Document:

exv10w1

Exhibit 10.1

Private and Confidential

DATED
8 July 2011

ANTIKITHIRA SHIPPING CORPORATION

and

KITHIRA SHIPPING CORPORATION

as Borrowers

ABN AMRO BANK N.V.

as Lender

and

ABN AMRO BANK N.V.

as Agent and Security Trustee

 

FACILITY AGREEMENT FOR A USD 55,100,000

TERM LOAN FACILITY

IN TWO ADVANCES

 

INCE & CO

PIRAEUS

 

 

Index

	 	 	 	 	 
	Clause	 	Page	 
	1 Purpose, definitions, construction & majority lenders
	 	 	1	 
	 
	 	 	 	 
	2 The available commitment and cancellation
	 	 	19	 
	 
	 	 	 	 
	3 Interest and interest periods
	 	 	22	 
	 
	 	 	 	 
	4 Repayment and prepayment
	 	 	25	 
	 
	 	 	 	 
	5 Fees and expenses
	 	 	28	 
	 
	 	 	 	 
	6 Payments and taxes; accounts and calculations
	 	 	29	 
	 
	 	 	 	 
	7 Representations and warranties
	 	 	33	 
	 
	 	 	 	 
	8 Undertakings
	 	 	39	 
	 
	 	 	 	 
	9 Conditions
	 	 	50	 
	 
	 	 	 	 
	10 Events of default
	 	 	51	 
	 
	 	 	 	 
	11 Indemnities
	 	 	57	 
	 
	 	 	 	 
	12 Unlawfulness and increased costs
	 	 	58	 
	 
	 	 	 	 
	13 Application of moneys, set off, pro-rata payments and miscellaneous
	 	 	60	 
	 
	 	 	 	 
	14 Accounts and retentions
	 	 	64	 
	 
	 	 	 	 
	15 Assignment, transfer and lending office
	 	 	66	 
	 
	 	 	 	 
	16 Agent and security trustee
	 	 	71	 
	 
	 	 	 	 
	17 Notices and other matters
	 	 	85	 
	 
	 	 	 	 
	18 Borrowers’ obligations
	 	 	87	 
	 
	 	 	 	 
	19 Governing law
	 	 	90	 
	 
	 	 	 	 
	20 Jurisdiction
	 	 	90	 
	 
	 	 	 	 
	Schedule 1 The lenders and their commitments
	 	 		 
	 
	 	 	 	 
	Schedule 2 Form of drawdown notice
	 	 		 
	 
	 	 	 	 
	Schedule 3 Conditions precedent
	 	 		 
	 
	 	 	 	 
	Schedule 4 Form of transfer certificate
	 	 		 
	 
	 	 	 	 
	Schedule 5 Form of trust deed
	 	 		 
	 
	 	 	 	 
	Schedule 6 Form of compliance certificate
	 	 		 
	 
	 	 	 	 
	Schedule 7 Vessel details
	 	 		 

 

 

THIS
AGREEMENT dated 8 July 2011 is made BY and BETWEEN:

	(1)	 	ANTIKITHIRA SHIPPING CORPORATION and KITHIRA SHIPPING CORPORATION as Borrowers;
	 
	(2)	 	ABN AMRO BANK N.V. as Lender; and
	 
	(3)	 	ABN AMRO BANK N.V. as Agent and Security Trustee.

NOW IT IS HEREBY AGREED AS FOLLOWS:

	1	 	PURPOSE, DEFINITIONS, CONSTRUCTION & MAJORITY LENDERS
	 
	1.1	 	Purpose
	 
	 	 	This Agreement sets out the terms and conditions on which ABN AMRO Bank N.V. agrees to
make available to the Borrowers a loan of up to fifty five million one hundred thousand
Dollars (USD 55,100,000) in two Advances, for the purpose of part-financing the purchase
price of two Product Tankers.
	 
	1.2	 	Definitions
	 
	 	 	In this Agreement, unless the context otherwise requires:

“Account Bank” means ABN AMRO Bank N.V. acting through its branch at
93 Coolsingel, 3012 Rotterdam, the Netherlands or such other bank as
may be designated by the Agent as the Earnings Account Bank for the
purposes of this Agreement and which is of a rating acceptable to the
Lenders, in their sole discretion;
	 
	 	 	“Advance A” means the advance equal to the lesser of (i)
USD27,550,000 and (ii) 73% of the Valuation Amount of Vessel A no more
than 14 days prior to her acquisition by Antikithira, to be applied in
or towards the acquisition of Vessel A or, as the context requires,
the amount thereof outstanding from time to time;
	 
	 	 	“Advance B” means the advance equal to the lesser of (i)
USD27,550,000 and (ii) 73% of the Valuation Amount of Vessel B no more
than 14 days prior to her acquisition by Kithira, to be applied in or
towards the acquisition of Vessel B or, as the context requires, the
amount thereof outstanding from time to time;

1

 

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

	 	 	“Agent” means ABN AMRO Bank N.V. acting for the purposes of this Agreement through
its branch at 93 Coolsingel, 3012 Rotterdam, the Netherlands (or of such other address as
may last have been notified to the other parties to this Agreement) or such other person
as may be appointed as agent by the Banks pursuant to clause 16.13;

	 	 	“Approved Broker” means each of (i) H Clarkson & Co. Ltd. of St Magnus House, 3 Lower
Thames Street, London EC3R 6HE, England, (ii) Arrow Research Ltd. of Harbour House,
Chelsea Harbour, London SW10 0XE, England and (iii) Fearnleys AS of Grev Wedels Plass 9,
P.O. Box 1158 Sentrum, Oslo N-0107 Norway or such other reputable, independent and first
class firm of shipbrokers specialising in the valuation of vessels of the relevant type
agreed with the Borrowers;

	 	 	“Banking Day” means a day on which dealings in deposits in USD are carried on in the
London Interbank Eurocurrency Market and (other than Saturday or Sunday) on which banks
are open for business in London, Amsterdam, Piraeus and New York City (or any other
relevant place of payment under clause 6);

	 	 	“Banks” means, together, the Agent, the Security Trustee, the Lenders and any Transferee
Lenders;

	 	 	“Borrowed Money” means Indebtedness in respect of (i) money borrowed or raised and debit
balances at banks, (ii) any bond, note, loan stock, debenture or similar debt instrument,
(iii) acceptance or documentary credit facilities, (iv) receivables sold or discounted
(otherwise than on a non-recourse basis), (v) deferred payments for assets or services
acquired, (vi) finance leases and hire purchase contracts, (vii) swaps, forward exchange
contracts, futures and other derivatives, (viii) any other transaction (including without
limitation forward sale 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” means each of Antikithira Shipping Corporation (“Antikithira”) and Kithira
Shipping Corporation (“Kithira”) each a company incorporated in the Marshall Islands and
having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands, MH96960 and in the plural means both of them;

2

 

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

	 	(a)	 	any repayment or prepayment of the Loan or any part thereof otherwise than
(i) in accordance with clause 4.1 or (ii) on an Interest Payment Date whether on a
voluntary or involuntary basis or otherwise howsoever; or

	 	(b)	 	as a result of the Borrowers failing or being incapable of drawing an
Advance after a relevant Drawdown Notice has been given;

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

	 	 	“Charter Assignment” means a specific assignment of each Charter and each Extended
Employment Contract required to be executed hereunder by either Borrower in favour of the
Security Trustee (including any notices and/or acknowledgements and/or undertakings
associated therewith) in such form as the Agent and the Majority Lenders may require in
their sole discretion;

	 	 	“Classification” means, in relation to each Vessel, the highest class available for a
vessel of her type with the relevant Classification Society;

	 	 	“Classification Society” means, in relation to each Vessel, any International Association
of Classification Societies classification society which the Lenders shall, at the request
of the Borrowers, have agreed in writing shall be treated as the classification society in
relation to such Vessel for the purposes of the relevant Ship Security Documents;

	 	 	“Commitment” means, in relation to the Loan in relation to each Lender, the sum set out
opposite its name in schedule 1 or any replacement thereof and in relation to each Advance
in relation to each Lender one half of the sum set out opposite its name in schedule 1 or
any replacement thereof, or otherwise pursuant to the terms of any relevant Transfer
Certificate as the amount which, subject to the terms of this Agreement, it is obliged to
advance to the

3

 

	 	 	Borrowers hereunder in respect of the Loan Facility, in each case as such amount may have
been reduced and/or cancelled under this Agreement;

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

	 	 	“Compulsory Acquisition” means, in respect of a Vessel, requisition for title or other
compulsory acquisition including, if that ship is not released therefrom within the
Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or
confiscation howsoever for any reason (but excluding requisition for use or hire) by or on
behalf of any Government Entity or other competent authority or by pirates, hijackers,
terrorists or similar persons; “Relevant Period” means for the purposes of this definition
of Compulsory Acquisition either (i) ninety (90) days or, (ii) if relevant underwriters
confirm in writing (in customary terms) prior to the end of such ninety (90) day period
that such capture, seizure, detention or confiscation will be covered by the relevant
Owner’s war risks insurance the shorter of twelve (12) months and such period at the end
of which cover is confirmed to attach;

	 	 	“Contribution” means, at any relevant time, in relation to each Lender, the principal
amount of the Loan owing to such Lender at such time;

	 	 	“Corporate Guarantee” means the guarantee required to be executed hereunder by the
relevant Corporate Guarantor in such form as the Agent and the Majority Lenders may
require in their sole discretion;

	 	 	“Corporate Guarantor” means Navios Maritime Acquisition Corporation a company
incorporated in the Marshall Islands and having its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;

	 	 	“Cost of Funds” means the rate per annum determined by the Agent to be the rate at which
deposits in Dollars are offered to the Agent by leading banks in the London Interbank
Market at the Agent’s request at or about 11.00 a.m. (London time) on the day on which
quotations would ordinarily be given by leading banks in the London Interbank Market for
deposits in the relevant currency to which such rate is to be determined for delivery on
the first day of that period;

4

 

	 	 	“Default” means any Event of Default or any event or circumstance which with the
giving of notice or lapse of time or the satisfaction of any other condition (or any
combination thereof) would constitute an Event of Default;

	 	 	“Delivery Date” means, in relation to a Vessel, the date on which title to and possession
of that Vessel is transferred from the relevant Seller to the relevant Borrower;

	 	 	“Dollars” and “USD” mean the lawful currency of the USA and in respect of all payments to
be made under any of the Security Documents means funds which are for same day settlement
in the New York Clearing House Interbank Payments System (or such other US dollar funds as
may at the relevant time be customary for the settlement of international banking
transactions denominated in US dollars);

	 	 	“Drawdown Date” means, in relation to each Advance, any date being a Banking Day falling
during the Drawdown Period, on which that 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;

	 	 	“Drawdown Period” means the period commencing on the Execution Date and ending on the
earliest of (a) 31 July 2011, (b) the Delivery Date in respect of the second Ship to be
delivered by the relevant Seller and (c) any date on which (i) the amount of the Loan is
equal to the Total Commitment or (ii) the Total Commitment is reduced to zero pursuant to
clauses 10.2 or 12;

	 	 	“Earnings Account” means, in respect of each Borrower, an interest bearing USD Account
required to be opened hereunder with the Earnings Account Bank in the name of that
Borrower designated “[NAME OF BORROWER] — Earnings Account” and includes any other account
designated in writing by the Agent to be an Earnings Account for the purposes of this
Agreement;

	 	 	“Earnings Account Bank” means ABN AMRO Bank N.V. acting through its branch at 93
Coolsingel, 3012 Rotterdam, the Netherlands or such other bank as may be designated by the
Agent as the Earnings Account Bank for the purposes of this Agreement and which is of a
rating acceptable to the Lenders, in their sole discretion;

	 	 	“Earnings Account Pledge” means, in respect of each Earnings Account, a first priority
charge required to be executed hereunder between the relevant Borrower and the Security

5

 

	 	 	Trustee in respect of its Earnings Account in such form as the Agent and the Majority
Lenders may require in their sole discretion, and in the plural means both of them;

	 	 	“EIAPP Certificate” means the Engine International Air Pollution Prevention Certificate
issued or to be issued pursuant to Annex VI of the International Convention for the
Prevention of Pollution from Ship, MARPOL 73/78 (Regulations for the Prevention of Air
Pollution from Ships) in relation to a Vessel;

	 	 	“Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, assignment, title
retention, preferential right, option, trust arrangement or security interest or other
encumbrance, security or arrangement conferring howsoever a priority of payment in respect
of any obligation of any person;

	 	 	“Environmental Affiliate” means any agent or employee of either Borrower, the Manager, or
any other Group Member or any other person having a contractual relationship with either
Borrower, the Manager, or any other Group Member in connection with any Relevant 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 any Relevant Ship;

	 	 	“Environmental Approval” means any consent, authorisation, licence or approval of any
governmental or public body or authorities or courts applicable to any Relevant 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 any Relevant Ship required under any Environmental Law;

	 	 	“Environmental Claim” means (i) any claim by any applicable Government Entity
alleging breach of, or non-compliance with, any Environmental Laws or Environmental
Approvals or otherwise howsoever relating to or arising out of an Environmental Incident
or (ii) any claim by any other third party howsoever relating to or arising out of an
Environmental Incident (and, in each such case, “claim” shall include a claim for damages
and/or direction for and/or enforcement relating to clean-up costs, removal, compliance,
remedial action or otherwise) or (iii) any Proceedings arising from any of the foregoing;

	 	 	“Environmental Incident” means, regardless of cause, (i) any discharge or release of
Environmentally Sensitive Material from any Relevant Ship; (ii) any incident in which
Environmentally Sensitive Material is discharged or released from a vessel other than a
Relevant Ship which involves collision between a Relevant Ship and such other vessel or
some other incident of navigation or operation, in either case, where the Relevant Ship,
the Manager

6

 

	 	 	and/or the relevant Owner and/or the relevant Group Member and/or the relevant Operator
are actually, contingently or allegedly at fault or otherwise howsoever liable (in whole
or in part) or (iii) any incident in which Environmentally Sensitive Material is
discharged or released from a vessel other than a Relevant Ship and where such Relevant
Ship is actually or reasonably likely to be arrested as a result and/or where the Manager
and/or the relevant Owner and/or other Group Member and/or the relevant Operator are
actually or contingently at fault or allegedly and reasonably likely to be found at fault
or otherwise howsoever liable to any administrative or legal action;

	 	 	“Environmental Laws” means all laws, regulations, conventions and agreements whatsoever
relating to pollution, human or wildlife well-being or protection of the environment
(including, without limitation, the United States Oil Pollution Act of 1990 and any
comparable laws of the individual States of the USA);

	 	 	“Environmentally Sensitive Material” means oil, oil products or any other products or
substance which are polluting, toxic or hazardous or any substance the release of which
into the environment is howsoever regulated, prohibited or penalised by or pursuant to any
Environmental Law;

	 	 	“Event of Default” means any of the events or circumstances listed in clause 10.1;

	 	 	“Execution Date” means the date on which this Agreement has been executed by all the
parties hereto;

	 	 	“Extended Employment Contract” means, in respect of a Vessel, any time charterparty,
contract of affreightment or other contract of employment of such ship (including the
entry of a Vessel in any pool) which has a tenor exceeding twelve (12) months (including
any options to renew or extend such tenor);

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

	 	 	“Flag State” means the Maltese or any other country acceptable to the Lenders;

	 	 	“General Assignment” means, in respect of each Vessel, the deed of assignment of its
earnings, insurances and requisition compensation executed or to be executed by the
relevant

7

 

	 	 	Owner in favour of the Security Trustee in such form as the Agent and the Majority Lenders
may require in their sole discretion and in the plural means both of them;

	 	 	“Government Entity” means any national or local government body, tribunal, court or
regulatory or other agency and any organisation of which such body, tribunal, court or
agency is a part or to which it is subject;

	 	 	“Group” means at any relevant time the Corporate Guarantor whose Corporate Guarantee is in
force and effect at that time and its subsidiaries but not including any subsidiary which
is listed on any public stock exchange;

	 	 	“Group Member” means any member of the Group;

	 	 	“IAPP Certificate” means the International Air Pollution Prevention Certificate issued or
to be issued pursuant to Annex VI of the International Convention for the Prevention of
Pollution from Ship, MARPOL 73/78 (Regulations for the Prevention of Air Pollution from
Ships) in relation to a Vessel;

	 	 	“Indebtedness” means any obligation howsoever arising (whether present or future, actual
or contingent, secured or unsecured as principal, surety or otherwise) for the payment or
repayment of money;

	 	 	“Interest Payment Date” means, in relation to each Advance, the last day of an Interest
Period and, if an Interest Period is longer than 3 months, the date falling at the end of
each successive period of 3 months during such Interest Period starting from its
commencement;

	 	 	“Interest Period” means each period for the calculation of interest in respect of the Loan
or, as the case may be, Advance ascertained in accordance with the provisions of clause 3;

	 	 	“ISM Code Documentation” means, in relation to a Vessel, the document of compliance (DOC)
and safety management certificate (SMC) issued by a Classification Society pursuant to the
ISM Code in relation to that Vessel within the periods specified by the ISM Code;

	 	 	“ISM SMS” means the safety management system which is required to be developed,
implemented and maintained under the ISM Code;

8

 

	 	 	“ISPS Code” means the International Ship and Port Security Code of the International
Maritime Organisation and includes any amendments or extensions thereto and any
regulations issued pursuant thereto;

	 	 	“ISSC” means an International Ship Security Certificate issued in respect of a Vessel
pursuant to the ISPS Code;

	 	 	“Latest Accounts” means, in respect of any financial quarter or year of the Group,
the latest unaudited (in respect of each financial quarter) or audited (in respect of each
financial year) financial statements required to be prepared pursuant to clause 8.1.6;

	 	 	“Lenders” means the banks listed in schedule 1 and Transferee Lenders;

	 	 	“Lending Branch” means, in respect of each Lender, its office or branch at the address set
out beneath its name in schedule 1 (or, in the case of a Transferee, in the Transfer
Certificate to which it is a party as Transferee) or such other office or branch as any
Lender shall from time to time select and notify through the Agent to the other parties to
this Agreement;

	 	 	“LIBOR” means, for a particular period, the rate equal to the offered quotation for
deposits in USD in an amount comparable with the amount in relation to which LIBOR is to
be determined for a period equal to, or as near as possible equal to, the relevant period
which appears at or about 11 a.m. on the second Banking Day before the first day of such
period on such service as may be nominated by the British Bankers’ Association as the
information vendor for the purpose of displaying the British Bankers’ Association Interest
Settlement Rates for USD or, if such quotation is not available, means the Cost of Funds;

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

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

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

	 	 	“Loan” means the aggregate principal amount in respect of the Loan Facility owing to the
Lenders under this Agreement at any relevant time;

9

 

	 	 	“Loan Facility” means the loan facility provided by the Lenders on the terms and
subject to the conditions of this Agreement in the amount of USD 55,100,000;

	 	 	“Majority Lenders” means at any relevant time when there are two Lenders, both of them,
and at any time when there are more than two Lenders, the Lenders whose Contributions
exceed 66.7% of the Loan;

	 	 	“Management Agreement” means, in respect of each Vessel, the agreement between the
relevant Owner and the Manager, in a form previously approved in writing by the Agent
(acting on the instructions of the Majority Lenders);

	 	 	“Manager” means Navios Tankers Management Inc., a company incorporated in the Marshall
Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro, Marshall Islands, MH96960 or (without the need for the Agent’s consent) an
affiliate thereof or any other person appointed by an Owner, with the prior written
consent of the Agent, as the manager of the relevant Mortgaged Vessel;

	 	 	“Manager’s Undertakings” means, collectively, the undertakings and assignments required to
be executed hereunder by the Manager in favour of the Security Trustee in respect of each
of the Vessels each in such form as the Agent and the Majority Lenders may require in
their sole discretion (and “Managers’ Undertakings” means both of them);

	 	 	“Margin” means 3.25% per annum;

	 	 	“Material Adverse Effect” means any event or occurrence which the Majority Lenders
reasonably determine has had or could reasonably be expected to have a material adverse
effect on (i) the Banks’ rights under, or the security provided by, any Security Document,
(ii) the ability of any Security Party to perform or comply with any of its obligations
under any Security Document or (iii) the value or nature of the property, assets,
operations, liabilities or financial condition of any Security Party;

	 	 	“Maturity Date” means in respect of each Advance, the earliest of (i) the date falling 6
years after the Delivery Date of the Vessel which is being financed by that Advance and
(ii) 31 July 2017;

	 	 	“MII & MAP Policy” means a mortgagee’s interest and pollution risks insurance policy
(including additional perils (pollution) cover) in respect of each Mortgaged Vessel to be
effected by the Security Trustee on or before the first Drawdown Date to cover the
Mortgaged

10

 

	 	 	Vessels as the same may be renewed or replaced annually thereafter and maintained
throughout the Facility Period through such brokers, with such underwriters and containing
such coverage as may be acceptable to the Security Trustee in its sole discretion,
insuring a sum of at least one hundred and twenty per cent (120%) of the Loan in respect
of mortgagee’s interest insurance and one hundred and twenty per cent (120%) of the Loan
in respect of additional perils cover;

	 	 	“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, in respect of each Vessel, together, the first priority Statutory
Maltese mortgage thereof and Deed of Covenant collateral thereto required to be executed
hereunder by the Owner thereof in favour of the Security Trustee, each in such form as the
Agent and the Majority Lenders may require in their sole discretion and in the plural
means both of them;

	 	 	“Mortgaged Vessel” means, at any relevant time, a Vessel which is at such time subject to
a Mortgage and a Vessel shall, for the purposes of this Agreement, be regarded as a
Mortgaged Vessel as from the date on which the Mortgage of that Vessel has been executed
and registered in accordance with this Agreement until whichever shall be the earlier of
(i) the payment in full of the amount required to be paid to the Agent pursuant to clause
4.3 or 4.5 following the Total Loss or sale respectively of such Vessel and (ii) the end
of the Facility Period;

	 	 	“Net Profit” means for each financial year of the Corporate Guarantor, the Net
Profit as set out in the relevant Latest Accounts;

	 	 	“Net Worth” means by reference to the Latest Accounts, the Total Assets (based on book
values) less Total Liabilities of the Group;

	 	 	“Notes” means the 8 5/8 % first priority ship notes due in 2017
co-issued by the Corporate Guarantor and Navios Acquisition Finance (US) Inc.;

11

 

	 	 	“Operator” means any person who is from time to time during the Facility Period concerned
in the operation of a Relevant Ship and falls within the definition of “Company” set out
in rule 1.1.2 of the ISM Code;

	 	 	“Owner” means, in relation to:

	 	(i)	 	Vessel A, Antikithira;

	 	(ii)	 	Vessel B, Kithira,

	 	 	and in the plural means both of them;

	 	 	“Permitted Encumbrance” means any Encumbrance in favour of the Banks or any of them
created pursuant to the Security Documents and Permitted Liens;

	 	 	“Permitted Liens” means any lien on a Vessel for master’s, officer’s or crew’s wages
outstanding in the ordinary course of trading, any lien for salvage and any ship
repairer’s or outfitter’s possessory lien for a sum not (except with the prior written
consent of the Agent) exceeding the Casualty Amount (as defined in the Ship Security
Documents for such Vessel);

	 	 	“Pertinent Jurisdiction” means any jurisdiction in which or where any Security Party
is incorporated, resident, domiciled, has a permanent establishment or assets, carries on,
or has a place of business or is otherwise howsoever effectively connected;

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

	 	 	“Registry” means, in relation to each Vessel, the office of the registrar, commissioner or
representative of the Flag State, who is duly empowered to register such Vessel, the
relevant Owner’s title thereto and the relevant Mortgage under the laws and flag of the
Flag State;

	 	 	“Relevant Ship” means each of the Vessels and any other ship from time to time (whether
before or after the date of this Agreement) owned, managed or crewed by, or chartered to,
any Group Member;

12

 

	 	 	“Repayment Dates” means, in respect of each Advance, subject to clause 6.3, each of the
dates falling at quarterly intervals after the Delivery Date in respect of the Vessel
which that Advance finances, up to and including the date falling 72 months after such
date;

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

	 	 	“Required Security Amount” means the amount in USD (as certified by the Agent) which is at
any relevant time the Relevant Percentage of the Loan where “Relevant Percentage” means:

	 	(i)	 	prior to the second anniversary of the Drawdown Date in
respect of the first Advance to be made available, 125%;

	 	(ii)	 	thereafter, 130%;

	 	 	“Retention Account” an interest bearing USD Account required to be opened hereunder with
the Retention Account Bank in the name of the Borrowers designated “Navios 2MR1s —
Retention Account” and includes any other account designated in writing by the Agent to be
the Retention Account for the purposes of this Agreement;

	 	 	“Retention Account Bank” means ABN AMRO Bank N.V. acting through its branch at 93
Coolsingel, 3012 Rotterdam, the Netherlands or such other bank as may be designated by the
Agent as the Retention Account Bank for the purposes of this Agreement and which is of a
rating acceptable to the Lenders, in their sole discretion;

	 	 	“Retention Account Pledge” means a first priority charge required to be executed
hereunder between the Borrowers and the Security Trustee in respect of the Retention
Account in such form as the Agent and the Majority Lenders may require in their sole
discretion;

13

 

	 	 	“Retention Amount” means, in relation to any Retention Date, such sum as shall be in
relation to each Advance, the aggregate of:

	 	(a)	 	one third (1/3rd) of the repayment instalment in respect of the relevant
Advance falling due for payment pursuant to clause 4.1.1 (as the same may have been
reduced by any prepayment) on the next Repayment Date after the relevant Retention
Date in respect of that Advance; and

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

	 	 	“Retention Dates” means the date falling thirty (30) days after the Drawdown Date in
respect of an Advance and each of the dates falling at monthly intervals after such date
and prior to the Maturity Date in respect of that Advance;

	 	 	“Security Documents” means this Agreement, the Mortgages, the Corporate Guarantee, the
General Assignments, the Charter Assignments, the Earnings Account Pledge, the Retention
Account Pledge, the Manager’s Undertakings, the Shares Pledges 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 to govern and/or secure all or any part of the Loan, interest thereon and
other moneys from time to time owing by the Borrowers pursuant to this Agreement (whether
or not any such document also secures moneys from time to time owing pursuant to any other
document or agreement);

	 	 	“Security Party” means the Borrowers, the Corporate Guarantor, the Shareholder or any
other person who may at any time be a party to any of the Security Documents (other than
the Banks);

	 	 	“Security Trustee” means ABN AMRO Bank N.V. acting for the purposes of this Agreement
through its branch at 93 Coolsingel, 3012 Rotterdam, the Netherlands (or of such other
address as may last have been notified to the other parties to this Agreement pursuant to
clause 17.2.3) or such other person as may be appointed as Security Trustee and trustee by
the Lenders, the Account Bank and the Agent pursuant to clause 16.14;

14

 

	 	 	“Security Value” means the amount in USD (as certified by the Agent) which is, at any
relevant time, the aggregate of (a) the Valuation Amounts of the Mortgaged Vessels as most
recently determined in accordance with clause 8.2.2 and (b) the net realizable market
value of any additional security for the time being actually provided to the Lenders
pursuant to clause 8.2.1(b) and (c) cash over which there is an Encumbrance as security
for the obligations of the Borrowers under this Agreement;

	 	 	“Shareholder” means Aegean Sea Maritime Holdings Inc., a company incorporated in the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands, MH96960;

	 	 	“Shares Pledge” means the first priority pledge of the shares of and in each Borrower to
be executed by the Shareholder in favour of the Security Trustee in such form as the Agent
and the Majority Lenders may require in their sole discretion and in the plural means both
of them;

	 	 	“Ship Security Documents” means, in relation to each Vessel, the relevant Mortgage, the
relevant General Assignment, any relevant Charter Assignment and the relevant Manager’s
Undertakings;

	 	 	“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;

	 	 	“Taxes” includes all present and future income, corporation, capital or value-added taxes
and all stamp and other taxes and levies, imposts, deductions, duties, charges and
withholdings whatsoever together with interest thereon and penalties in respect thereto,
if any, and charges, fees or other amounts made on or in respect thereof (and “Taxation”
shall be construed accordingly);

	 	 	“Total Assets” and “Total Liabilities” mean, respectively, the total assets and total
liabilities of the Group as evidenced at any relevant time by the Latest Accounts, in
which they shall have been calculated by reference to the meanings assigned to them in
accordance with US GAAP provided that cash shall be deducted from Total Assets and Total
Liabilities;

15

 

	 	 	“Total Commitment” means, at any relevant time, the aggregate of the Commitments of all
the Lenders at such time (being the aggregate of the sums set out opposite their names in
schedule 1);

	 	 	“Total Loss” means, in relation to each Vessel:

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

	 	(b)	 	Compulsory Acquisition; or

	 	(c)	 	any hijacking, theft, condemnation, capture, seizure, arrest, detention or
confiscation of such Mortgaged Vessel not falling within the definition of Compulsory
Acquisition by any Government Entity, or by persons allegedly acting or purporting
to act on behalf of any Government Entity, unless (i) either such Mortgaged Vessel be
released and restored to the relevant Owner within ninety (90) days after such
incident, or (ii) if relevant underwriters confirm in writing (in customary terms)
prior to the end of such ninety (90) day period that such capture, seizure, detention
or confiscation will be fully covered by the relevant Owner’s war risks insurance,
the shorter of twelve (12) months and such period for which cover is confirmed to
attach;

	 	 	“Transfer Certificate” means a certificate in substantially the form set out in schedule
4;

	 	 	“Transferee Lender” has the meaning ascribed thereto in clause 15.3;

	 	 	“Transferor Lender” has the meaning ascribed thereto in clause 15.3;

	 	 	“Trust Deed” means a trust deed in the form, or substantially in the form, set out in
schedule 5;

	 	 	“Trust Property” means (i) the security, powers, rights, titles, benefits and interests
(both present and future) constituted by and conferred on the Banks or any of them 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 any Bank in the Security Documents), (ii) all moneys, property and other
assets paid or transferred to or vested in any Bank (or anyone else on such Bank’s behalf)
or received or recovered by any Bank (or anyone else on such Bank’s behalf) pursuant to,
or in connection with, any of the Security Documents whether from any Security Party or
any other person

16

 

	 	 	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 any Bank (or anyone else on such Bank’s behalf) in respect
of the same (or any part thereof);

	 	 	“Underlying Documents” means, together, the MOAs, each Charter and the Management
Agreements;

	 	 	“Unlawfulness” means any event or circumstance which either is or, as the case may be,
might in the opinion of the Agent become the subject of a notification by the Agent to the
Borrowers under clause 12.1;

	 	 	“USA” means the United States of America;

	 	 	“Valuation Amount” means, in respect of each Vessel, the value thereof as most recently
determined under clause 8.2.2; and

	 	 	“Vessel” means each of Vessel A and Vessel B and in the plural means both of them.

	 	 	Words and expressions defined in Schedule 7 (Vessel Details) shall have the meanings given
to them therein as if the same were set out in full in this clause 1.2.

	1.3	 	Construction

	 	 	In this Agreement, unless the context otherwise requires:

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

	1.3.2	 	references to clauses and schedules are to be construed as references to clauses of, and
schedules to, this Agreement and references to this Agreement include its schedules and any
supplemental agreements executed pursuant hereto;

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

17

 

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

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

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

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

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

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

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

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

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

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

18

 

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

	1.4	 	Accounting terms and references to currencies

	 	 	Currencies are referred to in this Agreement by the three letter currency codes (ISO 4217)
allocated to them by the International Organisation for Standardisation.

	1.5	 	Contracts (Rights of Third Parties Act) 1999

	 	 	Except for clause 20, no part of this Agreement shall be enforceable under the Contracts
(Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

	1.6	 	Majority Lenders

	 	 	Where this Agreement or any other Security Document provides for any matter to be
determined by reference to the opinion of the Majority Lenders or to be subject to the
consent or request of the Majority Lenders or for any decision or action to be taken on
the instructions in writing of the Majority Lenders, such opinion, consent, request or
instructions shall (as between the Lenders) only be regarded as having been validly given
or issued by the Majority Lenders if all the Lenders with a Commitment and/or Contribution
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 Lenders shall
have given or issued such opinion, consent, request or instructions but so that (as
between the Borrowers and the Banks) the Borrowers shall be entitled (and bound) to assume
that such notice shall have been duly received by each relevant Lender and that the
relevant majority shall have been obtained to constitute Majority Lenders whether or not
this is in fact the case.
	 
	2	 	THE AVAILABLE COMMITMENT AND CANCELLATION
	 
	2.1	 	Agreement to lend

	 	 	The Lenders, relying upon each of the representations and warranties in clause 7, agree to
provide to the Borrowers upon and subject to the terms of this Agreement, the Advances,
for the purposes of financing part of the purchase price of the Vessels. Subject to the
terms of this Agreement, the obligations of the Lenders shall be to contribute to each
Advance, the proportion of the relevant Advance which their respective Commitments bear to
the Total Commitment on any relevant Drawdown Date.

19

 

	2.2	 	Obligations several
	 
	 	 	The obligations of the Lenders under this Agreement are several according to their
respective Commitments and/or Contributions. The failure of any Lender to perform such
obligations shall not relieve any other party to this Agreement of any of its respective
obligations or liabilities under this Agreement nor shall any Bank be responsible for the
obligations of any other Bank (except for its own obligations, if any, as a Lender) under
this 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 Lenders) the interests
of the Banks are several and the amount due to any Bank is a separate and independent
debt. Each Bank shall have the right to protect and enforce its rights arising out of
this Agreement and it shall not be necessary for any other Bank to be joined as an
additional party in any Proceedings for this purpose.

	2.4	 	Drawdown

	2.4.1	 	On the terms and subject to the conditions of this Agreement, each Advance shall be advanced
to the Borrowers on the relevant Drawdown Date following receipt by the Agent from the
Borrowers of a Drawdown Notice not later than 10:00 a.m. on the second Banking Day before each
proposed Drawdown Date.

	2.4.2	 	A Drawdown Notice shall be effective on actual receipt by the Agent and, once given, shall,
subject as provided in clause 3.6, be irrevocable.
	 
	2.5	 	Limitation and application of Advances

	2.5.1	 	The amount of the Loan shall not exceed the amount of the Loan Facility and the amount of
each Advance shall not exceed the lesser of $27,550,000, and (ii) 73% of the Valuation Amount
of the Vessel which is to be financed therewith.

	2.5.2	 	The Loan shall be made available by the advance of Advance A and Advance B each in the
amounts referred to in clause 1.2.

	2.5.3	 	Each Advance shall be paid forthwith upon drawdown to such account or accounts as the
Borrowers shall stipulate in the relevant Drawdown Notice.

20

 

	2.6	 	Availability

	 	 	Upon receipt of a Drawdown Notice complying with the terms of this Agreement, the Agent
shall promptly notify each Lender and each Lender shall 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 to the account referred to in the
relevant Drawdown Notice shall satisfy the obligation of the Lenders to lend that Advance
to the Borrowers under this Agreement.

	2.7	 	Voluntary cancellation of Facility

	 	 	The Borrowers may at any time during the Drawdown Period by notice to the Agent (effective
only on actual receipt) cancel with effect from a date not less than five Banking Days after
the receipt by the Agent of such notice the whole or any part (being one million Dollars
(USD 1,000,000) or any larger sum which is an integral multiple of one million Dollars (USD
1,000,000)) of the Total Commitment. Any such notice of cancellation, once given, shall be
irrevocable and the Total Commitment shall be reduced accordingly and each Lender’s
Commitment shall be reduced pro rata according to the proportion which its Commitment bears
to the Total Commitment.

	2.8	 	Cancellation in changed circumstances

	 	 	The Borrowers may also at any time during the Facility Period by notice to the Agent
(effective only on actual receipt) prepay and cancel with effect from a date not less than
fifteen (15) days after receipt by the Agent of such notice, the whole but not part only,
but without prejudice to the Borrowers’ obligations under clauses 6.6 and 12, of the
Contribution and Commitment (if any) of any Lender to which the Borrowers shall have
become obliged to pay additional amounts under clause 12 or clause 6.6. Upon any notice of
such prepayment and cancellation being given, the Commitment of the relevant Lender shall
be reduced to zero, the Borrowers shall be obliged to prepay the Contribution of such
Lender and such Lender’s related costs (including but not limited to Break Costs) and any
amounts payable under Clause 4.5.3 on such date and such Lender shall be under no
obligation to participate in the Loan or any further Advances.

21

 

	2.9	 	Use of proceeds
	 
	 	 	Without prejudice to the Borrowers’ obligations under clause 8.1.4, no Bank shall have any
responsibility for the application of the proceeds of any Advance or any part thereof by
the Borrowers.
	 
	3	 	INTEREST AND INTEREST PERIODS
	 
	3.1	 	Normal interest rate

	 	 	The Borrower must pay interest on each Advance in respect of each Interest Period relating
thereto on each Interest Payment Date relating thereto at the rate per annum determined by
the Agent to be the aggregate of (a) the Margin and (b) Cost of Funds or, as the case may
be, LIBOR each for that Interest Period, where “Cost of Funds” shall apply (i) from the
date of this Agreement until the Lenders determine that the banking market and in
particular the London Interbank Market have stabilised and (ii) at any time after the
Lenders give the Borrowers written notice that LIBOR does not reflect the actual cost to
them of funding the Loan, and LIBOR shall apply at all other times.

	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 fourth 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 such other period as the Borrowers may select and the Agent (acting
on the instructions of the Lenders) may agree, and if the Borrowers wishes to specify an
Interest Period of more than 12 months, it must give at least 5 Banking Days prior notice
thereof.

	3.3	 	Determination of Interest Periods

	 	 	Subject to Clause 3.3.1 every Interest Period shall be of the duration specified by the
Borrowers pursuant to clause 3.2 but so that:

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

	3.3.3	 	if any Interest Period would otherwise overrun a relevant Repayment Date, then the relevant
Advance shall be divided into parts so that there is one part in the amount of the repayment
instalment due on such Repayment Date and having an Interest Period ending on the relevant

22

 

	 	 	Repayment Date and another part in the amount of the balance of that Advance 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 length of an Interest Period in accordance with the
provisions of clause 3.2 and this clause 3.3 such Interest Period shall last three months or
such other period as complies with this clause 3.3.

	3.4	 	Default interest

	 	 	If the 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, the Borrowers must pay interest on such sum on demand from the due date up to
the date of actual payment (as well after as before judgment) at a rate determined by the
Agent pursuant to this clause 3.4. The period starting on such due date and ending on
such date of payment shall be divided into successive periods of not more than three (3)
months as selected by the Agent each of which (other than the first, which shall start on
such due date) shall start on the last day of the preceding such period. The rate of
interest applicable to each such period shall be the aggregate (as determined by the
Agent) of (a) two per cent (2%) per annum, (b) the Margin and (c) the applicable one of
Cost of Funds and LIBOR for such periods. Such interest shall be due and payable on
demand, or, if no demand is made, then on the last day of each such period as determined
by the Agent and on the day on which all amounts in respect of which interest is being
paid under this Clause are paid, and each such day shall, for the purposes of this
Agreement, be treated as an Interest Payment Date, provided that if such unpaid sum is an
amount of principal which became due and payable by reason of a declaration by the Agent
under clause 10.2.2 or a prepayment pursuant to clauses 4.3, 4.5, 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. 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 Lender shall promptly notify the Agent of
the cost of funds to such Lender 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

23

 

	 	 	aggregate of the Margin and the arithmetic mean of the cost of funds to the Lenders
compounded at such intervals as the Agent selects.

	3.5	 	Notification of Interest Periods and interest rate

	 	 	The Agent agrees to notify (i) the Lenders promptly of the duration of each Interest
Period and (ii) the Borrowers and the Lenders promptly of each rate of interest determined
by it under this clause 3.

	3.6	 	Market disruption; non-availability

	3.6.1	 	Whenever, at any time prior to the commencement of any Interest Period:

	 	(a)	 	the Agent shall have determined that adequate and fair means do not exist
for ascertaining the applicable one of Cost of Funds and LIBOR during such Interest
Period; or

	 	(b)	 	the Agent shall have received notification from a Lender or Lenders that
deposits in USD are not available to such Lender or Lenders in the London InterBank
Market in the ordinary course of business to fund their Contributions to the Loan for
such Interest Period

	 	(c)	 	the Agent must promptly give notice (a “Determination Notice”) thereof to
the Borrowers and to each of the Lenders. A Determination Notice shall contain
particulars of the relevant circumstances giving rise to its issue. After the giving
of any Determination Notice, regardless of any other provision of this Agreement, the
Commitment shall not be borrowed until notice to the contrary is given to the
Borrowers by the Agent.

	3.6.2	 	Within ten (10) days of any Determination Notice being given by the Agent under clause
3.6.1, each Lender must certify an alternative basis (the “Alternative Basis”) for maintaining
its Contribution. The Alternative Basis may at the relevant Lender’s sole discretion include
(without limitation) alternative interest periods, alternative currencies or alternative rates
of interest but shall include a Margin above the cost of funds to such Lender. The Agent
shall calculate the arithmetic mean of the Alternative Bases provided by the relevant Lenders
(the “Substitute Basis”) and certify the same to the Borrowers and the Lenders. 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

24

 

	 	 	notifies the Borrowers that none of the
circumstances specified in clause 3.6.1 continues
to exist whereupon the normal interest rate
fixing provisions of this Agreement shall again
apply and, subject to the other provisions of
this Agreement, the Commitment may again be
borrowed.
	 
	4	 	REPAYMENT AND PREPAYMENT
	 
	4.1	 	Repayment
	 
	4.1.1	 	Subject as otherwise provided in this Agreement, the Borrowers must repay each Advance by 24
quarterly instalments, the first 12 in the amount of USD750,000 each, and the next 12 in the
amount of USD575,000 each, one such instalment to be repaid on each of the Repayment Dates,
and by a balloon instalment of USD11,650,000 to be repaid on the relevant final Repayment
Date.

	 	 	If the Commitment in respect of either Advance is not drawn in full, the amount of each
repayment instalments for that Advance shall be reduced proportionately.

	 	 	The Agent shall have the right, following the second Drawdown Date, to require by notice
the repayments of each Advance to be made simultaneously on the repayment dates for
Advance B.

	4.1.2	 	The Borrowers shall on the Maturity Date also pay to the Agent and the Lenders all other
amounts in respect of interest or otherwise then due and payable under this Agreement and the
Security Documents.

	4.2	 	Voluntary prepayment

	 	 	Subject to clauses 4.5 and 4.6 the Borrowers may, subject to having given 15 days prior
notice thereof to the Agent, prepay any specified amount (such part being in an amount of
five hundred thousand Dollars (USD 500,000) or any larger sum which is an integral
multiple of such amount) either Advance on any relevant Interest Payment Date without
premium or penalty.

	4.3	 	Mandatory Prepayment on Total Loss

	 	 	On the date falling one hundred and fifty (150) days after that on which a Mortgaged
Vessel became a Total Loss or, if earlier, on the date upon which the relevant insurance
proceeds are,

25

 

	 	 	or Requisition Compensation (as defined in the Mortgage for such Vessel) is, received by
the relevant Borrower (or the Security Trustee pursuant to the Security Documents), the
Borrowers must prepay the Loan by an amount equal to the Advance relating to that
Mortgaged Vessel.

	4.3.1	 	Interpretation

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

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

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

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

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

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

26

 

	 	 	 	period exceeding ten (10) calendar months, the shorter of twelve (12) months and
such period at the end of which cover is confirmed to attach.

	4.4	 	Mandatory prepayment on sale of Mortgaged Vessel

	 	 	On the date of completion of the sale of a Mortgaged Vessel the Borrowers must prepay the
Loan by an amount equal to the Advance relating to that Mortgaged Vessel.

	4.5	 	Amounts payable on prepayment
	 
	 	 	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 3.6, 6.6 or 12.2;

	4.5.3	 	all other sums payable by the Borrowers to the Banks under this Agreement or any of the
other Security Documents including, without limitation any Break Costs and, if the whole Loan
is being prepaid, any accrued commitment commission payable under clause 5.1.
	 
	4.6	 	Notice of prepayment; reduction of maximum loan amount
	 
	4.6.1	 	Every notice of prepayment shall be effective only on actual receipt by the Agent, shall be
irrevocable, shall specify the amount to be prepaid and the Advance which is to be prepaid and
shall oblige the Borrowers to make such prepayment on the date specified. Subject to the other
provisions of this Agreement and in particular Clause 2.6, no amount prepaid under this Clause
4 in respect of the Loan may be reborrowed.
	 
	4.6.2	 	Any amounts prepaid pursuant to clause 4.2 shall be applied against the relevant Advance in
pro rata reduction of the Balloon Instalment and other outstanding repayment instalments.
	 
	4.6.3	 	Any amounts prepaid pursuant to clauses 4.3, 4.4 or 4.5 shall be applied against the
relevant Advance and thereafter against the Loan in accordance with clause 4.6.2.
	 
	4.6.4	 	The Borrowers’ obligations set out in Clause 4.1.1 shall not be affected by any prepayment
in respect of the Loan pursuant to clause 4.2.
	 
	4.6.5	 	The Borrowers may not prepay any part of the Loan except as expressly provided in this Agreement.

27

 

	5	 	FEES AND EXPENSES
	 
	5.1	 	Commission
	 
	5.1.1	 	The Borrowers agree to pay to the Agent for the account of the Lenders pro rata in
accordance with their Total Commitments quarterly in arrears from the Execution Date until the
end of the Drawdown Period and on the last day of the Drawdown Period commitment commission
computed from the Execution Date at a rate of one point five per cent (1.5%) per annum on the
daily amount of the undrawn Loan Facility.
	 
	5.1.2	 	The commission referred to in clause 5.1.1 must be paid by the Borrowers to the Agent,
whether or not any part of the Total Commitment is ever advanced and shall be non-refundable.
	 
	5.2	 	Arrangement Fee
	 
	 	 	The Borrowers shall pay to the Agent on the Execution Date an arrangement fee of
USD1,377,500 for the account of the Lenders in such proportion as they shall agree between
them.
	 
	5.3	 	Agency Fee

	 	 	The Borrowers shall pay to the Agent for its own account at any time when there is more
than one Bank, an agency fee of USD25,000 per annum payable in advance on the date of the
first Transfer Certificate and annually thereafter.
	 
	5.4	 	Expenses

	 	 	The Borrowers agree to reimburse the Banks on a full indemnity basis within ten (10) days
of demand all expenses and/or disbursements whatsoever (including without limitation
legal, printing, travel and out of pocket expenses and expenses related to the provision
of legal and insurance opinions referred to in schedule 3) certified by the Banks or any
of them as having been incurred by them from time to time:

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

28

 

	 	 	howsoever in connection with, any of the Security Documents (including legal fees and any
travel expenses); and

	5.4.2	 	in contemplation or furtherance of, or otherwise howsoever in connection with, the exercise
or enforcement of, or preservation of any rights, powers, remedies or discretions under any of
the Security Documents, or in consideration of the Banks’ rights thereunder or any action
proposed or taken following the occurrence of a Default 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
reimbursement of such expenses and/or disbursements were due following demand to the date
of payment (as well after as before judgment).

	5.5	 	Value added tax

	 	 	All fees and expenses payable pursuant to this Agreement must be paid together with value
added tax or any similar tax (if any) properly chargeable thereon in any jurisdiction. Any
value added tax chargeable in respect of any services supplied by the Banks 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.

	5.6	 	Stamp and other duties

	 	 	The Borrowers must pay all stamp, documentary, registration or other like duties or taxes
(including any duties or taxes payable by any of the Banks) imposed on or in connection with
any of the Underlying Documents, the Security Documents or the Loan or any Advance and agree
to indemnify the Banks 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

	 	 	All payments to be made by the Borrowers under any of the Security Documents must be made in
full, without any set off or counterclaim whatsoever and, subject as provided in clause 6.6,
free and clear of any deductions or withholdings, in USD on or before 11:00 am on the due
date in freely available funds to such account at such bank and in such place as the Agent
may from time to time specify for this purpose. Save as otherwise provided in this
Agreement or any

29

 

	 	 	other relevant Security Documents, such payments shall be for the account of all Lenders and
the Agent shall distribute such payments in like funds as are received by the Agent to the
Lenders rateably, in the proportions which their respective Contributions bear to the
aggregate of the Loan and the Advances on the date on which such payment is made.

	6.2	 	Payment by the Lenders

	 	 	All sums to be advanced by the Lenders to the Borrowers under this Agreement shall be
remitted in USD on the relevant Drawdown Date to the account of the Agent at such bank as
the Agent may have notified to the Lenders 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 relevant Drawdown
Notice.

	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.

	6.5	 	Currency of account

	 	 	If any sum due from the Borrowers under any of the Security Documents, or under any order or
judgment given or made in relation thereto, must be converted from the currency (“the first
currency”) in which the same is payable thereunder into another currency (“the second
currency”) for the purpose of (i) making or filing a claim or proof against the Borrowers,
(ii) obtaining an order or judgment in any court or other tribunal or (iii) enforcing any
order or judgment given or made in relation thereto, the Borrowers undertake to indemnify
and hold harmless the Lender from and against any loss suffered as a result of any
discrepancy between (a) the rate of exchange used for such purpose to convert the sum in
question from the first currency into the second currency and (b) the rate or rates of
exchange at which the Lender 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,

30

 

	 	 	claim or proof. Any amount due from the Borrowers under this clause 6.5 shall be due as a
separate debt and shall not be affected by judgment being obtained for any other sums due
under or in respect of any of the Security Documents and the term “rate of exchange”
includes any premium and costs of exchange payable in connection with the purchase of the
first currency with the second currency.

	6.6	 	Grossing-up for Taxes — by the Borrowers

	 	 	If at any time the Borrowers must make any deduction or withholding in respect of Taxes or
deduction in respect of any royalty payment, duty, assessment or other charge or otherwise
from any payment due under any of the Security Documents for the account of any Bank or if
the Agent or the Security Trustee must make any deduction or withholding from a payment to
another Bank or withholding in respect of Taxes from any payment due under any of the
Security Documents, the sum due from the Borrowers in respect of such payment must be
increased to the extent necessary to ensure that, after the making of such deduction or
withholding, the relevant Bank receives on the due date for such payment (and retains, free
from any liability in respect of such deduction or withholding), a net sum equal to the sum
which it would have received had no such deduction or withholding been required to be made
and the Borrowers must indemnify each Bank against any losses or costs incurred by it by
reason of any failure of the Borrowers to make any such deduction or withholding or by
reason of any increased payment not being made on the due date for such payment. Provided
however that if any Bank or the Agent or the Security Trustee shall be or become entitled to
any Tax credit or relief in respect of any Tax which is deducted from any payment by the
Borrowers and it actually receives a benefit from such Tax credit or relief in its country
of domicile, incorporation or residence, the relevant Bank or the Agent or the Security
Trustee, as the case may be, shall, subject to any laws or regulations applicable thereto,
pay to the Borrowers after such benefit is effectively received by the relevant Bank or the
Agent or the Security Trustee, as the case may be, such amounts (which shall be conclusively
certified by the Agent) as shall ensure that the net amount actually retained by the
relevant Bank or the Agent or the Security Trustee, as the case may be, is equal to the
amount which would have been retained if there had been no such deduction. The Borrowers
must 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.

31

 

	6.7	 	Grossing-up for Taxes — by the Lenders

	 	 	If at any time a Lender must make any deduction or withholding in respect of Taxes from any
payment due under any of the Security Documents for the account of the Agent or the Security
Trustee, the sum due from such Lender in respect of such payment must be increased to the
extent necessary to ensure that, after the making of such deduction or withholding, the
Agent or, as the case may be, the Security Trustee 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 Lender must indemnify the Agent and the Security Trustee
against any losses or costs incurred by it by reason of any failure of such Lender to make
any such deduction or withholding or by reason of any increased payment not being made on
the due date for such payment.

	6.8	 	Loan account

	 	 	Each Lender 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 Trustee shall maintain a control account showing
the Loan, the Advances 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 prima facie evidence of the amount from time
to time owing by the Borrowers under the Security Documents.

	6.9	 	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 Trustee for the account of another person, the Agent or, as the case may
be, the Security Trustee may assume that the payment will be made when due and the Agent
or, as the case may be, the Security Trustee 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 Trustee, then the person to
whom such sum was so made available must on request refund such sum to the Agent or, as
the case may be, the Security Trustee together with interest thereon sufficient to
compensate the Agent or, as the case may be, the Security Trustee for the cost of making
available such sum up to the date of such repayment and the person by whom such sum was
payable must indemnify the Agent or, as the case may be, the Security Trustee for any and
all loss or expense which the Agent or,

32

 

	 	 	as the case may be, the Security Trustee may sustain or incur as a consequence of such sum
not having been paid on its due date.

	6.10	 	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 Security Trustee and the
Lenders under any of the Security Documents, the Agent must apply the amount actually
received from the Borrowers in or towards discharge of the obligations of the Borrowers
under the Security Documents in the following order, notwithstanding any appropriation
made, or purported to be made, by the Borrowers:

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

	6.10.2	 	secondly, in or towards payment of any fees payable to the Agent or any of the other Banks
under, or in relation to, the Security Documents which remain unpaid;

	6.10.3	 	thirdly, in or towards payment to the Lenders, on a pro rata basis, of any accrued interest
owing in respect of the Loan which shall have become due under any of the Security Documents
but remains unpaid;

	6.10.4	 	fourthly, in or towards repayment of the Loan which have become due and payable;

	6.10.5	 	fifthly, in or towards payment to the Lenders, on a pro rata basis, any Break Costs and any
other sum relating to the Loan which shall have become due under any of the Security Documents
but remains unpaid; and

	 	 	The order of application set out in clauses 6.10.1 to 6.10.5 may be varied by the Agent if
the Majority Lenders so direct, without any reference to, or consent or approval from, the
Borrowers.
	 
	7	 	REPRESENTATIONS AND WARRANTIES
	 
	7.1	 	Continuing representations and warranties
	 
	 	 	The Borrowers represent and warrant to each Bank that:

33

 

	7.1.1	 	Due incorporation

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

	7.1.2	 	Corporate power

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

	7.1.3	 	Binding obligations

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

	7.1.4	 	No conflict with other obligations

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

34

 

	7.1.5	 	No default
	 
	 	 	no Default has occurred;
	 
	7.1.6	 	No litigation or judgments

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

	7.1.7	 	No filings required

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

	7.1.8	 	Required Authorisations and legal compliance

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

	7.1.9	 	Choice of law

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

35

 

	7.1.10	 	No immunity

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

	7.1.11	 	Financial statements correct and complete

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

	7.1.12	 	Pari passu

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

	7.1.13	 	Information/ Material Adverse Effect

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

36

 

	7.1.14	 	No withholding Taxes

	 	 	no Taxes anywhere are imposed whatsoever by withholding or otherwise on any payment to be
made by any Security Party under the Underlying Documents or the Security Documents to
which such Security Party is or is to be a party or are imposed on or by virtue of the
execution or delivery by the Security Parties of the Underlying Documents or the Security
Documents or any other document or instrument to be executed or delivered under any of the
Security Documents;
	 
	7.1.15	 	Use of proceeds
	 
	 	 	the Borrowers shall apply the Loan only for the purposes specified in clauses 1.1 and 2.1;
	 
	7.1.16	 	The Mortgaged Vessels

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

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

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

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

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

	 	(e)	 	classed with the relevant Classification free of all recommendations of the
relevant Classification Society (other than those which have been or are being
complied with in accordance with their terms and which are not by their terms overdue
for compliance).

	7.1.17	 	Mortgaged Vessels’ employment

	 	 	save for the relevant Charter, except with prior notice to the Lenders, there will not be
any agreement or arrangement whereby the Earnings (as defined in the relevant Ship
Security Documents) of any Mortgaged Vessel may be shared howsoever with any other person;

37

 

	7.1.18	 	Freedom from Encumbrances
	 
	 	 	no Mortgaged Vessel nor its Earnings, Insurances or Requisition Compensation (each as
defined in the relevant Ship Security Documents) nor the Earnings Account nor any Extended
Employment Contract in respect of such Mortgaged Vessel nor any other properties or rights
which are, or are to be, the subject of any of the Security Documents nor any part thereof
will be subject to any Encumbrance except Permitted Encumbrances;

	7.1.19	 	Environmental Matters

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

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

	 	(d)	 	there has been no Environmental Incident;

	7.1.20	 	ISM and ISPS Code

	 	 	With effect from the Delivery Date of its Vessel, each of the Borrowers will comply with
and continue to comply with and procure that the Manager complies with and continues to
comply with the ISM Code, the ISPS Code and all other statutory and other requirements
relative to its business and in particular each Borrower or the Manager will obtain and
maintain a valid DOC and SMC for each Mortgaged Vessels and that it and the Manager will
implement and continue to implement an ISM SMS;

38

 

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

	7.1.22	 	the Borrowers are the ultimate beneficiaries of the Loan;

	7.1.23	 	Except for the Manager, no Security Party has incurred any Indebtedness save under this
Agreement and the Notes or as otherwise disclosed to the Agent in writing or as disclosed in
the Group’s public filings;

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

	7.1.25	 	no Borrower has an office in England.

	7.2		 	Repetition of representations and warranties

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

	8		 	UNDERTAKINGS
	 
	8.1		 	General

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

	8.1.1	 	Notice of Default and Proceedings

	 	 	promptly inform the Agent of (a) any Default and of any other circumstances or occurrence
which might adversely affect the ability of any Security Party to perform its obligations
under any of the Security Documents and (b) as soon as the same is instituted or
threatened, details of any Proceedings involving any Security Party which could have a
material adverse effect on that Security Party and/or the operation of any of the Vessels
(including, but not limited to any Total Loss of a Vessel or the occurrence of any
Environmental Incident) and will from time to time, if so requested by the Agent, confirm
to the Agent in writing that, save as

39

 

	 	 	otherwise stated in such confirmation, no Default has occurred and is continuing and no
such Proceedings are on foot or threatened;

	8.1.2	 	Authorisation

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

	8.1.3	 	Corporate Existence/Ownership

	 	 	ensure that each Security Party maintains its corporate existence as a body corporate duly
organised and validly existing and in good standing under the laws of the Pertinent
Jurisdiction and ensure that each Borrower is owned, directly or through other companies,
by the Corporate Guarantor for the time being;
	 
	8.1.4	 	Use of proceeds
	 
	 	 	use the Advances exclusively for the purposes specified in clauses 1.1 and 2.1;
	 
	8.1.5	 	Pari passu

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

	8.1.6	 	Financial statements

	 	 	send to the Agent (or procure that is sent):

	 	(a)	 	as soon as possible, but in no event later than 180 days after the end of
each of its Financial Years, annual audited (prepared in accordance with US GAAP by a
firm of accountants acceptable to the Agent) consolidated balance sheet and profit
and loss accounts of the Corporate Guarantor (commencing with the Financial Year
ending 31 December 2011), together with updated details (in a form acceptable to

40

 

	 	 	 	the Agent) of all off-balance sheet and time-charter hire commitments of the
Relevant Ships;

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

	8.1.7	 	Reimbursement of MII & MAP Policy premiums

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

	8.1.8	 	Compliance Certificates

	 	 	deliver to the Agent on the date falling 75 days after the end of the financial quarter to
which they refer, a Compliance Certificate together with such supporting information as
the Agent may require.

	8.1.9	 	Provision of further information

	 	 	provide the Agent, and procure that the Corporate Guarantor provide the Agent, with such
financial or other information concerning either Borrower and their respective affairs,
activities, financial standing, Indebtedness and operations and the performance of the
Mortgaged Vessels as the Agent or any Lender (acting through the Agent) may from time to
time reasonably require and all other documentation and information as any Lender may from
time to time require in order to comply with its, and all other relevant,
know-your-customer regulations;

	8.1.10	 	Obligations under Security Documents

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

41

 

	8.1.11	 	Compliance with ISM Code
	 
	 	 	comply with, and will procure that any Operator will comply with, and ensure that the
Mortgaged Vessels and any Operator comply with the requirements of the ISM Code, including
(but not limited to) the maintenance and renewal of valid certificates pursuant thereto
throughout the Security Period (as defined in the Mortgages);
	 
	8.1.12	 	Withdrawal of DOC and SMC
	 
	 	 	immediately inform the Agent if there is any actual withdrawal of their or any Operator’s
DOC or the SMC of any Mortgaged Vessel;
	 
	8.1.13	 	Issuance of DOC and SMC
	 
	 	 	and will procure that any Operator will promptly inform the Agent of the receipt by either
Borrower or any Operator of notification that its application for a DOC or any application
for an SMC for any Mortgaged Vessel has been refused;
	 
	8.1.14	 	ISPS Code Compliance
	 
	 	 	and will procure that the Manager or any Operator will:

	 	(a)	 	maintain at all times a valid and current ISSC in respect of each
Mortgaged Vessel;
	 
	 	(b)	 	immediately notify the Agent in writing of any actual or threatened
withdrawal, suspension, cancellation or modification of the ISSC in respect of a
Mortgaged Vessel; and
	 
	 	(c)	 	procure that each Mortgaged Vessel will comply at all times with the ISPS
Code;

	8.1.15	 	Compliance with Laws and payment of taxes
	 
	 	 	comply with, and will ensure that the Manager and each Mortgaged Vessel complies with, all
relevant Environmental Laws, laws, statutes and regulations and pay all taxes for which it
is liable as they fall due and has or have at all times all trading certificates necessary
to carry out the trade in which the Vessels are engaged at any relevant time;

42

 

	8.1.16	 	Charters etc.

		 	(i) deliver to the Agent a Certified Copy of each Extended Employment Contract upon its
execution, (ii) forthwith on the Agent’s request execute (a) a Charter Assignment in
respect thereof and (b) any notice of assignment required in connection therewith and use
reasonable efforts to procure the acknowledgement of any such notice of assignment by the
relevant charterer (provided that any failure to procure the same shall not constitute an
Event of Default) and (iii) pay all legal and other costs incurred by the Agent in
connection with any such Charter Assignments, forthwith following the Agent’s demand.
	 
	8.1.17	 	Charter termination
	 
	 	 	if any Charter is terminated other than by mere effluxion of time prior to the third
anniversary of the first Drawdown Date, forthwith thereon employ the relevant Vessel under
a time charterparty, contract of affreightment or other contract of employment on terms
and in a form reasonably acceptable to the Lenders.
	 
	8.1.18	 	Financial Covenants of the Corporate Guarantor’s Group
	 
	 	 	procure that

	 	(a)	 	at no time shall the Liquidity of the Group be less than USD40,000,000;
	 
	 	(b)	 	until 1 January 2013, the Net Worth of the Group will at all times exceed
USD75,000,000 and thereafter the Net Worth of the Group will at all times exceed
USD135,000,000;
	 
	 	(c)	 	as of 1 January 2013, the Total Liabilities divided by the Total Assets
(adjusted for market values of vessels calculated in accordance with Clause 8.2.2)
shall be less than 75%.

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

43

 

	8.1.20	 	Subordination
	 
	 	 	ensure that all Indebtedness of either Borrower to its shareholders, to the Manager or to
any other Group Member is fully subordinated (except for the Notes), and to subordinate
any Indebtedness issued to it by the Corporate Guarantor, all in a form acceptable to the
Agent (acting on the instructions of the Majority Lenders); and
	 
	8.1.21	 	Classification Society undertaking
	 
	 	 	If so requested by the Agent, on or before the relevant Delivery Date, or immediately on
any change of Classification Society for either Vessel, irrevocably instruct (in such form
as the Agent and the Majority Lenders may require in their sole discretion) the
Classification Society of each Vessel to do all or any of the following during the
Facility Period (and use reasonable endeavours to procure that the Classification Society
undertakes with the Agent at such time):

	 	(a)	 	to send to the Agent, following receipt of a written request from the
Agent, certified true copies of all original class records held by the Classification
Society in relation to that Vessel;
	 
	 	(b)	 	to allow the Agent (or its agents), at any time and from time to time, to
inspect the original class and related records of the relevant Owner and that Vessel
at the offices of the Classification Society and to take copies of them;
	 
	 	(c)	 	to notify the Agent immediately if the Classification Society:

	 	(i)	 	receives notification from the relevant Owner or any
person that that Vessel’s Classification Society is to be changed;
	 
	 	(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 Vessel’s class under the rules or terms and conditions of
that Owner’s or that Vessel’s membership of the classification society; or
	 
	 	(iii)	 	has imposed any requirements or recommendations in
respect of the relevant Vessel (other than those which have been or are
being complied with in accordance with their terms and which are not by
their terms overdue for compliance);

44

 

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

	 	(i)	 	to confirm that the relevant 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
Agent in reasonable detail the facts and circumstances of such default, the
consequences thereof, and any remedy period agreed or allowed by the
classification society.

	8.1.22	 	Dividends
	 
	 	 	Provided that no Event of Default has occurred or shall be caused thereby, the Borrowers
and Corporate Guarantor may declare or pay dividends for the period commencing with the
third quarter of 2011 and thereafter, or distribute any of their present or future assets,
undertakings, rights or revenues in an amount not exceeding in aggregate 50% of the Net
Profits for any relevant financial quarter to any of their partners, members or
shareholders.
	 
	8.1.23	 	Breach/amendment of MOA/ Charter
	 
	 	 	Agree any amendment or supplement to an MOA or Charter, or waive or fail to enforce any
breach by the relevant Seller or charterer respectively thereunder.
	 
	8.2	 	Security value maintenance
	 
	8.2.1	 	Security shortfall
	 
	 	 	If, at any time after the first Delivery Date, the Security Value shall be less than the
Required Security Amount, the Agent (acting on the instructions of the Majority Lenders)
shall give notice to the Borrowers requiring that such deficiency be remedied and then the
Borrowers must either:

	 	(a)	 	prepay within a period of thirty (30) days of the date of receipt by the
Borrowers of the Agent’s said notice such part of the Loan as will result in the
Security Value after such prepayment (taking into account any other repayment of the
Loan made

45

 

	 	 	 	between the date of the notice and the date of such prepayment) being equal to
or higher than the Required Security Amount; or
	 
	 	(b)	 	within thirty (30) days of the date of receipt by the Borrowers of the
Agent’s said notice constitute to the satisfaction of the Agent such further security
for the Loan as shall be acceptable to the Lenders having a value for security
purposes (as determined by the Lenders in their absolute discretion) at the date upon
which such further security shall be constituted which, when added to the Security
Value, shall not be less than the Required Security Amount as at such date.

	 	 	The provisions of clauses 4.5 and 4.6 shall apply to prepayments under clause 8.2.1(a)
provided that the Agent shall apply such prepayments (i) pro rata against the Advances,
(ii) in reduction of the repayment instalments under clause 4.1 pro rata and the amounts
of the Loan prepaid hereunder shall not be available to be re-borrowed.
	 
	8.2.2	 	Valuation of Mortgaged Vessels
	 
	 	 	Each Mortgaged Vessel shall, for the purposes of this Agreement, be valued (at the
Borrowers’ expense) in USD by taking either (i) the valuation prepared by an Approved
Broker appointed by the Borrowers or (ii) if requested by the Agent, the arithmetic mean
of valuations prepared by the Approved Broker so appointed by the Borrowers and an
Approved Broker appointed by the Agent, in each case such valuations to be made without
physical inspection, and on the basis of a sale for prompt delivery for cash at arms’
length, on normal commercial terms, as between a willing buyer and a willing seller
without taking into account the benefit or burden of any charterparty or other engagement
concerning the relevant Mortgaged Vessel provided that if such two valuations vary by 10%
or more then the Borrowers may appoint a third Approved Broker to provide a valuation and
the Valuation Amount shall be the arithmetic mean of such three valuations. Valuations
shall be obtained:

	 	(a)	 	on the date falling six months after the first Drawdown Date and
semi-annually thereafter; and
	 
	 	(b)	 	(in addition to (a) above) at any other time as the Agent shall require (in
its absolute discretion).

46

 

	 	 	The Approved Brokers’ valuations for each Mortgaged Vessel on each such occasion shall
constitute the Valuation Amount of such Mortgaged Vessel for the purposes of this
Agreement until superceded by the next such valuation.
	 
	8.2.3	 	Information
	 
	 	 	The Borrowers undertake with the Banks to supply to the Agent and to the Approved Broker
such information concerning the relevant Mortgaged Vessel and its condition as such
shipbrokers may require for the purpose of determining any Valuation Amount.
	 
	8.2.4	 	Costs
	 
	 	 	All costs in connection with obtaining and determining (i) any Valuation Amount pursuant
to Clause 8.2.2(a), (ii) any Valuation Amount pursuant to clause 8.2.2(b) after the
occurrence of a Default, (iii) any Valuation Amount which obliges the Borrowers to make a
prepayment of the Loan or provide additional security in accordance with Clause 8.2.1, and
(iv) any valuation either of any additional security for the purposes of ascertaining the
Security Value at any time or necessitated by the Borrowers electing to constitute
additional security pursuant to clause 8.2.1(b), must be paid by the Borrowers and all
costs in connection with obtaining and determining any Valuation Amount under clause
8.2.2(b) prior to the occurrence of a Default shall be at the cost of the Lenders.
	 
	8.2.5	 	Valuation of additional security
	 
	 	 	For the purposes of this clause 8.2, the market value (i) of any additional security over
a ship (other than the Vessels) shall be determined in accordance with clause 8.2.2 and
(ii) of any other additional security provided or to be provided to the Banks or any of
them shall be determined by the Agent in its absolute discretion.
	 
	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 (at the Borrowers’ expense) such evidence and
documents of the kind referred to in schedule 3 as may in the Agent’s opinion be
appropriate and such favourable legal opinions as the Agent shall in its absolute
discretion require.

47

 

	 
	8.3	 	Negative undertakings

	 	 	The Borrowers jointly and severally undertake with each Bank that, from the Execution Date
until the end of the Facility Period, they will not, without the prior written consent of
the Agent and Agent (acting on the instructions of the Lenders which consent shall not, in
respect of clauses 8.3.4 and 8.3.13, be unreasonably withheld.
	 
	8.3.1	 	Negative pledge
	 
	 	 	will not, permit any Encumbrance (other than a Permitted Encumbrance) to subsist, arise or
be created or extended over all or any part of their respective present or future
undertakings, assets, rights or revenues to secure or prefer any present or future
Indebtedness or other liability or obligation of any Group Member or any other person,
unless the same is reasonably required in the ordinary course of business;
	 
	8.3.2	 	No merger or transfer
	 
	 	 	merge or consolidate with any other person or permit any change to the legal or beneficial
ownership of their shares from that existing at the Execution Date;
	 
	8.3.3	 	Disposals
	 
	 	 	sell, transfer, assign, create security or option over, pledge, pool, abandon, lend or
otherwise dispose of or cease to exercise direct control over any part of their present or
future undertaking, assets, rights or revenues (otherwise than by transfers, sales or
disposals for full consideration in the ordinary course of trading) whether by one or a
series of transactions related or not;
	 
	8.3.4	 	Other business or manager
	 
	 	 	undertake any business other than the ownership and operation of the Ships or employ
anyone other than the Manager as commercial and technical manager of the Vessels;
	 
	8.3.5	 	Acquisitions
	 
	 	 	acquire any further assets other than the Vessels and rights arising under contracts
entered into by or on behalf of the Borrowers in the ordinary course of their businesses
of owning, operating and chartering the Vessels;

48

 

	8.3.6	 	Other obligations

	 	 	incur any obligations (to any Group Member or otherwise) except for obligations arising
under the Underlying Documents or the Security Documents or contracts entered into (or in
the case of any obligation to any Group Member, reasonably entered into) in the ordinary
course of their business of owning, operating and chartering the Vessels;
	 
	8.3.7	 	No borrowing
	 
	 	 	incur any Borrowed Money except for Borrowed Money pursuant to the Security Documents;
	 
	8.3.8	 	Repayment of borrowings
	 
	 	 	repay or prepay the principal of, or pay interest on or any other sum in connection with
any of their Borrowed Money except for Borrowed Money pursuant to the Security Documents;
	 
	8.3.9	 	Guarantees
	 
	 	 	issue any guarantees, other than those given under the Notes or otherwise become directly
or contingently liable for the obligations of any person, firm, or corporation except
pursuant to the Security Documents and except for (i) guarantees from time to time
required in the ordinary course by any protection and indemnity or war risks association
with which a Vessel is entered, guarantees required to procure the release of such Vessel
from any arrest, detention, attachment or levy or guarantees required for the salvage of a
Vessel and (ii) such other guarantees to which the Agent shall have consented in writing
on behalf of the Banks;
	 
	8.3.10	 	Loans
	 
	 	 	make any loans or grant any credit (save for normal trade credit in the ordinary course of
business) to any person or agree to do so;
	 
	8.3.11	 	Sureties
	 
	 	 	permit any Indebtedness of either Borrower to any person (other than the Banks pursuant to
the Security Documents) to be guaranteed by any person (except for guarantees from time to
time required in the ordinary course of business and in the ordinary course by any
protection and indemnity or war risks association with which a Vessel is entered,
guarantees required to procure the release of such Vessel from any arrest, detention,
attachment or levy or guarantees or undertakings required for the salvage of a Vessel);

49

 

	 
	8.3.12	 	Subsidiaries

	 	 	form or acquire any Subsidiaries;
	 
	8.3.13	 	Change of name, flag or class
	 
	 	 	Change the name, flag, Classification or Classification Society of either Vessel; or
	 
	8.3.14	 	Charters and charters

	 	(a)	 	agree to shorten the tenor of either Charter; or
	 
	 	(b)	 	agree to reduce the charter hire payable under any Charter;
	 
	 	(c)	 	without the prior written consent of the Agent (acting on the instructions
of the Lenders) and then, if such consent is given, only subject to such conditions
as the Agent (acting on the instructions of the Lenders) may impose, let or agree to
let a Vessel:

	 	(i)	 	on demise charter for any period; or
	 
	 	(ii)	 	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; or
	 
	 	(iii)	 	on terms whereby more than two (2) months’ hire (or the
equivalent) is payable in advance; or
	 
	 	(iv)	 	below a fair and reasonable arms-length rate obtainable
at the time when the relevant Vessel is fixed.

	9	 	CONDITIONS
	 
	9.1	 	Advance of any Advance
	 
	 	 	The obligation of each Lender to make its Commitment available in respect of any Advance
is conditional upon:
	 
	9.1.1	 	that, on or before the service of the first Drawdown Notice hereunder, the Agent has
received the documents described in Part A of Schedule 3 in form and substance satisfactory to
the Agent (after consultation with the Lenders) and its lawyers;

50

 

	9.1.2	 	that, on or before the Drawdown Date of each Advance but prior to making such Advance, the
Agent has received the documents described in Part B of Schedule 3 in respect of the Relevant
Vessel (as defined in Schedule 3) in form and substance satisfactory to the Agent and its
lawyers;
	 
	9.1.3	 	the representations and warranties contained in clause 7 and clauses 4.1 and 4.2 of the
Corporate Guarantee being then true and correct as if each was made with respect to the facts
and circumstances existing at such time; and
	 
	9.1.4	 	no Default having occurred and being continuing and there being no Default which would
result from the making of the Loan.
	 
	9.2	 	Waiver of conditions precedent
	 
	 	 	The conditions specified in this clause 9 are inserted solely for the benefit of the
Lenders and may be waived by the Agent in whole or in part and with or without conditions
only with the consent of the Majority Lenders.
	 
	9.3	 	Further conditions precedent
	 
	 	 	Not later than five (5) Banking Days prior to the Drawdown Date of an Advance and not
later than five (5) Banking Days prior to any Interest Payment Date, the Agent (acting on
the instructions of the Majority Lenders) may request and the Borrowers must, not later
than two (2) Banking Days prior to such date, deliver to the Agent (at the Borrowers’
expense) on such request further favourable certificates and/or opinions as to any or all
of the matters which are the subject of clauses 7, 8, 9 and 10.
	 
	10	 	EVENTS OF DEFAULT
	 
	10.1	 	Events
	 
	 	 	Each of the following events shall constitute an Event of Default (whether such event
shall occur voluntarily or involuntarily or by operation of law or regulation or in
connection with any judgment, decree or order of any court or other authority or
otherwise, howsoever):
	 
	10.1.1	 	Non-payment: any Security Party fails to pay any sum payable by it under any of the Security
Documents at the time, in the currency and in the manner stipulated in the Security Documents
or the Underlying Documents (and so that, for this purpose, sums payable (i)

51

 

	 	 	under clauses 3.1 and 4.1 shall be treated as having been paid at the stipulated time if
(aa) received by the Agent within two (2) days of the dates therein referred to and (bb)
such delay in receipt is caused by administrative or other delays or errors within the
banking system and (ii) on demand shall be treated as having been paid at the stipulated
time if paid within two (2) Banking Days of demand); or
	 
	10.1.2	 	Breach of Insurance and certain other obligations: any Owner or, as the context may require,
the Manager or any other person fails to obtain and/or maintain the Insurances (as defined in,
and in accordance with the requirements of, the Ship Security Documents) for any of the
Mortgaged Vessels or if any insurer in respect of such Insurances cancels the Insurances or
disclaims liability by reason, in either case, of mis-statement in any proposal for the
Insurances or for any other failure or default on the part of the Borrowers or any other
person or a Borrower commits any breach of or omits to observe any of the obligations or
undertakings expressed to be assumed by them under clause 8; or
	 
	10.1.3	 	Breach of other obligations: any Security Party commits any breach of or omits to observe
any of its obligations or undertakings expressed to be assumed by it under any of the Security
Documents (other than those referred to in clauses 10.1.1 and 10.1.2 above) unless such breach
or omission, in the opinion of the Agent (following consultation with the Banks) is capable of
remedy, in which case the same shall constitute an Event of Default if it has not been
remedied within fifteen (15) days of the occurrence thereof; or
	 
	10.1.4	 	Misrepresentation: any representation or warranty made or deemed to be made or repeated by
or in respect of any Security Party in or pursuant to any of the Security Documents or in any
notice, certificate or statement referred to in or delivered under any of the Security
Documents is or proves to have been incorrect or misleading in any material respect; or
	 
	10.1.5	 	Cross-default: There shall occur a default (howsoever therein described) under any
Indebtedness of either Borrower in an amount exceeding one million Dollars (USD1,000,000) or
any Indebtedness (including, but not limited to, the Notes) of any Group Member in an amount
exceeding five million Dollars (USD5,000,000) is not paid when due (subject to applicable
grace periods) or any such Indebtedness of either Borrower or any Group Member becomes
(whether by declaration or automatically in accordance with the relevant agreement or
instrument constituting the same) due and payable prior to the date when it would otherwise
have become due (unless as a result of the exercise by the relevant Borrower or Group Member
of a voluntary right of prepayment), or any creditor of a Borrower or any

52

 

	 	 	Group Member becomes entitled to declare any such Indebtedness due and payable or any
facility or commitment available to either Borrower or any Group Member relating to
Indebtedness is withdrawn, suspended or cancelled by reason of any default (however
described) of the person concerned; or
	 
	10.1.6	 	Execution: any uninsured judgment or order made against any Security Party is not stayed,
appealed against or complied with within fifteen (15) days or a creditor attaches or takes
possession of, or a distress, execution, sequestration or other process is levied or enforced
upon or sued out against, any of the undertakings, assets, rights or revenues of any Security
Party and is not discharged within thirty (30) days; or
	 
	10.1.7	 	Insolvency: any Security Party is unable or admits inability to pay its debts as they fall
due; suspends making payments on any of its debts or announces an intention to do so; becomes
insolvent; or any Security Party (other than the Corporate Guarantor and the Manager) has
negative net worth (taking into account contingent liabilities); or suffers the declaration by
any court, liquidator, receiver or administrator of a moratorium in respect of any of its
Indebtedness; or
	 
	10.1.8	 	Reduction or loss of capital: a meeting is convened by any Security Party (other than the
Corporate Guarantor and the Manager) without the Agent’s prior written consent, for the
purpose of passing any resolution to purchase, reduce or redeem any of its share capital
without the Agent’s prior written consent; or
	 
	10.1.9	 	Dissolution: any corporate action, Proceedings or other steps are taken to dissolve or
wind-up any Security Party or an order is made or resolution passed for the dissolution or
winding up of any Security Party or a notice is issued convening a meeting for such purpose;
or
	 
	10.1.10	 	Administration: any petition is presented, notice given or other steps are taken anywhere
to appoint an administrator of any Security Party or the Agent reasonably believes that any
such petition or other step is imminent or an administration order is made in relation to any
Security Party; or
	 
	10.1.11	 	Appointment of receivers and managers: any administrative or other receiver is appointed
anywhere of any Security Party or any part of its assets and/or undertaking or any other steps
are taken to enforce any Encumbrance over all or any part of the assets of any Security Party;
or

53

 

	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 (other than
the Corporate Guarantor and the Manager) or any legal proceedings are taken in respect of the
Corporate Guarantor, with a view to the general readjustment or rescheduling of all or part of
its Indebtedness or to proposing any kind of composition, compromise or arrangement involving
such company and any of its creditors; or
	 
	10.1.13	 	Analogous proceedings: there occurs, in relation to any Security Party, in any country or
territory in which any of them carries on business or to the jurisdiction of whose courts any
part of their assets is subject, any event which, in the reasonable opinion of the 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) or any Security
Party otherwise becomes subject, in any such country or territory, to the operation of any law
relating to insolvency, bankruptcy or liquidation; or
	 
	10.1.14	 	Cessation of business: any Security Party suspends or ceases or threatens to suspend or
cease to carry on its business without the prior written consent of the Agent, such consent
not to be unreasonably withheld; or
	 
	10.1.15	 	Seizure: all or a material part of the undertaking, assets, rights or revenues of, or
 shares or other ownership interests in, any Security Party are seized, nationalised,
expropriated or compulsorily acquired by or under the authority of any Government Entity; or
	 
	10.1.16	 	Invalidity: any of the Security Documents and the Underlying Documents shall at any time
and for any reason become invalid or unenforceable or otherwise cease to remain in full force
and effect, or if the validity or enforceability of any of the Security Documents and the
Underlying Documents shall at any time and for any reason be contested by any Security Party
which is a party thereto, or if any such Security Party shall deny that it has any, or any
further, liability thereunder; or
	 
	10.1.17	 	Unlawfulness: any Unlawfulness occurs or it becomes impossible or unlawful at any time for
any Security Party, to fulfil any of the covenants and obligations expressed to be assumed by
it in any of the Security Documents or for a Bank to exercise the rights or any of them vested
in it under any of the Security Documents or otherwise; or

54

 

	10.1.18	 	Repudiation: any Security Party repudiates any of the Security Documents or does or causes
or permits to be done any act or thing evidencing an intention to repudiate any of the
Security Documents; or
	 
	10.1.19	 	Encumbrances enforceable: any Encumbrance (other than Permitted Liens) in respect of any of
the property (or part thereof) which is the subject of any of the Security Documents becomes
enforceable; or
	 
	10.1.20	 	Arrest: a Mortgaged Vessel is arrested, confiscated, seized, taken in execution, impounded,
forfeited, detained in exercise or purported exercise of any possessory lien or other claim or
otherwise taken from the possession of its Owner and that Owner shall fail to procure the
release of such Mortgaged Vessel within a period of fifteen (15) Banking Days thereafter (this
clause does not include capture of a Vessel by pirates for up to 12 months (but does apply if
such capture exceeds 12 months) if relevant underwriters confirm in writing (in customary
terms) within ninety (90) day of capture, that such capture will be covered by the relevant
Owner’s war risks insurance); or
	 
	10.1.21	 	Registration: the registration of a Mortgaged Vessel under the laws and flag of the
relevant Flag State is cancelled or terminated without the prior written consent of the
Majority Banks; or
	 
	10.1.22	 	Unrest: the Flag State of a Mortgaged Vessel or the country in which any Security Party is
incorporated or domiciled becomes involved in hostilities or civil war or there is a seizure
of power in the Flag State by unconstitutional means unless the Owner of the Vessel registered
in such Flag State shall have transferred its Vessel onto a new flag acceptable to the Banks
within sixty (60) days of the start of such hostilities or civil war or seizure of power; or
	 
	10.1.23	 	Environmental Incidents: an Environmental Incident occurs which gives rise, or may give
rise, to an Environmental Claim which could, in the opinion of the Agent be expected to have a
material adverse effect (i) on the business, assets or financial condition of any Security
Party or the Group taken as a whole or (ii) on the security constituted by any of the Security
Documents or the enforceability of that security in accordance with its terms; or
	 
	10.1.24	 	P&I: an Owner or the Manager or any other person fails or omits to comply with any
requirements of the protection and indemnity association or other insurer with which a
Mortgaged Vessel is entered for insurance or insured against protection and indemnity risks
(including oil pollution risks) to the effect that any cover (including, without limitation,
any

55

 

	 	 	cover in respect of liability for Environmental Claims arising in jurisdictions where such
Mortgaged Vessel operates or trades) is or may be liable to cancellation, qualification or
exclusion at any time; or
	 
	10.1.25	 	Material events: any other event occurs or circumstance arises which, in the opinion of the
Agent (following consultation with the Banks), is likely materially and adversely to affect
either (i) the ability of any Security Party to perform all or any of its obligations under or
otherwise to comply with the terms of any of the Security Documents or (ii) the security
created by any of the Security Documents; or
	 
	10.1.26	 	Required Authorisations: any Required Authorisation is revoked or withheld or modified or
is otherwise not granted or fails to remain in full force and effect or if any exchange
control or other law or regulation shall exist which would make any transaction under the
Security Documents or the continuation thereof, unlawful or would prevent the performance by
any Security Party of any term of any of the Security Documents;
	 
	10.1.27	 	Ownership: there is any change in the direct or indirect ownership of either Borrower
without the prior written consent of the Agent or the number of shares of and in the Corporate
Guarantor owned by Navios Maritime Holdings Inc., Mrs. Angeliki Frangou and their respective
affiliates in aggregate falls below 30% of the issued shares of the Corporate Guarantor or
there is a change of control of the Corporate Guarantor;
	 
	10.1.28	 	Material adverse change: there occurs, in the reasonable opinion of the Agent (following
consultation with the Lenders), a material adverse change in:

	 	(a)	 	the financial condition or strength of any Security Party or the Group by
reference to the financial position or strength of such Security Party and the Group
as described by any Security Party to the Agent in the negotiation of this Agreement;
or
	 
	 	(b)	 	in the conditions prevailing in the international money and capital
markets; or
	 
	 	(c)	 	in the financial, political or economic situation globally; or
	 
	 	(d)	 	the financial prospects of the Borrowers, the Corporate Guarantor or the
Group, in the reasonable opinion of the Lenders.

	10.1.29	 	Charter: a Charter shall terminate other than by effluxion of time or it shall be amended
in a material (in the opinion of the Agent) respect without the prior consent of the Agent

56

 

	10.1.30	 	Money Laundering: any Security Party is in breach of or fails to observe any law,
requirement, measure or procedure implemented to combat “money laundering” as defined in
Article 1 of the Directive (91/308 EEC) of the Council of the European Communities; or
	 
	10.2	 	Acceleration
	 
	 	 	The Agent may, and if so requested by the Majority Lenders shall, without prejudice to any
other rights of the Lenders, at any time after the happening of an Event of Default by
notice to the Borrowers declare that:
	 
	10.2.1	 	the obligation of each Lender to make its Commitment available shall be terminated,
whereupon the Commitment shall be reduced to zero forthwith; and/or
	 
	10.2.2	 	the Loan and all interest accrued and all other sums payable whatsoever under the Security
Documents have become due and payable, whereupon the same shall, immediately or in accordance
with the terms of such notice, become due and payable.
	 
	10.3	 	Demand Basis
	 
	 	 	If, under clause 10.2.2, the Agent has declared the Loan to be due and payable on demand,
at any time thereafter the Agent may (and if so instructed by the Majority Lenders shall)
by written notice to the Borrowers (a) demand repayment of the Loan on such date as may be
specified whereupon, regardless of any other provision of this Agreement, the Loan shall
become due and payable on the date so specified together with all interest accrued and all
other sums payable under this Agreement or (b) withdraw such declaration with effect from
the date specified in such notice.
	 
	11	 	INDEMNITIES
	 
	11.1	 	General indemnity
	 
	 	 	The Borrowers agree to indemnify each Bank on demand, without prejudice to any of such
Bank’s other rights under any of the Security Documents, against any loss (including loss
of Margin) or expense (including, without limitation, Break Costs) which such Bank shall
certify as sustained by it as a consequence of any Default, any prepayment of the Loan
being made under clauses 4.2, 4.3, 4.4, 4.5, 8.2.1(a) or 12.1 or any other repayment or
prepayment of the Loan or part thereof being made otherwise than on an Interest Payment
Date relating to the part of the Loan prepaid or repaid; and/or any Advance not being made
for any reason

57

 

	 	 	(excluding any default by the Agent, the Security Trustee or any Lender) after the
Drawdown Notice for such Advance has been given.
	 
	11.2	 	Environmental indemnity
	 
	 	 	The Borrowers shall indemnify each Bank on demand and hold it harmless from and against
all costs, claims, expenses, payments, charges, losses, demands, liabilities, actions,
Proceedings, penalties, fines, damages, judgements, orders, sanctions or other outgoings
of whatever nature which may be incurred or made or asserted whensoever against such Bank
at any time, whether before or after the repayment in full of principal and interest under
this Agreement, arising howsoever out of an Environmental Claim made or asserted against
such Bank which would not have been, or been capable of being, made or asserted against
such Bank had it not entered into any of the Security Documents or been involved in any of
the resulting or associated transactions.
	 
	11.3	 	Capital adequacy and reserve requirements indemnity
	 
	 	 	The Borrowers shall promptly indemnify each Lender on demand against any cost incurred or
loss suffered by such Lender as a result of its complying with (i) the minimum reserve
requirements from time to time of the European Central Bank (ii) any capital adequacy
directive of the European Union and/or (iii) any revised framework for international
convergence of capital measurements and capital standards and/or any regulation imposed by
any Government Entity in connection therewith, and/or in connection with maintaining
required reserves with a relevant national central bank to the extent that such compliance
or maintenance relates to such Lender’s Commitment and/or Contribution or deposits
obtained by it to fund the whole or part thereof and to the extent such cost or loss is
not recoverable by such Lender under clause 12.2.
	 
	12	 	UNLAWFULNESS AND INCREASED COSTS
	 
	12.1	 	Unlawfulness
	 
	 	 	If it is or becomes contrary to any law, directive or regulation for any Lender to
contribute to an Advance or to maintain its Commitment or fund its Contribution to the
Loan or any Advance, such Lender shall promptly, through the Agent, give notice to the
Borrowers whereupon (a) such Lender’s Contribution and Commitment shall be reduced to zero
and (b) the Borrowers shall be obliged to prepay such Lender’s Contribution either (i)
forthwith or (ii)

58

 

		 	on a future specified date not being earlier than the latest date permitted by the
relevant law, directive or regulation together with interest accrued to the date of
prepayment and all other sums payable by the Borrowers under this Agreement.
	 
	12.2	 	Increased costs
	 
	 	 	If the result of any change in, or in the interpretation or application of, or the
introduction of, any law or any regulation, request or requirement (whether or not having
the force of law, but, if not having the force of law, with which a Lender 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, is to:
	 
	12.2.1	 	subject any Lender to Taxes or change the basis of Taxation of any Lender 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 Lender 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 Lender or its holding company in
making or keeping such Lender’s Commitment available or maintaining or funding all or part of
such Lender’s Contribution; and/or
	 
	12.2.3	 	reduce the amount payable or the effective return to any Lender under any of the Security
Documents; and/or
	 
	12.2.4	 	reduce any Lender’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
Lender’s obligations under any of the Security Documents; and/or
	 
	12.2.5	 	require any Lender or its holding company to make a payment or forgo a return on or
calculated by reference to any amount received or receivable by such Lender under any of the
Security Documents; and/or
	 
	12.2.6	 	require any Lender or its holding company to incur or sustain a loss (including a loss of
future potential profits) by reason of being obliged to deduct all or part of its Contribution
or the Loan from its capital for regulatory purposes,
	 
	 	 	then and in each such case (subject to clause 12.3):

59

 

	 	(a)	 	such Lender shall notify the Borrowers in writing of such event promptly
upon its becoming aware of the same; and
	 
	 	(b)	 	the Borrowers shall on demand made at any time whether or not such Lender’s
Contribution has been repaid, pay to the Agent for the account of such Lender the
amount which such Lender specifies (in a certificate setting forth the basis of the
computation of such amount but not including any matters which such Lender or its
holding company regards as confidential) is required to compensate such Lender and/or
(as the case may be) its holding company for such liability to Taxes, cost,
reduction, payment , forgone return or loss.

	 	 	For the purposes of this clause 12.2 “holding company” means the company or entity (if
any) within the consolidated supervision of which a Lender is included.
	 
	12.3	 	Exception
	 
	 	 	Nothing in clause 12.2 shall entitle any Lender 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.
	 
	13	 	APPLICATION OF MONEYS, SET OFF, PRO-RATA PAYMENTS AND MISCELLANEOUS
	 
	13.1	 	Application of moneys
	 
	 	 	All moneys received by the Agent and/or the Security Trustee 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 Trustee’s or (as the case may
be) the Agent’s discretion, shall be applied in the following manner:
	 
	13.1.1	 	first, in or towards payment, on a pro-rata basis, of any unpaid costs and expenses of the
Banks or any of them under any of the Security Documents;
	 
	13.1.2	 	secondly, in or towards payment of any fees payable to the Agent or any of the other Banks
under, or in relation to, the Security Documents which remain unpaid;

60

 

	13.1.3	 	thirdly, in or towards payment to the Banks, on a pro rata basis, of any accrued interest
owing in respect of the Loan which shall have become due under any of the Security Documents
but remains unpaid;
	 
	13.1.4	 	fourthly, in or towards repayment of the Loan (whether the same is due and payable or not);
	 
	13.1.5	 	fifthly, in or towards payment to the Lenders, on a pro rata basis any Break Costs and any
other sum relating to the Loan which shall have become due under any of the Security Documents
but remains unpaid;
	 
	13.1.6	 	sixthly, the surplus (if any) shall be paid to the Borrowers or to whomsoever else may then
be entitled to receive such surplus.
	 
	13.2	 	Set-off
	 
	13.2.1	 	Each Borrower irrevocably authorises each Bank (without prejudice to any of such Bank’s
rights at law, in equity or otherwise), at any time and without notice to the Borrowers, to
apply any credit balance to which either Borrower is then entitled standing upon any account
of either Borrower with any branch of such Bank in or towards satisfaction of any sum due and
payable from the Borrowers to such Bank under any of the Security Documents. For this
purpose, each Bank is authorised to purchase with the moneys standing to the credit of such
account such other currencies as may be necessary to effect such application.
	 
	13.2.2	 	No Bank shall be obliged to exercise any right given to it by this clause 13.2. Each Bank
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 Banks.
	 
	13.2.3	 	Nothing in this clause 13.2 shall be effective to create a charge or other security
interest.
	 
	13.3	 	Pro rata payments
	 
	13.3.1	 	If at any time any Lender (the “Recovering Lender”) receives or recovers any amount owing to
it by the Borrowers under this Agreement (other than pursuant to any other Security Document)
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 Lender’s Contribution or any other payment of an amount due to the
Recovering Lender for its sole account pursuant to clauses 3.6, 5, 6.6, 11.1, 11.2, 11.3,
12.1,

61

 

		 	or 12.2), the Recovering Lender 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 Lender would have received if
the Relevant Receipt had been received by the Agent and distributed pursuant to clause 6.1
or 6.10 (as the case may be) then:

	 	(a)	 	within two (2) Banking Days of demand by the Agent, the Recovering Lender
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 Lender as
if it were a payment made by the Borrowers and shall distribute the same to the
Lenders (other than the Recovering Lenders) in accordance with clause 6.10; and
	 
	 	(c)	 	as between the Borrowers and the Recovering Lender the excess amount so
re-distributed shall be treated as not having been paid but the obligations of the
Borrowers to the other Lenders shall, to the extent of the amount so re-distributed
to them, be treated as discharged.

	13.3.2	 	If any part of the Relevant Receipt subsequently has to be wholly or partly refunded by the
Recovering Lender (whether to a liquidator or otherwise) each Lender to which any part of such
Relevant Receipt was so re-distributed shall on request from the Recovering Lender repay to
the Recovering Lender such Lender’s pro-rata share of the amount which has to be refunded by
the Recovering Lender.
	 
	13.3.3	 	Each Lender 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 Lender shall be
obliged to share any Relevant Receipt which it receives or recovers pursuant to 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 Lender are instituted by it without prior notice
having been given to such party through the Agent).

62

 

	13.4	 	No release

	 	 	For the avoidance of doubt it is hereby declared that failure by any Recovering Lender to
comply with the provisions of clause 13.3 shall not release any other Recovering Lender
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 or create or declare a trust by a Lender 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
	 
	 	 	Each Borrower undertakes with each Bank that the Security Documents shall both at the date
of execution and delivery thereof and throughout the Facility Period be valid and binding
obligations of the respective parties thereto which, with the rights of each Lender
thereunder, are 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 Lenders may
be necessary or desirable 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 Security
Documents, the provisions of this Agreement shall prevail.
	 
	13.8	 	No implied waivers, remedies cumulative
	 
	 	 	No failure or delay on the part of any of the Banks 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 any Bank of any power, right or remedy preclude any other or
further exercise thereof or the exercise of any other power, right or remedy. The
remedies provided in the Security Documents are cumulative and are not exclusive of any
remedies provided by law. No waiver by any Bank shall be effective unless it is in
writing.

63

 

	13.9	 	Severability

	 	 	If any provision of this Agreement is prohibited, invalid, illegal or unenforceable in any
jurisdiction, such prohibition, invalidity, illegality or unenforceability shall not
affect or impair howsoever the remaining provisions thereof or affect the validity,
legality or enforceability of such provision in any other jurisdiction.
	 
	13.10	 	Force Majeure
	 
	 	 	Regardless of any other provision of this Agreement, none of the Banks shall be liable
for any failure to perform the whole or any part of this Agreement resulting directly or
indirectly from (i) the action or inaction or purported action of any governmental or
local authority (ii) any strike, lockout, boycott or blockade (including any strike,
lockout, boycott or blockade effected by or upon any Bank or any of its representatives or
employees) (iii) any act of God (iv) any act of war (whether declared or not) or terrorism
(v) any failure of any information technology or other operational systems or equipment
affecting any Bank or (vi) any other circumstances whatsoever outside any Bank’s control.
	 
	13.11	 	Amendments
	 
	 	 	This Agreement may be amended or varied only by an instrument in writing executed by all
parties hereto who irrevocably agree that the provisions of this clause 13.11 may not be
waived or modified except by an instrument in writing to that effect signed by all of
them.
	 
	13.12	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts and all such counterparts
taken together shall be deemed to constitute one and the same agreement which may be
sufficiently evidenced by one counterpart.
	 
	13.13	 	English language
	 
	 	 	All documents required to be delivered under and/or supplied whensoever in connection
howsoever with any of the Security Documents and all notices, communications, information
and other written material whatsoever given or provided in connection howsoever therewith
must either be in the English language or accompanied by an English translation certified
by a notary, lawyer or consulate acceptable to the Agent.
	 
	14	 	ACCOUNTS AND RETENTIONS

64

 

	14.1	 	General

	 	 	Each Borrower undertakes with each Bank that it will ensure that:
	 
	14.1.1	 	it will on or before the Delivery Date in respect of its Vessel, open an Earnings Account in
its name; and
	 
	14.1.2	 	all moneys payable to any Owner in respect of the Earnings (as defined in the relevant
Mortgage) of its Vessel shall, unless and until the Agent (acting on the instructions of the
Majority Lenders) directs to the contrary pursuant to the provisions of the relevant Mortgage,
be paid to its Earnings Account, Provided however that if any of the moneys paid to an
Earnings Account are payable in a currency other than USD, they shall be paid to a sub-account
of that Earnings Account denominated in such currency (except that if the Shareholder fails to
open such a sub-account, the Account Bank shall then convert such moneys into USD at the
Account Bank’s spot rate of exchange at the relevant time for the purchase of USD with such
currency and the term “spot rate of exchange” shall include any premium and costs of exchange
payable in connection with the purchase of USD with such currency).
	 
	14.2	 	Earnings Accounts: withdrawals
	 
	 	 	Any sums standing to the credit of the Earnings Accounts may be applied from time to time
(i) firstly in payment to the Banks of any outstanding amounts due to them under any
Finance Document, (ii) secondly in payment to the Retention Account in accordance with
Clause 14.3 and (iii) subject to there being at any time sufficient funds to pay amounts
due under (i) and (ii) above as they fall due and to no Event of Default having occurred,
thirdly for the unrestricted use of the Borrowers.
	 
	14.3	 	Retention Account: credits and withdrawals
	 
	14.3.1	 	The Borrowers undertake with each Bank that, throughout the Facility Period, they will
procure that, on each Retention Date there is paid (whether from the Earnings Accounts or
elsewhere) to the Retention Account, the Retention Amount for such date.
	 
	14.3.2	 	Unless and until there shall occur an Event of Default (whereupon the provisions of clause
14.5 shall apply), all Retention Amounts credited to the Retention Account together with
interest from time to time accruing or at any time accrued thereon must be applied by the
Account Bank (and the Borrowers hereby irrevocably authorise the Account Bank so to apply the
same) upon each Repayment Date and/or on each day that interest is payable on the Loan

65

 

		 	or an Advance pursuant to clause 3.1, in or towards payment to the Agent of the instalment
then falling due for repayment or, as the case may be, the amount of interest then due.
Each such application by the Account Bank shall constitute a payment in or towards
satisfaction of the Borrowers’ corresponding payment obligations under this Agreement but
shall be strictly without prejudice to the obligations of the Borrowers to make any such
payment to the extent that the aforesaid application by the Account Bank is insufficient
to meet the same.
	 
	14.3.3	 	Unless the Agent (acting on the instructions of the Majority Banks) otherwise agrees in
writing and subject to this clause 14.3.2, Borrowers shall not be entitled to withdraw any
moneys from the Retention Account at any time during the Facility Period
	 
	14.4	 	Application of accounts
	 
	 	 	At any time after the occurrence of an Event of Default, the Agent may (and on the
instructions of the Majority Lenders shall), without notice to the Borrowers, instruct the
Account Bank to apply all moneys then standing to the credit of the Earnings Accounts
and/or the Retention Account (together with interest from time to time accruing or accrued
thereon) in or towards satisfaction of any sums due to the Banks or any of them under the
Security Documents in the manner specified in clause 13.1.
	 
	14.5	 	Charging of accounts
	 
	 	 	The Earnings Accounts and the Retention Account and all amounts from time to time standing
to the credit thereof shall be subject to the security constituted and the rights
conferred by the Earnings Account Pledges and the Retention Account Pledge respectively.
	 
	15	 	ASSIGNMENT, TRANSFER AND LENDING OFFICE
	 
	15.1	 	Benefit and burden
	 
	 	 	This Agreement shall be binding upon, and enure for the benefit of, the Banks 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.

66

 

	15.3 	 	Transfers by Banks

	 	 	any Lender (the “Transferor Lender”) may at any time, after consultation with the
Borrowers and / or the Corporate Guarantor, cause all or any part of its rights, benefits
and/or obligations under this Agreement and the other Security Documents to be transferred
to (i) another Lender, (ii) another branch, subsidiary or affiliate of a Lender, (iii)
another first class international bank or financial institution, (iv) a trust corporation,
fund or other person which is regularly engaged in or established for the purpose of
making, purchasing or investing in loans, securities or other financial assets and which
is advised by or the assets of which are managed or serviced by a Lender (in each case a
“Transferee Lender”) without the consent of the Borrowers or the Corporate Guarantor, in
each case by delivering to the Agent a Transfer Certificate duly completed and duly
executed by the Transferor Lender and the Transferee Lender. No such transfer is binding
on, or effective in relation to, the Borrowers or the Agent unless (i) it is effected or
evidenced by a Transfer Certificate which complies with the provisions of this clause 15.3
and is signed by or on behalf of the Transferor Lender, the Transferee Lender and the
Agent (on behalf of itself, the Borrowers and the other Banks) and (ii) such transfer of
rights under the other Security Documents has been effected and registered. 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 Lender’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
Lender in its capacity as a Lender and shall not transfer its rights and obligations (if
applicable) as the Agent and/or the Agent and/or the Security Trustee, 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
Lender’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 Lender
absolutely, free of any

67

 

	 	 	 	defects in the Transferor Lender’s title and of any rights or equities which the
Borrowers had against the Transferor Lender and the Transferee Lender assumes
all obligations of the Transferor Lender as are transferred by such Transfer
Certificate;
	 
	 	(b)	 	the Transferor Lender’s Commitment is discharged to the extent specified in
the Transfer Certificate;
	 
	 	(c)	 	the Transferee Lender becomes a Lender with a Contribution and/or a
Commitment in respect of the Loan Facility of the amounts specified in the Transfer
Certificate;
	 
	 	(d)	 	the Transferee Lender becomes bound by all the provisions of this Agreement
and the Security 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 Agent and the Security Trustee and to the
extent that the Transferee Lender becomes bound by those provisions, the Transferor
Lender ceases to be bound by them;
	 
	 	(e)	 	an Advance or part of an Advance which the Transferee Lender 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 Lender,
assuming that any defects in the Transferor Lender’s title and any rights or equities
of any Security Party against the Transferor Lender had not existed; and
	 
	 	(f)	 	the Transferee Lender becomes entitled to all the rights under this
Agreement which are applicable to the Lenders generally, including but not limited to
those relating to the Majority Lenders and those under clauses 3.6, 5 and 12 and to
the extent that the Transferee Lender becomes entitled to such rights, the Transferor
Lender 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 Trustee, the Agent and the Lenders hereby
irrevocably authorise and instruct the Agent to sign any such Transfer 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 Transferor Lender and the Transferee Lender.

68

 

	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 and administrative details
(including the lending office) from time to time of the Lenders holding a Transfer Certificate
and the date at which the transfer referred to in such Transfer Certificate held by each
Lender was transferred to such Lender, and the Agent shall make the said register available
for inspection by any Lender or the Borrowers 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, the Contributions and the Transfer Certificates
held by the Lenders from time to time and the principal amounts of such Transfer Certificates
and may be relied upon by all parties to this Agreement.
	 
	15.5	 	Transfer fees and expenses
	 
	 	 	Any Transferor Lender who causes the transfer of all or any part of its rights, benefits
and/or obligations under the Security Documents in accordance with the foregoing
provisions of this clause 15, must, on each occasion, pay to the Agent a transfer fee of
one thousand five hundred Dollars (USD 1,500) and, in addition, be responsible for all
other costs and expenses (including, but not limited to, reasonable legal fees and
expenses) associated therewith and all value added tax thereon, as well as those of the
Agent (in addition to its fee as aforesaid) in connection with such transfer.
	 
	15.6	 	Documenting transfers
	 
	 	 	If any Lender 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, each Borrower undertakes,
immediately on being requested to do so by the Agent and at the cost of the Transferor
Lender, to enter into, and procure that the other Security Parties shall (at the cost of
the Transferor Lender) enter into, such documents as may be necessary or desirable to
transfer to

69

 

	 	 	the Transferee Lender all or the relevant part of such Lender’s interest in the Security
Documents and all relevant references in this Agreement to such Lender shall thereafter be
construed as a reference to the Transferor Lender and/or its Transferee Lender (as the
case may be) to the extent of their respective interests.
	 
	15.7	 	Sub-Participation
	 
	 	 	A Lender may sub-participate all or any part of its rights and/or obligations under the
Security Documents at its own expense without the consent of, consultation with or notice
to, the Borrowers.
	 
	15.8	 	Lending office
	 
	 	 	Each Lender 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
Lender selected from time to time by it through which such Lender wishes to lend for the
purposes of this Agreement. If the office through which a Lender is lending is changed
pursuant to this clause 15.8, such Lender shall notify the Agent promptly of such change
and the Agent shall notify the Borrowers, the Security Trustee, the Agent, the Account
Bank and the other Lenders.
	 
	15.9	 	Securitisation
	 
	 	 	A Lender may include all or any part of the Loan in a securitisation or similar
transaction without the consent of, or consultation with, but after giving 45-day notice
to, the Borrower or any Security Party or any charterer. The Borrowers will assist the
Lenders as necessary to achieve a successful securitisation (or similar transaction)
Provided that the Borrowers shall not be required to bear any third party costs related to
any such securitisation and need only provide such information which any third parties may
reasonably request.
	 
	15.10	 	Disclosure of information
	 
	 	 	The Borrowers hereby do, and shall procure that the other Security Parties do, irrevocably
authorise each Bank to give, divulge and reveal from time to time information and details
relating to their accounts, the Vessels, the Security Documents, the Loan, the Commitments
and any agreement entered into by the Borrowers and/or Security Party or information
provided by the Borrowers or Security Party in connection with the Security Documents to:

70

 

	 	(i)	 	any public or internationally recognised authorities that are entitled to
and have requested to obtain such information,
	 
	 	(ii)	 	the Banks’ respective head offices, branches and affiliates and professional advisors,
	 
	 	(iii)	 	any other parties to the Security Documents,
	 
	 	(iv)	 	a rating agency or their professional advisors,
	 
	 	(v)	 	any person with whom such Bank proposes to enter (or considers entering)
into contractual relations in relation to the Loan and/or its Commitment or
Contribution, and
	 
	 	(vi)	 	any other person regarding the funding, re-financing, transfer, assignment,
sale, sub-participation or operational arrangements or other transaction in relation
to the Loan, its Contribution or its Commitment, including without limitation, for
purposes in connection with a securitisation or similar transaction or any
enforcement, preservation, assignment, transfer, sale or sub-participation of any of
such Bank’s rights and obligations.

	16	 	AGENT AND SECURITY TRUSTEE
	 
	16.1	 	Appointment of the Agent
	 
	 	 	Each Lender 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. Accordingly each of the Lenders hereby authorise the Agent:
	 
	16.1.1	 	to execute such documents as may be approved by the Majority Lenders for execution by the
Agent; and
	 
	16.1.2	 	(whether or not by or through employees or agents) to take such action on such Lender’s
behalf and to exercise such rights, remedies, powers and discretions as are specifically
delegated to the Agent by any Security Document, together with such powers and discretions as
are reasonably incidental thereto.

71

 

	16.2	 	Agent’s actions

	 	 	Any action taken by the Agent under or in relation to any of the Security Documents
whether with requisite authority or on the basis of appropriate instructions received from
the Majority Lenders (or as otherwise duly authorised) shall be binding on all the Banks.
	 
	16.3	 	Agent’s duties
	 
	16.3.1	 	The Agent shall promptly notify each Lender of the contents of each notice, certificate or
other document received by it from the Borrowers under or pursuant to clauses 8.1.1, 8.1.6,
8.1.9, 8.1.10, 8.1.13 and 8.1.17; and
	 
	16.3.2	 	The Agent shall (subject to the other provisions of this clause 16) take (or instruct the
Security Trustee to take) such action or, as the case may be, refrain from taking (or
authorise the Security Trustee 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
Lenders may direct.
	 
	16.4	 	Security Trustee’s and Agent’s rights
	 
	 	 	The Security Trustee and 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 Trustee
to act or refrain from acting) in accordance with the instructions of the Lenders, and shall
be fully protected in so doing;
	 
	16.4.2	 	unless and until it has received directions from the Majority Lenders, take such action or,
as the case may be, refrain from taking such action (or authorise the Security Trustee to take
or refrain from taking such action) in respect of a Default of which the Agent has actual
knowledge as it shall consider advisable in the best interests of the Lenders (but shall not
be obliged to do so);
	 
	16.4.3	 	refrain from acting (or authorise the Security Trustee to refrain from acting) in accordance
with any instructions of the Lenders to institute any Proceedings arising out of or in
connection with any of the Security Documents until it and/or the Security Trustee 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;

72

 

	16.4.4	 	deem and treat (i) each Lender as the person entitled to the benefit of the Contribution of
such Lender 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 Lenders in schedule 1 as its 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 Agent
	 
	 	 	None of the Security Trustee, the Agent nor any of their respective 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 Lender, 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 other
Security Party in the performance or observance of any of the provisions of the 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, in which case the
Agent shall promptly notify the Banks of the relevant event or circumstance; or
	 
	16.5.3	 	be obliged to enquire whether or not any representation or warranty made by the Borrowers 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

73

 

	16.5.5	 	be obliged to account to any Lender 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 Proceedings arising out of or in connection with any of the
Security Documents other than on the instructions of the Majority Lenders; or
	 
	16.5.7	 	be liable to any Lender for any action taken or omitted under or in connection with any of
the Security Documents unless caused by its gross negligence or wilful misconduct.
	 
	 	 	For the purposes of this clause 16, none of the Security Trustee or the Agent shall 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 Security
Trustee or the Agent or the person for the time being acting as the Security Trustee or
the Agent may become aware in the context of corporate finance, advisory or lending
activities from time to time undertaken by the Security Trustee or the Agent or, as the
case may be, the Security Trustee or 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 Security Trustee, Agent
	 
	 	 	Each Lender acknowledges that it has not relied on any statement, opinion, forecast or
other representation made by the Security Trustee or the Agent to induce it to enter into
any of the Security Documents and that it has made and will continue to make, without
reliance on the Security Trustee or 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 Lender’s
Commitment or Contribution under this Agreement. Neither of the Security Trustee and the
Agent shall have any duty or responsibility, either initially or on a continuing basis, to
provide any Lender with any credit or other information with respect to any Security Party
whether coming into its possession before the making of any Advance or the Loan or at any
time or times thereafter other than as provided in clause 16.3.1.
	 
	16.7	 	No responsibility on the Security Trustee, Agent for Borrowers’ performance
	 
	 	 	Neither of the Security Trustee or the Agent shall have any responsibility or liability to
any Lender:

74

 

	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
	 
	16.7.5	 	to investigate or make any enquiry into the title of the Borrowers or any other Security
Party to the Vessels 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 Trustee to perform or discharge any of its duties
or obligations under the Security Documents; or
	 
	16.7.9	 	otherwise in connection with the Security Documents or their negotiation or for acting (or,
as the case may be, refraining from acting) in accordance with the instructions of the
Lenders.
	 
	16.8	 	Reliance on documents and professional advice
	 
	 	 	Each of the Security Trustee and 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 Security Trustee’s or Agent’s employment).
	 
	16.9	 	Other dealings
	 
	 	 	Each of the Security Trustee and the Agent may, without any liability to account to the
Lenders, accept deposits from, lend money to, and generally engage in any kind of banking
or

75

 

	 	 	other business with, and provide advisory or other services to, any Security Party or any
company in the same group of companies as such Security Party or any of the Lenders as if
it were not the Security Trustee or the Agent.
	 
	16.10	 	Rights of Agent as Lender; no partnership
	 
	 	 	With respect to its own Commitment and Contribution (if any) the Security Trustee and the
Agent shall have the same rights and powers under the Security Documents as any other
Lender and may exercise the same as though it were not performing the duties and functions
delegated to it under this Agreement and the term “Lenders” shall, unless the context
clearly otherwise indicates, include the Security Trustee and the Agent in their
respective individual capacity as a Lender. This Agreement 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 clause 16.11, the Security Trustee and/or the Agent (as the case may be) may,
with the consent of the Majority Lenders (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
Lenders, shall:
	 
	16.11.2	 	agree (or authorise the Security Trustee to agree) amendments or modifications to any of
the Security Documents with the Borrowers and/or any other Security Party; and/or
	 
	16.11.3	 	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 Trustee to do so).
	 
	 	 	Any such action so authorised and effected by the Agent shall be documented in such manner
as the Security Trustee and/or the Agent (as the case may be) shall (with the approval of
the Majority Lenders) determine, shall be promptly notified to the Lenders by the
Security Trustee and/or the Agent (as the case may be) and (without prejudice to the
generality of clause 16.2) shall be binding on the Lenders.
	 
	16.11.4	 	Except with the prior written consent of the Lenders, the Security Trustee and the Agent
shall have no authority on behalf of the Lenders to agree (or authorise the Security Trustee
to agree) with the Borrowers and/or any other Security Party any amendment or modification to
any of the Security Documents or to grant (or authorise the Security Trustee to grant) waivers

76

 

	 	 	in respect of breaches or defaults or to vary or excuse (or authorise the Security Trustee
to vary or excuse) performance of or under any of the Security Documents by the Borrowers
and/or any other Security Party, if the effect of such amendment, modification, waiver or
excuse would be to:

	 	(a)	 	reduce the Margin, postpone the due date or reduce the amount of any
payment of principal, interest or other amount payable by any Security Party under
any of the Security Documents;
	 
	 	(b)	 	change the currency in which any amount is payable by any Security Party
under any of the Security Documents;
	 
	 	(c)	 	increase any Lender’s Commitment;
	 
	 	(d)	 	extend any Maturity Date;
	 
	 	(e)	 	change any provision of any of the Security Documents which expressly or
impliedly requires the approval or consent of all the Lenders such that the relevant
approval or consent may be given otherwise than with the sanction of all the Lenders;
	 
	 	(f)	 	change the order of distribution under clauses 6.10 and 13.1;
	 
	 	(g)	 	change this clause 16.11;
	 
	 	(h)	 	change the definition of “Majority Lenders” in clause 1.2;
	 
	 	(i)	 	release any Security Party from the security constituted by any Security
Document (except as required by the terms thereof or by law) or change the terms and
conditions upon which such security or guarantee may be, or is required to be,
released.

	16.12	 	Reimbursement and indemnity by Lenders
	 
	 	 	Each Lender shall reimburse the Security Trustee and the Agent (rateably in accordance
with such Lender’s Commitment or, after the first Advance or the Loan has been drawn, its
Contribution,) to the extent that the Security Trustee or the Agent is not reimbursed by
the Borrowers, for the costs, charges and expenses incurred by the Security Trustee or
the Agent which are expressed to be payable by the Borrowers under clause 5.4 including
(in each case),

77

 

	 	 	without limitation, the fees and expenses of legal or other professional advisers provided
that, if following any payment to the Security Trustee or the Agent by a Lender under
this clause the Security Trustee or the Agent receives payment from the Borrowers in
respect of the same costs, fees or expenses, the Security Trustee or the Agent shall upon
receipt thereof reimburse the relevant Lender. Each Lender must on demand indemnify the
Security Trustee or the Agent (rateably in accordance with such Lender’s Commitment or,
after the first Advance or the Loan has been drawn, its Contribution) against all
liabilities, damages, costs and claims whatsoever incurred by the Security Trustee 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 Trustee or, as
the case may be, the Agent, under any of the Security Documents, unless such liabilities,
damages, costs or claims arise from the Security Trustee’s or as the case may be, the
Agent’s own gross negligence or wilful misconduct.
	 
	16.13	 	Retirement of the Security Trustee /Agent
	 
	16.13.1	 	The Agent may, having given to the Borrowers and each of the Lenders not less than fifteen
(15) days’ notice of its intention to do so, retire from its appointment as the Security
Trustee or the Agent (as the case may be) under this Agreement, provided that no such
retirement shall take effect unless there has been appointed by the Lenders as a successor
agent:

	 	(a)	 	a company in the same group of companies as the Security Trustee or, as
the case may be, the Agent nominated by the Security Trustee or, as the case may be,
the Agent,
	 
	 	(b)	 	a Lender nominated by the Majority Lenders or, failing such a nomination,
	 
	 	(c)	 	any reputable and experienced bank or financial institution nominated by
the retiring Agent or, as the case may be, the retiring Security Trustee.

	 	 	Any corporation into which the retiring Agent and/or the retiring Security Trustee (as the
case may be) may be merged or converted or any corporation with which the Security Trustee
and/or the Agent (as the case may be) may be consolidated or any corporation resulting
from any merger, conversion, amalgamation, consolidation or other reorganisation to which
the Security Trustee or the Agent (as the case may be) shall be a party shall, to the
extent permitted by applicable law, be the successor Agent or Security Trustee under this
Agreement and the other Security Documents without the execution or filing of any document
or any

78

 

	 	 	further act on the part of any of the parties to the 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 Lenders. Prior to any such successor
being appointed, the Agent agrees to consult with the Borrowers and the Lenders as to the
identity of the proposed successor and to take account of any reasonable objections which
the Borrowers and the Lenders may raise to such successor being appointed.
	 
	16.13.2	 	If the Majority Lenders, acting reasonably, are of the opinion that the Security Trustee or
Agent is unable to fulfil its respective obligations under this Agreement in a professional
and acceptable manner, then they may require the Security Trustee or Agent, by written
notice, to resign in accordance with clause 16.13.1, which the Agent shall promptly do, and
the terms of clause 16.13.1 shall apply to the appointment of any substitute Security Trustee
or Agent, save that the same shall be appointed by the Majority Lenders and not by all of the
Lenders.
	 
	16.13.3	 	Upon any such successor as aforesaid being appointed, the retiring Agent or, as the case
may be, the Security Trustee 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 or Security Trustee. 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 Trustee
	 
	16.14.1	 	Appointment
	 
	 	 	Each of the Lenders and the Agent irrevocably appoints the Security Trustee as its
Security Trustee and trustee for the purposes of the Security Documents, in each case on
the terms set out in this Agreement. Accordingly, each of the Lenders and the Agent hereby
authorises the Security Trustee (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 Security Trustee by this Agreement and/or the Security
Documents, together with such powers and discretions as are reasonably incidental thereto.

79

 

	16.14.2	 	Retirement

	 	 	Without prejudice to clause 16.13, the Security Trustee may, having given to the Borrowers
and each of the Lenders not less than fifteen (15) days’ notice of its intention to do so,
retire from its appointment as Security Trustee under this Agreement and any Trust Deed,
provided that no such retirement shall take effect unless there has been appointed by the
Lenders and the Agent as a successor Security Trustee and trustee:

	 	(a)	 	a company in the same group of companies of the Security Trustee nominated
by the Security Trustee which the Lenders hereby irrevocably and unconditionally
agree to appoint or, failing such nomination,
	 
	 	(b)	 	a Lender or trust corporation nominated by the Majority Lenders or, failing
such a nomination,
	 
	 	(c)	 	any bank or trust corporation nominated by the retiring Security Trustee,

	 	 	and, in any case, such successor Security Trustee 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 Trustee as if it had been an original party to this Agreement and (ii) a duly
executed Trust Deed.
	 
	 	 	Any corporation into which the retiring Security Trustee may be merged or converted or any
corporation with which the Security Trustee may be consolidated or any corporation
resulting from any merger, conversion, amalgamation, consolidation or other reorganisation
to which the Security Trustee shall be a party shall, to the extent permitted by
applicable law, be the successor Security Trustee 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 Lenders. Prior to any such successor being appointed, the Security Trustee agrees to
consult with the Borrowers as to the identity of the proposed successor and to take
account of any reasonable objections which the Borrowers may raise to such successor being
appointed.
	 
	 	 	Upon any such successor as aforesaid being appointed, the retiring Security Trustee 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

80

 

	 	 	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 Trustee.
The retiring Security Trustee 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.
	 
	16.15	 	Powers and duties of the Security Trustee
	 
	16.15.1	 	The Security Trustee shall have no duties, obligations or liabilities to any of the Lenders
and the Agent beyond those expressly stated in any of the Security Documents. Each of the
Agent and the Lenders hereby authorises the Security Trustee to enter into and execute:

	 	(a)	 	each of the Security Documents to which the Security Trustee 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 Lenders) for entry into by the
Security Trustee,

	 	 	and, in each and every case, to hold any and all security thereby created upon trust for
the Lenders and the Agent for the time being in the manner contemplated by this Agreement.
	 
	16.15.2	 	Subject to clause 16.15.3 the Security Trustee may, with the prior consent of the Majority
Lenders 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 Trustee is or is intended to be a party; or
	 
	 	(b)	 	waive breaches of, or defaults under, or otherwise excuse performance of,
any provision of the Security Documents to which the Security Trustee is or is
intended to be a party; or
	 
	 	(c)	 	give any consents to any Security Party in respect of any provision of any
Security Document

	 	 	Any such action so authorised and effected by the Security Trustee shall be promptly
notified to the Lenders and the Agent by the Security Trustee and shall be binding on the
other Banks.

81

 

	16.15.3	 	The Security Trustee shall not concur with any Security Party with respect to any of the
matters described in clause 16.11.4 without the consent of the Lenders communicated in writing
by the Agent.
	 
	16.15.4	 	The Security Trustee 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 Trustee and trustee, as the Agent may direct.
Subject as provided in the foregoing provisions of this clause, unless and until the Security
Trustee has received such instructions from the Agent, the Security Trustee 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 Trustee shall deem advisable in the best
interests of the Banks provided that (for the avoidance of doubt), to the extent that this
clause might otherwise be construed as authorising the Security Trustee to take, or refrain
from taking, any action of the nature referred to in clause 16.15.2 — and for which the prior
consent of the Lenders is expressly required under clause 16.15.3 — clauses 16.15.2 and
16.15.3 shall apply to the exclusion of this clause.
	 
	16.15.5	 	None of the Lenders nor the Agent shall have any independent power to enforce any of the
Security Documents referred to in clause 16.14 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 Trustee.
	 
	16.15.6	 	For the purpose of this clause 16, the Security Trustee may, rely and act in reliance upon
any information from time to time furnished to the Security Trustee by the Agent (whether
pursuant to clause 16.15.7 or otherwise) unless and until the same is superseded by further
such information, so that the Security Trustee 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 Trustee has actual knowledge that such information is
inaccurate or incorrect.
	 
	16.15.7	 	Without prejudice to the foregoing each of the Agent and the Lenders (whether directly or
through the Agent) shall provide the Security Trustee 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 16.14.

82

 

	16.16	 	Trust provisions
	 
	16.16.1	 	The trusts constituted or evidenced in or by this Agreement and the Trust Deed shall remain
in full force and effect until whichever is the earlier of:

	 	(a)	 	the expiration of a period of eighty (80) years from the date of this
Agreement; and
	 
	 	(b)	 	receipt by the Security Trustee of confirmation in writing by the Agent
that there is no longer outstanding any Indebtedness (actual or contingent) which is
secured or guaranteed or otherwise assured by or under any of the Security Documents,

	 	 	and the parties to this Agreement declare that the perpetuity period applicable to this
Agreement and the trusts declared by the Trust Deed shall for the purposes of the
Perpetuities and Accumulations Act 1964 be the period of eighty (80) years from the date
of this Agreement.
	 
	16.16.2	 	In its capacity as trustee in relation to the Security Documents specified in clause 16.14,
the Security Trustee 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
Trustee by any of those Security Documents.
	 
	16.16.3	 	It is expressly declared that, in its capacity as trustee in relation to the Security
Documents specified in clause 16.14, the Security Trustee shall be entitled to invest moneys
forming part of the security and which, in the opinion of the Security Trustee, may not be
paid out promptly following receipt in the name or under the control of the Security Trustee
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 Trustee
as the Security Trustee may think fit without being under any duty to diversify its
investments and the Security Trustee 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 Trustee, be made or
retained in the names of nominees.

83

 

	16.17	 	Independent action by Banks
	 
	 	 	None of the Banks 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 Lenders but, provided such consent has been obtained, it
shall not be necessary for any other Bank to be joined as an additional party in any
Proceedings for this purpose.
	 
	16.18	 	Common Agent and Security Trustee
	 
	 	 	The Agent and the Security Trustee have entered into the Security Documents in their
separate capacities (a) as agent for the Lenders under and pursuant to this Agreement (in
the case of the Agent) and (b) as Security Trustee and trustee for the Lenders and the
Agent under and pursuant to this Agreement, to hold the guarantees and/or security created
by the Security Documents specified in clause 16.14 on the terms set out in such Security
Documents (in the case of the Security Trustee). If and when the Agent and the Security
Trustee are the same entity and any Security Document provides for the Agent to
communicate with or provide instructions to the Security Trustee (and vice versa), all
parties to this Agreement agree that any such communications or instructions on such
occasions are unnecessary and are hereby waived.
	 
	16.19	 	Co-operation to achieve agreed priorities of application
	 
	 	 	The Lenders and the Agent shall co-operate with each other and with the Security Trustee
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	 	The Prompt distribution of proceeds
	 
	 	 	Moneys received by any of the Banks (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
distribution (in the case of moneys so received by any of the Banks other than the Agent
or the Security Trustee) and shall be distributed by the Agent or, as the case may be, the
Security

84

 

	 	 	Trustee (in the case of moneys so received by the Agent or, as the case may be, the
Security Trustee) in each case in accordance with clause 13.1. The Agent or, as the case
may be, the Security Trustee 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 Trustee 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 Trustee (acting on the instructions of the Majority Lenders) 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 Trustee and/or the Account Bank
and/or the Lenders or any of them to provide for the whole of their respective claims
against the Borrowers or any other person liable.
	 
	16.21	 	Reconventioning
	 
	 	 	After consultation with the Borrowers and the Lenders and notwithstanding clause 16.11,
the Agent shall be entitled to make such amendments to this Agreement as it may determine
to be necessary to take account of any changes in market practices as a consequence of the
European Monetary Union (whether as to the settlement or rounding of obligations, business
days, the calculation of interest or otherwise whatsoever). So far as possible such
amendments shall be such as to put the parties in the same position as if the event or
events giving rise to the need to amend this Agreement had not occurred. Any amendment so
made to this Agreement by the Agent shall be promptly notified to the other parties hereto
and shall be binding on all parties hereto.
	 
	16.22	 	Exclusivity
	 
	 	 	Without prejudice to the Borrowers’ rights, in certain instances, to give their consent
thereunder, clauses 15 and 16 are for the exclusive benefit of the Banks.
	 
	17	 	NOTICES AND OTHER MATTERS
	 
	17.1	 	Notices
	 
	17.1.1	 	unless otherwise specifically provided herein, every notice under or in connection with this
Agreement shall be given in English by letter delivered personally and/or sent by post and/or
transmitted by fax and/or electronically;

85

 

	17.1.2	 	in this clause “notice” includes any demand, consent, authorisation, approval, instruction,
certificate, request, waiver or other communication.
	 
	17.2	 	Addresses for communications, effective date of notices
	 
	17.2.1	 	Subject to clause 17.2.2, clause 17.2.5 and 17.3 notices to the Borrowers shall be deemed to
have been given and shall take effect when received in full legible form by the Borrowers at
the address and/or the fax number appearing below (or at such other address or fax number as
the Borrowers may hereafter specify for such purpose to the Agent by notice in writing);

	 	 	 	 	 

	 

	 	Address
	 	c/o Navios Tankers Management Inc.
	 

	 	 	 	85 Akti Miaouli
	 

	 	 	 	Piraeus
	 

	 	 	 	Greece
	 
	 	 	 	 
	 

	 	Fax no:
	 	+ 30 210 453 2070

	17.2.2	 	notwithstanding the provisions of clause 17.2.1 or clause 17.2.5, a notice of Default and/or
a notice given pursuant to clause 10.2 or clause 10.3 to the Borrowers shall be deemed to have
been given and shall take effect when delivered, sent or transmitted by the Banks or any of
them to the Borrowers to the address or fax number referred to in clause 17.2.1;
	 
	17.2.3	 	subject to clause 17.2.5, notices to the Agent and/or the Security Trustee and/or Account
Bank and/or Security Trustee shall be deemed to be given, and shall take effect, when received
in full legible form by the Agent and/or the Security Trustee at the address and/or the fax
number address appearing below (or at any such other address or fax number as the Agent and/or
the Security Trustee (as appropriate) may hereafter specify for such purpose to the Borrowers
and the other Lenders by notice in writing);

	 	 	 	 	 

	 

	 	Agent:
	 	ABN AMRO Bank N.V.
	 
	 	 	 	 
	 

	 	Address:
	 	ABN AMRO Bank N.V.
	 

	 	 	 	93 Coolsingel,
	 

	 	 	 	3012 Rotterdam,
	 

	 	 	 	The Netherlands
	 
	 	 	 	 
	 

	 	Fax:
	 	0031 10 401 6118
	 

	 	Attn:
	 	Peter Van Wijk/Alper Sanliunal

	17.2.4	 	subject to clause 17.2.5 and 17.3, notices to a Lender shall be deemed to be given and shall
take effect when received in full legible form by such Lender at its address and/or fax number

86

 

	 	 	specified in schedule 1 or in any relevant Transfer Certificate (or at any other address
or fax number as such Lender may hereafter specify for such purpose to the other Banks);
and
	 
	17.2.5	 	if under clause 17.2.1 or clause 17.2.3 a notice would be deemed to have been given and
effective on a day which is not a working day in the place of receipt or is outside the normal
business hours in the place of receipt, the notice shall be deemed to have been given and to
have taken effect at the opening of business on the next working day in such place.
	 
	17.3	 	Electronic Communication
	 
	17.3.1	 	Any communication to be made by and/or between the Banks or any of them and the Security
Parties or any of them under or in connection with the Security Documents or any of them may
be made by electronic mail or other electronic means, if and provided that all such parties:

	 	(a)	 	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
	 
	 	(b)	 	notify each other of any change to their electronic mail address or any
other such information supplied by them.

	17.3.2	 	Any electronic communication made by and/or between the Banks or any of them and the
Security Parties or any of them will be effective only when actually received in readable form
and, in the case of any electronic communication made by the Borrowers or the Lenders to the
Agent, only if it is addressed in such manner as the Agent shall specify for this purpose.
	 
	17.4	 	Notices through the Agent
	 
	 	 	Every notice under this Agreement or (unless otherwise provided therein) any other
Security Document to be given by the Borrowers to any other party, shall be given to the
Agent for onward transmission as appropriate and every notice under this Agreement to be
given to the Borrowers shall (except as otherwise provided in the Security Documents) be
given to the Borrowers by the Agent.
	 
	18	 	BORROWERS’ OBLIGATIONS

87

 

	18.1	 	Joint and several

	 	 	Regardless of any other provision in any of the Security Documents, all obligations and
liabilities whatsoever of the Borrowers herein contained are joint and several and shall
be construed accordingly. Each of the Borrowers agrees and consents to be bound by the
Security Documents to which it becomes a party notwithstanding that the other Borrower may
not do so or be effectually bound and notwithstanding that any of the Security Documents
may be invalid or unenforceable against the other Borrower, whether or not the deficiency
is known to any Bank.
	 
	18.2	 	Borrowers as principal debtors
	 
	 	 	Each Borrower acknowledges that it is a principal and original debtor in respect of all
amounts which may become payable by the Borrowers in accordance with the terms of any of
the Security Documents and agrees that each Bank may continue to treat it as such, whether
or not such Bank is or becomes aware that such Borrower is or has become a surety for the
other Borrower.
	 
	18.3	 	Indemnity
	 
	 	 	The Borrowers undertake to keep the Banks fully indemnified on demand against all claims,
damages, losses, costs and expenses arising from any failure of either Borrower to perform
or discharge any purported obligation or liability of that Borrower which would have been
the subject of this Agreement or any other Security Document had it been valid and
enforceable and which is not or ceases to be valid and enforceable against the other
Borrower on any ground whatsoever, whether or not known to any Bank including, without
limitation, any irregular exercise or absence of any corporate power or lack of authority
of, or breach of duty by, any person purporting to act on behalf of the other Borrower (or
any legal or other limitation, whether under the Limitation Acts or otherwise or any
disability or death, bankruptcy, unsoundness of mind, insolvency, liquidation,
dissolution, winding up, administration, receivership, amalgamation, reconstruction or any
other incapacity of any person whatsoever (including, in the case of a partnership, a
termination or change in the composition of the partnership) or any change of name or
style or constitution of any Security Party)).
	 
	18.4	 	Liability unconditional
	 
	 	 	None of the obligations or liabilities of the Borrowers under any Security Document shall
be discharged or reduced by reason of:

88

 

	18.4.1	 	the death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution,
winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of
any person whatsoever (including, in the case of a partnership, a termination or change in the
composition of the partnership) or any change of name or style or constitution of either
Borrower or any other person liable;
	 
	18.4.2	 	any Bank granting any time, indulgence or concession to, or compounding with, discharging,
releasing or varying the liability of, either Borrower or any other person liable or renewing,
determining, varying or increasing any accommodation, facility or transaction or otherwise
dealing with the same in any manner whatsoever or concurring in, accepting, varying any
compromise, arrangement or settlement or omitting to claim or enforce payment from either
Borrower or any other person liable; or
	 
	18.4.3	 	anything done or omitted which but for this provision might operate to exonerate the
Borrowers or both of them.
	 
	18.5	 	Recourse to other security
	 
	 	 	No Bank shall be obliged to make any claim or demand or to resort to any security or other
means of payment now or hereafter held by or available to them for enforcing any of the
Security Documents against either Borrower or any other person liable and no action taken
or omitted by any Bank in connection with any such security or other means of payment will
discharge, reduce, prejudice or affect the liability of the Borrowers under the Security
Documents to which any of them is, or is to be, a party.
	 
	18.6	 	Waiver of Borrowers’ rights
	 
	 	 	Each Borrower agrees with the Banks that, throughout the Facility Period, it will not,
without the prior written consent of the Agent:
	 
	18.6.1	 	exercise any right of subrogation, reimbursement and indemnity against the other Borrower or
any other person liable under the Security Documents;
	 
	18.6.2	 	demand or accept repayment in whole or in part of any Indebtedness now or hereafter due to
such Borrower from the other Borrower or from any other person liable for such Indebtedness or
demand or accept any guarantee against financial loss or any document or instrument created or
evidencing an Encumbrance in respect of the same or dispose of the same;

89

 

	18.6.3	 	take any steps to enforce any right against the other Borrower or any other person liable in
respect of any such moneys; or
	 
	18.6.3	 	claim any set-off or counterclaim against the other Borrower or any other person liable or
claim or prove in competition with any Bank in the liquidation of the other Borrower or any
other person liable or have the benefit of, or share in, any payment from or composition with,
the other Borrower or any other person liable or any security granted under any Security
Document now or hereafter held by any Bank for any moneys owing under this Agreement or for
the obligations or liabilities of any other person liable but so that, if so directed by the
Agent, it will prove for the whole or any part of its claim in the liquidation of the other
Borrower or other person liable on terms that the benefit of such proof and all money received
by it in respect thereof shall be held on trust for the Banks and applied in or towards
discharge of any moneys owing under this Agreement in such manner as the Agent shall require.
	 
	 
	19	 	GOVERNING LAW
	 
	 	 	This Agreement is governed by and shall be construed in accordance with English law.
	 
	20	 	JURISDICTION
	 
	20.1	 	Exclusive Jurisdiction
	 
	 	 	For the benefit of the Banks, and subject to clause 20.4 below, the Borrowers hereby
irrevocably agree that the courts of England shall have exclusive jurisdiction:
	 
	20.1.1	 	to settle any disputes or other matters whatsoever arising under or in connection with this
Agreement and any disputes or other such matters arising in connection with the negotiation,
validity or enforceability of this Agreement or any part thereof, whether the alleged
liability shall arise under the laws of England or under the laws of some other country and
regardless of whether a particular cause of action may successfully be brought in the English
courts; and
	 
	20.1.2	 	to grant interim remedies or other provisional or protective relief.
	 
	20.2	 	Submission and service of process
	 
	 	 	Each Borrower accordingly irrevocably and unconditionally submits to the jurisdiction of
the English courts. Without prejudice to any other mode of service each Borrower:

90

 

	20.2.1	 	irrevocably empowers and appoints HFW Nominees Ltd at present of Friary Court, 65 Crutched
Friars, London EC3N 2AE, England as its agent to receive and accept on its behalf any process
or other document relating to any proceedings before the English courts in connection with
this Agreement;
	 
	20.2.2	 	agrees to maintain such an agent for service of process in England from the date hereof
until the end of the Facility Period;
	 
	20.2.3	 	agrees that failure by a process agent to notify the Borrowers of service of process will
not invalidate the proceedings concerned;
	 
	20.2.4	 	without prejudice to the effectiveness of service of process on its agent under clause
20.2.1 above but as an alternative method, consents to the service of process relating to any
such proceedings by mailing or delivering a copy of the process to its address for the time
being applying under clause 17.2;
	 
	20.2.5	 	agrees that if the appointment of any person mentioned in clause 20.2.1 ceases to be
effective, the Borrowers shall immediately appoint a further person in England to accept
service of process on its behalf in England and, failing such appointment within seven (7)
days the Agent shall thereupon be entitled and is hereby irrevocably authorised by the
Borrowers in those circumstances to appoint such person by notice to the Borrowers.
	 
	20.3	 	Forum non conveniens and enforcement abroad
	 
	 	 	Each Borrower:
	 
	20.3.1	 	waives any right and agrees not to apply to the English court or other court in any
jurisdiction whatsoever to stay or strike out any proceedings commenced in England on the
ground that England is an inappropriate forum and/or that Proceedings have been or will be
started in any other jurisdiction in connection with any dispute or related matter falling
within clause 20.1; and
	 
	20.3.2	 	agrees that a judgment or order of an English court in a dispute or other matter falling
within clause 20.1 shall be conclusive and binding on the Borrowers and may be enforced
against it in the courts of any other jurisdiction.
	 
	20.4	 	Right of Agent, but not Borrowers, to bring proceedings in any other jurisdiction

91

 

	20.4.1	 	Nothing in this clause 20 limits the right of any Lender to bring Proceedings, including
third party proceedings, against any one or both Borrowers, or to apply for interim remedies,
in connection with this Agreement in any other court and/or concurrently in more than one
jurisdiction;
	 
	20.4.2	 	the obtaining by any Lender of judgment in one jurisdiction shall not prevent such Lender
from bringing or continuing proceedings in any other jurisdiction, whether or not these shall
be founded on the same cause of action.
	 
	20.5	 	Enforceability despite invalidity of Agreement
	 
	 	 	Without prejudice to the generality of clause 13.9, the jurisdiction agreement contained
in this clause 20 shall be severable from the rest of this Agreement and shall remain
valid, binding and in full force and shall continue to apply notwithstanding this
Agreement or any part thereof being held to be avoided, rescinded, terminated, discharged,
frustrated, invalid, unenforceable, illegal and/or otherwise of no effect for any reason.
	 
	20.6	 	Effect in relation to claims by and against non-parties
	 
	20.6.1	 	For the purpose of this clause “Foreign Proceedings” shall mean any Proceedings except
proceedings brought or pursued in England arising out of or in connection with (i) or in any
way related to any of the Security Documents or any assets subject thereto or (ii) any action
of any kind whatsoever taken by any Bank pursuant thereto or which would, if brought by any or
all of the Borrowers against any Bank, have been required to be brought in the English courts;
	 
	20.6.2	 	no Borrower shall bring or pursue any Foreign Proceedings against any Bank and shall use
its best endeavours to prevent persons not party to this Agreement from bringing or pursuing
any Foreign Proceedings against any Bank;
	 
	20.6.3	 	If, for any reason whatsoever, any Security Party and/or any person connected howsoever with
any Security Party brings or pursues against any Bank any Foreign Proceedings, the Borrowers
shall indemnify such Bank on demand in respect of any and all claims, losses, damages,
demands, causes of action, liabilities, costs and expenses (including, but not limited to,
legal costs) of whatsoever nature howsoever arising from or in connection with such Foreign
Proceedings which such Bank (or the Agent on its behalf) certifies as having been incurred by
it;

92

 

	 	 	the Banks and the Borrowers hereby agree and declare that the benefit of this clause 20
shall extend to and may be enforced by any officer, employee, agent or business associate of
any of the Banks against whom a Borrower brings a claim in connection howsoever with any of
the Security Documents or any assets subject thereto or any action of any kind whatsoever
taken by, or on behalf of or for the purported benefit of any Bank pursuant thereto or
which, if it were brought against any Bank, would fall within the material scope of clause
20.1. In those circumstances this clause 20 shall be read and construed as if references to
any Bank were references to such officer, employee, agent or business associate, as the case
may be.

93

 

Execution Pages

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

	 	 	 	 	 

	SIGNED
by Todd Johnson

	 	 	)	 
	as a deed for and on behalf of

	 	 	)	 
	ANTIKITHIRA SHIPPING CORPORATION

	 	 	)	 /s/ Todd Johnson
	(as Borrower under and pursuant to

	 	 	)	 
	a power of attorney dated 4 July 2011

	 	 	)	 
	in
the presence of Victoria Liaou*

	 	 	)	 
	 
	 	 	 	 
	SIGNED
by Todd Johnson

	 	 	)	 
	as a deed for and on behalf of

	 	 	)	 
	KITHIRA SHIPPING CORPORATION

	 	 	)	 /s/ Todd Johnson
	(as Borrower under and pursuant to

	 	 	)	 
	a power of attorney dated 4 July 2011)

	 	 	)	 
	in
the presence of Victoria Liaou*

	 	 	)	 
	 
	 	 	 	 
	SIGNED
by Ronan Le Du

	 	 	)	 
	for and on behalf of

	 	 	)	 
	ABN AMRO BANK N.V.

	 	 	)	 /s/ Ronan Le Du
	(as
Lender) in the presence of Victoria Liaou*

	 	 	)	 
	 
	 	 	 	 
	SIGNED
by Ronan Le Du

	 	 	)	 
	for and on behalf of

	 	 	)	 
	ABN AMRO BANK N.V.

	 	 	)	 /s/ Ronan Le Du
	(as Agent and Security Trustee)

	 	 	)	 
	in
the presence of Victoria Liaou*

	 	 	)	 

* /s/
Victoria Liaou
Ince & Co.
Akti Miaouli 47-49
Piraeus
185 36
Greece

94exv4w1

Exhibit 4.1

ALNYLAM PHARMACEUTICALS, INC.

and

 

Trustee

INDENTURE

Dated as of _______________

SENIOR DEBT SECURITIES

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	Section 1.01 Certain Terms Defined
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 SECURITIES
	 	 	5	 
	Section 2.01 Forms Generally
	 	 	5	 
	Section 2.02 Form of Trustee’s Certificate of Authentication
	 	 	6	 
	Section 2.03 Amount Unlimited; Issuable in Series
	 	 	6	 
	Section 2.04 Authentication and Delivery of Securities
	 	 	8	 
	Section 2.05 Execution of Securities
	 	 	10	 
	Section 2.06 Certificate of Authentication
	 	 	10	 
	Section 2.07 Denomination and Date of Securities; Payments of Interest
	 	 	10	 
	Section 2.08 Registration, Transfer and Exchange
	 	 	11	 
	Section 2.09 Mutilated, Defaced, Destroyed, Lost and Stolen Securities
	 	 	13	 
	Section 2.10 Cancellation of Securities; Destruction Thereof
	 	 	14	 
	Section 2.11 Temporary Securities
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 3 COVENANTS OF THE ISSUER
	 	 	15	 
	Section 3.01 Payment of Principal and Interest
	 	 	15	 
	Section 3.02 Offices for Payments, Etc.
	 	 	15	 
	Section 3.03 Appointment to Fill a Vacancy in Office of Trustee
	 	 	15	 
	Section 3.04 Paying Agents
	 	 	16	 
	Section 3.05 Written Statement to Trustee
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 4 SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE
	 	 	17	 
	Section 4.01 Issuer to Furnish Trustee Information as to Names and Addresses of
Securityholders
	 	 	17	 
	Section 4.02 Reports by the Issuer
	 	 	17	 
	Section 4.03 Reports by the Trustee
	 	 	17	 
	Section 4.04 Preservation of Information; Communication with Securityholders
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 5 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	 	 	18	 
	Section 5.01 Event of Default Defined; Acceleration of Maturity; Waiver of Default
	 	 	18	 
	Section 5.02 Collection of Debt by Trustee; Trustee May Prove Debt
	 	 	20	 
	Section 5.03 Application of Proceeds
	 	 	22	 
	Section 5.04 Suits for Enforcement
	 	 	22	 
	Section 5.05 Restoration of Rights on Abandonment of Proceedings
	 	 	23	 
	Section 5.06 Limitations on Suits by Securityholders
	 	 	23	 
	Section 5.07 Unconditional Right of Securityholders to Institute Certain Suits
	 	 	23	 

i 

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 5.08 Powers and Remedies Cumulative; Delay or Omission Not Waiver of
Default
	 	 	24	 
	Section 5.09 Control by Holders of Securities
	 	 	24	 
	Section 5.10 Waiver of Past Defaults
	 	 	25	 
	Section 5.11 Trustee to Give Notice of Default
	 	 	25	 
	Section 5.12 Right of Court to Require Filing of Undertaking to Pay Costs
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 6 CONCERNING THE TRUSTEE
	 	 	26	 
	Section 6.01 Duties and Responsibilities of the Trustee; During Default; Prior to
Default
	 	 	26	 
	Section 6.02 Certain Rights of the Trustee
	 	 	26	 
	Section 6.03 Trustee Not Responsible for Recitals, Disposition of Securities or
Application of Proceeds Thereof
	 	 	27	 
	Section 6.04 Trustee and Agents May Hold Securities; Collections, Etc.
	 	 	28	 
	Section 6.05 Moneys Held by Trustee
	 	 	28	 
	Section 6.06 Compensation and Indemnification of Trustee and Its Prior Claim
	 	 	28	 
	Section 6.07 Right of Trustee to Rely on Officer’s Certificate, Etc.
	 	 	28	 
	Section 6.08 Disqualification; Conflicting Interests
	 	 	29	 
	Section 6.09 Persons Eligible for Appointment as Trustee
	 	 	29	 
	Section 6.10 Resignation and Removal; Appointment of Successor Trustee
	 	 	29	 
	Section 6.11 Acceptance of Appointment by Successor Trustee
	 	 	30	 
	Section 6.12 Merger, Conversion, Consolidation or Succession to Business of Trustee
	 	 	31	 
	Section 6.13 Preferential Collection of Claims Against the Issuer
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 7 CONCERNING THE SECURITYHOLDERS
	 	 	32	 
	Section 7.01 Evidence of Action Taken by Securityholders
	 	 	32	 
	Section 7.02 Proof of Execution of Instruments and of Holding of Securities
	 	 	32	 
	Section 7.03 Holders to Be Treated as Owners
	 	 	32	 
	Section 7.04 Securities Owned by Issuer Deemed Not Outstanding
	 	 	32	 
	Section 7.05 Right of Revocation of Action Taken
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 8 SUPPLEMENTAL INDENTURES
	 	 	33	 
	Section 8.01 Supplemental Indentures Without Consent of Securityholders
	 	 	33	 
	Section 8.02 Supplemental Indentures With Consent of Securityholders
	 	 	35	 
	Section 8.03 Effect of Supplemental Indenture
	 	 	36	 
	Section 8.04 Documents to Be Given to Trustee
	 	 	36	 
	Section 8.05 Notation on Securities in Respect of Supplemental Indentures
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 9 CONSOLIDATION, MERGER, SALE OR CONVEYANCE
	 	 	36	 
	Section 9.01 Issuer May Consolidate, Etc., on Certain Terms
	 	 	36	 
	Section 9.02 Successor Issuer Substituted
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS
	 	 	38	 
	Section 10.01 Satisfaction and Discharge of Indenture; Defeasance
	 	 	38	 

ii 

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 10.02 Application by Trustee of Funds Deposited for Payment of Securities
	 	 	41	 
	Section 10.03 Repayment of Moneys Held by Paying Agent
	 	 	41	 
	Section 10.04 Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two
Years
	 	 	42	 
	Section 10.05 Indemnity for U.S. Government Obligations
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 11 MISCELLANEOUS PROVISIONS
	 	 	42	 
	Section 11.01 No Recourse
	 	 	42	 
	Section 11.02 Provisions of Indenture for the Sole Benefit of Parties and Holders
of Securities
	 	 	42	 
	Section 11.03 Successors and Assigns of Issuer Bound by Indenture
	 	 	43	 
	Section 11.04 Notices and Demands on Issuer, Trustee and Holders of Securities
	 	 	43	 
	Section 11.05 Officer’s Certificates and Opinions of Counsel; Statements to Be
Contained Therein
	 	 	43	 
	Section 11.06 Payments Due on Saturdays, Sundays and Holidays
	 	 	44	 
	Section 11.07 Conflict of Any Provision of Indenture With Trust Indenture Act of
1939
	 	 	45	 
	Section 11.08 New York Law to Govern
	 	 	45	 
	Section 11.09 Counterparts
	 	 	45	 
	Section 11.10 Effect of Headings
	 	 	45	 
	Section 11.11 Actions by Successor
	 	 	45	 
	Section 11.12 Severability
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 12 REDEMPTION OF SECURITIES AND SINKING FUNDS
	 	 	45	 
	Section 12.01 Applicability of Article
	 	 	45	 
	Section 12.02 Notice of Redemption; Partial Redemptions
	 	 	45	 
	Section 12.03 Payment of Securities Called for Redemption
	 	 	47	 
	Section 12.04 Exclusion of Certain Securities from Eligibility for Selection for
Redemption
	 	 	47	 
	Section 12.05 Mandatory and Optional Sinking Funds
	 	 	47	 

iii 

 

     THIS INDENTURE, dated as of _________ between Alnylam Pharmaceuticals, Inc., a Delaware
corporation (the “Issuer”), and ________, a _______ (the “Trustee”),

W I T N E S S E T H :

     WHEREAS, the Issuer may from time to time duly authorize the issue of its unsecured
debentures, notes or other evidences of indebtedness to be issued in one or more series (the
“Securities”) up to such principal amount or amounts as may from time to time be authorized in
accordance with the terms of this Indenture;

     WHEREAS, the Issuer has duly authorized the execution and delivery of this Indenture to
provide, among other things, for the authentication, delivery and administration of the Securities;
and

     WHEREAS, all things necessary to make this Indenture a valid indenture and agreement according
to its terms have been done;

     NOW, THEREFORE:

     In consideration of the premises and the purchases of the Securities by the holders thereof,
the Issuer and the Trustee mutually covenant and agree for the equal and proportionate benefit of
the respective holders from time to time of the Securities as follows:

ARTICLE 1

DEFINITIONS

     Section 1.01 Certain Terms Defined. The following terms (except as otherwise expressly
provided or unless the context otherwise clearly requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section.
All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939 or the
definitions of which in the Securities Act of 1933 are referred to in the Trust Indenture Act of
1939, including terms defined therein by reference to the Securities Act of 1933 (except as herein
otherwise expressly provided or unless the context otherwise clearly requires), shall have the
meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force
at the date of this Indenture. All accounting terms used herein and not expressly defined shall
have the meanings assigned to such terms in accordance with generally accepted accounting
principles, and the term “generally accepted accounting principles” means such accounting
principles as are generally accepted in the United States at the time of any computation. The
words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture
as a whole and not to any particular Article, Section or other subdivision. The terms defined in
this Article have the meanings assigned to them in this Article and include the plural as well as
the singular.

     “Board of Directors” means either the Board of Directors of the Issuer or any committee of
such Board duly authorized to act on its behalf.

 

 

     “Board Resolution” means a copy of one or more resolutions, certified by the secretary or an
assistant secretary of the Issuer to have been duly adopted by the Board of Directors and to be in
full force and effect, and delivered to the Trustee.

     “Business Day” means, with respect to any Security, a day that in the city (or in any of the
cities, if more than one) in which amounts are payable, as specified in the form of such Security,
is not a day on which banking institutions are authorized or required by law or regulation to
close.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, or if at any time after the execution and
delivery of this Indenture such Commission is not existing and performing the duties now assigned
to it under the Trust Indenture Act of 1939, then the body performing such duties on such date.

     “Common Stock” means shares of common stock, par value $0.01 per share, of the Issuer as the
same exists at the date of execution and delivery of this Indenture or as such stock may be
reconstituted from time to time.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date as of which this Indenture is dated, located at _________.

     “Debt” of any Person means any debt for money borrowed which is created, assumed, incurred or
guaranteed in any manner by such Person or for which such Person is otherwise responsible or
liable, and shall expressly include any such guaranty thereof by such Person. For the purpose of
computing the amount of the Debt of any Person there shall be excluded all Debt of such Person for
the payment or redemption or satisfaction of which money or securities (or evidences of such Debt,
if permitted under the terms of the instrument creating such Debt) in the necessary amount shall
have been deposited in trust with the proper depositary, whether upon or prior to the maturity or
the date fixed for redemption of such Debt; and, in any instance where Debt is so excluded, for the
purpose of computing the assets of such Person there shall be excluded the money, securities or
evidences of Debt deposited by such Person in trust for the purpose of paying or satisfying such
Debt.

     “Depositary” means, with respect to the Securities of any series issuable or issued in the
form of one or more Global Securities, the Person designated as Depositary by the Issuer pursuant
to Section 2.04 until a successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is
then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as
used with respect to the Securities of any such series shall mean the Depositary with respect to
the Global Securities of that series.

     “Dollar” means the currency of the United States of America as at the time of payment is legal
tender for the payment of public and private debts.

     “Event of Default” means any event or condition specified as such in Section 5.01.

2

 

     “Foreign Currency” means a currency issued by the government of a country other than the
United States.

     “Global Security”, means a Security evidencing all or a part of a series of Securities, issued
to the Depositary for such series in accordance with Section 2.04, and bearing the legend
prescribed in Section 2.04.

     “Holder”, “holder”, “holder of Securities”, “Securityholder” or other similar terms mean the
Person in whose name such Security is registered in the Security register kept by the Issuer for
that purpose in accordance with the terms hereof.

     “Indenture” means this instrument as originally executed and delivered or, if amended or
supplemented as herein provided, as so amended or supplemented or both, and shall include the forms
and terms of particular series of Securities established as contemplated hereunder.

     “interest”, unless the context otherwise requires, refers to interest, and when used with
respect to non-interest bearing Securities, refers to interest payable after maturity, if any.

     “Issuer” means Alnylam Pharmaceuticals, Inc., a Delaware corporation, and, subject to Article
9, its successors and assigns.

     “Issuer Order” means a written statement, request or order of the Issuer signed in its name by
the chairman of the Board of Directors, the president or any vice president of the Issuer.

     “Notice of Default” shall have the meaning set forth in Section 5.01(c).

     “Officer’s Certificate” means a certificate signed by the chairman of the Board of Directors,
the president, any vice president, the treasurer, the secretary or any assistant secretary of the
Issuer and delivered to the Trustee. Each such certificate shall comply with Section 314 of the
Trust Indenture Act of 1939 and, except to the extent provided herein, shall include the statements
provided for in Section 11.05.

     “Opinion of Counsel” means an opinion in writing signed by the general corporate counsel or
such other legal counsel who may be an employee of or counsel to the Issuer and who shall be
satisfactory to the Trustee. Each such opinion shall comply with Section 314 of the Trust
Indenture Act of 1939 and shall include the statements provided for in Section 11.05, if and to the
extent required hereby.

     “original issue date” of any Security (or portion thereof) means the earlier of (a) the date
of such Security or (b) the date of any Security (or portion thereof) for which such Security was
issued (directly or indirectly) on registration of transfer, exchange or substitution.

     “Original Issue Discount Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
maturity thereof pursuant to Section 5.01.

3

 

     “Outstanding”, when used with reference to Securities, shall, subject to the provisions of
Section 7.04, mean, as of any particular time, all Securities authenticated and delivered by the
Trustee under this Indenture, except

     (a) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

     (b) Securities, or portions thereof, for the payment or redemption of which cash or
U.S. Government Obligations (as provided for in Section 10.01 (a) and Section 10.01(b)) in
the necessary amount shall have been deposited in trust with the Trustee or with any paying
agent (other than the Issuer) or shall have been set aside, segregated and held in trust by
the Issuer for the Holders of such Securities (if the Issuer shall act as its own paying
agent); provided, that if such Securities, or portions thereof, are to be redeemed prior to
the maturity thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such notice; and

     (c) Securities in substitution for which other Securities shall have been
authenticated and delivered, or which shall have been paid, pursuant to the terms of Section
2.09 (except with respect to any such Security as to which proof satisfactory to the Trustee
is presented that such Security is held by a Person in whose hands such Security is a legal,
valid and binding obligation of the Issuer), Securities converted into Common Stock pursuant
hereto and Securities not deemed outstanding pursuant to Section 12.02.

     In determining whether the Holders of the requisite principal amount of Outstanding Securities
of any or all series have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, the principal amount of an Original Issue Discount Security that shall be deemed
to be Outstanding for such purposes shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon a declaration of acceleration of the maturity
thereof pursuant to Section 5.01.

     “Person” means any individual, corporation, partnership, limited partnership, limited
liability company, joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

     “principal” whenever used with reference to the Securities or any Security or any portion
thereof, shall be deemed to include “and premium, if any”.

     “record date” shall have the meaning set forth in Section 2.07.

     “Responsible Officer”, when used with respect to the Trustee, means the chairman of the board
of directors, any vice chairman of the board of directors, the chairman of the trust committee, the
chairman of the executive committee, any vice chairman of the executive committee, the president,
any vice president, the cashier, the secretary, the treasurer, any trust officer, any assistant
trust officer, any assistant vice president, any assistant cashier, any assistant secretary, any
assistant treasurer, or any other officer or assistant officer of the Trustee customarily
performing functions similar to those performed by the persons who at the time shall

4

 

be such officers, respectively, or to whom any corporate trust matter is referred because of
his or her knowledge of and familiarity with the particular subject.

     “Security” or “Securities” has the meaning stated in the first recital of this Indenture, or,
as the case may be, Securities that have been authenticated and delivered under this Indenture.

     “Security Registrar” shall have the meaning set forth in Section 4.01(b).

     “Subsidiary” means a corporation of which stock having a majority of the voting power under
ordinary circumstances is owned, directly or indirectly, by the Issuer or by one or more
subsidiaries of the Issuer, or by the Issuer and one or more subsidiaries of the Issuer.

     “Trust Indenture Act of 1939” (except as otherwise provided in Sections 8.01 and 8.02) means
the Trust Indenture Act of 1939 as in force at the date as of which this Indenture was originally
executed.

     “Trustee” means the Person identified as “Trustee” in the first paragraph hereof and, subject
to the provisions of Article 6, shall also include any successor trustee. “Trustee” shall also
mean or include each Person who is then a trustee hereunder and if at any time there is more than
one such Person, “Trustee” as used with respect to the Securities of any series shall mean the
trustee with respect to the Securities of such series.

     “U.S. Government Obligation” means (a) a direct obligation of the United States of America,
backed by its full faith and credit, or (b) an obligation of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America.

     “vice president”, when used with respect to the Issuer or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
of “vice president”.

     “Yield to Maturity” means the yield to maturity on a series of securities, calculated at the
time of issuance of such series, or, if applicable, at the most recent redetermination of interest
on such series, and calculated in accordance with accepted financial practice.

ARTICLE 2

SECURITIES

     Section 2.01 Forms Generally. The Securities of each series shall be substantially in
such form (not inconsistent with this Indenture) as shall be established by or pursuant to one or
more Board Resolutions (as set forth in a Board Resolution or, to the extent established pursuant
to (rather than set forth in) a Board Resolution, an Officer’s Certificate detailing such
establishment) or in one or more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture and may have imprinted or otherwise reproduced thereon such legend or legends or
endorsements, not inconsistent with the provisions of this Indenture, as may be required to comply
with any law or with any rules or regulations pursuant thereto, or with any

5

 

rules of any securities exchange or to conform to general usage, all as may be determined by
the officers executing such Securities as evidenced by their execution of such Securities.

     The definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such Securities
as evidenced by their execution of such Securities.

     Section 2.02 Form of Trustee’s Certificate of Authentication. The Trustee’s certificate
of authentication on all Securities shall be in substantially the following form:

     This is one of the Securities of the series designated herein and referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	as Trustee 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

     Section 2.03 Amount Unlimited; Issuable in Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is unlimited.

     The Securities may be issued in one or more series. The terms of a series of Securities shall
be established prior to the initial issuance thereof in or pursuant to one or more Board
Resolutions, or, to the extent established pursuant to (rather than set forth in) a Board
Resolution, in an Officer’s Certificate detailing such establishment and/or established in one or
more indentures supplemental hereto. The terms of such series reflected in such Board Resolution,
Officer’s Certificate, or supplemental indenture may include the following or any additional or
different terms:

     (a) the designation of the Securities of the series (which may be part of a series
of Securities previously issued);

     (b) the terms and conditions, if applicable, upon which conversion or exchange of
the Securities into Common Stock will be effected, including the initial conversion or
exchange price or rate and any adjustments thereto, the conversion or exchange period and
other provisions in addition to or in lieu of those described herein;

     (c) any limit upon the aggregate principal amount of the Securities of the series
that may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 2.08, 2.09, 2.11, 8.05 or 12.03);

     (d) if other than Dollars, the Foreign Currency in which the Securities of that
series are denominated;

6

 

     (e) any date on which the principal of the Securities of the series is payable and
the right, if any, to extend such date or dates;

     (f) the rate or rates at which the Securities of the series shall bear interest, if
any, the record date or dates for the determination of holders to whom interest is payable,
the date or dates from which such interest shall accrue and on which such interest shall be
payable and/or the method by which such rate or rates or date or dates shall be determined,
and the right, if any, to extend the interest payment periods and the duration of that
extension;

     (g) the place or places where the principal of and any interest on Securities of
the series shall be payable (if other than as provided in Section 3.02);

     (h) the price or prices at which, the period or periods within which and the terms
and conditions upon which Securities of the series may be redeemed, in whole or in part, at
the option of the Issuer, pursuant to any sinking fund or otherwise;

     (i) the obligation, if any, of the Issuer to redeem, purchase or repay Securities
of the series pursuant to any mandatory redemption, sinking fund or analogous provisions or
at the option of a Holder thereof and the price or prices at which and the period or periods
within which and any terms and conditions upon which Securities of the series shall be
redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;

     (j) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

     (k) if other than the principal amount thereof, the portion of the principal amount
of Securities of the series which shall be payable upon declaration of acceleration of the
maturity thereof;

     (l) if other than the currency in which the Securities of that series are
denominated, the currency in which payment of the principal of or interest on the Securities
of such series shall be payable;

     (m) if the principal of or interest on the Securities of the series is to be
payable, at the election of the Issuer or a Holder thereof, in a currency other than that in
which the Securities are denominated, the period or periods within which, and the terms and
conditions upon which, such election may be made;

     (n) if the amount of payments of principal of and interest on the Securities of the
series may be determined with reference to an index based on a currency other than that in
which the Securities of the series are denominated, or by reference to one or more currency
exchange rates, securities or baskets of securities, commodity prices or indices, the manner
in which such amounts shall be determined;

     (o) if Sections 10.01(b) or 10.01(c) are inapplicable to Securities of such series;

7

 

     (p) whether and under what circumstances the Issuer will pay additional amounts on
the Securities of any series in respect of any tax, assessment or governmental charge
withheld or deducted and, if so, whether the Issuer will have the option to redeem such
Securities rather than pay such additional amounts;

     (q) if the Securities of such series are to be issuable in definitive form (whether
upon original issue or upon exchange of a temporary Security of such series) only upon
receipt of certain certificates or other documents or satisfaction of other conditions, then
the form and terms of such certificates, documents or conditions;

     (r) any trustees, authenticating or paying agents, transfer agents or registrars or
any other agents with respect to the Securities of such series;

     (s) any other events of default or covenants with respect to the Securities of such
series in addition to or in lieu of those contained in this Indenture;

     (t) if the Securities of the series may be issued in exchange for surrendered
Securities of another series, or for other securities of the Issuer, pursuant to the terms
of such Securities or securities or of any agreement entered into by the Issuer, the ratio
of the principal amount of the Securities of the series to be issued to the principal amount
of the Securities or securities to be surrendered in exchange, and any other material terms
of the exchange; and

     (u) any other terms of the series.

     The Issuer may from time to time, without notice to or the consent of the holders of any
series of Securities, create and issue further Securities of any such series ranking equally with
the Securities of such series in all respects (or in all respects other than (1) the payment of
interest accruing prior to the issue date of such further Securities or (2) the first payment of
interest following the issue date of such further Securities). Such further Securities may be
consolidated and form a single series with the Securities of such series and have the same terms as
to status, redemption or otherwise as the Securities of such series.

     Section 2.04 Authentication and Delivery of Securities. The Issuer may deliver Securities
of any series executed by the Issuer to the Trustee for authentication together with the applicable
documents referred to below in this Section, and the Trustee shall thereupon authenticate and
deliver such Securities to or upon the order of the Issuer (contained in the Issuer Order referred
to below in this Section) or pursuant to such procedures acceptable to the Trustee and to such
recipients as may be specified from time to time by an Issuer Order. The maturity date, original
issue date, interest rate and any other terms of the Securities of such series shall be determined
by or pursuant to such Issuer Order and procedures. If provided for in such procedures, such
Issuer Order may authorize authentication and delivery pursuant to oral instructions from the
Issuer or its duly authorized agent, which instructions shall be promptly confirmed in writing. In
authenticating such Securities and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section
6.01) shall be fully protected in relying upon:

8

 

     (a) an Issuer Order requesting such authentication and setting forth delivery
instructions if the Securities are not to be delivered to the Issuer;

     (b) any Board Resolution, Officer’s Certificate and/or executed supplemental
indenture referred to in Sections 2.01 and 2.03 by or pursuant to which the forms and terms
of the Securities were established;

     (c) an Officer’s Certificate setting forth the form or forms and terms of the
Securities stating that the form or forms and terms of the Securities have been established
pursuant to Sections 2.01 and 2.03 and comply with this Indenture, and covering such other
matters as the Trustee may reasonably request; and

     (d) an Opinion of Counsel to the effect that:

     (i) the form or forms and terms of such Securities have been established
pursuant to Sections 2.01 and 2.03 and comply with this Indenture,

     (ii) the authentication and delivery of such Securities by the Trustee are
authorized under the provisions of this Indenture,

     (iii) such Securities when authenticated and delivered by the Trustee and
issued by the Issuer in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and binding obligations of the Issuer, and

     (iv) all laws and requirements in respect of the execution and delivery by
the Issuer of the Securities have been complied with,

and covering such other matters as the Trustee may reasonably request.

     The Trustee shall have the right to decline to authenticate and deliver any Securities under
this Section if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken by the Issuer or if the Trustee in good faith by its board of directors or board of
trustees, executive committee, or a trust committee of directors or trustees or Responsible
Officers shall determine that such action would expose the Trustee to personal liability to
existing Holders or would affect the Trustee’s own rights, duties or immunities under the
Securities, this Indenture or otherwise.

     The Issuer shall execute and the Trustee shall, in accordance with this Section with respect
to the Securities of a series, authenticate and deliver one or more Global Securities that (i)
shall represent and shall be denominated in an amount equal to the aggregate principal amount of
all of the Securities of such series issued and not yet cancelled, (ii) shall be registered in the
name of the Depositary for such Global Security or Securities or the nominee of such Depositary,
(iii) shall be delivered by the Trustee to such Depositary or pursuant to such Depositary’s
instructions and (iv) shall bear a legend substantially to the following effect: “Unless and until
it is exchanged in whole or in part for Securities in definitive registered form, this Security may
not be transferred except as a whole by the Depositary to the nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the

9

 

Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary.”

     Each Depositary designated pursuant to this Section must, at the time of its designation and
at all times while it serves as Depositary, be a clearing agency registered under the Securities
Exchange Act of 1934 and any other applicable statute or regulation.

     Section 2.05 Execution of Securities. The Securities shall be signed on behalf of the
Issuer by the chairman of its Board of Directors, any vice chairman of its Board of Directors, its
chief executive officer, its principal financial officer, its president, any vice president or its
treasurer. Such signatures may be the manual or facsimile signatures of the present or any future
such officers. Typographical and other minor errors or defects in any such reproduction of any
such signature shall not affect the validity or enforceability of any Security that has been duly
authenticated and delivered by the Trustee.

     In case any officer of the Issuer who shall have signed any of the Securities shall cease to
be such officer before the Security so signed shall be authenticated and delivered by the Trustee
or disposed of by the Issuer, such Security nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Security had not ceased to be such officer of the
Issuer; and any Security may be signed on behalf of the Issuer by such persons as, at the actual
date of the execution of such Security, shall be the proper officers of the Issuer, although at the
date of the execution and delivery of this Indenture any such person was not such an officer.

     Section 2.06 Certificate of Authentication. Only such Securities as shall bear thereon a
certificate of authentication substantially in the form hereinbefore recited, executed by the
Trustee by the manual signature of one of its authorized officers, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose. The execution of such
certificate by the Trustee upon any Security executed by the Issuer shall be conclusive evidence
that the Security so authenticated has been duly authenticated and delivered hereunder and that the
Holder is entitled to the benefits of this Indenture.

     Section 2.07 Denomination and Date of Securities; Payments of Interest. The Securities of
each series shall be issuable in denominations established as contemplated by Section 2.03 or, if
not so established, in denominations of $1,000 and any integral multiple thereof. The Securities
of each series shall be numbered, lettered or otherwise distinguished in such manner or in
accordance with such plan as the officers of the Issuer executing the same may determine with the
approval of the Trustee, as evidenced by the execution and authentication thereof. Unless
otherwise indicated in a Board Resolution, Officer’s Certificate or supplemental indenture for a
particular series, interest will be calculated on the basis of a 360-day year of twelve 30-day
months.

     Each Security shall be dated the date of its authentication. The Securities of each series
shall bear interest, if any, from the date, and such interest shall be payable on the dates,
established as contemplated by Section 2.03.

10

 

     The Person in whose name any Security of any series is registered at the close of business on
any record date applicable to a particular series with respect to any interest payment date for
such series shall be entitled to receive the interest, if any, payable on such interest payment
date notwithstanding any transfer, exchange or conversion of such Security subsequent to the record
date and prior to such interest payment date, except if and to the extent the Issuer shall default
in the payment of the interest due on such interest payment date for such series, in which case
such defaulted interest shall be paid to the Persons in whose names Outstanding Securities for such
series are registered at the close of business on a subsequent record date (which shall be not less
than five Business Days prior to the date of payment of such defaulted interest) established by
notice given by mail by or on behalf of the Issuer to the Holders of Securities not less than 15
days preceding such subsequent record date. The term “record date” as used with respect to any
interest payment date (except a date for payment of defaulted interest) for the Securities of any
series shall mean the date specified as such in the terms of the Securities of such series
established as contemplated by Section 2.03, or, if no such date is so established, if such
interest payment date is the first day of a calendar month, the 15th day of the immediately
preceding calendar month or, if such interest payment date is the 15th day of a calendar month, the
first day of such calendar month, whether or not such record date is a Business Day.

     Section 2.08 Registration, Transfer and Exchange. The Issuer will keep at each office or
agency to be maintained for the purpose as provided in Section 3.02 for each series of Securities a
register or registers in which, subject to such reasonable regulations as it may prescribe, it will
provide for the registration of Securities of such series and the registration of transfer of
Securities of such series. Such register shall be in written form in the English language or in
any other form capable of being converted into such form within a reasonable time. At all
reasonable times such register or registers shall be open for inspection by the Trustee.

     Upon due presentation for registration of transfer of any Security of any series at any such
office or agency to be maintained for the purpose as provided in Section 3.02, the Issuer shall
execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees
a new Security or Securities of the same series, maturity date, interest rate and original issue
date in authorized denominations for a like aggregate principal amount.

     At the option of the Holder thereof, Securities of any series (except a Global Security) may
be exchanged for a Security or Securities of such series having authorized denominations and an
equal aggregate principal amount, upon surrender of such Securities to be exchanged at the agency
of the Issuer that shall be maintained for such purpose in accordance with Section 3.02 and upon
payment, if the Issuer shall so require, of the charges hereinafter provided. Whenever any
Securities are so surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive. All Securities surrendered upon any exchange or transfer provided for in this Indenture
shall be promptly cancelled and disposed of by the Trustee and the Trustee will deliver a
certificate of disposition thereof to the Issuer.

     All Securities presented for registration of transfer, exchange, redemption or payment shall
(if so required by the Issuer or the Trustee) be duly endorsed by, or be accompanied by a

11

 

written instrument or instruments of transfer in form satisfactory to the Issuer and the
Trustee duly executed by, the Holder or his or her attorney duly authorized in writing.

     The Issuer may require payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in connection with any exchange or registration of transfer
of Securities. No service charge shall be made for any such transaction.

     The Issuer shall not be required to exchange or register a transfer of (a) any Securities of
any series for a period of 15 days immediately preceding the first mailing of notice of redemption
of Securities of such series to be redeemed or (b) any Securities selected, called or being called
for redemption, in whole or in part, except, in the case of any Security to be redeemed in part,
the portion thereof not so to be redeemed.

     Notwithstanding any other provision of this Section 2.08, unless and until it is exchanged in
whole or in part for Securities in definitive registered form, a Global Security representing all
or a portion of the Securities of a series may not be transferred except as a whole by the
Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to
a successor Depositary for such series or a nominee of such successor Depositary.

     If at any time the Depositary for the Securities of a series notifies the Issuer that it is
unwilling or unable to continue as Depositary for the Securities of such series or if at any time
the Depositary for the Securities of a series shall no longer be eligible under Section 2.04, the
Issuer shall appoint a successor Depositary with respect to the Securities of such series. If a
successor Depositary for the Securities of such series is not appointed by the Issuer within 90
days after the Issuer receives such notice or becomes aware of such ineligibility, the Issuer’s
determination pursuant to Section 2.03 that the Securities of such series be represented by a
Global Security shall no longer be effective and the Issuer will execute, and the Trustee, upon
receipt of an Officer’s Certificate for the authentication and delivery of definitive Securities of
such series, will authenticate and deliver, Securities of such series in definitive registered
form, in any authorized denominations, in an aggregate principal amount equal to the principal
amount of the Global Security or Securities representing the Securities of such series, in exchange
for such Global Security or Securities.

     The Issuer may at any time and in its sole discretion determine that the Securities of any
series issued in the form of one or more Global Securities shall no longer be represented by a
Global Security or Securities. In such event the Issuer will execute, and the Trustee, upon
receipt of an Officer’s Certificate for the authentication and delivery of definitive Securities of
such series, will authenticate and deliver, Securities of such series in definitive registered
form, in any authorized denominations, in an aggregate principal amount equal to the principal
amount of the Global Security or Securities representing such series, in exchange for such Global
Security or Securities.

     The Depositary for such Global Security may surrender such Global Security in exchange in
whole or in part for Securities of the same series in definitive registered form in accordance with
the two preceding paragraphs or on such other terms as are acceptable to the Issuer and such

12

 

Depositary. Thereupon, the Issuer shall execute, and the Trustee shall authenticate and
deliver, without service charge,

     (i) to the Person specified by such Depositary a new Security or Securities
of the same series, of any authorized denominations as requested by such Person, in
an aggregate principal amount equal to and in exchange for such Person’s beneficial
interest in the Global Security; and

     (ii) to such Depositary a new Global Security in a denomination equal to
the difference, if any, between the principal amount of the surrendered Global
Security and the aggregate principal amount of Securities authenticated and
delivered pursuant to clause (i) above.

     Upon the exchange of a Global Security for Securities in definitive registered form, in
authorized denominations, such Global Security shall be cancelled by the Trustee. Securities in
definitive registered form issued in exchange for a Global Security pursuant to this Section 2.08
shall be registered in such names and in such authorized denominations as the Depositary for such
Global Security, pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to or as directed by the
Persons in whose names such Securities are so registered.

     All Securities issued upon any transfer or exchange of Securities shall be valid obligations
of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as
the Securities surrendered upon such transfer or exchange.

     Section 2.09 Mutilated, Defaced, Destroyed, Lost and Stolen Securities. In case any
temporary or definitive Security shall become mutilated, defaced or be destroyed, lost or stolen,
the Issuer in its discretion may execute, and upon the written request of any officer of the
Issuer, the Trustee shall authenticate and deliver a new Security of the same series, maturity
date, interest rate and original issue date, bearing a number or other distinguishing symbol not
contemporaneously outstanding, in exchange and substitution for the mutilated or defaced Security,
or in lieu of and substitution for the Security so destroyed, lost or stolen. In every case the
applicant for a substitute Security shall furnish to the Issuer and to the Trustee and any agent of
the Issuer or the Trustee such security or indemnity as may be required by them to indemnify and
defend and to save each of them harmless and, in every case of destruction, loss or theft, evidence
to their satisfaction of the destruction, loss or theft of such Security and of the ownership
thereof and in the case of mutilation or defacement shall surrender the Security to the Trustee.

     Upon the issuance of any substitute Security, the Issuer may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto
and any other expenses (including the fees and expenses of the Trustee) connected therewith. In
case any Security which has matured or is about to mature or has been called for redemption in
full, or is being surrendered for conversion in full, shall become mutilated or defaced or be
destroyed, lost or stolen, the Issuer may, instead of issuing a substitute Security (with the
Holder’s consent, in the case of convertible Securities), pay or authorize the payment of the same
or convert, or authorize conversion of the same (without surrender thereof except in the

13

 

case of a mutilated or defaced Security), if the applicant for such payment shall furnish to
the Issuer and to the Trustee and any agent of the Issuer or the Trustee such security or indemnity
as any of them may require to save each of them harmless, and, in every case of destruction, loss
or theft, the applicant shall also furnish to the Issuer and the Trustee and any agent of the
Issuer or the Trustee evidence to their satisfaction of the destruction, loss or theft of such
Security and of the ownership thereof.

     Every substitute Security of any series issued pursuant to the provisions of this Section by
virtue of the fact that any such Security is destroyed, lost or stolen shall constitute an
additional contractual obligation of the Issuer, whether or not the destroyed, lost or stolen
Security shall be at any time enforceable by anyone and shall be entitled to all the benefits of
(but shall be subject to all the limitations of rights set forth in) this Indenture equally and
proportionately with any and all other Securities of such series duly authenticated and delivered
hereunder. All Securities shall be held and owned upon the express condition that, to the extent
permitted by law, the foregoing provisions are exclusive with respect to the replacement or payment
or conversion of mutilated, defaced or destroyed, lost or stolen Securities and shall preclude any
and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted
to the contrary with respect to the replacement or payment of negotiable instruments or other
securities without their surrender.

     Section 2.10 Cancellation of Securities; Destruction Thereof. All Securities surrendered
for exchange for Securities of the same series or for payment, redemption, registration of
transfer, conversion or for credit against any payment in respect of a sinking or analogous fund,
if surrendered to the Issuer or any agent of the Issuer or the Trustee, shall be delivered to the
Trustee for cancellation or, if surrendered to the Trustee, shall be cancelled by it; and no
Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions
of this Indenture. The Trustee shall dispose of cancelled Securities held by it and deliver a
certificate of disposition to the Issuer. If the Issuer shall acquire any of the Securities, such
acquisition shall not operate as a redemption or satisfaction of the Debt represented by such
Securities unless and until the same are delivered to the Trustee for cancellation.

     Section 2.11 Temporary Securities. Pending the preparation of definitive Securities for
any series, the Issuer may execute and the Trustee shall authenticate and deliver temporary
Securities for such series (printed, lithographed, typewritten or otherwise reproduced, in each
case in form satisfactory to the Trustee). Temporary Securities of any series shall be issuable in
any authorized denomination, and substantially in the form of the definitive Securities of such
series but with such omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Issuer with the concurrence of the Trustee as evidenced
by the execution and authentication thereof. Temporary Securities may contain such reference to
any provisions of this Indenture as may be appropriate. Every temporary Security shall be executed
by the Issuer and be authenticated by the Trustee upon the same conditions and in substantially the
same manner, and with like effect, as the definitive Securities. Without unreasonable delay the
Issuer shall execute and shall furnish definitive Securities of such series and thereupon temporary
Securities of such series may be surrendered in exchange therefor without charge at each office or
agency to be maintained by the Issuer for that purpose pursuant to Section 3.02 and the Trustee
shall authenticate and deliver in exchange for such temporary Securities of such series an equal
aggregate principal amount of definitive Securities of the same

14

 

series having authorized denominations. Until so exchanged, the temporary Securities of any
series shall be entitled to the same benefits under this Indenture as definitive Securities of such
series, unless the benefits of the temporary Securities are limited pursuant to Section 2.03.

ARTICLE 3

COVENANTS OF THE ISSUER

     Section 3.01 Payment of Principal and Interest. The Issuer covenants and agrees for the
benefit of each series of Securities that it will duly and punctually pay or cause to be paid the
principal of, and interest on, each of the Securities of such series (together with any additional
amounts payable pursuant to the terms of such Securities) at the place or places, at the respective
times and in the manner provided in such Securities and in this Indenture. The interest on
Securities (together with any additional amounts payable pursuant to the terms of such Securities)
shall be payable only to or upon the written order of the Holders thereof and at the option of the
Issuer may be paid by mailing checks for such interest payable to or upon the written order of such
Holders at their last addresses as they appear on the Security register of the Issuer.

     Section 3.02 Offices for Payments, Etc. The Issuer will maintain (i) in _______, an
agency where the Securities of each series may be presented for payment, an agency where the
Securities of each series may be presented for exchange and conversion, if applicable, as provided
in this Indenture and an agency where the Securities of each series may be presented for
registration of transfer as in this Indenture provided and (ii) such further agencies in such
places as may be determined for the Securities of such series pursuant to Section 2.03.

     The Issuer will maintain in __________, an agency where notices and demands to or upon the
Issuer in respect of the Securities of any series or this Indenture may be served.

     The Issuer will give to the Trustee written notice of the location of each such agency and of
any change of location thereof. In case the Issuer shall fail to maintain any agency required by
this Section to be located in __________, or shall fail to give such notice of the location or of
any change in the location of any of the above agencies, presentations and demands may be made and
notices may be served at the Corporate Trust Office of the Trustee.

     The Issuer may from time to time designate one or more additional agencies where the
Securities of a series may be presented for payment, where the Securities of that series may be
presented for exchange or conversion, if applicable, as provided in this Indenture and pursuant to
Section 2.03 and where the Securities of that series may be presented for registration of transfer
as in this Indenture provided, and the Issuer may from time to time rescind any such designation,
as the Issuer may deem desirable or expedient; provided, however, that no such designation or
rescission shall in any manner relieve the Issuer of its obligation to maintain the agencies
provided for in this Section. The Issuer will give to the Trustee prompt written notice of any
such designation or rescission thereof.

     Section 3.03 Appointment to Fill a Vacancy in Office of Trustee. The Issuer, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided

15

 

in Section 6.10, a Trustee, so that there shall at all times be a Trustee with respect to each
series of Securities hereunder.

     Section 3.04 Paying Agents. Whenever the Issuer shall appoint a paying agent other than
the Trustee with respect to the Securities of any series, it will cause such paying agent to
execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee,
subject to the provisions of this Section,

     (a) that it will hold all sums received by it as such agent for the payment of the
principal of or interest on the Securities of such series (whether such sums have been paid
to it by the Issuer or by any other obligor on the Securities of such series) in trust for
the benefit of the Holders of the Securities of such series or of the Trustee,

     (b) that it will give the Trustee notice of any failure by the Issuer (or by any
other obligor on the Securities of such series) to make any payment of the principal of or
interest on the Securities of such series when the same shall be due and payable, and

     (c) that at any time during the continuance of any such failure, upon the written
request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust by
such paying agent.

     The Issuer will, on or prior to each due date of the principal of or interest on the
Securities of such series, deposit with the paying agent a sum sufficient to pay such principal or
interest so becoming due, and (unless such paying agent is the Trustee) the Issuer will promptly
notify the Trustee of any failure to take such action.

     If the Issuer shall act as its own paying agent with respect to the Securities of any series,
it will, on or before each due date of the principal of or interest on the Securities of such
series, set aside, segregate and hold in trust for the benefit of the Holders of the Securities of
such series a sum sufficient to pay such principal or interest so becoming due. The Issuer will
promptly notify the Trustee of any failure to take such action.

     Anything in this Section to the contrary notwithstanding, but subject to Section 10.01, the
Issuer may at any time, for the purpose of obtaining a satisfaction and discharge with respect to
one or more or all series of Securities hereunder, or for any other reason, pay or cause to be paid
to the Trustee all sums held in trust for any such series by the Issuer or any paying agent
hereunder, as required by this Section, such sums to be held by the Trustee upon the trusts herein
contained.

     Anything in this Section to the contrary notwithstanding, the agreement to hold sums in trust
as provided in this Section is subject to the provisions of Sections 10.03 and 10.04.

     Section 3.05 Written Statement to Trustee. So long as any Securities are Outstanding
hereunder, the Issuer will deliver to the Trustee, within 120 days after the end of each fiscal
year of the Issuer ending after the date hereof, a written statement covering the previous fiscal
year, signed by two of its officers (which need not comply with Section 11.05), stating that in the
course of the performance of their duties as officers of the Issuer they would normally have
knowledge of any default by the Issuer in the performance or fulfillment of any covenant,

16

 

agreement or condition contained in this Indenture, stating whether or not they have knowledge
of any such default and, if so, specifying each such default of which the signers have knowledge
and the nature thereof.

ARTICLE 4

SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

     Section 4.01 Issuer to Furnish Trustee Information as to Names and Addresses of
Securityholders. The Issuer covenants and agrees that it will furnish or cause to be furnished to
the Trustee a list in such form as the Trustee may reasonably require of the names and addresses of
the Holders of the Securities of each series pursuant to Section 312 of the Trust Indenture Act of
1939:

     (a) semiannually and not more than 15 days after each record date for the payment
of interest on such Securities, as hereinabove specified, as of such record date and on
dates to be determined pursuant to Section 2.03 for non-interest bearing Securities in each
year, and

     (b) at such other times as the Trustee may request in writing, within 30 days after
receipt by the Issuer of any such request as of a date not more than 15 days prior to the
time such information is furnished, provided, that, if and so long as the Trustee shall be
the Security registrar (the “Security Registrar”) for such series, such list shall not be
required to be furnished.

     Section 4.02 Reports by the Issuer. The Issuer covenants to comply with Section 314(a) of
the Trust Indenture Act insofar as it relates to information, documentations, and other reports
which the Issuer may be required to file with the Commission pursuant to Section 13 or Section
15(d) of the Securities Exchange Act of 1934.

     Section 4.03 Reports by the Trustee. Any Trustee’s report required under Section 313(a)
of the Trust Indenture Act of 1939 shall be transmitted on or before ______ in each year following
the date hereof, so long as any Securities are Outstanding hereunder, and shall be dated as of a
date convenient to the Trustee but no more than 60 nor less than 45 days prior thereto. The
Trustee shall comply with Sections 313(b), 313(c) and 313(d) of the Trust Indenture Act.

     Section 4.04 Preservation of Information; Communication with Securityholders. (a) The
Trustee shall preserve, in as current a form as is reasonably practicable, all information as to
the names and addresses of the holders of Securities contained in the most recent list furnished to
it as provided in Section 4.01 and as to the names and addresses of holders of Securities received
by the Trustee in its capacity as Security Registrar (if acting in such capacity).

     (b) The Trustee may destroy any list furnished to it as provided in Section 4.01 upon
receipt of a new list so furnished.

     (c) Securityholders may communicate as provided in Section 312(b) of the Trust Indenture
Act with other Securityholders with respect to their rights under this Indenture or

17

 

under the Securities. The Issuer, the Trustee, the Security Registrar and any other Person shall
have the protection of Section 312(c) of the Trust Indenture Act.

ARTICLE 5

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

     Section 5.01 Event of Default Defined; Acceleration of Maturity; Waiver of Default.
“Event of Default”, with respect to Securities of any series wherever used herein, means each one
of the following events which shall have occurred and be continuing (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

     (a) default in the payment of any installment of interest upon any of the
Securities of such series as and when the same shall become due and payable, and continuance
of such default for a period of 90 days (or such other period as may be established for the
Securities of such series as contemplated by Section 2.03); or

     (b) default in the payment of all or any part of the principal on any of the
Securities of such series as and when the same shall become due and payable either at
maturity, upon redemption, by declaration or otherwise (and, if established for the
Securities of such series as contemplated by Section 2.03, the continuance of such default
for a specified period); or

     (c) default in the performance, or breach, of any covenant or agreement of the
Issuer in respect of the Securities of such series (other than a covenant or agreement in
respect of the Securities of such series a default in the performance or breach of which is
elsewhere in this Section specifically dealt with), and continuance of such default or
breach for a period of 90 days after there has been given, by registered or certified mail,
to the Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at least 25%
in principal amount of the Outstanding Securities of all series affected thereby, a written
notice specifying such default or breach and requiring it to be remedied and stating that
such notice is a “Notice of Default” hereunder; or

     (d) a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Issuer in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Issuer
or for all or substantially all of its property and assets or ordering the winding up or
liquidation of its affairs, and such decree or order shall remain unstayed and in effect for
a period of 90 consecutive days; or

     (e) the Issuer shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consent to the entry of an
order for relief in an involuntary case under any such law, or consent to the appointment of
or taking possession by a receiver, liquidator, assignee, custodian, trustee

18

 

or sequestrator (or similar official) of the Issuer or for any substantial part of its
property and assets, or make any general assignment for the benefit of creditors; or

     (f) any other Event of Default provided for in such series of Securities.

     If an Event of Default described in clauses (a), (b), (c) or (f) occurs and is continuing,
then, and in each and every such case, unless the principal of all of the Securities of such series
shall have already become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of the Securities of such series then Outstanding hereunder (each
such series voting as a separate class) by notice in writing to the Issuer (and also to the Trustee
if given by Securityholders), may declare the entire principal (or, if the Securities of such
series are Original Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of such series) of all Securities of such series and the interest accrued
thereon, if any, to be due and payable immediately, and upon any such declaration the same shall
become immediately due and payable. If an Event of Default described in clauses (d) or (e) occurs
and is continuing, then and in each and every such case, the entire principal (or, if any
Securities are Original Issue Discount Securities, such portion of the principal as may be
specified in the terms thereof) of all the Securities then Outstanding and interest accrued
thereon, if any, shall become immediately due and payable.

     The foregoing provisions, however, are subject to the condition that if, at any time after the
principal of the Securities of any series shall have been so declared due and payable, and before
any judgment or decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the Issuer shall pay or shall deposit with the Trustee a sum sufficient to
pay all matured installments of interest upon all the Securities of such series and the principal
of any and all Securities of such series which shall have become due otherwise than by acceleration
(with interest upon such principal and, to the extent that payment of such interest is enforceable
under applicable law, on overdue installments of interest, at the same rate as the rate of interest
specified in the Securities of such series to the date of such payment or deposit) and such amount
as shall be sufficient to cover reasonable compensation to the Trustee, its agents, attorneys and
counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee
except as a result of negligence or bad faith, and if any and all Events of Default under the
Indenture with respect to such series, other than the non-payment of the principal of Securities of
such series which shall have become due by acceleration, shall have been cured, waived or otherwise
remedied as provided herein—then and in every such case the Holders of a majority in aggregate
principal amount of all the Securities of such series then Outstanding, by written notice to the
Issuer and to the Trustee, may waive all defaults with respect to such series and rescind and annul
such declaration and its consequences, but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right consequent thereon.

     Unless otherwise indicated in the Board Resolution, Officer’s Certificate or supplemental
indenture for a series of Original Issue Discount Securities, for all purposes under this
Indenture, if a portion of the principal of any Original Issue Discount Securities shall have been
accelerated and declared due and payable pursuant to the provisions hereof, then, from and after
such declaration, unless such declaration has been rescinded and annulled, the principal amount of
such Original Issue Discount Securities shall be deemed, for all purposes hereunder, to be such

19

 

portion of the principal thereof as shall be due and payable as a result of such acceleration,
and payment of such portion of the principal thereof as shall be due and payable as a result of
such acceleration, together with interest, if any, thereon and all other amounts owing thereunder,
shall constitute payment in full of such Original Issue Discount Securities.

     Section 5.02 Collection of Debt by Trustee; Trustee May Prove Debt. The Issuer covenants
that (a) in case default shall be made in the payment of any installment of interest on any of the
Securities of any series when such interest shall have become due and payable, and such default
shall have continued for a period of 30 days or (b) in case default shall be made in the payment of
all or any part of the principal of any of the Securities of any series when the same shall have
become due and payable, whether upon maturity of the Securities of such series or upon any
redemption or by declaration or otherwise—then, upon demand of the Trustee, the Issuer will pay to
the Trustee for the benefit of the Holders of the Securities of such series the whole amount that
then shall have become due and payable on all Securities of such series for principal or interest,
as the case may be (with interest to the date of such payment upon the overdue principal and, to
the extent that payment of such interest is enforceable under applicable law, on overdue
installments of interest at the same rate as the rate of interest or Yield to Maturity (in the case
of Original Issue Discount Securities) specified in the Securities of such series); and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including reasonable compensation to the Trustee and each predecessor trustee, their
respective agents, attorneys and counsel, and any expenses and liabilities incurred, and all
advances made, by the Trustee and each predecessor trustee except as a result of its negligence or
bad faith.

     In case the Issuer shall fail forthwith to pay such amounts upon such demand, the Trustee, in
its own name and as trustee of an express trust, shall be entitled and empowered to institute any
action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceedings to judgment or final decree, and may enforce any such
judgment or final decree against the Issuer or other obligor upon such Securities and collect in
the manner provided by law out of the property of the Issuer or other obligor upon such Securities,
wherever situated, the moneys adjudged or decreed to be payable.

     In case there shall be pending proceedings relative to the Issuer or any other obligor upon
the Securities under Title 11 of the United States Code or any other applicable Federal or state
bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other obligor or its
property, or in case of any other comparable judicial proceedings relative to the Issuer or other
obligor upon the Securities of any series, or to the creditors or property of the Issuer or such
other obligor, the Trustee, irrespective of whether the principal of any Securities shall then be
due and payable as therein expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled
and empowered, by intervention in such proceedings or otherwise:

     (i) to file and prove a claim or claims for the whole amount of principal
and interest (or, if the Securities of any series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in

20

 

the terms of such series) owing and unpaid in respect of the Securities of any series,
and to file such other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for reasonable compensation
to the Trustee and each predecessor trustee, and their respective agents, attorneys
and counsel, and for reimbursement of all expenses and liabilities incurred, and all
advances made, by the Trustee and each predecessor trustee, except as a result of
negligence or bad faith) and of the Securityholders allowed in any judicial
proceedings relative to the Issuer or other obligor upon the Securities of any
series, or to the creditors or property of the Issuer or such other obligor,

     (ii) unless prohibited by applicable law and regulations, to vote on behalf
of the Holders of the Securities of any series in any election of a trustee or a
standby trustee in arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings or person performing similar functions in comparable
proceedings, and

     (iii) to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute all amounts received with respect
to the claims of the Securityholders and of the Trustee on their behalf; and any
trustee, receiver or liquidator, custodian or other similar official is hereby
authorized by each of the Securityholders to make payments to the Trustee, and, in
the event that the Trustee shall consent to the making of payments directly to the
Securityholders, to pay to the Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Trustee, each predecessor trustee and their
respective agents, attorneys and counsel, and all other expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor trustee except
as a result of negligence or bad faith and all other amounts due to the Trustee or
any predecessor trustee pursuant to Section 6.06.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or vote for or accept or adopt on behalf of any Securityholder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of any series or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder
in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or
similar person.

     All rights of action and of asserting claims under this Indenture, or under any of the
Securities of any series, may be enforced by the Trustee without the possession of any of the
Securities of such series or the production thereof on any trial or other proceedings relative
thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Trustee, each predecessor trustee and their
respective agents and attorneys, shall be for the ratable benefit of the Holders of the Securities
in respect of which such action was taken.

21

 

     In any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be a party), the
Trustee shall be held to represent all the Holders of the Securities in respect to which such
action was taken, and it shall not be necessary to make any Holders of such Securities parties to
any such proceedings.

     Section 5.03 Application of Proceeds. Any moneys collected by the Trustee pursuant to
this Article in respect of any series shall be applied in the following order at the date or dates
fixed by the Trustee and, in case of the distribution of such moneys on account of principal or
interest, upon presentation of the several Securities in respect of which monies have been
collected and stamping (or otherwise noting) thereon the payment, or issuing Securities of such
series in reduced principal amounts in exchange for the presented Securities of like series if only
partially paid, or upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due to the Trustee or any predecessor trustee
pursuant to Section 6.06;

     SECOND: In case the principal of the Securities of such series in respect of which
moneys have been collected shall not have become and be then due and payable, to the payment
of interest on the Securities of such series in default in the order of the maturity of the
installments of such interest, with interest (to the extent that such interest has been
collected by the Trustee) upon the overdue installments of interest, to the extent permitted
by applicable law, at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in such Securities, such payments to
be made ratably to the Persons entitled thereto, without discrimination or preference;

     THIRD: In case the principal of the Securities of such series in respect of which
moneys have been collected shall have become and shall be then due and payable, to the
payment of the whole amount then owing and unpaid upon all the Securities of such series for
principal and interest, with interest upon the overdue principal, and (to the extent that
such interest has been collected by the Trustee) upon overdue installments of interest, to
the extent permitted by applicable law, at the same rate as the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in the Securities of
such series; and in case such moneys shall be insufficient to pay in full the whole amount
so due and unpaid upon the Securities of such series, then to the payment of such principal
and interest or Yield to Maturity, without preference or priority of principal over interest
or Yield to Maturity, or of interest or Yield to Maturity over principal, or of any
installment of interest over any other installment of interest, or of any Security of such
series over any other Security of such series, ratably to the aggregate of such principal
and accrued and unpaid interest or Yield to Maturity; and

     FOURTH: To the payment of the remainder, if any, to the Issuer or any other Person
lawfully entitled thereto.

     Section 5.04 Suits for Enforcement. In case an Event of Default has occurred, has not
been waived and is continuing, the Trustee may in its discretion proceed to protect and enforce

22

 

the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to
enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

     Section 5.05 Restoration of Rights on Abandonment of Proceedings. In case the Trustee
shall have proceeded to enforce any right under this Indenture and such proceedings shall have been
discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee,
then and in every such case (subject to any determination in such proceeding) the Issuer and the
Trustee shall be restored respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Issuer, the Trustee and the Securityholders shall continue as
though no such proceedings had been taken.

     Section 5.06 Limitations on Suits by Securityholders. No Holder of any Security of any
series shall have any right by virtue or by availing of any provision of this Indenture to
institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under
or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator,
custodian or other similar official or for any other remedy hereunder, unless such Holder
previously shall have given to the Trustee written notice of default and of the continuance
thereof, as hereinbefore provided, and unless also the Holders of not less than 25% in aggregate
principal amount of the Securities of such series then Outstanding shall have made written request
upon the Trustee to institute such action or proceedings in its own name as trustee hereunder and
shall have offered to the Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby and the Trustee for 60 days after its
receipt of such notice, request and offer of indemnity shall have failed to institute any such
action or proceeding and no direction inconsistent with such written request shall have been given
to the Trustee pursuant to Section 5.09; it being understood and intended, and being expressly
covenanted by the Holder of every Security with every other Holder and the Trustee, that no one or
more Holders of Securities of any series shall have any right in any manner whatever by virtue or
by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any
other such Holder of Securities, or to obtain or seek to obtain priority over or preference to any
other such Holder or to enforce any right under this Indenture, except in the manner herein
provided and for the equal, ratable and common benefit of all Holders of Securities of the
applicable series. For the protection and enforcement of the provisions of this Section, each and
every Securityholder and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

     Section 5.07 Unconditional Right of Securityholders to Institute Certain Suits.
Notwithstanding any other provision in this Indenture and any provision of any Security, the right
of any Holder of any Security to receive payment of the principal of and interest on such Security
on or after the respective due dates expressed in such Security in accordance with the terms hereof
and thereof, or to institute suit for the enforcement of any such payment on or after such
respective dates, or for the enforcement of such conversion right, shall not be impaired or
affected without the consent of such Holder; it being understood and intended, and being expressly
covenanted by the Holder of every Security with every other Holder and the Trustee, that no one or
more Holders of Securities of any series shall have any right in any manner

23

 

whatever by virtue or
by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any
other such Holder of Securities, or to obtain or seek to obtain priority over or
preference to any other such Holder or to enforce any right under this Indenture, except in
the manner herein provided and for the equal, ratable and common benefit of all Holders of
Securities of the applicable series. For the protection and enforcement of the provisions of this
Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

     Section 5.08 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.
Except as provided in Section 5.06, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders of Securities is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy.

     No delay or omission of the Trustee or of any Holder of Securities to exercise any right or
power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any
such right or power or shall be construed to be a waiver of any such Event of Default or an
acquiescence therein; and, subject to Section 5.06, every power and remedy given by this Indenture
or by law to the Trustee or to the Holders of Securities may be exercised from time to time, and as
often as shall be deemed expedient, by the Trustee or by the Holders of Securities.

     Section 5.09 Control by Holders of Securities. The Holders of a majority in aggregate
principal amount of the Securities of each series affected (with each series voting as a separate
class) at the time Outstanding shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee with respect to the Securities of such series by this Indenture; provided,
that such direction shall not be otherwise than in accordance with law and the provisions of this
Indenture and provided, further, that (subject to the provisions of Section 6.01) the Trustee shall
have the right to decline to follow any such direction if the Trustee, being advised by counsel,
shall determine that the action or proceeding so directed may not lawfully be taken or if the
Trustee in good faith by its board of directors, the executive committee, or a trust committee of
directors or Responsible Officers of the Trustee shall determine that the action or proceedings so
directed would involve the Trustee in personal liability or if the Trustee in good faith shall so
determine that the actions or forbearances specified in or pursuant to such direction would be
unduly prejudicial to the interests of Holders of the Securities of all series so affected not
joining in the giving of said direction, it being understood that (subject to Section 6.01) the
Trustee shall have no duty to ascertain whether or not such actions or forbearances are unduly
prejudicial to such Holders.

     Nothing in this Indenture shall impair the right of the Trustee in its discretion to take any
action deemed proper by the Trustee and which is not inconsistent with such direction or directions
by Securityholders.

24

 

     Section 5.10 Waiver of Past Defaults. Prior to the declaration of the acceleration of the
maturity of the Securities of any series as provided in Section 5.01, the Holders of a majority in
aggregate principal amount of the Securities of such series at the time Outstanding, by notice to
the Trustee, may on behalf of the Holders of all the Securities of such series waive any
existing default in the performance of any of the covenants contained herein or established
pursuant to Section 2.03 with respect to such series and its consequences, except a default in the
payment of the principal of, or interest on, any of the Securities of that series as and when the
same shall become due by the terms of such Securities. In the case of any such waiver, the Issuer,
the Trustee and the Holders of the Securities of such series shall be restored to their former
positions and rights hereunder, respectively, such default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising therefrom shall be
deemed to have been cured, and not to have occurred for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other default or Event of Default or impair any right
consequent thereon.

     Section 5.11 Trustee to Give Notice of Default. The Trustee shall, within 90 days after
the occurrence of a default with respect to the Securities of any series, give notice of all
defaults with respect to that series known to the Trustee to all Holders of Securities of such
series in the manner and to the extent provided in Section 4.03, unless in each case such defaults
shall have been cured before the mailing or publication of such notice (the term “defaults” for the
purpose of this Section being hereby defined to mean any event or condition which is, or with
notice or lapse of time or both would become, an Event of Default); provided, that, except in the
case of default in the payment of the principal of or interest on any of the Securities of such
series, or in the payment of any sinking fund installment on such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors or trustees and/or Responsible Officers of the Trustee
in good faith determines that the withholding of such notice is in the interests of the
Securityholders of such series.

     Section 5.12 Right of Court to Require Filing of Undertaking to Pay Costs. All parties to
this Indenture agree, and each Holder of any Security by his or her acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee,
to any suit instituted by any Securityholder or group of Securityholders of any series holding in
the aggregate more than 10% in aggregate principal amount of the Securities of such series, or to
any suit instituted by any Securityholder for the enforcement of the payment of the principal of or
interest on any Security of such series, on or after the respective due dates expressed in such
Security or established pursuant to this Indenture.

25

 

ARTICLE 6

CONCERNING THE TRUSTEE

     Section 6.01 Duties and Responsibilities of the Trustee; During Default; Prior to Default.
With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to
the occurrence of an Event of Default with respect to the Securities of a particular series
and after the curing or waiving of all Events of Default which may have occurred with respect
to such series, undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture. In case an Event of Default with respect to the Securities of a series
has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights
and powers vested in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in the conduct of his
or her own affairs.

     No provision of this Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act or its own willful misconduct.

     Section 6.02 Certain Rights of the Trustee. In furtherance of and subject to the Trust
Indenture Act of 1939 and subject to Section 6.01:

     (a) in the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any statements, certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture; but, in the case of any such
statements, certificates or opinions which by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture;

     (b) the Trustee shall not be liable for any error of judgment made in good faith by
a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts;

     (c) the Trustee shall not be liable with respect to any action taken or omitted to
be taken by it in good faith in accordance with the direction of the Holders pursuant to
Section 5.09 relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture;

     (d) none of the provisions contained in this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or powers if there
shall be reasonable ground for believing that the repayment of such funds or adequate
indemnity against such liability is not reasonably assured to it;

     (e) the Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, Officer’s Certificate or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order, bond, debenture, note,

26

 

security or other
paper or document believed by it to be genuine and to have been signed or presented by the
proper party or parties;

     (f) any request, direction, order or demand of the Issuer mentioned herein shall be
sufficiently evidenced by an Officer’s Certificate (unless other evidence in respect thereof
be herein specifically prescribed); and any resolution of the Board of Directors
may be evidenced to the Trustee by a copy thereof certified by the secretary or an
assistant secretary of the Issuer;

     (g) the Trustee may consult with counsel and any advice or Opinion of Counsel shall
be full and complete authorization and protection in respect of any action taken, suffered
or omitted to be taken by it hereunder in good faith and in accordance with such advice or
Opinion of Counsel;

     (h) the Trustee shall be under no obligation to exercise any of the trusts or
powers vested in it by this Indenture at the request, order or direction of any of the
Securityholders pursuant to the provisions of this Indenture, unless such Securityholders
shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred therein or thereby;

     (i) the Trustee shall not be liable for any action taken or omitted by it in good
faith and believed by it to be authorized or within the discretion, rights or powers
conferred upon it by this Indenture;

     (j) prior to the occurrence of an Event of Default hereunder and after the curing
or waiving of all Events of Default, the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, appraisal, bond,
debenture, note, security, or other paper or document unless requested in writing so to do
by the Holders of not less than a majority in aggregate principal amount of the Securities
of all series affected then Outstanding; provided, that, if the payment within a reasonable
time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of the Trustee, not reasonably assured to
the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may
require reasonable indemnity against such expenses or liabilities as a condition to
proceeding; the reasonable expenses of every such investigation shall be paid by the Issuer
or, if paid by the Trustee or any predecessor trustee, shall be repaid by the Issuer upon
demand; and

     (k) the Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys not regularly in its
employ and the Trustee shall not be responsible for any misconduct or negligence on the part
of any such agent or attorney appointed with due care by it hereunder.

     Section 6.03 Trustee Not Responsible for Recitals, Disposition of Securities or
Application of Proceeds Thereof. The recitals contained herein and in the Securities, except the
Trustee’s certificates of authentication, shall be taken as the statements of the Issuer, and the

27

 

Trustee assumes no responsibility for the correctness of the same. The Trustee makes no
representation as to the validity or sufficiency of this Indenture or of the Securities. The
Trustee shall not be accountable for the use or application by the Issuer of any of the Securities
or of the proceeds thereof.

     Section 6.04 Trustee and Agents May Hold Securities; Collections, Etc. The Trustee or any
agent of the Issuer or the Trustee, in its individual or any other capacity, may become the owner
or pledgee of Securities with the same rights it would have if it were not the Trustee or such
agent and may otherwise deal with the Issuer and receive, collect, hold and retain collections from
the Issuer with the same rights it would have if it were not the Trustee or such agent.

     Section 6.05 Moneys Held by Trustee. Subject to the provisions of Section 10.04 hereof,
all moneys received by the Trustee shall, until used or applied as herein provided, be held in
trust for the purposes for which they were received, but need not be segregated from other funds
except to the extent required by mandatory provisions of law. Neither the Trustee nor any agent of
the Issuer or the Trustee shall be under any liability for interest on any moneys received by it
hereunder.

     Section 6.06 Compensation and Indemnification of Trustee and Its Prior Claim. The Issuer
covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to,
such reasonable compensation (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) as the Issuer and the Trustee may from time to time
agree in writing and, except as otherwise expressly provided herein, the Issuer covenants and
agrees to pay or reimburse the Trustee and each predecessor trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by or on behalf of it in
accordance with any of the provisions of this Indenture (including the reasonable compensation and
the expenses and disbursements of its counsel and of all agents and other persons not regularly in
its employ) except any such expense, disbursement or advance as may arise from its negligence or
bad faith. The Issuer also covenants to indemnify the Trustee and each predecessor trustee for,
and to hold it harmless against, any loss, liability or expense incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance or administration of this
Indenture or the trusts hereunder and its duties hereunder, including the costs and expenses of
defending itself against or investigating any claim of liability in the premises. The obligations
of the Issuer under this Section to compensate and indemnify the Trustee and each predecessor
trustee and to pay or reimburse the Trustee and each predecessor trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder and shall survive the
satisfaction and discharge of this Indenture. Such additional indebtedness shall be a senior claim
to that of the Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the Holders of particular Securities, and the
Securities are hereby subordinated to such senior claim.

     Section 6.07 Right of Trustee to Rely on Officer’s Certificate, Etc. Subject to Sections
6.01 and 6.02, whenever in the administration of the trusts of this Indenture the Trustee shall
deem it necessary or desirable that a matter be proved or established prior to taking or suffering
or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee,

28

 

be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the
Trustee, and such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture upon the faith thereof.

     Section 6.08 Disqualification; Conflicting Interests. If the Trustee has or shall acquire
any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the
Trustee and the Issuer shall in all respects comply with the provisions of Section 310(b) of the
Trust Indenture Act.

     Section 6.09 Persons Eligible for Appointment as Trustee. The Trustee for each series of
Securities hereunder shall at all times be a corporation having a combined capital and surplus of
at least $50,000,000 and shall be eligible in accordance with the provisions of Section 310(a) of
the Trust Indenture Act of 1939. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of a Federal, State or District of Columbia
supervising or examining authority, then, for the purposes of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

     Section 6.10 Resignation and Removal; Appointment of Successor Trustee. (a) The Trustee,
or any trustee or trustees hereafter appointed, may at any time resign with respect to one or more
or all series of Securities by giving written notice of resignation to the Issuer and by mailing
notice of such resignation to the Holders of then Outstanding Securities of each series affected at
their addresses as they shall appear on the Security register. Upon receiving such notice of
resignation, the Issuer shall promptly appoint a successor trustee or trustees with respect to the
applicable series by written instrument in duplicate, executed by authority of the Board of
Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee or trustees. If no successor trustee shall have been so appointed with
respect to any series and have accepted appointment within 30 days after the mailing of such notice
of resignation, the resigning trustee may petition any court of competent jurisdiction for the
appointment of a successor trustee, or any Securityholder who has been a bona fide Holder of a
Security or Securities of the applicable series for at least six months may, on behalf of himself
or herself and all others similarly situated, petition any such court for the appointment of a
successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

     (b) In case at any time any of the following shall occur:

     (i) the Trustee shall fail to comply with the provisions of Section 310(b)
of the Trust Indenture Act of 1939 with respect to any series of Securities after
written request therefor by the Issuer or by any Securityholder who has been a bona
fide Holder of a Security or Securities of such series for at least six months; or

     (ii) the Trustee shall cease to be eligible in accordance with the
provisions of Section 310(a) of the Trust Indenture Act of 1939 and shall fail to
resign after written request therefor by the Issuer or by any Securityholder; or

29

 

     (iii) the Trustee shall become incapable of acting with respect to any
series of Securities, or shall be adjudged bankrupt or insolvent, or a receiver or
liquidator of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation;

then, in any such case, (A) the Issuer may remove the Trustee with respect to the applicable
series of Securities and appoint a successor trustee for such series by written instrument,
in duplicate, executed by order of the Board of Directors, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor trustee, or, (B)
subject to Section 315(e) of the Trust Indenture Act of 1939, any Securityholder who has
been a bona fide Holder of a Security or Securities of such series for at least six months
may on behalf of himself or herself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor
trustee with respect to such series. Such court may thereupon, after such notice, if any, as
it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the Securities of
each series at the time Outstanding may at any time remove the Trustee with respect to
Securities of such series and, with the consent of the Issuer, appoint a successor trustee
with respect to the Securities of such series by delivering to the Trustee so removed, to
the successor trustee so appointed and to the Issuer the evidence provided for in Section
7.01 of the action in that regard taken by the Securityholders.

     (d) Any resignation or removal of the Trustee with respect to any series and any
appointment of a successor trustee with respect to such series pursuant to any of the
provisions of this Section 6.10 shall become effective upon acceptance of appointment by the
successor trustee as provided in Section 6.11.

     Section 6.11 Acceptance of Appointment by Successor Trustee. Any successor trustee
appointed as provided in Section 6.10 shall execute and deliver to the Issuer and to its
predecessor trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee with respect to all or any applicable series
shall become effective and such successor trustee, without any further act, deed or conveyance,
shall become vested with all rights, powers, duties and obligations with respect to such series of
its predecessor hereunder, with like effect as if originally named as trustee for such series
hereunder; but, nevertheless, on the written request of the Issuer or of the successor trustee,
upon payment of its charges then unpaid, the trustee ceasing to act shall, subject to Section
10.04, pay over to the successor trustee all moneys at the time held by it hereunder and shall
execute and deliver an instrument transferring to such successor trustee all such rights, powers,
duties and obligations. Upon request of any such successor trustee, the Issuer shall execute any
and all instruments in writing for more fully and certainly vesting in and confirming to such
successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless,
retain a prior claim upon all property or funds held or collected by such trustee to secure any
amounts then due it pursuant to the provisions of Section 6.06.

30

 

     If a successor trustee is appointed with respect to the Securities of one or more (but not
all) series, the Issuer, the predecessor trustee and each successor trustee with respect to the
Securities of any applicable series shall execute and deliver an indenture supplemental hereto
which shall contain such provisions as shall be deemed necessary or desirable to confirm that
all the rights, powers, trusts and duties of the predecessor trustee with respect to the Securities
of any series as to which the predecessor trustee is not retiring shall continue to be vested in
the predecessor trustee, and shall add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the trusts hereunder by more
than one trustee, it being understood that nothing herein or in such supplemental indenture shall
constitute such trustees co-trustees of the same trust and that each such trustee shall be trustee
of a trust or trusts under separate indentures.

     No successor trustee with respect to any series of Securities shall accept appointment as
provided in this Section 6.11 unless at the time of such acceptance such successor trustee shall be
qualified under the provisions of Section 310(b) of the Trust Indenture Act of 1939 and eligible
under the provisions of Section 310(a) of the Trust Indenture Act of 1939.

     Upon acceptance of appointment by any successor trustee as provided in this Section 6.11, the
Issuer shall mail notice thereof to the Holders of Securities of each series affected, by mailing
such notice to such Holders at their addresses as they shall appear on the Security register. If
the acceptance of appointment is substantially contemporaneous with the resignation, then the
notice called for by the preceding sentence may be combined with the notice called for by Section
6.10. If the Issuer fails to mail such notice within ten days after acceptance of appointment by
the successor trustee, the successor trustee shall cause such notice to be given at the expense of
the Issuer.

     Section 6.12 Merger, Conversion, Consolidation or Succession to Business of Trustee. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder; provided, that such corporation shall be qualified
under the provisions of Section 310(b) of the Trust Indenture Act of 1939 and eligible under the
provisions of Section 310(a) of the Trust Indenture Act of 1939, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

     In case, at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture, any of the Securities of any series shall have been authenticated but not delivered, any
such successor to the Trustee may adopt the certificate of authentication of any predecessor
trustee and deliver such Securities so authenticated; and, in case at that time any of the
Securities of any series shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or in the name of the
successor trustee; and in all such cases such certificate shall have the full force which it is
anywhere in the Securities of such series or in this Indenture provided that the certificate of the
Trustee shall have; provided, that the right to adopt the certificate of authentication of any
predecessor trustee or to authenticate Securities of any series in the name of any predecessor
trustee shall apply only to its successor or successors by merger, conversion or consolidation.

31

 

     Section 6.13 Preferential Collection of Claims Against the Issuer. The Trustee shall
comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship
described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been
removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included
therein.

ARTICLE 7

CONCERNING THE SECURITYHOLDERS

     Section 7.01 Evidence of Action Taken by Securityholders. Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by this Indenture to be
given or taken by a specified percentage in principal amount of the Securityholders of any or all
series may be embodied in and evidenced by one or more instruments of substantially similar tenor
signed by such specified percentage of Securityholders in person or by agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall become effective
when such instrument or instruments are delivered to the Trustee. Proof of execution of any
instrument or of a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Sections 6.01 and 6.02) conclusive in favor of the Trustee and the
Issuer, if made in the manner provided in this Article.

     Section 7.02 Proof of Execution of Instruments and of Holding of Securities. Subject to
Sections 6.01 and 6.02, the execution of any instrument by a Holder or his agent or proxy may be
proved in accordance with such reasonable rules and regulations as may be prescribed by the Trustee
or in such manner as shall be satisfactory to the Trustee. The holding of Securities shall be
proved by the Security register or by a certificate of the registrar thereof. The Issuer may set a
record date for purposes of determining the identity of Holders of any series entitled to vote or
consent to any action referred to in Section 7.01, which record date may be set at any time or from
time to time by notice to the Trustee, for any date or dates (in the case of any adjournment or
reconsideration) not more than 60 days nor less than five days prior to the proposed date of such
vote or consent, and thereafter, notwithstanding any other provisions hereof, only Holders of such
series of record on such record date shall be entitled to so vote or give such consent or revoke
such vote or consent. Notice of such record date may be given before or after any request for any
action referred to in Section 7.01 is made by the Issuer.

     Section 7.03 Holders to Be Treated as Owners. The Issuer, the Trustee and any agent of
the Issuer or of the Trustee may deem and treat the Person in whose name any Security shall be
registered upon the Security register for such series as the absolute owner of such Security
(whether or not such Security shall be overdue and notwithstanding any notation of ownership or
other writing thereon) for the purpose of receiving payment of or on account of the principal of,
and, subject to the provisions of this Indenture, interest on, such Security and for all other
purposes; and neither the Issuer nor the Trustee nor any agent of the Issuer or the Trustee shall
be affected by any notice to the contrary. All such payments so made to any such Person, or upon
his or her order, shall be valid, and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable.

     Section 7.04 Securities Owned by Issuer Deemed Not Outstanding. In determining whether
the Holders of the requisite aggregate principal amount of Outstanding Securities of any

32

 

or all
series have concurred in any direction, consent or waiver under this Indenture, Securities which
are owned by the Issuer or any other obligor on the Securities with respect to which such
determination is being made or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or any other obligor on the
Securities with respect to which such determination is being made shall be disregarded and deemed
not to be Outstanding for the purpose of any such determination, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver, only Securities which the Trustee knows are so owned shall be so disregarded. Securities
so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Issuer or any other obligor upon the Securities or any
Person directly or indirectly controlling or controlled by or under direct or indirect common
control with the Issuer or any other obligor on the Securities. In case of a dispute as to such
right, the advice of counsel shall be full protection in respect of any decision made by the
Trustee in accordance with such advice.

     Section 7.05 Right of Revocation of Action Taken. At any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 7.01, of the taking of any action by the
Holders of the percentage in aggregate principal amount of the Securities of any or all series, as
the case may be, specified in this Indenture in connection with such action, any Holder of a
Security the serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action may, by filing written
notice at the Corporate Trust Office and upon proof of holding as provided in this Article, revoke
such action so far as concerns such Security. Except as aforesaid, any such action taken by the
Holder of any Security shall be conclusive and binding upon such Holder and upon all future Holders
and owners of such Security and of any Securities issued in exchange or substitution therefor or on
registration of transfer thereof, irrespective of whether or not any notation in regard thereto is
made upon any such Security. Any action taken by the Holders of the percentage in aggregate
principal amount of the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action shall be conclusively binding upon the Issuer, the Trustee
and the Holders of all the Securities affected by such action.

ARTICLE 8

SUPPLEMENTAL INDENTURES

     Section 8.01 Supplemental Indentures Without Consent of Securityholders. The Issuer, when
authorized by a resolution of its Board of Directors, and the Trustee may from time to time and at
any time, without the consent of any of the Securityholders, enter into an indenture or indentures
supplemental hereto in form satisfactory to the Trustee for one or more of the following purposes:

     (a) to convey, transfer, assign, mortgage or pledge to the Trustee as security for
the Securities of one or more series any property or assets;

     (b) to evidence the succession of another corporation to the Issuer, or successive
successions, and the assumption by the successor corporation of the covenants, agreements
and obligations of the Issuer pursuant to Article 9;

33

 

     (c) to add to the covenants of the Issuer such further covenants, restrictions,
conditions or provisions as its Board of Directors and the Trustee shall consider to be for
the protection of the Holders of Securities, and to make the occurrence, or the occurrence
and continuance, of a default in any such additional covenants, restrictions, conditions or
provisions an Event of Default permitting the enforcement of all or any of the several
remedies provided in this Indenture as herein set forth; provided, that in respect of any
such additional covenant, restriction, condition or provision such supplemental indenture
may provide for a particular period of grace after default (which period may be shorter or
longer than that allowed in the case of other defaults) or may provide for an immediate
enforcement upon such an Event of Default or may limit the remedies available to the Trustee
upon such an Event of Default or may limit the right of the Holders of a majority in
aggregate principal amount of the Securities of such series to waive such an Event of
Default;

     (d) to cure any ambiguity, defect or inconsistency, or to conform this Indenture or
any supplemental indenture to the description of the Securities set forth in any prospectus
or prospectus supplement related to such series of Securities;

     (e) to provide for or add guarantors for the Securities of one or more series;

     (f) to establish the form or terms of Securities of any series as permitted by
Sections 2.01 and 2.03;

     (g) to evidence and provide for the acceptance of appointment hereunder by a
successor trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one trustee, pursuant to
the requirements of Section 6.11;

     (h) to add to, delete from or revise the conditions, limitations and restrictions
on the authorized amount, terms, purposes of issue, authentication and delivery of any
series of Securities, as herein set forth;

     (i) to make any change to the Securities of any series so long as no Securities of
such series are Outstanding; and

     (j) to make any other change that does not adversely affect the interests of the
Holders of the Securities in any material respect.

     The Trustee shall join with the Issuer in the execution of any such supplemental indenture, to
make any further appropriate agreements and stipulations which may be therein contained and to
accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the
Trustee shall not be obligated to enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

34

 

     Any supplemental indenture authorized by the provisions of this Section may be executed
without the consent of the Holders of any of the Securities at the time Outstanding,
notwithstanding any of the provisions of Section 8.02.

     Section 8.02 Supplemental Indentures With Consent of Securityholders. With the consent
(evidenced as provided in Article 7) of the Holders of not less than a majority in aggregate
principal amount of the Securities at the time Outstanding of one or more series affected by such
supplemental indenture (voting as separate series), the Issuer, when authorized by a resolution of
the Board of Directors, and the Trustee may, from time to time and at any time, enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the Securities of each such
consenting series; provided, that no such supplemental indenture shall, without the consent of the
Holder of each Security so affected, (a) extend the final maturity of any Security, or reduce the
principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or
reduce any amount payable on redemption thereof, or make the principal thereof (including any
amount in respect of original issue discount) or interest thereon payable in any currency other
than that provided in the Securities or in accordance with the terms thereof, or reduce the amount
of the principal of an Original Issue Discount Security that would be due and payable upon an
acceleration of the maturity thereof pursuant to Section 5.01 or the amount thereof provable in
bankruptcy pursuant to Section 5.02, or waive a default in the payment of principal of any Security
or interest thereon or change a provision related to the waiver of past defaults or changes or
impair the right of any Securityholder to institute suit for the payment or conversion thereof or,
if the Securities provide therefor, any right of repayment at the option of the Securityholder, or
(b) modify any of the provisions of this section except to increase any required percentage or to
provide that certain other provisions cannot be modified or waived without the consent of the
Holder of each Security so affected, or (c) reduce the aforesaid percentage of Securities of any
series, the consent of the Holders of which is required for any such supplemental indenture or the
consent of Holders of which is required for any modification, amendment or waiver of compliance
with certain provisions of this Indenture or certain defaults hereunder and their consequences
provided for in this Indenture.

     A supplemental indenture which changes or eliminates any covenant, Event of Default or other
provision of this Indenture (1) that has been expressly included solely for the benefit of one or
more particular series of Securities, if any, or (2) which modifies the rights of Holders of
Securities of one or more series with respect to any covenant, Event of Default or provision, shall
be deemed not to affect the rights under this Indenture of the Holders of Securities of any other
series with respect to which such covenant, Event of Default or other provision has not be
modified.

     Upon the request of the Issuer, accompanied by a Board Resolution authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of
Securityholders as aforesaid and other documents, if any, required by Section 7.01, the Trustee
shall join with the Issuer in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture.

35

 

     It shall not be necessary for the consent of the Securityholders under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such
consent shall approve the substance thereof.

     Promptly after the execution by the Issuer and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Trustee shall give a notice thereof to the Holders
of then Outstanding Securities of each series affected thereby, by mailing a notice thereof by
first-class mail to such Holders at their addresses as they shall appear on the Security register,
and in each case such notice shall set forth in general terms the substance of such supplemental
indenture. Any failure of the Trustee to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental indenture.

     Section 8.03 Effect of Supplemental Indenture. Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Issuer and the Holders of Securities
of each series affected thereby shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments, and all the terms and conditions of
any such supplemental indenture shall be and be deemed to be part of the terms and conditions of
this Indenture for any and all purposes.

     Section 8.04 Documents to Be Given to Trustee. The Trustee, subject to the provisions of
Sections 6.01 and 6.02, may receive an Officer’s Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this Article 8 complies
with the applicable provisions of this Indenture.

     Section 8.05 Notation on Securities in Respect of Supplemental Indentures. Securities of
any series authenticated and delivered after the execution of any supplemental indenture pursuant
to the provisions of this Article may bear a notation in form approved by the Trustee for such
series as to any matter provided for by such supplemental indenture or as to any action taken by
Securityholders. If the Issuer or the Trustee shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may be prepared by the
Issuer, authenticated by the Trustee and delivered in exchange for the Securities of such series
then Outstanding.

ARTICLE 9

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

     Section 9.01 Issuer May Consolidate, Etc., on Certain Terms. The Issuer shall not
consolidate with or merge into any other Person (in a transaction in which the Issuer is not the
surviving corporation) or convey, transfer or lease its properties and assets substantially as an
entirety to any Person, unless (a) the Person formed by such consolidation or into which the Issuer
is merged or the Person which acquires by conveyance or transfer, or which leases, the properties
and assets of the Issuer substantially as an entirety (i) shall be a corporation, limited liability
company, partnership or trust, (ii) shall be organized and validly existing under the laws of the
United States of America, any State thereof or the District of Columbia and (iii) shall

36

 

expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee,
in form satisfactory to the Trustee, the due and punctual payment of the principal of and interest
on all the Securities and the performance or observance of every covenant of this Indenture on the
part of the Issuer to be performed, by supplemental indenture satisfactory in form to the Trustee,
executed and delivered to the Trustee, by the Person formed by such consolidation or into which the
Issuer shall have been merged or by the Person which shall have acquired the Issuer’s assets; (b)
immediately after giving effect to such transaction and treating any indebtedness which becomes an
obligation of the Issuer or any Subsidiary as a result of such transaction as having been incurred
by the Issuer or such Subsidiary at the time of such transaction, no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default, shall have happened
and be continuing; and (c) the Issuer has delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease
and, if a supplemental indenture is required in connection with such transaction, such supplemental
indenture comply with this Article and that all conditions precedent herein provided for relating
to such transaction have been complied with.

     The conditions of (a)(ii) above shall not apply in the case of a corporation or entity not
organized under the laws of the United States of America, any State thereof or the District of
Columbia which shall agree, in form satisfactory to the Trustee, (i) to subject itself to the
jurisdiction of the United States district court for the Southern District of New York and (ii) to
indemnify and hold harmless the holders of all Securities against (A) any tax, assessment or
governmental charge imposed on such holders by a jurisdiction other than the United States or any
political subdivision or taxing authority thereof or therein with respect to, and withheld on the
making of, any payment of principal or interest on such Securities and which would not have been so
imposed and withheld had such consolidation, merger, sale or conveyance not been made and (B) any
tax, assessment or governmental charge imposed on or relating to, and any costs or expenses
involved in, such consolidation, merger, sale or conveyance.

     The restrictions in this Section 9.01 shall not apply to (i) the merger or consolidation of
the Issuer with one of its affiliates, if the Board of Directors determines in good faith that the
purpose of such transaction is principally to change the Issuer’s State of incorporation or convert
the Issuer’s form of organization to another form, or (ii) the merger of the Issuer with or into a
single direct or indirect wholly owned Subsidiary.

     Nothing contained in this Article shall apply to, limit or impose any requirements upon the
consolidation or merger of any Person into the Issuer where the Issuer is the survivor of such
transaction, or the acquisition by the Issuer, by purchase or otherwise, of all or any part of the
property of any other Person (whether or not affiliated with the Issuer).

     Section 9.02 Successor Issuer Substituted. Upon any consolidation of the Issuer with, or
merger of the Issuer into, any other Person or any conveyance, transfer or lease of the properties
and assets of the Issuer substantially as an entirety in accordance with Section 9.01, the
successor Person formed by such consolidation or into which the Issuer is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Issuer under this Indenture with the same effect as if such successor
Person had been named as the Issuer herein, and thereafter, except in the case of a

37

 

lease, the predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

     In case of any such consolidation, merger, sale, lease or conveyance, such changes in
phraseology and form (but not in substance) may be made in the Securities thereafter to be issued
as may be appropriate.

ARTICLE 10

SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS

     Section 10.01 Satisfaction and Discharge of Indenture; Defeasance. (a) If at any time

     (i) the Issuer shall have paid or caused to be paid the principal of and
interest on all the Securities of any series Outstanding hereunder (other than
Securities of such series which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 2.09) as and when the same shall have
become due and payable, or

     (ii) the Issuer shall have delivered to the Trustee for cancellation all
Securities of any series theretofore authenticated (other than any Securities of
such series which shall have been destroyed, lost or stolen and which shall have
been replaced or paid as provided in Section 2.09) or

     (iii) in the case of any series of Securities the exact amount (including
the currency of payment) of principal of and interest due on which on the dates
referred to in clause (B) below can be determined at the time of making the deposit
referred to in such clause,

     (A) all the Securities of such series not theretofore delivered to
the Trustee for cancellation shall have become due and payable, or are by
their terms to become due and payable within one year or are to be called
for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption, and

     (B) the Issuer shall have irrevocably deposited or caused to be
deposited with the Trustee as trust funds the entire amount in cash (other
than moneys repaid by the Trustee or any paying agent to the Issuer in
accordance with Section 10.04) or, in the case of any series of Securities
the payments on which may only be made in Dollars, U.S. Government
Obligations maturing as to principal and interest in such amounts and at
such times as will insure the availability of cash sufficient to pay on any
subsequent interest payment date all interest due on such interest payment
date on the Securities of such series and to pay at maturity or upon
redemption all Securities of such series (in each case other than any
Securities of such series which shall have been destroyed, lost or stolen
and which shall have been replaced or paid as provided in Section 2.09) not
theretofore delivered to the Trustee for cancellation, including

38

 

principal and interest due or to become due to such date of maturity,
as the case may be,

and if, in any such case (i), (ii) or (iii), the Issuer shall also pay or cause to be paid all
other sums payable hereunder by the Issuer, including amounts due the Trustee pursuant to Section
6.06, with respect to Securities of such series, then this Indenture shall cease to be of further
effect with respect to Securities of such series (except as to (1) rights of registration of
transfer, conversion and exchange of Securities of such series and the Issuer’s right of optional
redemption, (2) substitution of mutilated, defaced, destroyed, lost or stolen Securities, (3)
rights of Holders of Securities to receive, solely from the trust fund described in Section
10.01(a)(iii)(B), payments of principal thereof and interest thereon, upon the original stated due
dates therefor (but not upon acceleration) and remaining rights of the Holders to receive, solely
from the trust fund described in Section 10.01(a)(iii)(B), sinking fund payments, if any, (4) the
rights (including the Trustee’s rights under Section 10.05) and immunities of the Trustee hereunder
and the Trustee’s obligations under Sections 10.02 and 10.04 and (5) the obligations of the Issuer
under Section 3.02), and the Trustee, on demand of the Issuer accompanied by an Officer’s
Certificate and an Opinion of Counsel which complies with Section 11.05 and at the cost and expense
of the Issuer, shall execute proper instruments acknowledging such satisfaction of and discharging
this Indenture with respect to such series. The Issuer agrees to reimburse the Trustee for any
costs or expenses thereafter reasonably and properly incurred and to compensate the Trustee for any
services thereafter reasonably and properly rendered by the Trustee in connection with this
Indenture or the Securities of such series.

     (b) The following subsection shall apply to the Securities of each series unless
specifically otherwise provided in a Board Resolution, Officer’s Certificate or indenture
supplemental hereto provided pursuant to Section 2.03. In addition to the right to discharge of
the Indenture pursuant to subsection (a) above, the Issuer, at its option and at any time, by
written notice by an officer delivered to the Trustee, may elect to have all of its obligations
discharged with all Outstanding Securities of a series (“Legal Defeasance”), such discharge to be
effective on the date that the conditions set forth in clauses (i) through (iv) and (vi) of Section
10.01(d) are satisfied, and thereafter the Issuer shall be deemed to have paid and discharged the
entire Debt on all the Securities of such a series, and satisfied all its other obligations under
such Securities and this Indenture insofar as such Securities are concerned and this Indenture
shall cease to be of further effect with respect to Securities of such series (except as to (1)
rights of registration of transfer, conversion and exchange of Securities of such series, (2)
substitution of apparently mutilated, defaced, destroyed, lost or stolen Securities, (3) rights of
Holders of Securities to receive, solely from the trust fund described in Section 10.01(d)(i),
payments of principal thereof and interest thereon, upon the original stated due dates therefor
(but not upon acceleration) and remaining rights of the Holders to receive, solely from the trust
fund described in Section 10.01(d)(i), sinking fund payments, if any, (4) the rights (including the
Trustee’s rights under Section 10.05) and immunities of the Trustee hereunder and the Trustee’s
obligations with respect to the Securities of such series under Sections 10.02 and 10.04 and (5)
the obligations of the Issuer under Section 3.02).

     (c) The following subsection shall apply to the Securities of each series unless
specifically otherwise provided in a Board Resolution, Officer’s Certificate or indenture
supplemental hereto provided pursuant to Section 2.03. In addition to the right to discharge of

39

 

the Indenture pursuant to subsection (a) and to Legal Defeasance pursuant to subsection (b),
above, the Issuer, at its option and at any time, by written notice executed by an officer
delivered to the Trustee, may elect to have its obligations under any covenant contained in this
Indenture or in the Board Resolution or supplemental indenture relating to such series pursuant to
Section 2.03 discharged with respect to all Outstanding Securities of a series, this Indenture and
any indentures supplemental to this Indenture with respect to such series (“Covenant Defeasance”),
such discharge to be effective on the date the conditions set forth in clauses (i) through (iii)
and (v) through (vi) of Section 10.01(d) are satisfied, and such Securities shall thereafter be
deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration of
Securityholders (and the consequences of any thereof) in connection with such covenants, but shall
continue to be “Outstanding” for all other purposes under this Indenture. For this purpose, such
Covenant Defeasance means that, with respect to the Outstanding Securities of a series, the Issuer
may omit to comply with and shall have no liability in respect of any term, condition or limitation
set forth in any such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not constitute an Event
of Default under Section 5.01(c) or otherwise, but except as specified in this Section 10.01(c),
the remainder of the Issuer’s obligations under the Securities of such series, this Indenture, and
any indentures supplemental to this Indenture with respect to such series shall be unaffected
thereby.

          (d) The following shall be the conditions to the application of Legal Defeasance under
subsection (b) or Covenant Defeasance under subsection (c) to the Securities of the applicable
series:

     (i) the Issuer irrevocably deposits or causes to be deposited in trust with
the Trustee or, at the option of the Trustee, with a trustee satisfactory to the
Trustee and the Company under the terms of an irrevocable trust agreement in form
and substance satisfactory to the Trustee, cash or U.S. Government Obligations that
will generate cash sufficient to pay principal of and interest on the Outstanding
Securities of such series to maturity or redemption, as the case may be, and to pay
all other amounts payable by it hereunder, provided that (A) the trustee of the
irrevocable trust, if any, shall have been irrevocably instructed to pay such funds
or the proceeds of such U.S. Government Obligations to the Trustee and (B) the
Trustee shall have been irrevocably instructed to apply such funds or the proceeds
of such U.S. Government Obligations to (x) the principal and interest on all
Securities of such series on the date that such principal or interest is due and
payable and (y) any mandatory sinking fund payments on the day on which such
payments are due and payable in accordance with the terms of the Indenture and the
Securities of such series, and the Issuer shall also pay or cause to be paid all
other amounts payable hereunder with respect to such series;

     (ii) the Issuer delivers to the Trustee an Officer’s Certificate stating
that all conditions precedent specified herein relating to Legal Defeasance or
Covenant Defeasance, as the case may be, have been complied with, and an Opinion of
Counsel to the same effect;

40

 

     (iii) no Event of Default under subsection (a), (b), (d) or (e) of Section
5.01 shall have occurred and be continuing, and no event which with notice or lapse
of time or both would become such an Event of Default shall have occurred and be
continuing, on the date of such deposit;

     (iv) in the event of an election for Legal Defeasance under subsection (b),
the Issuer shall have delivered to the Trustee an Opinion of Counsel stating that
(A) the Issuer has received from, or there has been published by, the Internal
Revenue Service a ruling or (B) since the date of this instrument, there has been a
change in the applicable Federal income tax law, in either case (A) or (B) to the
effect that, and based thereon such opinion shall confirm that, the Holders of such
Securities will not recognize gain or loss for Federal income tax purposes as a
result of the deposit, defeasance and discharge to be effected with respect to such
Securities and will be subject to Federal income tax on the same amounts, in the
same manner and at the same times as would be the case if such deposit, defeasance
and discharge were not to occur;

     (v) in the event of an election for Covenant Defeasance under subsection
(c), the Issuer shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders of such Securities will not recognize gain or loss for
Federal income tax purposes as a result of the deposit and Covenant Defeasance to be
effected with respect to such Securities and will be subject to Federal income tax
on the same amount, in the same manner and at the same times as would be the case if
such deposit and Covenant Defeasance were not to occur; and

     (vi) notwithstanding any other provisions of this subsection (d), such
defeasance shall be effected in compliance with any additional or substitute terms,
conditions or limitations which may be imposed on the Issuer pursuant to Section
2.03.

After such irrevocable deposit made pursuant to this Section 10.01(d) and satisfaction of the other
conditions set forth in this subsection (d), the Trustee upon request shall execute proper
instruments acknowledging the discharge of the Issuer’s obligations pursuant to this Section 10.01.

     Section 10.02 Application by Trustee of Funds Deposited for Payment of Securities.
Subject to Section 10.04, all moneys deposited with the Trustee (or other trustee) pursuant to
Section 10.01 shall be held in trust and applied by it to the payment, either directly or through
any paying agent (including the Issuer acting as its own paying agent), to the Holders of the
particular Securities of such series for the payment or redemption of which such moneys have been
deposited with the Trustee, of all sums due and to become due thereon for principal and interest;
but such money need not be segregated from other funds except to the extent required by law.

     Section 10.03 Repayment of Moneys Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to Securities of any series, all moneys

41

 

then held by any paying agent under the provisions of this Indenture with respect to such
series of Securities shall, upon demand of the Issuer, be repaid to it or paid to the Trustee and
thereupon such paying agent shall be released from all further liability with respect to such
moneys.

     Section 10.04 Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.
Any moneys deposited with or paid to the Trustee or any paying agent for the payment of the
principal of, interest on or additional amounts in respect of any Security of any series and not
applied but remaining unclaimed for two years after the date upon which such principal, interest or
additional amount shall have become due and payable, shall be repaid to the Issuer by the Trustee
for such series or such paying agent, and the Holder of the Securities of such series shall
thereafter look only to the Issuer for any payment which such Holder may be entitled to collect,
and all liability of the Trustee or any paying agent with respect to such moneys shall thereupon
cease.

     Section 10.05 Indemnity for U.S. Government Obligations. The Issuer shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S.
Government Obligations deposited pursuant to Section 10.01 or the principal or interest received in
respect of such obligations.

ARTICLE 11

MISCELLANEOUS PROVISIONS

     Section 11.01 No Recourse. No recourse under or upon any obligation, covenant or
agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, stockholder, officer or director, past,
present or future as such, of the Issuer or of any predecessor or successor corporation, either
directly or through the Issuer or any such predecessor or successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations issued hereunder
are solely corporate obligations, and that no such personal liability whatever shall attach to, or
is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the
Issuer or of any predecessor or successor corporation, or any of them, because of the creation of
the indebtedness hereby authorized, or under or by reason of the obligations, covenants or
agreements contained in this Indenture or in any of the Securities or implied therefrom; and that
any and all such personal liability of every name and nature, either at common law or in equity or
by constitution or statute, of, and any and all such rights and claims against, every such
incorporator, stockholder, officer or director as such, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this Indenture and the
issuance of such Securities.

     Section 11.02 Provisions of Indenture for the Sole Benefit of Parties and Holders of
Securities. Nothing in this Indenture or in the Securities, expressed or implied, shall give or be
construed to give to any person, firm or corporation, other than the parties hereto and their
successors and the Holders of the Securities any legal or equitable right, remedy or claim under

42

 

this Indenture or under any covenant or provision herein contained, all such covenants and
provisions being for the sole benefit of the parties hereto and their successors and of the Holders
of the Securities.

     Section 11.03 Successors and Assigns of Issuer Bound by Indenture. All the covenants,
stipulations, promises and agreements contained in this Indenture by or on behalf of the Issuer
shall bind its successors and assigns, whether so expressed or not.

     Section 11.04 Notices and Demands on Issuer, Trustee and Holders of Securities. Any
notice or demand which by any provision of this Indenture is required or permitted to be given or
served by the Trustee or by the Holders of Securities to or on the Issuer may be given or served by
being deposited postage prepaid, first-class mail (except as otherwise specifically provided
herein) addressed (until another address of the Issuer is filed by the Issuer with the Trustee) to
Alnylam Pharmaceuticals, Inc., 300 Third Street, Cambridge, Massachusetts 02142, Attn: General
Counsel. Any notice, direction, request or demand by the Issuer or any Holder of Securities to or
upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if
given or made at _______, ________, Attn: ______.

     Where this Indenture provides for notice to Holders of Securities, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder entitled thereto, at his or her last address as it
appears in the Security register. In case, by reason of the suspension of or irregularities in
regular mail service, it shall be impracticable to mail notice of any event to Holders of
Securities when said notice is required to be given pursuant to any provision of this Indenture or
of the Securities, then any manner of giving such notice as shall be satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice.

     In case, by reason of the suspension of or irregularities in regular mail service, it shall be
impracticable to mail notice to the Issuer when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the
Trustee shall be deemed to be a sufficient giving of such notice.

     Neither the failure to give notice, nor any defect in any notice so given, to any particular
Holder of a Security shall affect the sufficiency of such notice with respect to other Holders of
Securities given as provided above.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     Section 11.05 Officer’s Certificates and Opinions of Counsel; Statements to Be Contained
Therein. Upon any application or demand by the Issuer to the Trustee to take any action under any
of the provisions of this Indenture, the Issuer shall furnish to the Trustee an Officer’s
Certificate stating that all conditions precedent provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that in the

43

 

opinion of such counsel all such conditions precedent have been complied with, except that in
the case of any such application or demand as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such particular application or
demand, no additional certificate or opinion need be furnished.

     Each certificate or opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this Indenture shall include (a)
a statement that the person making such certificate or opinion has read such covenant or condition,
(b) a brief statement as to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based, (c) a statement that, in
the opinion of such person, he or she has made such examination or investigation as is necessary to
enable him or her to express an informed opinion as to whether or not such covenant or condition
has been complied with and (d) a statement as to whether or not, in the opinion of such person,
such condition or covenant has been complied with.

     Any certificate, statement or opinion of an officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of or representations by counsel, unless
such officer knows that the certificate or opinion or representations with respect to the matters
upon which his or her certificate, statement or opinion may be based as aforesaid are erroneous, or
in the exercise of reasonable care should know that the same are erroneous. Any certificate,
statement or opinion of counsel may be based, insofar as it relates to factual matters, information
with respect to which is in the possession of the Issuer, upon the certificate, statement or
opinion of or representations by an officer or officers of the Issuer, unless such counsel knows
that the certificate, statement or opinion or representations with respect to the matters upon
which his or her certificate, statement or opinion may be based as aforesaid are erroneous, or in
the exercise of reasonable care should know that the same are erroneous.

     Any certificate, statement or opinion of an officer of the Issuer or of counsel may be based,
insofar as it relates to accounting matters, upon a certificate or opinion of or representations by
an accountant or firm of accountants in the employ of the Issuer, unless such officer or counsel,
as the case may be, knows that the certificate or opinion or representations with respect to the
accounting matters upon which his or her certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that the same are
erroneous.

     Any certificate or opinion of any independent firm of public accountants filed with and
directed to the Trustee shall contain a statement that such firm is independent.

     Section 11.06 Payments Due on Saturdays, Sundays and Holidays. If the date of maturity of
interest on or principal of the Securities of any series or the date fixed for redemption or
repayment of any such Security, or the last day on which a Holder has the right to convert any
Security, shall not be a Business Day, then payment of interest or principal, or any conversion,
need not be made on such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on the date of maturity or the date fixed for redemption or on such
last day for conversion, and no interest shall accrue for the period after such date.

44

 

     Section 11.07 Conflict of Any Provision of Indenture With Trust Indenture Act of 1939. If
and to the extent that any provision of this Indenture limits, qualifies or conflicts with another
provision included in this Indenture by operation of Sections 310 to 317, inclusive, of the Trust
Indenture Act of 1939, such incorporated provision shall control.

     Section 11.08 New York Law to Govern. This Indenture and each Security shall be deemed to
be a contract under the laws of the State of New York, and for all purposes shall be governed by
and construed in accordance with the laws of such State without regard to any principle of conflict
of laws that would require or permit the application of the laws of any other jurisdiction, except
as may otherwise be required by mandatory provisions of law.

     Section 11.09 Counterparts. This Indenture may be executed in any number of counterparts,
each of which shall be an original; but such counterparts shall together constitute but one and the
same instrument.

     Section 11.10 Effect of Headings. The Article and Section headings herein and the Table
of Contents are for convenience only and shall not affect the construction hereof.

     Section 11.11 Actions by Successor. Any act or proceeding by any provision of this
Indenture authorized or required to be done or performed by any board of directors or its
equivalent, committee or officer of the Issuer shall and may be done and performed with like force
and effect by the corresponding board, committee or officer of any corporation that shall at the
time be the lawful successor of the Issuer.

     Section 11.12 Severability. In case any one or more of the provisions contained in this
Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any
other provisions of this Indenture or of such Securities, but this Indenture and such Securities
shall be construed as if such invalid or illegal or unenforceable provision had never been
contained herein or therein.

ARTICLE 12

REDEMPTION OF SECURITIES AND SINKING FUNDS

     Section 12.01 Applicability of Article. The provisions of this Article shall be
applicable to the Securities of any series which are redeemable before their maturity or to any
sinking fund for the retirement of Securities of a series, except as otherwise specified, as
contemplated by Section 2.03 for Securities of such series.

     Section 12.02 Notice of Redemption; Partial Redemptions. Notice of redemption to the
Holders of Securities of any series to be redeemed as a whole or in part at the option of the
Issuer shall be given by mailing notice of such redemption by first class mail, postage prepaid, at
least 30 days and not more than 60 days prior to the date fixed for redemption to such Holders of
Securities of such series at their last addresses as they shall appear upon the Security register.
Any notice which is given in the manner herein provided shall be conclusively presumed to have been
duly given, whether or not the Holder receives the notice. Failure to give notice or any defect in
the notice to the Holder of any Security of a series designated for redemption as a

45

 

whole or in part shall not affect the validity of the proceedings for the redemption of any
other Security of such series.

     The notice of redemption to each such Holder shall specify the principal amount of each
Security of such series held by such Holder to be redeemed, the date fixed for redemption, the
redemption price, the place or places of payment, that payment will be made upon presentation and
surrender of such Securities, that such redemption is pursuant to the mandatory or optional sinking
fund, or both, if such be the case, that interest accrued to the date fixed for redemption will be
paid as specified in such notice and that on and after said date interest thereon or on the
portions thereof to be redeemed will cease to accrue and shall also specify, if applicable, the
conversion price then in effect and the date on which the right to convert such Securities or the
portions thereof to be redeemed will expire. In case any Security of a series is to be redeemed in
part only, the notice of redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that on and after the date fixed for redemption, upon surrender of such
Security, a new Security or Securities of such series in principal amount equal to the unredeemed
portion thereof will be issued.

     The notice of redemption of Securities of any series to be redeemed at the option of the
Issuer shall be given by the Issuer or, at the Issuer’s request, by the Trustee in the name and at
the expense of the Issuer.

     On or before the redemption date specified in the notice of redemption given as provided in
this Section, the Issuer will deposit with the Trustee or with one or more paying agents (or, if
the Issuer is acting as its own paying agent, set aside, segregate and hold in trust as provided in
Section 3.04) an amount of money sufficient to redeem on the redemption date all the Securities of
such series so called for redemption (other than those Securities theretofore surrendered for
conversion into Common Stock in accordance with their terms) at the appropriate redemption price,
together with accrued interest to the date fixed for redemption. If any Security called for
redemption is converted pursuant hereto and in accordance with the terms thereof, any money
deposited with the Trustee or any paying agent or so segregated and held in trust for the
redemption of such Security shall be paid to the Issuer upon the Issuer’s request, or, if then held
by the Issuer, shall be discharged from such trust. The Issuer will deliver to the Trustee at
least 10 days prior to the date the notice required to be delivered to the Holders is to be sent
(unless a shorter time period shall be acceptable to the Trustee) an Officer’s Certificate (which
need not comply with Section 11.05) stating the aggregate principal amount of Securities to be
redeemed. In case of a redemption at the election of the Issuer prior to the expiration of any
restriction on such redemption, the Issuer shall deliver to the Trustee, prior to the giving of any
notice of redemption to Holders pursuant to this Section, an Officer’s Certificate stating that
such restriction has been complied with.

     If less than all the Securities of a series are to be redeemed, the Trustee shall select, in
such manner as it shall deem appropriate and fair, Securities of such series to be redeemed in
whole or in part. Securities may be redeemed in part in multiples equal to the minimum authorized
denomination for Securities of such series or any multiple thereof. The Trustee shall promptly
notify the Issuer in writing of the Securities of such series selected for redemption and, in the
case of any Securities of such series selected for partial redemption, the principal amount thereof
to be redeemed. For all purposes of this Indenture, unless the context otherwise requires,

46

 

all provisions relating to the redemption of Securities of any series shall relate, in the
case of any Security redeemed or to be redeemed only in part, to the portion of the principal
amount of such Security which has been or is to be redeemed. If any Security selected for partial
redemption is surrendered for conversion after such selection, the converted portion of such
Security shall be deemed (so far as may be possible) to be the portion selected for redemption.

     Section 12.03 Payment of Securities Called for Redemption. If notice of redemption has
been given as above provided, the Securities or portions of Securities specified in such notice
shall become due and payable on the date and at the place stated in such notice at the applicable
redemption price, together with interest accrued to the date fixed for redemption, and on and after
said date (unless the Issuer shall default in the payment of such Securities at the redemption
price, together with interest accrued to said date) interest on the Securities or portions of
Securities so called for redemption shall cease to accrue, and such Securities shall cease from and
after the date fixed for redemption to be convertible into Common Stock (to the extent otherwise
convertible in accordance with their terms), if applicable, and cease to be entitled to any benefit
or security under this Indenture, and except as provided in the paragraph below, the Holders
thereof shall have no right in respect of such Securities except the right to receive the
redemption price thereof and unpaid interest to the date fixed for redemption. On presentation and
surrender of such Securities at a place of payment specified in said notice, said Securities or the
specified portions thereof shall be paid and redeemed by the Issuer at the applicable redemption
price, together with interest accrued thereon to the date fixed for redemption; provided, that
payment of interest becoming due on or prior to the date fixed for redemption shall be payable to
the Holders of such Securities registered as such on the relevant record date subject to the terms
and provisions of Sections 2.03 and 2.07 hereof.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid or duly provided for, bear interest from the date fixed
for redemption at the rate of interest or Yield to Maturity (in the case of an Original Issue
Discount Security) borne by such Security and, if applicable, such Security shall remain
convertible into Common Stock until the principal of such Security shall have been paid or duly
provided for.

     Upon presentation of any Security redeemed in part only, the Issuer shall execute and the
Trustee shall authenticate and deliver to or on the order of the Holder thereof, at the expense of
the Issuer, a new Security or Securities of such series, of authorized denominations, in principal
amount equal to the unredeemed portion of the Security so presented.

     Section 12.04 Exclusion of Certain Securities from Eligibility for Selection for
Redemption. Securities shall be excluded from eligibility for selection for redemption if they are
identified by registration and certificate number in an Officer’s Certificate delivered to the
Trustee at least 40 days prior to the last date on which notice of redemption may be given as being
owned of record and beneficially by, and not pledged or hypothecated by either (a) the Issuer or
(b) an entity specifically identified in such written statement as directly or indirectly
controlling or controlled by or under direct or indirect common control with the Issuer.

     Section 12.05 Mandatory and Optional Sinking Funds. The minimum amount of any sinking
fund payment provided for by the terms of the Securities of any series is herein referred

47

 

to as a “mandatory sinking fund payment”, and any payment in excess of such minimum amount
provided for by the terms of the Securities of any series is herein referred to as an “optional
sinking fund payment”. The date on which a sinking fund payment is to be made is herein referred
to as the “sinking fund payment date”.

     In lieu of making all or any part of any mandatory sinking fund payment with respect to any
series of Securities in cash, the Issuer may at its option (a) deliver to the Trustee Securities of
such series theretofore purchased or otherwise acquired (except upon redemption pursuant to the
mandatory sinking fund) by the Issuer or receive credit for Securities of such series (not
previously so credited) theretofore purchased or otherwise acquired (except as aforesaid) by the
Issuer and delivered to the Trustee for cancellation pursuant to Section 2.10 and, if applicable,
receive credit for Securities (not previously so credited) converted into Common Stock and so
delivered to the Trustee for cancellation, (b) receive credit for optional sinking fund payments
(not previously so credited) made pursuant to this Section, or (c) receive credit for Securities of
such series (not previously so credited) redeemed by the Issuer through any optional redemption
provision contained in the terms of such series. Securities so delivered or credited shall be
received or credited by the Trustee at the sinking fund redemption price specified in such
Securities.

     On or before the 60th day next preceding each sinking fund payment date for any series, the
Issuer will deliver to the Trustee an Officer’s Certificate (which need not contain the statements
required by Section 11.05) (a) specifying the portion of the mandatory sinking fund payment to be
satisfied by payment of cash and the portion to be satisfied by credit of Securities of such series
and the basis for such credit, (b) stating that none of the Securities of such series for which
credit will be taken has theretofore been so credited, (c) stating that no defaults in the payment
of interest or Events of Default with respect to such series have occurred (which have not been
waived or cured) and are continuing and (d) stating whether or not the Issuer intends to exercise
its right to make an optional sinking fund payment with respect to such series and, if so,
specifying the amount of such optional sinking fund payment which the Issuer intends to pay on or
before the next succeeding sinking fund payment date. Any Securities of such series to be credited
and required to be delivered to the Trustee in order for the Issuer to be entitled to credit
therefor as aforesaid which have not theretofore been delivered to the Trustee shall be delivered
for cancellation pursuant to Section 2.10 to the Trustee with such Officer’s Certificate (or
reasonably promptly thereafter if acceptable to the Trustee). Such Officer’s Certificate shall be
irrevocable and upon its receipt by the Trustee the Issuer shall become unconditionally obligated
to make all the cash payments or payments therein referred to, if any, on or before the next
succeeding sinking fund payment date. Failure of the Issuer, on or before any such 60th day, to
deliver such Officer’s Certificate and Securities specified in this paragraph, if any, shall not
constitute a default but shall constitute, on and as of such date, the irrevocable election of the
Issuer that the mandatory sinking fund payment for such series due on the next succeeding sinking
fund payment date shall be paid entirely in cash without the option to deliver or credit Securities
of such series in respect thereof.

     If the sinking fund payment or payments (mandatory or optional or both) to be made in cash on
the next succeeding sinking fund payment date plus any unused balance of any preceding sinking fund
payments made in cash shall exceed $50,000 (or the equivalent thereof in any Foreign Currency or a
lesser sum in Dollars or in any Foreign Currency if the Issuer shall so

48

 

request) with respect to the Securities of any particular series, such cash shall be applied
on the next succeeding sinking fund payment date to the redemption of Securities of such series at
the sinking fund redemption price together with accrued interest to the date fixed for redemption.
If such amount shall be $50,000 (or the equivalent thereof in any Foreign Currency) or less and the
Issuer makes no such request then it shall be carried over until a sum in excess of $50,000 (or the
equivalent thereof in any Foreign Currency) is available, which delay in accordance with this
paragraph shall not be a default or breach of the obligation to make such payment. The Trustee
shall select, in the manner provided in Section 12.02, for redemption on such sinking fund payment
date a sufficient principal amount of Securities of such series to which such cash may be applied,
as nearly as may be, and shall (if requested in writing by the Issuer) inform the Issuer of the
serial numbers of the Securities of such series (or portions thereof) so selected. The Trustee, in
the name and at the expense of the Issuer (or the Issuer, if it shall so request the Trustee in
writing), shall cause notice of redemption of the Securities of such series to be given in
substantially the manner provided in Section 12.02 (and with the effect provided in Section 12.03)
for the redemption of Securities of such series in part at the option of the Issuer. The amount of
any sinking fund payments not so applied or allocated to the redemption of Securities of such
series shall be added to the next cash sinking fund payment for such series and, together with such
payment, shall be applied in accordance with the provisions of this Section. Any and all sinking
fund moneys held on the stated maturity date of the Securities of any particular series (or
earlier, if such maturity is accelerated), which are not held for the payment or redemption of
particular Securities of such series, shall be applied, together with other moneys, if necessary,
sufficient for the purpose, to the payment of the principal of, and interest on, the Securities of
such series at maturity. The Issuer’s obligation to make a mandatory or optional sinking fund
payment shall automatically be reduced by an amount equal to the sinking fund redemption price
allocable to any Securities or portions thereof called for redemption pursuant to the preceding
paragraph on any sinking fund payment date and converted into Common Stock in accordance with the
terms of such Securities; provided that, if the Trustee is not the conversion agent for the
Securities, the Issuer or such conversion agent shall give the Trustee written notice on or prior
to the date fixed for redemption of the principal amount of Securities or portions thereof so
converted.

     On or before each sinking fund payment date, the Issuer shall pay to the Trustee in cash or
shall otherwise provide for the payment of all interest accrued to the date fixed for redemption on
Securities to be redeemed on such sinking fund payment date.

     The Trustee shall not redeem or cause to be redeemed any Securities of a series with sinking
fund moneys or give any notice of redemption of Securities for such series by operation of the
sinking fund during the continuance of a default in payment of interest on such Securities or of
any Event of Default except that, where the mailing of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed such Securities,
provided that it shall have received from the Issuer a sum sufficient for such redemption. Except
as aforesaid, any moneys in the sinking fund for such series at the time when any such default or
Event of Default shall occur, and any moneys thereafter paid into the sinking fund, shall, during
the continuance of such default or Event of Default, be deemed to have been collected under Article
5 and held for the payment of all such Securities. In case such Event of Default shall have been
waived as provided in Section 5.10, or the default cured on or before the 60th day preceding the
sinking fund payment date in any year, such moneys shall

49

 

thereafter be applied on such sinking fund payment date in accordance with this Section to the
redemption of such Securities.

[Signature pages follow]

50

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
____________.

	 	 	 	 	 
	 	ALNYLAM PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Attest:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	____________, Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}]]