressee it shall be deemed to have been received at the opening of business on the next such business day);
and

 

	17.1.3	be sent (subject to clause 17.2 herein):

 

		(a)	if to the Borrowers or any of them at:

 

c/o Costamare Inc.

c/o Costamare Shipping Company
S.A.

60 Zephyrou Street & Syngrou
Avenue

Athens 175 64

Greece

 

	 	Fax no:	+30 210 9409 051
	 	Attn:	CFO (of Costamare Inc.)

 

		(b)	if to the Agent, the Arranger, the Security Agent or the Account Bank, at:

 

DnB NOR Bank ASA

20 St. Dunstan’s Hill

London EC3R 8HY

England

 

		Fax No:	+44 207 626 5956
		Attention:	Shipping, Offshore and Logistics

 

		(c)	if to a Bank, to its address or fax number specified in schedule 1 or, in the case of a Transferee
Bank, in any relevant Transfer Certificate; or

 

		(d)	if to the Swap Provider, to its address or fax number specified in paragraph (a) of Part 4 of the
schedule to the Master Swap Agreement,

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or to such other address and/or
numbers as is notified by one party to the other parties under this Agreement.

 

	17.2	Notices through the Agent

 

Every notice, request, demand
or other communication under this Agreement or (unless otherwise provided therein) any other Security Document to be given by the
Borrowers or any of them to any other party (other than the Swap Provider), shall be given to the Agent for onward transmission
as appropriate and if such notice, request, demand or other communication is to be given to the Borrowers it shall (except otherwise
provided in the Security Documents) be given to the Agent for onward transmission to the Borrowers.

 

	17.3	No implied waivers, remedies cumulative

 

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

 

	17.4	English language

 

All certificates, instruments
and other documents to be delivered under or supplied in connection with any of the Security Documents shall be in the English
language or shall be accompanied by a certified English translation upon which the Creditors or any of them shall be entitled to
rely.

 

	17.5	Borrowers’ obligations

 

	17.5.1	Joint and several

 

Notwithstanding anything to the
contrary contained in any of the Security Documents, the agreements, obligations and liabilities of the Borrowers herein contained
are joint and several and shall be construed accordingly. Each of the Borrowers agrees and consents to be bound by the Security
Documents to which it is, or is to be, a party notwithstanding that the other Borrowers which are intended to sign or to be bound
may not do so or be effectually bound and notwithstanding that any of the Security Documents may be invalid or unenforceable against
the other Borrowers, whether or not the deficiency is known to any of the Creditors.

 

	17.5.2	Borrowers as principal debtors

 

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

 

	17.5.3	Indemnity

 

The Borrowers hereby agree jointly
and severally to keep the Creditors fully indemnified on demand against all damages, losses, costs and expenses arising from any
failure of any Borrower to perform or discharge any purported obligation or liability of the other Borrowers which would have been
the subject of this Agreement or any other Security Document had it been valid and enforceable and which is not or ceases to be
valid and enforceable against the other Borrowers on any ground whatsoever, whether or not known to a Creditor including, without
limitation, any irregular exercise or absence of any corporate power or lack of authority of, or breach of duty by, any person
purporting to act on behalf of the other Borrowers (or any legal or other limitation, whether under the Limitation Acts or otherwise
or any disability or death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution, winding up, administration,
receivership, amalgamation, reconstruction or any 

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other incapacity of any person whatsoever (including, in the case of a partnership,
a termination or change in the composition of the partnership) or any change of name or style or constitution of any Security Party)).

 

	17.5.4	Liability unconditional

 

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

 

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

 

	 	(b)	the Agent or the Security Agent (acting on the instructions of the Majority Banks) granting any
time, indulgence or concession to, or compounding with, discharging, releasing or varying the liability of, any Borrower or any
other person liable or renewing, determining, varying or increasing any accommodation, facility or transaction or otherwise dealing
with the same in any manner whatsoever or concurring in, accepting, varying any compromise, arrangement or settlement or omitting
to claim or enforce payment from any Borrower or any other person liable; or

 

		(c)	anything done or omitted which but for this provision might operate to exonerate the Borrowers
or any of them.

 

	17.5.5	Recourse to other security

 

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

 

	17.5.6	Waiver of Borrowers’ rights

 

Each Borrower agrees with each
Creditor that, from the date of this Agreement and so long as any moneys are owing under any of the Security Documents and while
all or any part of the Total Commitment remains outstanding, it will not, without the prior written consent of the Agent (acting
on the instructions of the Majority Banks):

 

		(a)	exercise any right of subrogation, reimbursement and indemnity against the other Borrowers or any
other person liable under the Security Documents;

 

		(b)	demand or accept repayment in whole or in part of any Indebtedness now or hereafter due to such
Borrower from the other Borrowers or from any other person liable or demand or accept any guarantee, indemnity or other assurance
against financial loss or any document or instrument created or evidencing an Encumbrance in respect of the same or dispose of
the same;

 

		(c)	take any steps to enforce any right against the other Borrowers or any other person liable in respect
of any such moneys; or

 

		(d)	claim any set-off or counterclaim against the other Borrowers or any other person liable or claiming
or proving in competition with any Creditor in the liquidation of the other Borrowers or any other person liable or have the benefit
of, or share in, any payment from or composition with, the other Borrowers or any other person liable or any other Security Document
now or hereafter held by any Creditor for any moneys owing under this Agreement or for the obligations or liabilities of any other
person 

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	 	 	liable but so that, if so directed by the Agent, it will prove for the whole or any part of its claim in the liquidation
of the other Borrowers or other person liable on terms that the benefit of such proof and all money received by it in respect thereof
shall be held on trust for the Banks and applied in or towards discharge of any moneys owing under this Agreement in such manner
as the Agent (acting on the instructions of the Majority Banks) shall deem appropriate.

 

	17.6	Counterparts

 

This Agreement may be executed in any number
of counterparts each of which shall be original but which shall together constitute the same instrument.

 

	18	Governing
                                                                        law and jurisdiction

 

	18.1	Law

 

This Agreement and any non-contractual
obligations connected with it are governed by, and shall be construed in accordance with, English law.

 

	18.2	Submission to jurisdiction

 

The Borrowers jointly and severally
agree, for the benefit of each Creditor, that any legal action or proceedings arising out of or in connection with this Agreement
(including any non-contractual obligations connected with this Agreement) against the Borrowers or any of them or any of their
assets may be brought in the English courts. Each of the Borrowers irrevocably and unconditionally submits to the jurisdiction
of such courts and irrevocably designates, appoints and empowers Mr Richard Coleman c/o H. Clarkson and Co. Ltd. at present of
3 Lower Thames Street, London EC3R 6HE, England to receive, for it and on its behalf, service of process issued out of the courts
of England in any such legal action or proceedings and, in the event that such individual passes away or cannot be found, each
of the Borrowers hereby undertakes (and each of the Borrowers hereby irrevocably and unconditionally authorises the Agent (for
and on behalf of each Creditor) to do so) to designate, appoint and empower on its behalf, Messrs Saville & Co. at their then
principal place of business in London as substitute process agents of Mr Richard Coleman for the purposes of this clause. The submission
to such jurisdiction shall not (and shall not be construed so as to) limit the right of a Creditor to take proceedings against
the Borrowers or any of them in the courts of any other competent jurisdiction nor shall the taking of proceedings in any one or
more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not.

 

The parties further agree that
only the courts of England and not those of any other State shall have jurisdiction to determine any claim which the Borrowers
or any of them may have against any Creditor arising out of or in connection with this Agreement (including any non-contractual
obligations connected with this Agreement).

 

	18.3	Contracts (Rights of Third Parties) Act 1999

 

No term of this Agreement is
enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

 

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

    	76

    	

    

Schedule 1

The Banks and their Commitments

 

	Name	 	Lending office and contact 

details	 	Commitment

 Sub-Tranche A 
($)	 	Commitment

 Sub-Tranche B 
($)
	DnB NOR Bank ASA 	 	20 St. Dunstan’s Hill 
London EC3R 8HY 
England 
  
Fax:+44 207 626 5956 
Attn:Shipping, Offshore and Logistics 	 	20,000,000	 	38,200,000
	 	 	 	 	 	 	 
	Cathay United Bank 	 	3F, No. 65, Guan Chien Rd., Tapei,

 Taiwan R.O.C
  
 Fax:
+886 2 23703794 
 Attn: Janet Huang

	 	20,000,000 	 	N/A 

    	77

    	

    

	Name	 	Lending office and contact 

details	 	Commitment

 Sub-Tranche A 
($)	 	Commitment

 Sub-Tranche B 
($)
	Chinatrust Commercial Bank	 	3F., No. 3, Songshou Rd, Sinyi District,

 Tapei City 110, Taiwan R.O.C
  
 Fax: +886 2 27239114

Attn: Miranda Huang

	 	10,000,000	 	N/A 
	 	 	 	 	 	 	 
	Hua Nan Commercial Bank, Ltd., Offshore Banking Branch 	 	38, Sec. 1, Chung-King South rd, Tapei, R.O.C.
  
 Fax: +886 2 23817491

Attn: Zosia Peng/Bonnie Tung

	 	10,000,000	 	N/A 
	 	 	 	 	 	 	 
	Land Bank of Taiwan, Offshore Banking Branch 	 	6F, 53, Huaining St. 
 Taipei 10046, Taiwan 
  
Fax: +886 2 2371 1359   
Attn: Shih Wang-Ping, Kevin Yang 	 	10,000,000	 	N/A
	 	 	 	 	 	 	 
	MEGA International Commercial Bank Co., Ltd., Offshore Banking Branch 	 	10th FL, 100, Chi Lin Road, Taipei,

 Taiwan, R.O.C.
 
Fax no: + 886 2 2563 7138
Attn: Judy Lin 	 	44,600,000	 	N/A
	 	 	 	 	 	 	 
	TOTAL COMMITMENT	 	152,800,000

    	78

    	

    

Schedule 2

Form of Drawdown Notice

 

Form of Drawdown Notice

 

(referred to in clause 2.4)

 

	To:	DnB NOR Bank ASA
	 	20 St Dunstan’s Hill
	 	London EC3R 8HY
	 	England
	 	(as Agent)

[·]
20[·]

 

US$152,800,000 Loan Facility

 

Facility Agreement dated [        ] 2011 (the
“Facility Agreement”)

 

We refer to the Facility Agreement and hereby
give you notice that we wish to draw down the [·] Advance[s] namely $[·]
on [·] 20[·] and select [a first Interest
Period in respect thereof of [·] months] [the first interest period in respect hereof
to expire on [·] 200[·]]. The funds
should be credited to [provide Builder’s bank details and SWIFT address].

 

We confirm that:

 

	(a)	no event or circumstance has occurred and is continuing which constitutes a Default;

 

	(b)	the representations and warranties contained in (i) clauses 7.1, 7.2 and 7.3(b) of the Facility
Agreement and (ii) clause 4 of the Corporate Guarantee, are true and correct at the date hereof as if made with respect to the
facts and circumstances existing at such date;

 

	(c)	the borrowing to be effected by the drawdown of such Advance[s] will be within our corporate powers,
has been validly authorised by appropriate corporate action and will not cause any limit on our borrowings (whether imposed by
statute, regulation, agreement or otherwise) to be exceeded;

 

	(d)	no event has occurred or any other circumstances arisen or developed including, without limitation,
a material adverse change in the financial position, state of affairs or prospects of any Security Party in light of which there
is a significant risk that the Corporate Guarantor or any Borrower or any other Security Party is, or will later become, unable
to discharge its liabilities under the Security Documents as they fall due; and

 

	(e)	the said Advance[s] will be used for our own benefit and under our full responsibility and exclusively
for the purpose specified in clauses 1.1 and 2.5 of the Facility Agreement.

 

Words and expressions defined in the Facility
Agreement shall have the same meanings where used herein.

 

 

For and on behalf of each of

RAYMOND SHIPPING CO.

TERANCE SHIPPING CO.

    	79

    	

    

Schedule 3

Documents and evidence required as conditions precedent

 

(referred to in clause 9.1)

 

Part 1

 

	1	Constitutional
                                                                       documents

 

Copies, certified by legal counsel
of each Security Party as true, complete and up to date copies of all documents which contain or establish or relate to the constitution
of that Security Party;

 

	2	Corporate
                                                                       authorisations

 

copies of resolutions of the
directors of each Security Party and stockholders of each Security Party (other than the Corporate Guarantor) approving such of
the Underlying Documents and the Security Documents to which such Security Party is, or is to be, party and authorising the signature,
delivery and performance of such Security Party’s obligations thereunder, certified (in a certificate dated no earlier than
five (5) Banking Days prior to the date of this Agreement) by an officer of such Security Party as:

 

		(a)	being true and correct;

 

		(b)	being duly passed at meetings of the directors of such Security Party and, where applicable, of
the stockholders of such Security Party duly convened and held;

 

		(c)	not having been amended, modified or revoked; and

 

		(d)	being in full force and effect,

 

together with originals or certified
copies of any powers of attorney issued by any Security Party pursuant to such resolutions;

 

	3	Specimen
                                                                       signatures

 

copies of the signatures of
the persons who have been authorised on behalf of each Security Party to sign such of the Underlying Documents and the Security
Documents to which such Security Party is, or is to be, party and to give notices and communications, including notices of drawing,
under or in connection with the Security Documents, certified (in a certificate dated no earlier than five (5) Banking Days prior
to the date of this Agreement) by an officer of such Security Party as being the true signatures of such persons;

 

	4	Certificate
                                                                       of incumbency

 

a list of directors and officers
of each Security Party specifying the names and positions of such persons, certified (in a certificate dated no earlier than five
(5) Banking Days prior to the date of this Agreement) by an officer of such Security Party to be true, complete and up to date;

 

	5	“KYC”

 

such documentation and other
evidence as is reasonably requested by the Agent, in order for each Creditor to carry out and be satisfied with the results of
all necessary “know your client” or other checks which it is required to carry out in relation to the transactions
contemplated by this Agreement and the other Security Documents and to the identity of any parties to the Security Documents (other
than the Creditors) and their directors and officers;

    	80

    	

    

	6	Contracts
                                                                       and Charters; Standard Form

 

		(a)	a copy, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date
of this Agreement) as a true and complete copy by legal counsel to the Borrowers, of each of the Contracts and the Charters; and

 

		(b)	the Standard Form has been submitted by the Borrowers to the Agent;

 

	7	Charter
                                                                       terms

 

evidence that each Charter:

 

		(a)	has a term of at least five (5) years from delivery (with an extension option of 1 + 1 years at
the option of either the Charterer or the relevant Borrower) of the relevant Ship to the Charterer under the relevant Charter;
and

 

		(b)	provides for a minimum net daily charterhire in the amount of not less than $41,700 per day payable
throughout the charter term; and

 

		(c)	is governed by English law, subject to English arbitration and freely assignable to the Security
Agent;

 

	8	Refund
                                                                       Guarantees

 

the original of the Refund Guarantee
in respect of each Contract, in respect of all the instalments payable thereunder (or, if sent by swift, such Refund Guarantee
sent by swift to the Agent);

 

	9	Security
                                                                       Documents

 

		(a)	the Corporate Guarantee, the Fee Letters, the Pre-delivery Security Assignments, the Master Swap
Agreement, the Swap Assignment, the Operating Account Assignments, the Charter Assignments, the Charter Guarantee Assignments and
the Trust Deed, each duly executed by the parties thereto;

 

		(b)	the notices of assignment in respect of each Refund Guarantee for each Contract, and the notices
of assignment in respect of each Contract, each duly executed by the relevant Borrower in the forms prescribed by the Pre-delivery
Security Assignments;

 

		(c)	the notice of assignment of each Charter under each Charter Assignment, in the form prescribed
thereunder, each duly executed by the relevant Borrower; and

 

		(d)	the notice of assignment of each Charter Guarantee under each Charter Guarantee Assignment, in
the form prescribed thereunder, each duly executed by the relevant Borrower.

 

	10	Operating
                                                                        Accounts

 

evidence that the Operating
Accounts have been opened and duly completed mandate forms in respect thereof have been delivered to the Agent;

 

	11	Fees
                                                                        and commissions

 

evidence that any fees and commissions
due under clause 5.1 have been paid in full;

 

	12	Financial
                                                                        statements

 

a certified true copy of the
audited consolidated financial statements of the Corporate Guarantor for the financial year ended 31 December 2010;

    	81

    	

    

	13	Borrowers’
                                                                        process agent

 

a letter from each Borrower’s
agent for receipt of service of proceedings referred to in clause 18.2 accepting its appointment under the said clause and under
each of the other Security Documents in which it is or is to be appointed as such Borrower’s agent and referred to in this
Part 1;

 

	14	Security
                                                                        Parties’ process agent

 

a letter from each Security
Party’s agent for receipt of service of proceedings referred to in each of the Security Documents to which such Security
Party is a party and referred to in this Part 1 accepting its appointment under each such Security Document;

 

	15	Liberian
                                                                        opinion

 

an opinion of Poles, Tublin,
Stratakis & Gonzalez, LLP, legal advisers on matters of Liberian law to the Agent;

 

	16	Korean
                                                                        opinion

 

an opinion of Kim & Chang
legal advisers on matters of Korean law to the Agent;

 

	17	Marshall
                                                                        Islands opinion

 

an opinion of Poles, Tublin,
Stratakis & Gonzalez, LLP, legal advisers on matters of Marshall Islands law to the Agent;

 

	18	English
                                                                        opinion

 

an opinion of Stephenson Harwood,
legal advisers on matters of English law to the Agent; and

 

	19	Further
                                                                        conditions

 

any such further conditions,
documents or opinions as may be reasonably required by the Agent.

    	82

    	

    

Part 2

 

	1	Drawdown
                                                                       Notice

 

The Drawdown Notice in respect
of the relevant first, second, or, as the case may be, third Contract Instalment Advance to be drawn down in respect of a Ship
(for the purposes of this Part 2 only, the “Relevant Advance”), duly executed;

 

	2	No
                                                                       claim

 

if required by the Agent, a
written confirmation from the Corporate Guarantor that neither the Builder nor any other party who may have a claim pursuant to
the Contract to which the Relevant Advance relates has any claims against the Ship or the Borrower relating to the Relevant Advance
and that there have been no breaches of the terms of such Contract or any relevant Refund Guarantee or any default thereunder;

 

	3	Invoices

 

an invoice or notification from
the Builder demanding the payment of the “1st Instalment”, the “2nd Instalment” or, as the case may be,
the “3rd Instalment” payable under the Contract in respect of the Ship to which the Relevant Advance relates;

 

	4	Refund
                                                                       Guarantee matters

 

		(a)	the original of the Refund Guarantee in respect of all of the pre-delivery instalments of the Contract
Price for the Ship to which the relevant Advance relates (or, if sent by swift, such Refund Guarantee sent by swift to the Agent);
and

 

		(b)	the notice of assignment in respect of such Refund Guarantee, duly executed by the relevant Borrower
in the form prescribed in the relevant Pre-delivery Security Assignment;

 

	5	Class
                                                                       confirmation

 

evidence from the Classification
Society that:

 

		(a)	the cutting of the first steel plate of the Ship to which the Relevant Advance relates has been
completed at the Builder’s workshop (in the event that the Relevant Advance is the second Contract Instalment Advance for
that Ship); or

 

		(b)	the first section of keel of the Ship to which the Relevant Advance relates has been laid at the
Builder’s drydock (in the event that the Relevant Advance is the third Contract Instalment Advance for that Ship);

 

	6	Equity

 

evidence that any part of the
relevant instalment of the Contract Price payable to the Builder in respect of that Ship, which is not being funded by the Relevant
Advance pursuant to this Agreement has been deposited (not later than three (3) Banking Days before the proposed Drawdown Date
of the Relevant Advance) with the Agent for further payment to the Builder; and

    	83

    	

    

	7	Further
                                                                       conditions

 

any such further conditions,
documents or evidence as may be reasonably required by the Agent.

    	84

    	

    

Part 3

 

	1	Drawdown
                                                                       Notice

 

The Drawdown Notice in respect
of the relevant Delivery Advance (for the purposes of this Part 3 only, the “Relevant Advance”), duly executed;

 

	2	Updated
                                                                       corporate authorisations/certificates of incumbency

 

a list of directors and officers
of each Security Party specifying the names and positions of such persons and copies of the signatures of the persons who have
been authorised on behalf of each Security Party to sign such of the Security Documents to which such Security Party is, or is
to be, party and referred to in this Part 3 in respect of the Relevant Advance, and to give notices and communications, including
notices of drawing, under or in connection with the Security Documents, certified by legal counsel of such Security Party to be,
in the case of the list of directors, true, complete and up to date and, in the case of the specimen signatures, true signatures
of such persons or a certificate by an officer of such Security Party that the list provided in respect of that Security Party
pursuant to paragraph 4 of Part 1 of this schedule and that the specimen signatures provided in respect of the Security Party pursuant
to paragraph 3 of Part 1 of this schedule remain true, complete and up to date;

 

	3	Constitutional
                                                                       documents

 

copies, certified by legal counsel
of the relevant Manager(s) of the Ship to which the Relevant Advance relates, as true, complete and up to date copies of all documents
which contain or establish or relate to the constitution of each such Manager;

 

	4	Corporate
                                                                       authorisations

 

copies of resolutions of the
directors and also (but only if required by law in the opinion of the Agent’s legal counsel on matters of laws of the country
of incorporation of the relevant Manager) of the stockholders of the relevant Manager(s) of the Ship to which the Relevant Advance
relates, approving such of the Underlying Documents and any Manager’s Undertakings in respect of that Ship to which each
such Manager is, or is to be, a party and authorising the signature, delivery and performance of each such Manager’s obligations
thereunder, certified by legal counsel of each Manager as:

 

	4.1	being true and correct;

 

	4.2	being duly passed at meetings of the directors of that Manager
and, if applicable, of the stockholders of that Manager, each duly convened and held;

 

	4.3	not having been amended, modified or revoked; and

 

	4.4	being in full force and effect,

 

together with originals or certified
copies of any powers of attorney issued by that Manager pursuant to such resolutions;

 

	5	Certificate
                                                                       of incumbency

 

a list of directors and officers
of the relevant Manager(s) of the Ship to which the Relevant Advance relates specifying the names and positions of such persons,
certified by an officer of each such Manager to be true, complete and up to date;

    	85

    	

    

	6	Consents
                                                                       and approvals

 

a certificate from an officer
of the relevant Manager(s) of the Ship to which the Relevant Advance relates that no consents, authorisations, licences or approvals
are necessary for each such Manager to execute, deliver and perform any Manager’s Undertaking in respect of that Ship to
which it is a party;

 

	7	Ship
                                                                       conditions

 

evidence that the Ship to which
the Relevant Advance relates:

 

	7.1	Registration and Encumbrances

 

is registered in the name of
the relevant Borrower through the relevant Registry under the laws and flag of the relevant Flag State and that such Ship and its
Earnings, Insurances and Requisition Compensation are free of Encumbrances; and

 

	7.2	Classification

 

maintains the relevant Classification
free of all overdue requirements and recommendations of the relevant Classification Society; and

 

	7.3	Insurance

 

is insured in accordance with
the provisions of the relevant Ship Security Documents and all requirements of the Security Documents in respect of such insurance
have been complied with (including without limitation, confirmation from the protection and indemnity association or other insurer
with which such Ship is, or is to be, entered for insurance or insured against protection and indemnity risks (including oil pollution
risks) that any necessary declarations required by the association or insurer for the removal of any oil pollution exclusion have
been made and that any such exclusion does not apply to such Ship); and

 

	7.4	Delivery under Charter

 

has been delivered to the Charterer
for service under the relevant Charter (such evidence, if not practicable to be provided by the Charterer, to be in the form of
a written confirmation by the Borrowers);

 

	8	Title
                                                                       and no Encumbrances

 

evidence that the transfer of
title to the Ship to which the Relevant Advance relates from the Builder to the relevant Borrower has been duly recorded with the
relevant Registry free from Encumbrances other than Permitted Encumbrances;

 

	9	Fees
                                                                       and commissions

 

payment of any fees and commissions
due from the Borrowers to any of the Creditors pursuant to the terms of clause 5.1 or any other provision of the Security Documents;

 

	10	Delivery
                                                                        documents

 

		(a)	a commercial invoice or any other similar document issued by the Builder to the relevant Borrower
in respect of the amount of the Contract Price in respect of the Ship to which the Relevant Advance relates, evidencing the payment
in full of such Contract Price; and

 

		(b)	copies of all the delivery documents to be exchanged between the Builder and the relevant Borrower
under the relevant Contract on Delivery of such Ship, including, without limitation, the bill of sale, the builder’s certificate,
the protocol of delivery and acceptance and the declaration of warranty;

    	86

    	

    

	11	Class
                                                                        confirmation

 

evidence from the relevant Classification
Society that the Ship to which the Relevant Advance relates has been completed to its satisfaction;

 

	12	Security
                                                                        Documents

 

the Mortgage, the Deed of Covenant
(if applicable), the General Assignment and the Manager’s Undertaking(s) in respect of the Ship to which the Relevant Advance
relates, each duly executed and delivered;

 

	13	Mortgage
                                                                        registration

 

evidence that the Mortgage in
respect of the Ship to which the Relevant Advance relates has been registered against such Ship through the relevant Registry under
the laws and flag of the relevant Flag State;

 

	14	Notices
                                                                        of assignment

 

duly executed notices of assignment
in the forms prescribed by the Ship Security Documents for the Ship to which the Relevant Advance relates;

 

	15	Insurance
                                                                        opinion

 

an opinion from insurance consultants
to the Agent in form and substance satisfactory to the Agent and made at the cost and expense of the Borrowers, on the insurances
effected or to be effected in respect of the Ship to which the Relevant Advance relates, upon and following the Delivery Date of
such Ship;

 

	16	Borrowers’
                                                                        process agent

 

a letter from the relevant Borrower’s
agent for receipt of service of proceedings referred to in each of the relevant Mortgage and/or the Deed of Covenant and the General
Assignment for the Ship to which the Relevant Advance relates and in which it is or is to be appointed as that Borrower’s
agent accepting its appointment under each such document;

 

	17	Security
                                                                        Parties’ process agent

 

a letter from each Security
Party’s and each Manager’s agent for receipt of service of proceedings referred to in each Security Document and Manager’s
Undertaking to which the relevant Security Party and relevant Manager is a party and which is referred to in this Part 3 in respect
of the Relevant Advance, accepting its appointment under each of the relevant Security Documents and the relevant Manager’s
Undertaking(s);

 

	18	Management
                                                                        Agreement

 

a copy, certified as a true
and complete copy by an officer of the relevant Borrower, of each Management Agreement for the Ship to which the Relevant Advance
relates;

 

	19	DOC
                                                                        and application for SMC

 

a certified copy of the DOC
and either (i) a certified copy of the SMC for the Ship to which the Relevant Advance relates or (ii) evidence satisfactory to
the Agent that the Operator has applied for an SMC for such Ship;

 

	20	ISPS
                                                                        Code compliance

    	87

    	

    

		(a)	evidence satisfactory to the Agent that the Ship to which the Relevant Advance relates is subject
to a ship security plan which complies with the ISPS Code; and

 

		(b)	a copy, certified (in a certificate dated no earlier than five (5) Banking Days prior to the Delivery
Date of such Ship) as a true and complete copy by an officer of the relevant Borrower of the ISSC for such Ship;

 

	21	Liberian
                                                                        opinion

 

an opinion of Poles, Tublin,
Stratakis & Gonzalez, LLP, legal advisers on matters of Liberian law to the Agent;

 

	22	English
                                                                        opinion

 

an opinion of Stephenson Harwood,
legal advisers on matters of English law to the Agent;

 

	23	Manager’s
                                                                        opinion

 

an opinion of legal advisers
to the Agent on matters of the laws of the jurisdiction of incorporation of the relevant Manager(s) for the Ship to which the relevant
Advance relates;

 

	24	Flag
                                                                        State opinion

 

an opinion of legal advisers
to the Agent on matters of the laws of the Flag State for the Ship to which the Relevant Advance relates; and

 

	25	Further
                                                                        conditions

 

such other conditions, documents
or evidence, if any, as may be reasonably required by the Agent.

    	88

    	

    

Schedule 4

Form of Transfer Certificate

 

(refer to in clause
15.3)

 

TRANSFER CERTIFICATE

 

Banks are advised not to employ
Transfer Certificates or otherwise to assign or transfer interests in the Facility Agreement without further ensuring that the
transaction complies with all applicable laws and regulations, including the Financial Services and Markets Act 2000 and regulations
made thereunder and similar statutes which may be in force in other jurisdictions

 

	To:	DNB NOR BANK ASA as agent on its own behalf and on behalf of the Borrowers, the Banks, the
Account Bank, the Security Agent, the Arranger and the Swap Provider defined in the Facility Agreement referred to below.

 

[Date]

 

Attention:[·]

 

This certificate (“Transfer
Certificate”) relates to a facility agreement dated [    ] 2011 (the “Facility Agreement”) and made between
(1) Raymond Shipping Co., and Terance Shipping Co. (the “Borrowers”), (2) the banks and financial institutions
referred to therein as lenders (the “Banks”), (3) DnB NOR Bank ASA as Agent, Security Agent, Arranger and Account
Bank and (4) DnB NOR Bank ASA as swap provider, in relation to a loan facility of up to one hundred and fifty two million eight
hundred thousand Dollars ($152,800,000). Terms defined in the Facility Agreement shall, unless otherwise defined herein, have the
same meanings herein as therein.

 

In this Certificate:

 

the “Transferor”
means [full name] of [lending office]; and

 

the “Transferee”
means [full name] of [lending office].

 

		1	 	The Transferor with full title guarantee assigns to the Transferee
absolutely all rights and interests (present, future or contingent) which the Transferor has as a Bank under or by virtue of the
Facility Agreement and all the Security Documents in relation to [    ] per centum ([    ]%) of the [Contribution] [Commitment] of the
Transferor (or its predecessors in title), details of which are set out below:

 

	
        Date of

 Advance[s]

        
	 	
        Amount of

 Advance[s] 

        
	 	
        Transferor’s

[Contribution]

[Commitment]

to Advance[s] 

        
	 	
        Maturity Date

        
	 

 

		2	 	By virtue of this Transfer Certificate and clause 15 of
the Facility Agreement, the Transferor is discharged [entirely from its [Contribution] [Commitment] [which amounts to $[          ]]
[from [    ] per centum ([    ]%) of its [Contribution] [Commitment], which percentage represents $[         ]].

    	89

    	

    

		3	 	The
                                                                 Transferee hereby requests the Agent (on behalf of itself, the
                                                                 Borrowers, the Account Bank, the Arranger, the Security Agent,
                                                                 the Swap Provider and the Banks) to accept the executed copies
                                                                 of this Transfer Certificate as being delivered pursuant to and
                                                                 for the purposes of clause 15.3 of the Facility Agreement
                                                                 so as to take effect in accordance with the terms thereof on
                                                                 [date of transfer].

 

		4	 	The Transferee:

 

		4.1	 	confirms that it has received a copy of the Facility Agreement
and the other Security Documents together with such other documents and information as it has required in connection with the transaction
contemplated thereby;

 

		4.2	 	confirms that it has not relied and will not hereafter rely on
the Transferor, the Agent, the Arranger, the Account Bank, the Banks, the Swap Provider or the Security Agent to check or enquire
on its behalf into the legality, validity, effectiveness, adequacy, accuracy or completeness of the Facility Agreement, any of
the Security Documents or any such documents or information;

 

		4.3	 	agrees that it has not relied and will not rely on the Transferor,
the Agent, the Arranger, the Account Bank, the Banks, the Swap Provider or the Security Agent to assess or keep under review on
its behalf the financial condition, creditworthiness, condition, affairs, status or nature of the Borrowers, or any other Security
Party (save as otherwise expressly provided therein);

 

		4.4	 	warrants that it has power and authority to become a party to
the Facility Agreement and has taken all necessary action to authorise execution of this Transfer Certificate and to obtain all
necessary approvals and consents to the assumption of its obligations under the Facility Agreement and the Security Documents;
and

 

		4.5	 	if not already a Bank, appoints (i) the Agent to act as its agent
and (ii) the Security Agent to act as its security agent and trustee, as provided in the Facility Agreement and the Security Documents
and agrees to be bound by the terms of the Facility Agreement and the Security Documents.

 

		5	 	The Transferor:

 

		5.1	 	warrants to the Transferee that it has full power to enter into
this Transfer Certificate and has taken all corporate action necessary to authorise it to do so;

 

		5.2	 	warrants to the Transferee that this Transfer Certificate is
binding on the Transferor under the laws of England, the country in which the Transferor is incorporated and the country in which
its lending office is located; and

 

		5.3	 	agrees that it 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 Transfer
Certificate or for a similar purpose.

 

		6	 	The Transferee hereby undertakes with the Transferor and each
of the other parties to the Facility Agreement and the other Security Documents that it will perform in accordance with its terms
all those obligations which by the terms of the Facility Agreement and the other Security Documents will be assumed by it after
delivery of the executed copies of this Transfer Certificate to the Agent and satisfaction of the conditions (if any) subject to
which this Transfer Certificate is expressed to take effect.

 

		7	 	By execution of this Transfer Certificate on their behalf by
the Agent and in reliance upon the representations and warranties of the Transferee, the Borrowers, the Agent, the Arranger, the
Security Agent, the Account Bank, the Swap Provider and the Banks accept the Transferee as a party to the Facility Agreement and
the Security Documents with respect to all those rights and/or obligations which by the terms of the Facility Agreement and the
Security Documents will be assumed by the Transferee (including those about pro-rata sharing and the exclusion of liability on
the part of, and the indemnification of, the Agent, the Arranger, the Account Bank, the Swap Provider and the Security Agent as
provided by the Facility Agreement) after delivery 
	

    	90

    	

    

	 	 	 	of the executed copies of this Transfer Certificate to the Agent and satisfaction
of the conditions (if any) subject to which this Transfer Certificate is expressed to take effect.

 

		8	 	None of the Transferor, the Agent, the Arranger, the Security
Agent, the Account Bank, the Swap Provider or the Banks:

 

		8.1	 	makes any representation or warranty nor assumes any responsibility
with respect to the legality, validity, effectiveness, adequacy or enforceability of the Facility Agreement or any of the Security
Documents or any document relating thereto; or

 

		8.2	 	assumes any responsibility for the financial condition of the
Borrowers or any of them or any other Security Party or any party to any such other document or for the performance and observance
by the Borrowers or any of them or any other Security Party or any party to any such other document (save as otherwise expressly
provided therein) and any and all such conditions and warranties, whether express or implied by law or otherwise, are hereby excluded
(except as aforesaid).

 

		9	 	The Transferor and the Transferee each undertake that they will
on demand fully indemnify the Agent in respect of any claim, proceeding, liability or expense which relates to or results from
this Transfer Certificate or any matter concerned with or arising out of it unless caused by the Agent’s gross negligence
or wilful misconduct, as the case may be.

 

		10	 	The agreements and undertakings of the Transferee in this Transfer
Certificate are given to and for the benefit of and made with each of the other parties to the Facility Agreement and the Security
Documents.

 

		11	 	This Transfer Certificate is governed by, and shall be construed
in accordance with, English law.

 

	 	Transferor	 	Transferee
	 	 	 	 
	 	
        By:
	 	 	
        By:

        
	 
	 	 	 	 	 	 
	 	Dated:

	 	Dated:

 

Agent

 

Agreed for and on behalf of itself
as Agent, the Borrowers, the Security Agent, the Arranger, the Account Bank, the Swap Provider and the Banks.

 

DNB NOR BANK ASA

 

	By:	 
	 	 
	Dated:	 

 

Note:The
execution of this Transfer Certificate alone may not transfer a proportionate share of the Transferor’s interest in the security
constituted by the Security Documents in the Transferor’s or Transferee’s jurisdiction. It is the responsibility of
the Transferee to ascertain whether any other documents are required to perfect a transfer of such a share in the Transferor’s
interest in such security in any such jurisdiction and, if so, to seek appropriate advice and arrange for execution of the same.

    	91

    	

    

The Schedule

 

Outstanding Contribution: $[·]

Portion Transferred: [·]%

 

Commitment: $[·]

Portion Transferred: [·]%

 

Percentage of Transferor immediately
before transfers: [·]%

Percentage of Transferee following
transfers: [·]%

 

Administrative Details of Transferee

 

Name of Transferee:

Lending Office:

 

Contact Person:

(Loan Administration Department)

Telephone:

Telefax No:

 

Contact Person:

(Credit Administration Department)

Telephone:

Telefax No:

 

[Account for payments:]

    	92

    	

    

Schedule 5

Contract Instalment Advances per Ship

 

	
        Contract Instalment

 Advances per
        Ship

	 	
        Amount per Ship 

($)

	 	
        Time when relevant Contract instalment

        payable (per Ship)

	
        1st Contract Instalment Advance

         
	 	
        The aggregate of:

         

        a) Sub-Tranche A in the amount of
        5,730,000; and

         

        (b) Sub-Tranche B in the amount of
        1,910,000

         

        Total: 7,640,000

	 	
        Later of (a) Specified Date and (b)
        5 New York business days from the issue of the Refund Guarantee

         

	 	 	 	 	 
	
        2nd Contract Instalment Advance

         
	 	
        The aggregate of:

         

        a) Sub-Tranche A in the amount of
        5,730,000; and

         

        (b) Sub-Tranche B in the amount of
        1,910,000

         

        Total: 7,640,000

	 	
        Later of (a) Specified Date and (b)
        5 New York business days from cutting of the first steel plate of the relevant Ship at the Builder’s workshop

         

	 	 	 	 	 
	
        3rd Contract Instalment Advance

         
	 	
        The aggregate of:

         

        a) Sub-Tranche A in the amount of
        5,730,000; and

         

        (b) Sub-Tranche B in the amount of
        1,910,000

         

        Total: 7,640,000

	 	
        Later of (a) Specified Date and (b)
        5 New York business days from keel-laying of the first section of the relevant Ship at the Builder’s drydock

         

 

“New York
business day” for the purposes of this schedule 5 shall have the meaning given to it in the Contracts.

 

“Specified
Date” for the purposes of this schedule 5 means, in relation to each instalment of the Contract Price of a Ship referred
to in the above table, the fixed date specified in paragraph (c), (d) or (e) (as the case may be) of Article X(2) of the Contract
for that Ship as the earliest due date of that instalment.

    	93

    	

    

Schedule 6

Form of Trust Deed

 

THIS DECLARATION OF TRUST by
DNB NOR BANK ASA (the “Security Agent”) is made on [·]
20[ ] and is supplemental to (and made pursuant to the terms of) a Facility Agreement dated [ ] 2011 (the “Agreement”)
and made between (1) Raymond Shipping Co., and Terance Shipping Co. as joint and several Borrowers, (2) DnB NOR Bank ASA as Agent
and Arranger, (3) the Security Agent, (4) DnB NOR Bank ASA as Swap Provider and (5) the banks and financial institutions mentioned
in schedule 1 to the Agreement as the Banks. Words and expressions defined in the Agreement shall have the same meanings when
used in this Deed.

 

NOW THIS DEED WITNESSETH as
follows:

 

		1	The Security Agent hereby acknowledges and declares that, from the date of this Deed, it holds
and shall hold the Trust Property on trust for certain of the other Creditors on the terms and basis set out in the Agreement.

 

		2	The declaration and acknowledgement contained in paragraph 1 above shall be irrevocable.

 

	EXECUTED as a DEED	)	 
	by	)	 
	for and on behalf of	)	 	 
	DNB NOR BANK ASA	)	Attorney-in-fact	 
	(as Security Agent)	)	 
	in the presence of:	)	 

    	94

    	

    

Schedule 7

Mandatory Cost formula

 

		1	The Mandatory Cost is an addition to the interest rate to compensate Banks for the cost of compliance
with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority
which replaces all or any of its functions) or (b) the requirements of the European Central Bank.

 

		2	On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall calculate,
as a percentage rate, a rate (the “Additional Cost Rate”) for each Bank, in accordance with the paragraphs set
out below. The Mandatory Cost will be calculated by the Agent as a weighted average of the Banks’ Additional Cost Rates (weighted
in proportion to the percentage participation of each Bank in the Loan or any relevant unpaid sum) and will be expressed as a percentage
rate per annum.

 

		3	The Additional Cost Rate for any Bank lending from a lending office in a Participating Member State
will be the percentage notified by that Bank to the Agent. This percentage will be certified by that Bank in its notice to the
Agent to be its reasonable determination of the cost (expressed as a percentage of that Bank’s participation in the Loan or the
relevant unpaid sum made from that lending office) of complying with the minimum reserve requirements of the European Central Bank
in respect of loans made from that lending office.

 

		4	The Additional Cost Rate for any Bank lending from a lending office in the United Kingdom will
be calculated by the Agent as follows:

 

			   per cent per annum.

 

Where E is designed
to compensate Banks for amounts payable under the Fees Rules and is calculated by the Agent as being the most recent rate of charge
supplied by the Reference Bank to the Agent pursuant to paragraph 6 below and expressed in pounds per £1,000,000.

 

		5	For the purposes of this Schedule:

 

		(a)	“Fees Rules” means the rules on periodic fees contained in the Financial Services
Authority Fees Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for
the acceptance of deposits;

 

		(b)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under Column 1
of the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but
taking into account any applicable discount rate);

 

		(c)	“Participating Member State” means any member of the European Union that adopts
or has adopted the euro as its lawful currency in accordance with the legislation of the European Community relating to the Economic
and Monetary Union;

 

		(d)	“Special Deposits” has the meaning given to it from time to time under or pursuant
to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England; and

 

		(e)	“Tariff Base” has the meaning given to it in, and will be calculated in accordance
with, the Fees Rules.

 

		6	If requested by the Agent, the Reference Bank shall, as soon as practicable after publication by
the Financial Services Authority, supply to the Agent, the rate of charge payable by the Reference Bank to the Financial Services
Authority pursuant to the Fees Rules in respect of 
	

    	95

    	

    

	 	 	the relevant financial year of the Financial Services Authority (calculated
for this purpose by the Reference Bank as being the average of the Fee Tariffs applicable to the Reference Bank for that financial
year) and expressed in pounds per £1,000,000 of the Tariff Base of the Reference Bank.

 

		7	Each Bank shall supply any information required by the Agent for the purpose of calculating its
Additional Cost Rate. In particular, but without limitation, each Bank shall supply the following information on or prior to the
date on which it becomes a Bank:

 

		(a)	the jurisdiction of its lending office; and

 

		(b)	any other information that the Agent may reasonably require for such purpose.

 

Each Bank shall promptly
notify the Agent of any change to the information provided by it pursuant to this paragraph.

 

		8	The rates of charge of the Reference Bank for the purpose of E above shall be determined
by the Agent based upon the information supplied to it pursuant to paragraphs 6 and 7 above and on the assumption that, unless
a Bank notifies the Agent to the contrary, each Bank’s obligations in relation to cash ratio deposits and Special Deposits are
the same as those of a typical bank from its jurisdiction of incorporation with a lending office in the same jurisdiction as its
lending office.

 

		9	The Agent shall have no liability to any person if such determination results in an Additional
Cost Rate which over or under compensates any Bank and shall be entitled to assume that the information provided by any Bank or
the Reference Bank pursuant to paragraphs 3, 6 and 7 above is true and correct in all respects.

 

		10	The Agent shall distribute the additional amounts received as a result of the Mandatory Cost to
the Banks on the basis of the Additional Cost Rate for each Bank based on the information provided by each Bank and the Reference
Bank pursuant to paragraphs 3, 6 and 7 above.

 

		11	Any determination by the Agent pursuant to this schedule in relation to a formula, the Mandatory
Cost, an Additional Cost Rate or any amount payable to a Bank shall, in the absence of manifest error, be conclusive and binding
on all parties to this Agreement.

 

		12	The Agent may from time to time, after consultation with the Borrowers and the Banks, determine
and notify to all parties to this Agreement any amendments which are required to be made to this schedule in order to comply with
any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority
or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions) and any such determination
shall, in the absence of manifest error, be conclusive and binding on all parties to this Agreement.

    	96

    	

    

BORROWERS

 

	SIGNED by	)	 	 
	for and on behalf of	)	/s/ Gregory Zikos	 
	RAYMOND SHIPPING CO.	)	Attorney-in-fact	 
	as Borrower	)	 	 
	 	 	 	 
	SIGNED by	)	 	 
	for and on behalf of	)	/s/ Gregory Zikos	 
	TERANCE SHIPPING CO.	)	Attorney-in-fact	 
	as Borrower	)	 	 
	 	 	 	 
	CREDITORS	 	 	 
	 	 	 	 
	SIGNED by	)	/s/ Alexandros Damianidis	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	DNB NOR BANK ASA	)	 	 
	as Agent, Arranger Account Bank, Security Agent and Bank	)	 	 
	 	 	 	 
	SIGNED by	)	/s/ Alexandros Damianidis	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	CATHAY UNITED BANK	)	 	 
	as Bank	)	 	 
	 	 	 	 
	SIGNED by	)	/s/ Alex Chiang	 
	and by	)	Authorised signatory	 
	for and on behalf of	)	 	 
	CHINATRUST COMMERCIAL BANK	)	 	 
	as Bank	)	 	 
	 	 	 	 
	SIGNED by	)	/s/ Alexandros Damianidis	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	HUA NAN COMMERCIAL BANK, LTD., OFFSHORE	)	 	 
	BANKING BRANCH	)	 	 
	as Bank	)	 	 
	 	 	 	 
	SIGNED by	)	/s/ Alexandros Damianidis	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	LAND BANK OF TAIWAN	)	 	 
	as Bank	)	 	 
	

    	97

    	

    

	SIGNED by	)	/s/ Alexandros Damianidis	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.,	)	 	 
	OFFSHORE BANKING BRANCH	)	 	 
	as Bank	)	 	 
	 	 	 	 
	SIGNED by	)	/s/ Alexandros Damianidis	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	DNB NOR BANK ASA	)	 	 
	as Swap Provider	)	 	 

    	98

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