Document:

EX-10.1

 Exhibit 10.1 
 Dated August 20, 2013

DONOUSSA SHIPPING CORPORATION and
 SCHINOUSA SHIPPING CORPORATION

as joint and several Borrowers
 and
 THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1
 as Lenders
 and

HSH NORDBANK AG  
 as Agent, Mandated Lead Arranger

and Security Trustee
 LOAN AGREEMENT

in relation to a term loan facility of up to US$40,300,000

to refinance the acquisition cost of m.v. “NAVE UNIVERSE”

and provide post-delivery finance in respect of

the acquisition cost of an MR product tanker

to be named “NAVE CONSTELLATION”

 
 

 

 Index 

 

					
	Clause	 	 	  	Page
			
	 1
	 	 Interpretation
	  	1
	 2
	 	 Facility
	  	14
	 3
	 	 Position of the Lenders
	  	14
	 4
	 	 Drawdown
	  	15
	 5
	 	 Interest
	  	16
	 6
	 	 Interest Periods
	  	18
	 7
	 	 Default Interest
	  	19
	 8
	 	 Repayment and Prepayment
	  	20
	 9
	 	 Conditions Precedent
	  	22
	 10
	 	 Representations and Warranties
	  	23
	 11
	 	 General Undertakings
	  	27
	 12
	 	 Corporate Undertakings
	  	30
	 13
	 	 Insurance
	  	31
	 14
	 	 Ship Covenants
	  	37
	 15
	 	 Security Cover
	  	42
	 16
	 	 Payments and Calculations
	  	43
	 17
	 	 Application of Receipts
	  	45
	 18
	 	 Application of Earnings; Swap Payments
	  	46
	 19
	 	 Events of Default
	  	47
	 20
	 	 Fees and Expenses
	  	52
	 21
	 	 Indemnities
	  	53
	 22
	 	 No Set-off or Tax Deduction
	  	56
	 23
	 	 Illegality, etc
	  	57
	 24
	 	 Increased Costs
	  	57
	 25
	 	 Set-off
	  	59
	 26
	 	 Transfers and Changes in Lending Offices
	  	59
	 27
	 	 Variations and Waivers
	  	63
	 28
	 	 Notices
	  	65
	 29
	 	 Joint and Several Liability
	  	66
	 30
	 	 Supplemental
	  	67
	 31
	 	 Law and Jurisdiction
	  	68
	 Schedule 1 Lenders and Commitments
	  	
	 Schedule 2 Drawdown Notice
	  	
	 Schedule 3 Condition Precedent Documents
	  	
	 Schedule 4 Mandatory Cost Formula
	  	
	 Schedule 5 Transfer Certificate
	  	
	 Schedule 6 Power of Attorney
	  	
	 Execution Pages
	  	70
	 Exhibit
	  	

 THIS AGREEMENT is made on             
2013 
 BETWEEN 
  

	(1)	DONOUSSA SHIPPING CORPORATION and SCHINOUSA SHIPPING CORPORATION, each a corporation incorporated in the Marshall Islands whose registered office is at
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands as joint and several Borrowers; and 

  

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

 

	(3)	HSH NORDBANK AG acting through its office at Gerhart-Hauptmann-Platz 50, D-20095 Hamburg, Germany, as Agent; 

 

	(4)	HSH NORDBANK AG acting through its office at Gerhart-Hauptmann-Platz 50, D-20095 Hamburg, Germany, as Mandated Lead Arranger; and

  

	(5)	HSH NORDBANK AG acting through its office at Gerhart-Hauptmann-Platz 50, D-20095 Hamburg, Germany, as Security Trustee. 

BACKGROUND 
 The Lenders have agreed to
make available to the Borrowers a term loan facility of up to US$40,300,000, in two tranches, each in an amount of up to the lesser of (a) US$20,150,000 and (b) 62.5 per cent. of the market value of the ship (determined pursuant to
paragraph 5 of Schedule 3, Part B) to which that Tranche relates to: 
  

	(i)	in respect of the one tranche, to refinance the acquisition cost of m.v. “NAVE UNIVERSE”; and 

 

	(ii)	in respect of the other tranche, to finance the acquisition cost of an MR product tanker of approximately 45,000 metric tons deadweight currently under construction to
be named “NAVE CONSTELLATION”. 

 IT IS AGREED as follows: 

INTERPRETATION 
 Definitions 
 Subject to Clause 1.5, in this Agreement: 

“Account” means each of the Earnings Accounts and the Retention Account and, in the plural, means all of them;

 “Account Pledge” means, in relation to each Account, a deed creating security in respect of that Account in
the Agreed Form and, in the plural, means all of them; 
 “Affected Lender” has the meaning given in Clause 5.7;

 “Agency and Trust Agreement” means the agency and trust agreement dated the same date as this Agreement and
made between the same parties; 
 “Agent” means HSH Nordbank AG, acting in such capacity through its office at
Gerhart-Hauptmann-Platz 50, D-20095 Hamburg, Germany, or any successor of it appointed under clause 5 of the Agency and Trust Agreement; 

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

“Applicable Lender” has the meaning given in Clause 5.2; 

“Approved Broker” means Arrow Valuations Ltd United Kingdom, Barry Rogliano Salles, H. Clarkson & Co. Ltd., SSY
Valuation Services Ltd., Maersk Brokers K/S, RS Platou Shipbrokers A/S, Fearnleys A/S and Pareto and, in the plural, means all of them; 
 “Approved Charter” has the meaning given in the Exhibit; 

“Approved Charterer” has the meaning given in the Exhibit; 

“Approved Flag” means, in relation to a Ship, the Marshall Islands flag or such other flag as the Agent may approve (with
the authorisation of the Majority Lenders) as the flag on which that Ship is or, as the case may be, shall be registered; 

“Approved Flag State” means, in relation to a Ship, Marshall Islands or any other country in which the Agent may approve
(with the authorisation of the Majority Lenders) that that Ship is or, as the case may be, shall be registered; 

“Approved Manager” means, in relation to each Ship, Navios Tankers Management Inc., a corporation incorporated and
existing under the laws of the Marshall Islands whose registered office is at Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands or any affiliate of Navios Tankers Management Inc. or any other company which the Agent may approve
(with the authorisation of the Majority Lenders) from time to time as the commercial or, as the case may be, technical manager of that Ship; 
 “Approved Manager’s Undertaking” means, in relation to a Ship, a letter of undertaking executed or to be executed by the Approved Manager in respect of that Ship in favour of the
Security Trustee in the Agreed Form agreeing certain matters in relation to that Approved Manager, serving as manager of that Ship and subordinating its rights against that Ship and the Borrower which is the owner thereof to the rights of the
Lenders under the Finance Documents and, in the plural, means both of them; 
 “Availability Period” means the
period commencing on the date of this Agreement and ending on: 
  

	 	(a)	in the case of: 

  

	 	(i)	Tranche A, 29 November 2013; and 

  

	 	(ii)	Tranche B, 31 January 2014, 

(or such later date as the Agent may, with the authorisation of the Lenders, agree with the Borrowers); or 

 

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

“Balloon Instalment” has the meaning given in Clause 8.1(b); 

“Borrower A” means Donoussa Shipping Corporation, a corporation incorporated in the Marshall Islands whose registered
office is at Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands; 

  
 2 

 “Borrower B” means Schinousa Shipping Corporation, a corporation
incorporated in the Marshall Islands whose registered office is at Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands; 
 “Borrowers” means, together, Borrower A and Borrower B and, in the singular, means either of them; 
 “Break Costs” has the meaning given in Clause 21.2; 

“Builder” has the meaning given in the Exhibit; 
 “Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London, Athens, Hamburg and Seoul and, in respect of a day on which a payment
is required to be made under a Finance Document, also in New York City; 
 “Cancellation Notice” has the meaning
given in Clause 8.11; 
 “Charterparty” means, in the case of a Ship, any time charterparty in respect of that
Ship (including, without limitation, an Approved Charter) for a duration exceeding 11 months (or having an unexpired duration exceeding, or capable of exceeding, 11 months) and any guarantee of such charter or any bareboat charter in respect of that
Ship to be entered (in the case of a bareboat charter, in accordance with Clause 14.13(a)) into by the Borrower which is the owner of that Ship and a charterer and, in the plural, means all of them; 

“Charterparty Assignment” means, in relation to a charterparty, an assignment of the rights of the Borrower which is a
party thereto under that Charterparty executed or to be executed by that Borrower in favour of the Security Trustee in the Agreed Form and, in the plural, means all of them; 
 “Commitment” means, in relation to a Lender, the amount set opposite its name in Schedule 1, or, as the case may require, the amount specified in the relevant Transfer Certificate, as
that amount may be reduced, cancelled or terminated in accordance with this Agreement (and “Total Commitments” means the aggregate of the Commitments of all the Lenders); 

“Contractual Currency” has the meaning given in Clause 21.6; 

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

“Corporate Guarantee” means a corporate guarantee of the obligations of the Borrowers under this Agreement and the other
Finance Documents to which each is a party in the Agreed Form; 
 “Corporate Guarantor” means Navios Maritime
Acquisition Corporation a corporation incorporated in the Marshall Islands whose registered office is at Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands; 
 “Creditor Party” means the Agent, the Security Trustee, the Mandated Lead Arranger or any Lender, whether as at the date of this Agreement or at any later time and, in the plural, means
all of them; 
 “Delivery Date” means, in relation to Ship B, the date on which title to and possession of that
Ship is transferred from the Builder to Borrower B pursuant to the MOA; 
 “Dollars” and “$”
means the lawful currency for the time being of the United States of America; 

  
 3 

 “Drawdown Date” means, in relation to a Tranche, the date requested by the
Borrowers for that Tranche to be borrowed, or (as the context requires) the date on which that Tranche is actually borrowed; 

“Drawdown Notice” means a notice in the form set out in Schedule 2 (or in any other form which the Agent approves or
reasonably requires); 
 “Earnings” means, in relation to a Ship, all moneys whatsoever which are now, or later
become, payable (actually or contingently) to the Borrower owning that Ship or the Security Trustee and which arise out of the use or operation of that Ship, including (but not limited to): 

 

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

  

	 	(i)	all freight, hire and passage moneys; 

  

	 	(ii)	compensation payable to that Borrower in the event of requisition of that Ship for hire; 

 

	 	(iii)	remuneration for salvage and towage services; 

  

	 	(iv)	demurrage and detention moneys; 

  

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

 

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

 

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

“Earnings Account” means, in respect of each Ship, an account in the name of the Borrower owning that Ship with the Agent
in Hamburg designated “[name of Borrower] - Earnings Account”, or any other account (with that or another office of the Agent or with a bank or financial institution other than the Lenders)
which replaces this account and is designated by the Agent as the Earnings Account for that Ship for the purposes of this Agreement in accordance with the Agent’s instructions and, in the plural, means both of them; 

“Environmental Claim” means: 
  

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

  

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

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

“Environmental Incident” means, in relation to a Ship: 

 

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

  
 4 

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

  

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

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

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

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

“Finance Documents” means together: 
  

	 	(a)	this Agreement; 

  

	 	(b)	the Corporate Guarantee; 

  

	 	(c)	the Agency and Trust Agreement; 

  

	 	(d)	the General Assignments; 

  

	 	(e)	the Mortgages; 

  

	 	(f)	the Account Pledges; 

  

	 	(g)	the Charterparty Assignments; 

  

	 	(h)	the Approved Manager’s Undertakings; and 

  

	 	(i)	any other document (whether creating a Security Interest or not) which is executed at any time by either Borrower, the Corporate Guarantor, any Approved Manager or any
other person as security for, or to establish any form of subordination or priorities arrangement in relation to, any amount payable to the Lenders under this Agreement or any of the other documents referred to in this definition and, in the
singular, means any of them; 

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

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

 

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

  
 5 

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

 

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

  

	 	(e)	under any interest or currency swap or any other kind of derivative transaction entered into by the debtor or, if the agreement under which any such transaction is
entered into requires netting of mutual liabilities, the liability of the debtor for the net amount; 

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

“Group” means, together, the Corporate Guarantor and its subsidiaries (including, but not limited to, the Borrowers) and
“member of the Group” shall be construed accordingly; 
 “IACS” means the International
Association of Classification Societies; 
 “Indenture” means the indenture dated as of 21 October 2010
issued by the Corporate Guarantor and certain other members of the Group (including, without limitation, the Borrowers) in respect of 8 5/8 per cent. senior notes falling due on 1 November 2017; 

“Initial Market Value” means, in relation to a Ship, the Market Value of that Ship calculated in accordance with the
valuation relative thereto referred to in paragraph 5 of Schedule 3, Part B; 
 “Instalment” has the meaning
given in Clause 8.1(a); 
 “Insurances” means, in relation to a Ship: 

 

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

  

	 	(b)	all rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium; 

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

“ISM Code” means the International Safety Management Code (including the guidelines on its implementation), adopted by
the International Maritime Organisation as the same may be amended or supplemented from time to time (and the terms “safety management system”, “Safety Management Certificate” and “Document of
Compliance” have the same meanings as are given to them in the ISM Code); 
 “ISPS Code” means the
International Ship and Port Facility Security Code as adopted by the International Maritime Organisation, as the same may be amended or supplemented from time to time; 
 “ISSC” means a valid and current International Ship Security Certificate issued under the ISPS Code; 
 “Lender” means, subject to Clause 26.6, a bank or financial institution listed in Schedule 1 and acting through its branch indicated in Schedule 1 (or through another branch notified to
the Agent under Clause 26.14) or its transferee, successor or assign; 

  
 6 

 “LIBOR” means, for an Interest Period: 

 

	 	(a)	the rate per annum equal to the offered quotation for deposits in Dollars for a period equal to, or as near as possible equal to, the relevant Interest Period which
appears on Reuters BBA Page LIBOR 01 at or about 11.00 a.m. (London time) on the Quotation Date for that Interest Period (and, for the purposes of this Agreement, “BBA Page LIBOR 01” means that Reuters’ page or such other page
as may replace that page on that service for the purpose of displaying rates comparable to that rate or on such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying
British Bankers’ Association Interest Settlement Rates for Dollars); or 

  

	 	(b)	if no rate is quoted on BBA Page LIBOR 01 (or any substitute page as aforesaid), the rate per annum determined by the Agent to be the rate (rounded upwards, if
necessary, to the nearest one-sixteenth of one per cent.) notified to the Agent by the Reference Bank as the rate at which deposits in Dollars are offered to the Reference Bank by leading banks in the London Interbank Market at the Reference
Bank’s request at or about 11.00 a.m. (London time) on the Quotation Date for that Interest Period for a period equal to that Interest Period and for delivery on the first Business Day of it; 

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

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

	 	(a)	before the Loan has been advanced, Lenders whose Commitments total 66 per cent. of the Total Commitments; and 

 

	 	(b)	after the Loan has been advanced, Lenders whose Contributions total 66 per cent. of the Loan; 

“Management Agreement” means, in relation to a Ship, an agreement entered into between a Borrower and the Approved
Manager in respect of that Ship, in respect of the commercial and technical management of that Ship in a form acceptable to the Agent and, in the plural, means both of them; 
 “Mandated Lead Arranger” means HSH Nordbank AG, acting in such capacity through its office at Gerhart-Hauptmann-Platz 50, D-20095 Hamburg, Germany, or any successor; 

“Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance with Schedule 4; 

“Margin” means 3.20 per cent. per annum; 
 “Market Value” means the market value determined in accordance with Clause 15.3; 
 “Material Adverse Change” means any event or series of events which, in the opinion of the Majority Lenders, is likely to have a Material Adverse Effect; 

“Material Adverse Effect” means a material adverse effect on: 

 

	 	(a)	the business, property, assets, liabilities, operations or condition (financial or otherwise) of either Borrower and/or any Security Party taken as a whole;

  
 7 

	 	(b)	the ability of either Borrower and/or any Security Party to (i) perform any of its obligations or (ii) discharge any of its liabilities, under any Finance
Document as they fall due; or 

  

	 	(c)	the validity or enforceability of any Finance Document; 

 “MOA” has the meaning given in the Exhibit; 

“Mortgage” means, in relation to a Ship, the first preferred or, as the case may be, priority ship mortgage on that Ship
and, if required pursuant to the laws of the applicable Approved Flag State, a deed of covenant collateral thereto executed or to be executed by the Borrower owning that Ship in favour of the Security Trustee in the Agreed Form and, in the plural,
means both of them; 
 “Mortgaged Ship” means a Ship which is subject to a Mortgage at the relevant time and, in
the plural, means all of them; 
 “Negotiation Period” has the meaning given in Clause 5.10; 

“Notifying Lender” has the meaning given in Clause 21.2, 23.1 or Clause 24.1 as the context requires; 

“Payment Currency” has the meaning given in Clause 21.6; 

“Permitted Security Interests” means: 
  

	 	(a)	Security Interests created by the Finance Documents; 

  

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

 

	 	(c)	liens for salvage; 

  

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

  

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

  

	 	(f)	any Security Interest created in favour of a plaintiff or defendant in any action of the court or tribunal before whom such action is brought as security for costs and
expenses while the relevant Borrower is prosecuting or defending such action in good faith by appropriate steps; and 

  

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

 “Pertinent Document” means:

  

	 	(a)	any Finance Document; 

  

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

  
 8 

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

 

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

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

	 	(a)	England and Wales; 

  

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

 

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

  

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

 

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

 

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

“Potential Event of Default” means an event or circumstance which, with the giving of any notice, the lapse of time, a
reasonable determination of the Majority Lenders and/or the satisfaction of any other condition, would constitute an Event of Default; 
 “Prepayment Date” has the meaning given in Clause 15.2; 

“Prepayment Notice” has the meaning given in Clause 8.5(b); 

“Quotation Date” means, in relation to any Interest Period (or any other period for which an interest rate is to be
determined under any provision of a Finance Document), the day on which quotations would ordinarily be given by leading banks in the London Interbank Market for deposits in the currency in relation to which such rate is to be determined for delivery
on the first day of that Interest Period or other period; 
 “Reference Bank” means, subject to Clause 26.17,
the Hamburg branch of HSH Nordbank AG and any of its respective successors; 
 “Relevant Person” has the meaning
given in Clause 19.9; 
 “Repayment Date” means a date on which a repayment is required to be made under Clause
8; 
 “Requisition Compensation” includes all compensation or other moneys payable by reason of any act or event
such as is referred to in paragraph (b) of the definition of “Total Loss”; 
 “Retention Account”
means an account in the joint names of the Borrowers with the Agent in Hamburg designated “Donoussa Shipping Corporation and Schinousa Shipping Corporation – Retention Account”, or any other account (with that or another office of the
Agent or with a bank or financial institution other than the Lenders) which replaces this account and is designated by the Agent as the Retention Account for the purposes of this Agreement in accordance with the Agent’s instructions;

  
 9 

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

 

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

 

	 	(b)	the rights of a plaintiff under an action in rem in which the vessel concerned has been arrested or a writ has been issued or similar step taken;

 “Security Party” means the Corporate Guarantor, the Approved Manager and any other person
(except a Creditor Party) who, as a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes a document falling within the final paragraph of the definition of “Finance
Documents”; 
 “Security Period” means the period commencing on the date of this Agreement and ending on
the date on which the Agent notifies the Borrowers, the Security Parties and the other Creditor Parties that: 
  

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

 

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

 

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

  

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

“Security Trustee” means HSH Nordbank AG, acting in such capacity through its office at Gerhart-Hauptmann-Platz 50,
D-20095 Hamburg, Germany, or any successor of it appointed under clause 5 of the Agency and Trust Agreement; 

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

“Ship” means each of Ship A and Ship B and, in the plural, means both of them; 

“Ship A” means the MR product tanker of approximately 45,000 metric tons deadweight which is registered in the ownership
of Borrower A under an Approved Flag in accordance with the laws of the applicable Approved Flag Stage with the name “NAVE UNIVERSE”; 

  
 10 

 “Ship B” means the MR product tanker of approximately 45,000 metric tons
deadweight which is currently under construction by the Builder for Borrower B pursuant to the MOA, and which is to be purchased by that Borrower and registered in its ownership under an Approved Flag in accordance with the laws of the applicable
Approved Flag State with the name “NAVE CONSTELLATION”; 
 “Total Loss” means, in relation to a Ship:

  

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

 

	 	(b)	any expropriation, confiscation, requisition or acquisition of that Ship, whether for full consideration, a consideration less than its proper value, a nominal
consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority unless it is within 1 month from the date of such
occurrence redelivered to the full control of the Borrower owning that Ship excluding a requisition for hire for a fixed period not exceeding 90 days without any right to an extension; 

 

	 	(c)	any condemnation of that Ship by any tribunal or by any person or persons claiming to be a tribunal; 

 

	 	(d)	any arrest, capture, seizure, confiscation or detention of that Ship (including any hijacking or theft) unless it is: 

 

	 	(i)	within 90 days; and 

  

	 	(ii)	in the case of piracy, if the relevant underwriters confirm to the Agent in writing prior to the end of such 90 day period that a Ship is subject to an approved piracy
insurance cover, within the period ending on the earlier of 270 days after the date on which that Ship is captured by pirates and the date on which the piracy insurance cover expires, 

redelivered to the full control of that Borrower; 
 “Total Loss Date” means, in relation to a Ship: 
  

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

 

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

 

	 	(i)	30 days after the date on which a notice of abandonment is given to the insurers; and 

 

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

  

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

 “Tranche” means each of Tranche A and Tranche B and, in the plural, means both of them;

 “Tranche A” means an amount equal to the lesser of (i) 62.5 per cent. of the Initial Market Value
of Ship A and (ii) $20,150,000; 

  
 11 

 “Tranche B” means an amount equal to the lesser of (i) 62.5 per
cent. of the Initial Market Value of Ship B and (ii) $20,150,000; 
 “Transfer Certificate” has the meaning
given in Clause 26.2; 
 “Trust Property” has the meaning given in clause 3.1 of the Agency and Trust Agreement;

 “Underlying Document” means each of the Approved Charters, the Management Agreements and the MOA and, in the
plural, means all of them; and 
 “US GAAP” means generally accepted accounting principles as from time to time
in effect in the United States of America. 
 Construction of certain terms 

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

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

“asset” includes every kind of property, asset, interest or right, including any present, future or contingent right to
any revenues or other payment; 
 “company” includes any partnership, joint venture and unincorporated
association; 
 “consent” includes an authorisation, consent, approval, resolution, licence, exemption, filing,
registration, notarisation and legalisation; 
 “contingent liability” means a liability which is not certain to
arise and/or the amount of which remains unascertained; 
 “document” includes a deed; also a letter or fax;

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

“expense” means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable
value added or other tax; 
 “gross negligence” means a form of negligence which is distinct from ordinary
negligence, in which the due diligence and care which are generally to be exercised have been disregarded to a particularly high degree, in which the plainest deliberations have not been made and that which should be most obvious to everybody has
not been followed; 
 “law” includes any form of delegated legislation, any treaty or international convention
and any regulation or resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council; 
 “legal or administrative action” means any legal proceeding or arbitration and any administrative or regulatory action or investigation; 

  
 12 

 “liability” includes every kind of debt or liability (present or future,
certain or contingent), whether incurred as principal or surety or otherwise; 
 “months” shall be construed in
accordance with Clause 1.3; 
 “obligatory insurances” means, in relation to a Ship, all insurances effected, or
which the Borrower owning that Ship is obliged to effect, under Clause 13 or any other provision of this Agreement or another Finance Document; 
 “parent company” has the meaning given in Clause 1.4; 

“person” includes any individual, any partnership, any company; any state, political sub-division of a state and local or
municipal authority; and any international organisation; 
 “policy”, in relation to any insurance, includes a
slip, cover note, certificate of entry or other document evidencing the contract of insurance or its terms; 

“protection and indemnity risks” means the usual risks covered by a protection and indemnity association managed in
London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation in them of clause 6
of the International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the Institute Time Clauses (Hulls) (1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute Amended Running Down Clause (1/10/71) or any
equivalent provision; 
 “regulation” includes any regulation, rule, official directive, request or guideline
(either having the force of law or compliance with which is reasonable in the ordinary course of business of the party concerned) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 
 “subsidiary” has the
meaning given in Clause 1.4; 
 “successor” includes any person who is entitled (by assignment, novation, merger
or otherwise) to any person’s rights under this Agreement or any other Finance Document (or any interest in those rights) or who, as administrator, liquidator or otherwise, is entitled to exercise those rights; and in particular references to a
successor include a person to whom those rights (or any interest in those rights) are transferred or pass as a result of a merger, division, reconstruction or other reorganisation of it or any other person; 

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

“war risks” includes the risk of mines and all risks excluded by clause 29 of the International Hull Clauses (1/11/02 or
1/11/03), clause 24 of the Institute Time Clauses (Hulls)(1/11/1995) or clause 23 of the Institute Time Clauses (Hulls) (1/10/83). 
 Meaning of “month” 
 A period of one or more
“months” ends on the day in the relevant calendar month numerically corresponding to the day of the calendar month on which the period started (“the numerically corresponding day”), but: 

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

  
 13 

 on the last Business Day in the relevant calendar month, if the period started on the last
Business Day in a calendar month or if the last calendar month of the period has no numerically corresponding day, 
 and
“month” and “monthly” shall be construed accordingly. 
 Meaning of “subsidiary”

 A company (S) is a subsidiary of another company (P) if a majority of the issued shares in S (or a majority of
the issued shares in S which carry unlimited rights to capital and income distributions) are directly owned by P or are indirectly attributable to P and any company of which S is a subsidiary is a parent company of S. 

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

references to, or to a provision of, any law include any amendment, extension, re-enactment or replacement, whether made before the date
of this Agreement or otherwise; 
 words denoting the singular number shall include the plural and vice versa; and 

Clauses 1.1 to 1.5 apply unless the contrary intention appears. 
 Headings 
 In interpreting a Finance Document or any provision of a Finance
Document, all clause, sub-clause and other headings in that and any other Finance Document shall be entirely disregarded. 

FACILITY 

Amount of facility 
 Subject to the other provisions of this Agreement, the Lenders shall make available to the Borrowers, in two Tranches, a term loan facility of up to $40,300,000. 

Lenders’ participations in a Tranche 
 Subject to the other provisions of this Agreement, each Lender shall participate in a Tranche in the proportion which, as at the Drawdown Date applicable to that Tranche, its Commitment bears to the Total
Commitments. 
 Purpose of Loan 
 The Borrowers undertake with each Creditor Party to use the Loan only for the purpose stated in the preamble to this Agreement. 
 POSITION OF THE LENDERS 
 Interests several 

The rights of the Lenders under this Agreement are several. 

  
 14 

 Individual right of action 

Each Lender shall be entitled to sue for any amount which has become due and payable by the Borrowers to it under this Agreement without
joining the Agent, the Security Trustee, any other Lender as additional parties in the proceedings. 
 Proceedings requiring
Majority Lender consent 
 Except as provided in Clause 3.2, no Lender may commence proceedings against either Borrower or
any Security Party in connection with a Finance Document without the prior consent of the Majority Lenders. 
 Obligations
several 
 The obligations of the Lenders under this Agreement are several; and a failure of a Lender to perform its
obligations under this Agreement shall not result in: 
 the obligations of the other Lenders being increased; nor 

a Borrower, any Security Party or any other Lender being discharged (in whole or in part) from its obligations under any Finance
Document, 
 and in no circumstances shall a Lender have any responsibility for a failure of another Lender to perform its
obligations under this Agreement. 
 DRAWDOWN 
 Request for the borrowing of a Tranche 
 Subject to the following
conditions, the Borrowers may request a Tranche to be borrowed by ensuring that the Agent receives a completed Drawdown Notice not later than 11.00 a.m. (Hamburg time) 3 Business Days prior to the relevant Drawdown Date. 

Availability 
 The conditions referred to in Clause 4.1 are that: 
 each Drawdown Date has to be
a Business Day during the Availability Period; 
 each Tranche shall not exceed an amount of up to the lesser of
(i) 62.5 per cent. of the Initial Market Value of the Ship to which that Tranche relates and (ii) $20,150,000 and shall be used for the purpose of: 
  

	 	(i)	in the case of Tranche A, refinancing in part the acquisition cost of Ship A; and 

 

	 	(ii)	in the case of Tranche B, financing in part the acquisition cost of Ship B; and 

 the aggregate amount of the Tranches shall not exceed the Total Commitments. 

Notification to Lenders of receipt of a Drawdown Notice 
 The Agent shall promptly notify the Lenders that it has received the Drawdown Notice and shall inform each Lender of: 
 the amount of the Tranche to which that Drawdown Notice relates and the relevant Drawdown Date; 
 the amount of that Lender’s participation in that Tranche; and 
 the duration
of the first Interest Period. 

  
 15 

 Drawdown Notice irrevocable 

Each Drawdown Notice must be duly signed by a director or a duly appointed attorney-in-fact of the Borrowers; and once served, it cannot
be revoked without the prior consent of the Agent, acting on the authority of the Majority Lenders. 
 Lenders to make
available Contributions 
 Subject to the provisions of this Agreement, each Lender shall, on and with value on each Drawdown
Date, make available to the Agent for the account of the Borrowers the amount due from that Lender on that date under Clause 2.2. 
 Disbursement of Tranche 
 Subject to the provisions of this Agreement, the
Agent shall on each Drawdown Date pay to the Borrowers the amounts in respect of the Tranche to which that Drawdown Date relates which the Agent receives from the Lenders under Clause 4.5; and that payment to the Borrowers shall be made: 

to the account of the Borrower whose Ship is to be financed by that Tranche or, as the case may be, the Builder which the Borrowers
specify in that Drawdown Notice; and 
 in the like funds as the Agent received the payments from the Lenders. 

Disbursement of Tranche to a third party 
 The payment by the Agent under Clause 4.6(a) to the Builder shall constitute the borrowing of that Tranche and the Borrowers shall at that time become indebted, as principal and direct obligor, to the
Lenders in an amount equal to that Tranche. 
 INTEREST 

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

 Normal rate of interest 
 Subject to the provisions of this Agreement, the rate of interest on a Tranche in respect of an Interest Period shall be the aggregate of (i) the Margin, (ii) the Mandatory Cost (if any) and
(iii) LIBOR for that Interest Period. 
 Payment of accrued interest 

In the case of an Interest Period of longer than 3 months, accrued interest shall be paid every 3 months during that Interest Period and
on the last day of that Interest Period. 
 Notification of Interest Periods and rates of normal interest 

The Agent shall notify the Borrowers and each Lender of: 
 each rate of interest; and 
 the duration of each Interest Period, 

as soon as reasonably practicable after each is determined. 

  
 16 

 Obligation of Reference Bank to quote 

The Reference Bank shall use all reasonable efforts to supply the quotation required of it for the purposes of fixing a rate of interest
under this Agreement unless the Reference Bank ceases to be a Lender pursuant to Clause 26.17. 
 Absence of quotations by
Reference Bank. If the Reference Bank fails to supply a quotation, the relevant rate of interest shall be set in accordance with the following provisions of this Clause 5. 
 Market disruption 
 The following provisions of this Clause 5 apply if:

 no rate is quoted on BBA Page LIBOR 01 and the Reference Bank does not, before 1.00 p.m. (London time) on the Quotation Date
for an Interest Period, provide quotations to the Agent in order to fix LIBOR; or 
 at least 1 Business Day before the start of
an Interest Period, a Lender notifies the Agent that LIBOR fixed by the Agent would not accurately reflect the cost to that Lender of funding its Contributions (or any part of them) during the Interest Period in the London Interbank Market at or
about 11.00 a.m. (London time) on the Quotation Date for the Interest Period; or 
 at least 1 Business Day before the start of
an Interest Period, the Agent is notified by a Lender (the “Affected Lender”) that for any reason it is unable to obtain Dollars in the London Interbank Market in order to fund its Contribution (or any part of it) during the
Interest Period. 
 Notification of market disruption 

The Agent shall promptly notify the Borrowers and each of the Lenders stating the circumstances falling within Clause 5.7 which have
caused its notice to be given. 
 Suspension of drawdown 

If the Agent’s notice under Clause 5.8 is served before a Tranche is advanced: 

in a case falling within Clauses 5.7(a) or (b), the Lender’s obligations to advance that Tranche; 

in a case falling within Clause 5.7(c), the Affected Lender’s obligation to participate in that Tranche; 

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

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

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

  
 17 

 Alternative rate of interest in absence of agreement 

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

If the Borrowers do not agree with an interest rate set by the Agent under Clause 5.12, the Borrowers may give the Agent not less than 15
Business Days’ notice of their intention to prepay the Loan at the end of the interest period set by the Agent. 

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

 on the date on which the Agent serves that notice, the Total Commitments or (as the case may require) the Commitment of the
Affected Lender shall be cancelled; and 
 on the last Business Day of the interest period set by the Agent, the Borrowers shall
prepay (without premium or penalty) the Loan or, as the case may be, the Affected Lender’s Contribution, together with accrued interest thereon at the applicable rate plus the Margin and the Mandatory Cost (if any). 

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

INTEREST PERIODS 
 Commencement of Interest Periods 
 The first Interest Period applicable to a
Tranche shall commence on the Drawdown Date in respect of that Tranche and each subsequent Interest Period shall commence on the expiry of the preceding Interest Period. 
 Duration of normal Interest Periods 
 Subject to Clauses 6.3 and 6.4, each
Interest Period in respect of a Tranche shall be: 
 3 or 6 months as notified by the Borrowers to the Agent not later than
11.00 a.m. (Hamburg time) 3 Business Days before the commencement of that Interest Period; 
 3 months, if the Borrowers
fail to notify the Agent by the time specified in paragraph (a); or 
 such other period as the Agent may, with the
authorisation of the Majority Lenders, agree with the Borrowers. 

  
 18 

 Duration of Interest Periods for Instalments 

In respect of an amount due to be repaid under Clause 8 on a particular Repayment Date, an Interest Period relates shall end on that
Repayment Date. 
 Non-availability of matching deposits for Interest Period selected 

If, after the Borrowers have selected and the Lenders have agreed an Interest Period longer than 3 months, any Lender notifies the Agent
by 11.00 a.m. (Hamburg time) on the third Business Day before the commencement of the Interest Period that it is not satisfied that deposits in Dollars for a period equal to the Interest Period will be available to it in the London Interbank Market
when the Interest Period commences, the Interest Period shall be of 3 months. 
 DEFAULT INTEREST 

Payment of default interest on overdue amounts 
 The Borrowers shall pay interest in accordance with the following provisions of this Clause 7 on any amount payable by either Borrower under any Finance Document which the Agent, the Security Trustee or
the other designated payee does not receive on or before the relevant date, that is: 
 the date on which the Finance Documents
provide that such amount is due for payment; or 
 if a Finance Document provides that such amount is payable on demand, the
date on which the demand is served; or 
 if such amount has become immediately due and payable under Clause 19.4, the date on
which it became immediately due and payable. 
 Default rate of interest 

Interest shall accrue on an overdue amount from (and including) the relevant date until the date of actual payment (as well after as
before judgment) at the rate per annum determined by the Agent to be 2.50 per cent. above: 
 in the case of an overdue
amount of principal, the higher of the rates set out at Clauses 7.3(a) and 7.3(b); or 
 in the case of any other overdue
amount, the rate set out at Clause 7.3(b). 
 Calculation of default rate of interest 

The rates referred to in Clause 7.2 are: 
 the rate applicable to the overdue principal amount immediately prior to the relevant date (but only for any unexpired part of any then current Interest Period applicable to it); 

the aggregate of the Margin and the Mandatory Cost (if any) plus, in respect of successive periods of any duration (including at call) up
to 3 months which the Agent may select from time to time: 
  

	 	(i)	LIBOR; or 

  

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

  
 19 

 Notification of interest periods and default rates 

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

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

 Any such interest which is not paid at the end of the period by reference to which it was determined shall thereupon be
compounded. 
 REPAYMENT AND PREPAYMENT 
 Amount of Instalments 
 The Borrowers shall repay each Tranche by:

  

	(a)	28 consecutive quarterly equal repayment instalments, each in the amount of $314,844 (each an “Instalment” and, together, the
“Instalments”); and 

  

	(b)	a balloon instalment in the amount of $11,334,368 (each a “Balloon Instalment” and, together, the “Balloon Instalments”),

 Provided that if the amount of each Tranche drawdown under this Agreement is less than $20,150,000, each
Repayment Instalment and the Balloon Instalment in respect of that Tranche shall be reduced pro rata by an amount equal to the undrawn amount. 
 Repayment Dates 
 The first Instalment in respect of each Tranche shall be
repaid on the date falling three months after the Drawdown Date in respect of that Tranche, each subsequent Instalment in respect of that Tranche shall be repaid at three-monthly intervals thereafter and the last Instalment in respect of that
Tranche shall be repaid, together with the relevant Balloon Instalment, on the earlier of: 
 in the case of Tranche A,
(i) the date falling on the seventh anniversary of the Drawdown Date in respect of that Tranche and (ii) 29 November 2020; and 
 in the case of Tranche B, (i) the date falling on the seventh anniversary of the Drawdown Date in respect of that Tranche and (ii) 29 January 2021. 

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

  
 20 

 Voluntary prepayment 

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

 Conditions for voluntary prepayment 
 The conditions referred to in Clause 8.4 are that: 
 a partial prepayment shall be
$500,000 or a higher integral multiple thereof; 
 the Agent has received from the Borrowers at least 5 Business Days’
prior written notice (the “Prepayment Notice”) specifying: 
  

	 	(i)	the amount to be prepaid and the date on which the prepayment is to be made; and 

 

	 	(ii)	whether such prepayment will be applied against a Tranche, in which case the Borrowers will specify the Tranche against which that prepayment should be applied. A
failure by the Borrowers to make such a designation shall result in the prepayment being applied against each Tranche in accordance with Clause 8.10(a); and 

 the Borrowers have provided evidence satisfactory to the Agent that any consent required by either Borrower or any Security Party in connection with the prepayment has been obtained and remains in force,
and that any requirement relevant to this Agreement which affects that Borrower or any Security Party has been complied with. 

Effect of Prepayment Notice and Cancellation Notice 
 A Prepayment Notice or Cancellation Notice may not be withdrawn or amended without the consent of the Agent, given with the authorisation of the Majority Lenders, and, in the case of a Prepayment Notice,
the amount specified in the prepayment notice shall become due and payable by the Borrowers on the date for prepayment specified in the prepayment notice. 
 Notification of notice of prepayment 
 The Agent shall notify the Lenders
promptly upon receiving a prepayment notice, and shall provide any Lender which so requests with a copy of any document delivered by the Borrowers under Clause 8.5(c). 
 Mandatory prepayment 
 The Borrowers shall be obliged to prepay the Relevant
Amount if a Ship is sold or becomes a Total Loss: 
 in the case of a sale on or before the date on which the sale is completed
by delivery of that Ship to the buyer; or 
 in the case of a Total Loss, on the earlier of the date falling 90 days after the
Total Loss Date and the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss. 
 In
this Clause 8.8 “Relevant Amount” means an amount equal to the higher of: 
  

	 	(i)	the current principal amount outstanding of the Tranche to which the Ship being sold on which has become a Total Loss at the relevant time; and

  

	 	(ii)	an amount which after the application of the prepayment to be made pursuant to this Clause 8.8, results in the security cover ratio under Clause 15.1 being 125 per
cent. 

  
 21 

 Amounts payable on prepayment 

A prepayment shall be made together with accrued interest (and any other amount payable under Clause 21 or otherwise) in respect of the
amount prepaid and, if the prepayment is not made on the last day of an Interest Period together with any sums payable under Clause 21.1(b) but without premium or penalty. 
 Application of partial prepayment 
 Each partial prepayment shall be
applied: 
 if made pursuant to Clause 8.4, proportionately between each Tranche and thereafter pro rata against the
Instalments in respect of that Tranche which are at the time being outstanding and the relevant Balloon Instalment Provided that the Borrowers may, at their option, request that a prepayment made in accordance with Clauses 8.4 and 8.5(b)(ii)
be applied against one Tranche only in which case such prepayment shall be applied pro rata against the Instalments in respect of that Tranche which are at that time being outstanding and the relevant Balloon Instalment;  

if made pursuant to Clause 8.8 first towards full repayment of the Tranche related to the Ship being sold or which has become a Total
Loss, then first towards reduction of the Balloon Instalment of the other Tranche and thereafter against the Instalments in respect of that Tranche which are at the time being outstanding in inverse order of maturity; and 

if made pursuant to Clause 15.2, proportionately between each Tranche and thereafter pro rata against the Instalments in respect of that
Tranche which are at the time being outstanding and the relevant Balloon Instalment. 
 Optional facility cancellation

 The Borrowers shall be entitled upon giving to the Agent not less than 5 Business Days prior written notice (the
“Cancellation Notice”), which notice shall be irrevocable and shall, at the option of the Borrowers, specify whether such cancellation will apply to a specific Tranche, in which case the Borrowers will specify that Tranche. A
failure by the Borrowers to make such a designation shall result in the cancelled amount being applied proportionately between the undrawn Tranches), to cancel, in whole or in part, and, if in part, by an amount not less than $500,000 or a higher
multiple thereof, the undrawn balance of the Total Commitments. Upon such cancellation taking effect on expiry of a Cancellation Notice the several obligations of the Lenders to make their respective Commitments available in relation to the portion
of the Total Commitments to which such Cancellation Notice relates shall terminate. 
 No reborrowing 

No amount prepaid or cancelled may be reborrowed. 
 CONDITIONS PRECEDENT 
 Documents, fees and no default 

Each Lender’s obligation to contribute to a Tranche is subject to the following conditions precedent: 

that, on or before the date of this Agreement, the Agent receives: 

 

	 	(i)	the documents described in Part A of Schedule 3 in form and substance satisfactory to the Agent and its lawyers; 

  
 22 

	 	(ii)	payment of the arrangement fee payable pursuant to Clause 20.1(a); and 

  

	 	(iii)	payment of any expenses payable pursuant to Clause 20.2 which are due and payable on that date; 

that, on or before each Drawdown Date, the Agent receives: 

 

	 	(i)	the documents described in Part B of Schedule 3 in form and substance satisfactory to the Agent and its lawyers; 

 

	 	(ii)	payment of any accrued commitment fee payable pursuant to Clause 20.1(c); and 

 

	 	(iii)	payment of any expenses payable pursuant to Clause 20.2 which are due and payable on that Drawdown Date; 

that both at the date of each Drawdown Notice and at the relevant Drawdown Date: 

 

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

 

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

  

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

 

	 	(iv)	there has been no Material Adverse Change; and 

 that, if the ratio set out in Clause 15.1 were applied immediately following the borrowing of a Tranche, the Borrowers would not be obliged to provide additional security or prepay part of the Loan under
that Clause; and 
 that the Agent has received, and found to be acceptable to it, any further opinions, consents, agreements
and documents in connection with the Finance Documents which the Agent may, with the authorisation of the Majority Lenders, request by notice to the Borrowers prior to the relevant Drawdown Date. 

Waiver of conditions precedent 
 If the Majority Lenders, at their discretion, permit a Tranche to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied, the Borrowers shall ensure that those
conditions are satisfied within 5 Business Days after the applicable Drawdown Date (or such longer period as the Agent may, with the authorisation of the Majority Lenders, specify). 

REPRESENTATIONS AND WARRANTIES 
 General 
 Each Borrower represents and warrants to each Creditor Party as
follows. 
 Status 
 Each Borrower is duly formed, validly existing and in good standing under the laws of The Marshall Islands. 

  
 23 

 Share capital and ownership 

Each Borrower has an authorised share capital divided into 500 registered shares, each of $1 par value and the legal title and beneficial
ownership of all those shares is held, free of any Security Interest or other claim, by the Corporate Guarantor. 
 Corporate
power 
 Each Borrower has the corporate capacity, and has taken all corporate action and, in the case of Borrower B,
obtained all consents necessary under the MOA for it: 
 to enter into each Underlying Document, to purchase and pay for its
Ship under the MOA in the case of Borrower B, and register its Ship in its name under an Approved flag; 
 to execute the
Finance Documents to which that Borrower is a party; and 
 to borrow each Tranche under this Agreement and to make all the
payments contemplated by, and to comply with, those Finance Documents. 
 Consents in force. All the consents referred to
in Clause 10.4 remain in force and nothing has occurred which makes any of them liable to revocation. 
 Legal validity;
effective Security Interests 
 The Finance Documents and each Underlying Document to which each Borrower is a party, do now
or, as the case may be, will, upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents): 
 constitute that Borrower’s legal, valid and binding obligations enforceable against that Borrower in accordance with their respective terms; and 

create legal, valid and binding Security Interests enforceable in accordance with their respective terms over all the assets to which
they, by their terms, relate, 
 subject to any relevant insolvency laws affecting creditors’ rights generally. 

No third party Security Interests 
 Without limiting the generality of Clause 10.6, at the time of the execution and delivery of each Finance Document to which each Borrower is a party: 

that Borrower will have the right to create all the Security Interests which that Finance Document purports to create; and 

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

The execution by each Borrower of each Finance Document and each Underlying Document to which it is a party, and the borrowing by the
Borrowers of the Loan (or any part thereof), and its compliance with each Finance Document to which it is a party will not involve or lead to a contravention of: 
 any law or regulation; or 

  
 24 

 the constitutional documents of that Borrower; or 

any contractual or other obligation or restriction which is binding on that Borrower or any of its assets, 

and will not have a Material Adverse Effect. 
 No withholding taxes 
 All payments which each Borrower is liable to make
under the Finance Documents to which it is a party may be made without deduction or withholding for or on account of any tax payable under any law of any Pertinent Jurisdiction. 

No default 
 No Event of Default or Potential Event of Default has occurred. 
 Information

 All information which has been provided in writing by or on behalf of each Borrower or any Security Party to any Creditor
Party in connection with any Finance Document satisfied the requirements of Clause 11.5; all audited and unaudited accounts and financial statements which have been so provided satisfied the requirements of Clause 11.7; and there has been no change
in the financial position or state of affairs of each Borrower or the Group from that disclosed in the latest of those accounts which is likely to have a Material Adverse Effect. 

No litigation 
 No legal or administrative action involving a Borrower or any Security Party (including action relating to any alleged or actual breach of the ISM Code or the ISPS Code) has been commenced or taken or, to
the Borrowers’ knowledge, is likely to be commenced or taken which would, in either case, be likely to have a Material Adverse Effect. 
 Validity and completeness of Underlying Documents 
 Each Underlying Document
constitutes valid, binding and enforceable obligations of the parties thereto in accordance with its terms and: 
 the copy of
that Underlying Document delivered to the Agent before the date of this Agreement is a true and complete copy; 
 no amendments
or additions to that Underlying Document have been agreed nor has the relevant Borrower, Approved Charterer or, as the case may be, the Builder, waived any of their respective rights thereunder. 

Compliance with certain undertakings 
 At the date of this Agreement, each Borrower is in compliance with Clauses 11.2, 11.4, 11.9 and 11.12. 
 Taxes paid 
 Each Borrower has paid all taxes applicable to, or imposed on
or in relation to that Borrower, its business or its Ship. 

  
 25 

 ISM Code and ISPS Code compliance 

All requirements of the ISM Code and the ISPS Code as they relate to the Borrowers, the Approved Manager and the Ships have been complied
with. 
 No Money laundering 
 Each Borrower: 
 will not, and will procure that no Security Party, to the extent
applicable, will, in connection with this Agreement or any of the other Finance Documents, contravene or permit any subsidiary to contravene, any law, official requirement or other regulatory measure or procedure implemented to combat “money
laundering” (as defined in Article 1 of the Directive 2005/60/EC of the European Parliament and of the Council of the European Union of 26 October 2005) and comparable United States Federal and state laws. Each Borrower shall further
submit any documents and declarations on request, if such documents or declarations are required by any Creditor Party to comply with its domestic money laundering and/or legal identification requirements; and 

confirms that it is the beneficiary within the meaning of the German Anti Money Laundering Act (Gesetz über das Aufspüren
von Gewinnen aus schweren Straftaten (Geldwäschegesetz)), acting for its own account and not for or on behalf of any other person for each part of the Loan made or to be made available to it under this Agreement. That is to say, it acts for
its own account and not for or on behalf of anyone else. 
 Each Borrower will promptly inform the Agent by written notice, if it
is not or ceases to be the beneficiary and will provide in writing the name and address of the beneficiary. 
 The Agent shall
promptly notify the Lenders of any written notice it receives under this Clause 10.17. 
 No Immunity 

Each Borrower is subject to suit and to commercial law and neither it nor any of its properties have any right of immunity from suit,
execution, attachment or other legal process in The Marshall Islands. 
 Choice of law 

The choice of the laws of England to govern the Loan Agreement and those other Finance Documents which are expressed to be governed by the
laws of England and the laws of Germany to govern the Account Pledges constitutes a valid choice of law and the submission by each Borrower thereunder to the non-exclusive jurisdiction of the Courts of England or, in the case of the Account Pledges,
Germany is a valid submission and does not contravene the laws of The Marshall Islands and the laws of England or, in the case of the Account Pledges, Germany will be applied by the Courts of The Marshall Islands if the Loan Agreement or those other
Finance Documents or any claim thereunder comes under their jurisdiction upon proof of the relevant provisions of the laws of England or, in the case of the Account Pledges, Germany. 

Repetition 
 The representations and warranties in this Clause 10 shall be deemed to be repeated by the Borrowers: 
 on the date of service of each Drawdown Notice; 
 on each Drawdown Date; and

  
 26 

 with the exception of Clauses 10.9, 10.10, 10.11 and 10.12, on the first day of each
Interest Period, 
 as if made with reference to the facts and circumstances existing on each such day. 

GENERAL UNDERTAKINGS 
 General 
 Each Borrower undertakes with each Creditor Party to comply with
the following provisions of this Clause 11 at all times during the Security Period except as the Agent may, with the authorisation of the Majority Lenders, otherwise permit. 
 Title; negative pledge and pari passu ranking 
 Each Borrower will:

 as from the Delivery Date in respect of its Ship, hold the legal title to, and own the entire beneficial interest in the Ship
owned by it, her Insurances and Earnings, free from all Security Interests and other interests and rights of every kind, except for those created by the Finance Documents and the effect of assignments contained in the Finance Documents and except
for Permitted Security Interests; 
 not create or permit to arise any Security Interest (except for Permitted Security
Interests) over any other asset, present or future; and 
 procure that its liabilities under the Finance Documents to which it
is a party rank at least pari passu with all its other present and future unsecured liabilities, except for liabilities which are mandatorily preferred by law. 
 No disposal of assets 
 Each Borrower will not transfer, lease or otherwise
dispose of: 
 all or a substantial part of its assets, whether by one transaction or a number of transactions, whether related
or not (whether by way of sale or leaseback or otherwise); or 
 any debt payable to it or any other right (present, future or
contingent right) to receive a payment, including any right to damages or compensation, 
 but paragraph (a) does not apply
to any charter of its Ship as to which Clause 14.13 applies. 
 No other liabilities or obligations to be incurred

 Each Borrower will not incur any liability or obligation (including, without limitation, any Financial Indebtedness or any
derivative or swap transactions) except: 
 liabilities and obligations under the Underlying Documents, the Indenture and the
Finance Documents to which it is or, as the case may be, will be a party; and 
 liabilities or obligations reasonably incurred
in the normal course of its business of trading, operating and chartering, maintaining and repairing the Ship owned by that Borrower. 
 Information provided to be accurate 
 All financial and other information,
including but not limited to factual information, exhibits and reports, which is provided in writing by or on behalf of each Borrower under or in connection with any Finance Document will be true and not misleading and will not omit any material
fact or consideration. 

  
 27 

 Provision of financial statements 

Each Borrower will procure there are sent to the Agent: 
 as soon as possible, but in no event later than 180 days after the end of each financial year of the Corporate Guarantor (commencing with the financial year which ends on 31 December 2013) the
consolidated audited annual accounts of the Group; 
 as soon as possible, but in no event later than 90 days after the end of
each 6- month period in each financial year of the Corporate Guarantor (commencing with the 6-month period ended on 30 June 2013), the unaudited semi-annual financial statements of the Group for that 6-month period, certified as to their
correctness by 2 directors and/or officers of the Corporate Guarantor; and 
 promptly after each request by the Agent, such
further financial or other information in respect of the Borrowers, each Ship, the Corporate Guarantor, the Group and the other Security Parties (including, without limitation, regarding any sale and purchase agreement, investment brochures,
shipbuilding contracts and charterparty agreements in relation to the Group or any member thereof). 
 Form of financial
statements 
 All accounts delivered under Clause 11.6 will: 

be prepared by chartered accountants acceptable to the Agent and in accordance with all applicable laws and US GAAP; 

give a true and fair view of the state of affairs of the Group at the date of those accounts and of its profit for the period to which
those accounts relate; and 
 fully disclose or provide for all significant liabilities of the Group and the Ships. 

Shareholder and creditor notices 
 Each Borrower will send the Agent, at the same time as they are despatched, copies of all communications which are despatched to that Borrower’s creditors or shareholders (or any class of them).

 Consents 
 Each Borrower will maintain in force and promptly obtain or renew, and will promptly send certified copies to the Agent of, all consents required: 

for that Borrower to perform its obligations under any Finance Document and any Underlying Document to which it is a party; 

for the validity or enforceability of any Finance Document and any Underlying Document to which it is a party; and 

for that Borrower to continue to own and operate its Ship, 
 and that Borrower will comply with the terms of all such consents. 

  
 28 

 Maintenance of Security Interests 

Each Borrower will: 
 at its own cost, do all that it is reasonably necessary to ensure that any Finance Document validly creates the obligations and the Security Interests which it purports to create; and 

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

Notification of litigation 
 Each Borrower will provide the Agent with details of any legal or administrative action involving that Borrower, any Security Party, the relevant Approved Manager or the Ship owned by it, the Earnings or
the Insurances in respect of that Ship as soon as such action is instituted or it becomes apparent to that Borrower that it is likely to be instituted, unless it is clear that the legal or administrative action cannot be considered material in the
context of any Finance Document. 
 No amendment to Underlying Documents 

Each Borrower will not agree to any amendment or supplement to, or waive or fail to enforce, any Underlying Document to which it is a
party or any of its provisions except for the Management Agreements provided that the Agent is informed in writing of such amendment to that Management Agreement on or prior to the effect of such change and the Borrowers provide the Agent with a
copy of the amended Management Agreement promptly after such date. 
 Principal place of business 

Each Borrower will maintain its place of business, and keep its corporate documents and records, at the address stated in Clause 28.2(a);
and that Borrower will not establish, or do anything as a result of which it would be deemed to have, a place of business in any country other than The Marshall Islands. 
 Confirmation of no default 
 The Borrowers will, within 2 Business Days
after service by the Agent of a written request, serve on the Agent a notice which is signed by the authorised representative or a director of each Borrower and which: 
 states that no Event of Default or Potential Event of Default has occurred; or 

states that no Event of Default or Potential Event of Default has occurred, except for a specified event or matter, of which all material
details are given. 
 The Agent may serve requests under this Clause 11.14 from time to time but only if asked to do so by a
Lender or Lenders having Contributions exceeding 10 per cent. of the Loan or Commitments exceeding 10 per cent. of the Total Commitments; and this Clause 11.14 does not affect the Borrowers’ obligations under Clause 11.15. 

Notification of default 
 The Borrowers will notify the Agent as soon as the Borrowers become aware of: 

the occurrence of an Event of Default or Potential Event of Default; or 

  
 29 

 any matter which indicates that an Event of Default or Potential Event of Default may have
occurred, 
 and will keep the Agent fully up-to-date with all developments. 

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

“Know your customer” checks 
 If: 
 the introduction of or any change in (or in the interpretation,
administration or application of) any law or regulation made after the date of this Agreement; 
 any change in the status of a
Borrower or any Security Party after the date of this Agreement; or 
 a proposed assignment or transfer by a Lender of any of
its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer, 
 obliges
the Agent or any Lender (or, in the case of paragraph (c), any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to
it, the Borrowers shall promptly upon the request of the Agent or the Lender concerned supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or the
Lender concerned (for itself or, in the case of the event described in paragraph (c), on behalf of any prospective new Lender) in order for the Agent, the Lender concerned or, in the case of the event described in paragraph (c), any prospective new
Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. 

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

Maintenance of status 
 The Borrowers will maintain its separate limited liability company existence and remain in good standing under the laws of The Marshall Islands. 

Negative undertakings 
 Each Borrower will not: 
 change the nature of its business; or 

  
 30 

 pay any dividend or make any other form of distribution if an Event of Default has occurred
and is continuing at the relevant time or an Event of Default will result from the payment of a dividend or the making of any other form of distribution; or 
 effect any form of redemption, purchase or return of share capital; or 
 provide
any form of credit or financial assistance to: 
  

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

 

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

or enter into any transaction with or involving such a person or company on terms which are, in any respect, less favourable to that
Borrower than those which it could obtain in a bargain made at arms’ length; 
 open or maintain any account with any bank
or financial institution except accounts with the Agent and the Security Trustee for the purposes of the Finance Documents; or 

issue, or grant any person a right to any of its limited liability company interests or repurchase or reduce its issued limited liability
company interests; 
 acquire any shares or other securities other than US or UK Treasury bills and certificates of deposit
issued by major North American or European banks, or enter into any transaction in a derivative; or 
 enter into any form of
amalgamation, merger or de-merger or any form of reconstruction or reorganisation (including, without limitation, any split-up or divestiture of the Borrowers). 
 INSURANCE 
 General 

Each Borrower also undertakes with each Creditor Party to comply with the following provisions of this Clause 13 (as from the Deliver Date
and at all times thereafter), during the Security Period except as the Agent may, with the authorisation of the Majority Lenders, otherwise permit. 
 Maintenance of obligatory insurances 
 Each Borrower shall keep that Ship
insured at the expense of that Borrower against: 
 fire and usual marine risks (including hull and machinery and excess risks);

 war risks (including protection and indemnity war risks with a separate limit not less than hull value); 

protection and indemnity risks (including, without limitation, pollution risks and protection and indemnity war risks in excess of the
amount for war risks (hull) to the highest amount available in the international insurance market); and 
 any other risks
against which the Agent acting on the instructions of the Majority Lenders, having regard to practices, recommendations and other circumstances prevailing at the relevant time, may from time to time require by notice to the Borrowers. 

  
 31 

 Terms of obligatory insurances 

Each Borrower shall effect such insurances in such amounts in such currency and upon such terms as shall from time to time be approved in
writing by the Agent, but in any event as follows: 
 in Dollars; 

in the case of fire and usual marine risks and war risks, on an agreed value basis in approved amounts but not in any event less than to
the higher of (i) an amount which when aggregated with the insured amounts for the other Mortgaged Ship is equal to 120 per cent. of the Loan plus any equal or prior ranking security on that Ship and (ii) the Market Value of that
Borrower’s Ship; 
 in the case of oil pollution liability risks, for an aggregate amount equal to the highest level of
cover from time to time available under basic protection and indemnity club entry (with the international group of protection and indemnity clubs) and the international marine insurance market (currently $1,000,000,000); 

in relation to protection and indemnity risks in respect of the full value and tonnage of that Ship; 

in relation to war risks insurance, extended to cover piracy and terrorism where excluded under the fire and usual marine risks
insurance; 
 on approved terms; and 
 through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks
associations which are members of the International Group of Protection and Indemnity Associations, and have a Standard & Poor’s rating of at least BBB- or a comparable rating by any other rating agency acceptable to the Agent (acting
with the authorisation of the Majority Lenders). 
 Further protections for the Creditor Parties 

In addition to the terms set out in Clause 13.3, each Borrower shall, and shall procure that: 

it and any and all third parties who are named assured or co-assured under any obligatory insurance shall assign their interest in any
and all obligatory insurances and other Insurances if so required by the Agent; 
 whenever the Security Trustee requires, the
obligatory insurances name (or be amended to name) the Security Trustee as additional named assured for its rights and interests, warranted no operational interest and with full waiver of rights of subrogation against the Security Trustee, but
without the Security Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such insurance; 
 the interest of the Security Trustee as assignee and as loss payee shall be duly endorsed on all slips, cover notes, policies, certificates of entry or other instruments of insurance in respect of the
obligatory insurances; 
 the obligatory insurances shall name the Security Trustee as sole loss payee with such directions for
payment as the Security Trustee may specify; 
 the obligatory insurances shall provide that all payments by or on behalf of the
insurers under the obligatory insurances to the Security Trustee shall be made without set-off, counterclaim or deductions or condition whatsoever; 
 the obligatory insurances shall provide that the insurers shall waive, to the fullest extent permitted by English law, their entitlement (if any) (whether by statute, common law, equity, or

  
 32 

 
otherwise) to be subrogated to the rights and remedies of the Security Trustee in respect of any rights or interests (secured or not) held by or available to the Security Trustee in respect of
the Secured Liabilities, until the Secured Liabilities shall have been fully repaid and discharged, except that the insurers shall not be restricted by the terms of this paragraph (f) from making personal claims against persons (other than
either Borrower or any Creditor Party) in circumstances where the insurers have fully discharged their liabilities and obligations under the relevant obligatory insurances; 
 the obligatory insurances shall provide that the obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Security Trustee or any other
Creditor Party; 
 the obligatory insurances shall provide that the Security Trustee may make proof of loss if that Borrower
fails to do so; and 
 the obligatory insurances shall provide that if any obligatory insurance is cancelled, or if any
substantial change is made in the coverage which adversely affects the interest of the Security Trustee, or if any obligatory insurance is allowed to lapse for non-payment of premium, such cancellation, charge
or lapse shall not be effective with respect to the Security Trustee for 14 days (or 7 days in the case of war risks) after receipt by the Security Trustee of prior written notice from the insurers of such cancellation, change or lapse. 

Renewal of obligatory insurances 
 Each Borrower shall: 
 at least 14 days before the expiry of any obligatory
insurance effected by it: 
  

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

  

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

at least 7 days before the expiry of any obligatory insurance, renew that obligatory insurance in accordance with the Security
Trustee’s approval pursuant to paragraph (a); and 
 procure that the approved brokers and/or the war risks and protection
and indemnity associations with which such a renewal is effected shall promptly after the renewal notify the Security Trustee in writing of the terms and conditions of the renewal. 

Copies of policies; letters of undertaking 
 Each Borrower shall ensure that all approved brokers provide the Security Trustee with pro forma copies of all policies relating to the obligatory insurances which they are to effect or renew and of a
letter or letters of undertaking in a form required by the Security Trustee and including undertakings by the approved brokers that: 
 they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment complying with the provisions of Clause 13.4; 

they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss
payable clause; 
 they will advise the Security Trustee immediately of any material change to the terms of the obligatory
insurances; 

  
 33 

 they will notify the Security Trustee, not less than 14 days before the expiry of the
obligatory insurances, in the event of their not having received notice of renewal instructions from that Borrower or its agents and, in the event of their receiving instructions to renew, they will promptly notify the Security Trustee of the terms
of the instructions; and 
 they will not set off against any sum recoverable in respect of a claim relating to that Ship under
such obligatory insurances any premiums or other amounts due to them or any other person whether in respect of that Ship or otherwise, they waive any lien on the policies, or any sums received under them, which they might have in respect of such
premiums or other amounts, and they will not cancel such obligatory insurances by reason of non-payment of such premiums or other amounts, and will arrange for a separate policy to be issued in respect of that Ship forthwith upon being so requested
by the Security Trustee provided that the general or, as the case may be, individual conditions of such insurances permit. 

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

a certified copy of the certificate of entry for that Ship; 
 a letter or letters of undertaking in such form as may be required by the Security Trustee; 
 where required to be issued under the terms of insurance/indemnity provided by that Borrower’s protection and indemnity association, a certified copy of each United States of America voyage quarterly
declaration (or other similar document or documents) made by that Borrower in accordance with the requirements of such protections and indemnity association; and 
 a certified copy of each certificate of financial responsibility for pollution by oil or other Environmentally Sensitive Material issued by the relevant certifying authority in relation to that Ship (if
applicable). 
 Deposit of original policies 
 Each Borrower shall ensure that all policies relating to obligatory insurances effected by it are deposited with the approved brokers (where and if applicable or available) through which the insurances
are effected or renewed. 
 Payment of premiums 
 Each Borrower shall punctually pay all premiums or other sums payable in respect of the obligatory insurances effected by it and produce all relevant receipts when so required by the Security Trustee.

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

Restrictions on employment 
 Each Borrower shall not employ the Ship owned by it, nor shall permit it to be employed, outside the cover provided by any obligatory insurances. 

Compliance with terms of insurances 
 Each Borrower shall not do nor omit to do (nor permit to be done or not to be done) any act or thing which would or might render any obligatory insurance invalid, void, voidable or unenforceable or render
any sum payable under an obligatory insurance repayable in whole or in part; and, in particular it shall: 
 take all necessary
action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without limiting the obligation contained in Clause 13.6(c)) ensure that the obligatory insurances are not made subject to any
exclusions or qualifications to which the Security Trustee has not given its prior approval; 

  
 34 

 not make any changes relating to the classification or classification society or manager or
operator of the Ship owned by it approved by the underwriters of the obligatory insurances; 
 make (and promptly supply copies
to the Agent (upon its request)) of all quarterly or other voyage declarations which may be required by the protection and indemnity risks association in which that Ship is entered to maintain cover for trading to the United States of America and
Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990 or any other applicable legislation) and, if applicable, shall procure that the Approved Managers comply with this requirement; and 

not employ that Ship, nor allow it to be employed, otherwise than in conformity with the terms and conditions of the obligatory
insurances, without first obtaining the consent of the insurers and complying with any requirements (as to extra premium or otherwise) which the insurers specify. 
 Alteration to terms of insurances 
 Each Borrower shall neither make nor
agree to any alteration to the terms of any obligatory insurance or waive any right relating to any obligatory insurance. 

Settlement of claims 
 Each Borrower shall not settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty, and shall do all things necessary and provide all documents, evidence
and information to enable the Security Trustee to collect or recover any moneys which at any time become payable in respect of the obligatory insurances. 
 Provision of copies of communications 
 Each Borrower shall provide the
Security Trustee, when so requested, copies of all written communications between that Borrower and: 
 the approved brokers;
and 
 the approved protection and indemnity and/or war risks associations; and 

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

 

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

  

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

  
 35 

 Provision of information and further undertakings 

In addition, each Borrower shall promptly provide the Security Trustee (or any persons which it may designate) with any information which
the Security Trustee (or any such designated person) requests for the purpose of: 
 obtaining or preparing any report from an
independent marine insurance broker as to the adequacy of the obligatory insurances effected or proposed to be effected; and/or 

effecting, maintaining or renewing any such insurances as are referred to in Clause 13.17 or dealing with or considering any matters
relating to any such insurances, 
 and that Borrower shall: 

 

	 	(i)	do all things necessary and provide the Agent and the Security Trustee with all documents and information to enable the Security Trustee to collect or recover any
moneys in respect of the Insurances which are payable to the Security Trustee pursuant to the Finance Documents; and 

  

	 	(ii)	promptly provide the Agent with full information regarding any Major Casualty or in consequence whereof the Ship owned by that Borrower has become or may become a Total
Loss and agree to any settlement of such casualty or other accident or damage to that Ship only with the Agent’s prior written consent, 

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

The Security Trustee shall be entitled from time to time to effect, maintain and renew all or any of the following insurances in such
amounts, on such terms, through such insurers and generally in such manner as the Majority Lenders may from time to time consider appropriate: 
 a mortgagee’s interest insurance providing for the indemnification of the Creditor Parties for any losses under or in connection with any Finance Document (in an amount of up to 120 per cent. of
the Loan) which directly or indirectly result from loss of or damage to a Ship or a liability of that Ship or of the Borrower owning that Ship, being a loss or damage which is prima facie covered by an obligatory insurance but in respect of which
there is a non-payment (or reduced payment) by the underwriters by reason of, or on the basis of an allegation concerning: 
  

	 	(i)	any act or omission on the part of that Borrower, of any operator, charterer, manager or sub-manager of that Ship or of any officer, employee or agent of that Borrower
or of any such person, including any breach of warranty or condition or any non-disclosure relating to such obligatory insurance; 

  

	 	(ii)	any act or omission, whether deliberate, negligent or accidental, or any knowledge or privity of that Borrower, any other person referred to in paragraph
(i) above, or of any officer, employee or agent of that Borrower or of such a person, including the casting away or damaging of that Ship and/or that Ship being unseaworthy; and/or 

 

	 	(iii)	any other matter capable of being insured against under a mortgagee’s interest marine insurance policy whether or not similar to the foregoing; and

 a mortgagee’s interest additional perils insurance providing for the indemnification of the Creditor
Parties against, among other things, any possible losses or other consequences of any Environmental Claim, including the risk of expropriation, arrest or any form of detention of a Ship, the imposition of any Security Interest over that Ship and/or
any other matter capable of being insured against under a mortgagee’s interest additional perils policy whether or not similar to the foregoing, and in an amount of up to 110 per cent. of the Loan, 

  
 36 

 and the Borrowers shall upon demand fully indemnify the Security Trustee in respect of all
premiums and other expenses which are incurred in connection with or with a view to effecting, maintaining or renewing any such insurance or dealing with, or considering, any matter arising out of any such insurance. 

Review of insurance requirements 
 The Security Trustee shall be entitled to review the requirements of this Clause 13 from time to time in order to take account of any changes in circumstances after the date of this Agreement which are,
in the opinion of the Agent (acting on the instructions of the Majority Lenders), significant and capable of affecting the Borrowers, each Ship and its Insurances (including, without limitation, changes in the availability or the cost of insurance
coverage or the risks to which the Borrower owning that Ship may be subject) and the Borrowers shall upon demand fully indemnify the Agent in respect of all fees and other expenses incurred by or for the account of the Agent in appointing an
independent marine insurance broker or adviser to conduct such review. 
 Modification of insurance requirements

 The Security Trustee shall notify the Borrowers of any proposed modification under Clause 13.18 to the requirements of
this Clause 13 which the Security Trustee reasonably considers appropriate in the circumstances, and such modification shall take effect on and from the date it is notified in writing to the Borrowers as an amendment to this Clause 13 and shall bind
the Borrowers accordingly. 
 Compliance with mortgagee’s instructions 

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

General 

Each Borrower also undertakes with each Creditor Party to comply with the following provisions of this Clause 14 (as from the Delivery
Date and at all times thereafter) during the Security Period except as the Agent, with the authorisation of the Majority Lenders, may otherwise permit. 
 Ship’s name and registration 
 Each Borrower shall keep its Ship
registered in its name under an Approved Flag; shall not do, omit to do or allow to be done anything as a result of which such registration might be cancelled or imperilled; and shall not change the name or port of registry of that Ship. 

Repair and classification 
 Each Borrower shall, and shall procure that the relevant Approved Manager shall, keep the Ship owned by it in a good and safe condition and state of repair, sea and cargo worthy in all respects:

 consistent with first-class ship ownership and management practice; 

  
 37 

 so as to maintain the highest class free of overdue recommendations and conditions, with a
classification society which is a member of IACS and acceptable to the Agent; and 
 so as to comply with all laws and
regulations applicable to vessels registered at ports in the Approved Flag State or to vessels trading to any jurisdiction to which that Ship may trade from time to time, including but not limited to the ISM Code and the ISPS Code, 

and the Agent shall be given power of attorney in the form attached as Schedule 6 to act on behalf of that Borrower in order to, inspect
the class records and any files held by the classification society and to require the classification society to provide the Lender or any of its nominees with any information, document or file, it might request and the classification society shall
be fully entitled to rely hereon without any further inquiry. 
 Classification society undertaking 

Each Borrower shall instruct the classification society referred to in Clause 14.3 (and procure that the classification society undertakes
with the Security Trustee if and to the extent that the rules of such classification society permit) in relation to the Ship owned by it: 
 to send to the Security Trustee, following receipt of a written request from the Security Trustee, certified true copies of all original class records and any other related records held by the
classification society in relation to that Ship; 
 to allow the Security Trustee (or its agents), at any time and from time to
time, to inspect the original class and related records of that Ship at the offices of the classification society and to take copies of them; 
 to notify the Security Trustee immediately in writing if the classification society: 
  

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

 

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

 following receipt of a written request from the Security Trustee: 
  

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

  

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

 Modification 
 Each Borrower shall not make any modification or repairs to,
or replacement of, the Ship owned by it or equipment installed on it which would or might materially alter the structure, type or performance characteristics of that Ship or materially reduce its value. 

  
 38 

 Removal of parts 

Each Borrower shall not remove any material part of the Ship owned by it, or any item of equipment installed on, that Ship unless the part
or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest or any right in favour of any person other than the Security
Trustee and becomes on installation on that Ship the property of that Borrower and subject to the security constituted by the Mortgage on that Ship (if applicable) Provided that that Borrower may install equipment owned by a third party if the
equipment can be removed without any risk of damage to that Ship. 
 Surveys 

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

Inspection 
 Each Borrower shall permit the Security Trustee (by surveyors or other persons appointed by it for that purpose) to board the Ship owned by it at all reasonable times to inspect its condition or to
satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections at the Borrowers’ expense. 
 Prevention of and release from arrest 
 Each Borrower shall promptly
discharge: 
 all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against the
Ship owned by it, its Earnings or the Insurances applicable to that Ship; 
 all taxes, dues and other amounts charged in
respect of that Ship, its Earnings or the Insurances applicable to that Ship; and 
 all other outgoings whatsoever in respect
of that Ship, its Earnings or the Insurances applicable to that Ship, 
 and, forthwith upon receiving notice of the arrest of
that Ship, or of its detention in exercise or purported exercise of any lien or claim, that Borrower shall procure its release by providing bail or otherwise as the circumstances may require. 

Compliance with laws etc. 
 Each Borrower shall: 
 comply, or procure compliance with the ISM Code, the ISPS
Code, all Environmental Laws and all other laws or regulations relating to the Ship owned by it, its ownership, operation and management or to the business of that Borrower; 
 not employ that Ship nor allow its employment in any manner contrary to any law or regulation in any relevant jurisdiction including but not limited to the ISM Code and the ISPS Code; and 

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

  
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 Provision of information 

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

the Ship owned by it, its employment, position and engagements; 
 the Earnings and payments and amounts due to the master and crew of that Ship; 

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

its compliance, the Approved Manager’s compliance and the compliance of that Ship with the ISM Code and the ISPS Code, 

and, upon the Security Trustee’s request, provide copies of any current charter relating to that Ship, of any current charter
guarantee and copies of that Borrower’s or the Approved Manager’s Document of Compliance. 
 Notification of
certain events 
 Each Borrower shall immediately notify the Security Trustee by letter, of: 

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

any occurrence as a result of which the Ship owned by it has become or is, by the passing of time or otherwise, likely to become a Total
Loss; 
 any requirement, overdue condition or recommendation made by any insurer or classification society or by any competent
authority which is not complied with in accordance with its terms; 
 any arrest or detention of that Ship, any exercise or
purported exercise of any lien on that Ship or its Earnings or any requisition of that Ship for hire; 
 any unscheduled dry
docking of that Ship; 
 any Environmental Claim made against that Borrower or in connection with that Ship, or any
Environmental Incident; 
 any claim for breach of the ISM Code or the ISPS Code being made against that Borrower, the Approved
Manager or otherwise in connection with that Ship; or 
 any other matter, event or incident, the effect of which will or could
lead to the ISM Code or the ISPS Code not being complied with, 
 and that Borrower shall keep the Security Trustee advised in
writing on a regular basis and in such detail as the Security Trustee shall require of that Borrower’s, the Approved Manager’s or any other person’s response to any of those events or matters. 

Restrictions on chartering, appointment of managers etc. 
 Each Borrower shall not, in relation to the Ship owned by it: 
 let that Ship on
demise charter for any period; 
 enter into any charter in relation to that Ship under which more than 2 months’ hire (or
the equivalent) is payable in advance; 

  
 40 

 charter that Ship otherwise than on bona fide arm’s length terms at the time when that
Ship is fixed; 
 appoint a manager of that Ship other than the applicable Approved Manager or agree to any alteration to the
terms of that Approved Manager’s appointment; 
 de-activate or lay up that Ship; or 

put that Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed
$500,000 (or the equivalent in any other currency) unless that person has first given to the Security Trustee and in terms satisfactory to it a written undertaking not to exercise any lien on that Ship or its Earnings for the cost of such work or
for any other reason. 
 Notice of Mortgage 
 Each Borrower shall keep the Mortgage registered against the Ship owned by it as a valid first preferred or, as the case may be, priority mortgage, carry on board that Ship a certified copy of the
Mortgage and place and maintain in a conspicuous place in the navigation room and the Master’s cabin of that Ship a framed printed notice stating that that Ship is mortgaged by that Borrower to the Security Trustee. 

Sharing of Earnings 
 Each Borrower shall not: 
 enter into any agreement or arrangement for the sharing
of any Earnings except for the Approved Charter; 
 enter into any agreement or arrangement for the postponement of any date on
which any Earnings are due; the reduction of the amount of any Earnings or otherwise for the release or adverse alteration of any right of that Borrower to any Earnings. 
 ISPS Code 
 Each Borrower shall comply with the ISPS Code and in particular,
without limitation, shall: 
 procure that the Ship owned by it and the company responsible for that Ship’s compliance with
the ISPS Code comply with the ISPS Code; and 
 maintain for that Ship an ISSC; and 

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

 Charterparty Assignment 
 If a Borrower enters into any Charterparty (other than in the case of an Approved Charterparty the assignment of which is contemplated pursuant to the Charterparty Assignment relative thereto to be
delivered pursuant to paragraph 1 of Part B, Schedule 3), that Borrower shall at the request of the Agent, execute in favour of the Security Trustee a Charterparty Assignment and shall deliver to the Agent such other documents equivalent to those
referred to at paragraphs 3, 4, 5, 6 and 10 of Schedule 3, Part A as the Agent may require. 

  
 41 

 SECURITY COVER 

Minimum required security cover 
 Clause 15.2 applies if the Agent notifies the Borrowers that: 
 the Market Value
of the Ship; plus 
 the net realisable value of any additional security previously provided under this Clause 15, 

is below an amount equal to 125 per cent. of the Loan. 
 Provision of additional security; prepayment 
 If the Agent serves a notice
on the Borrowers under Clause 15.1, the Borrowers shall prepay such part at least of the Loan as will eliminate the shortfall on or before the date falling 14 Business Days after the date on which the Agent’s notice is served under Clause 15.1
(the “Prepayment Date”) unless at least 1 Business Day before the Prepayment Date the Borrowers have provided, or ensured that a third party has provided, additional security which, in the reasonable opinion of the Majority Lenders,
has a net realisable value at least equal to the shortfall and is documented in such terms as the Agent may, with the authorisation of the Majority Lenders, approve or require. 

Valuation of a Ship 
 The Market Value of a Ship: 
 to be determined for the purposes of Clause 4.2(b)
and paragraph 5 of Schedule 3, Part B, is that shown by taking the arithmetic average of two valuations, one of which to be nominated by the Borrowers and appointed by the Agent and the other nominated and appointed by the Agent; and 

at any other date is that shown in a valuation (each a “First Valuation”) addressed to the Agent to be issued by
an Approved Broker, nominated and appointed by the Borrowers unless the Agent obtains a second valuation (each a “Second Valuation”) to be issued by an Approved Broker nominated and appointed by the Agent in which case the Market
Value of that Ship at the relevant date is that shown: 
  

	 	(i)	if at any relevant time the difference between the First Valuation and the Second Valuation is less than 10 per cent., in the First Valuation; and

  

	 	(ii)	if at any relevant time the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent, by taking
the arithmetic average of such valuations, 

 each to be prepared: 

 

	 	(A)	as at a date not more than 14 days previously; 

  

	 	(B)	with or without physical inspection of that Ship (as the Agent may require); 

 

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

 Provided that if the difference between the 2 valuations
obtained at any one time pursuant to this Clause 15.3 is greater than 15 per cent. a valuation shall be commissioned from a third Approved Broker appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.4 and the
Market Value of that Ship in such circumstances shall be the average of all three valuations. 

  
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 Value of additional vessel security 

The net realisable value of any additional security which is provided under Clause 15.2 and which consists of a Security Interest over a
vessel shall be that shown by a valuation complying with the requirements of Clause 15.3. 
 Valuations binding

 Any valuation under Clause 15.2, 15.3 or 15.4 shall be binding and conclusive as regards the Borrowers, as shall be any
valuation which the Majority Lenders make of any additional security which does not consist of or include a Security Interest. 

Provision of information 
 The Borrowers shall promptly provide the Agent and any Approved Broker or expert acting under Clause 15.3 or 15.4 with any information which the Agent or that Approved Broker or expert may request for the
purposes of the valuation; and, if the Borrowers fail to provide the information by the date specified in the request, the valuation may be made on any basis and assumptions which that Approved Broker or the Majority Lenders (or the expert appointed
by them) consider prudent. 
 Payment of valuation expenses 

Without prejudice to the generality of the Borrowers’ obligations under Clauses 20.1, 20.3 and 21.4, the Borrowers shall, on demand,
pay the Agent the amount of the fees and expenses of any Approved Broker or expert instructed by the Agent under this Clause and all legal and other expenses incurred by any Creditor Party in connection with any matter arising out of this Clause.

 Frequency of valuations. 
 The Borrowers shall provide the Agent with a valuation of each Ship, dated as of June or, as the case may be, December, on the date on which the Agent receives any financial statements in accordance with
Clauses 11.7(a) and 11.7(b) and the Agent may request valuations to determine the Borrowers’ compliance under Clause 15.1 not less than twice during each 12-month period during the Security Period. 

PAYMENTS AND CALCULATIONS 
 Currency and method of payments 
 All payments to be made by the Lenders or
by the Borrowers under a Finance Document shall be made to the Agent or to the Security Trustee, in the case of an amount payable to it: 
 by not later than 11.00 a.m. (New York City time) on the due date; 
 in same day
Dollar funds settled through the New York Clearing House Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the Agent shall specify as being customary at the time for the settlement of international
transactions of the type contemplated by this Agreement); 
 in the case of an amount payable by a Lender to the Agent or by the
Borrowers to the Agent or any Lender, to the account of the Agent at JP Morgan Chase Bank, New York (SWIFT Code CHASUS33) (Account No. 001-1-331 808 in favour of HSH Nordbank AG, Hamburg, SWIFT Code HSHNDEHH; Reference “Donoussa Shipping
Corporation and Schinousa Shipping Corporation”) or to such other account with such other bank as the Agent may from time to time notify to the Borrowers; and 
 in the case of an amount payable to the Security Trustee, to such account as it may from time to time notify to the Borrowers and the other Creditor Parties. 

  
 43 

 Payment on non-Business Day 

If any payment by the Borrowers under a Finance Document would otherwise fall due on a day which is not a Business Day: 

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

if the next succeeding Business Day falls in the next calendar month, the due date shall be brought forward to the immediately preceding
Business Day, 
 and interest shall be payable during any extension under paragraph (a) at the rate payable on the original
due date. 
 Basis for calculation of periodic payments 

All interest and commitment fee and any other payments under any Finance Document which are of an annual or periodic nature shall accrue
from day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year. 
 Distribution
of payments to Creditor Parties 
 Subject to Clauses 16.5, 16.6 and 16.7: 

any amount received by the Agent under a Finance Document for distribution or remittance to a Lender or the Security Trustee shall be
made available by the Agent to that Lender or, as the case may be, the Security Trustee by payment, with funds having the same value as the funds received, to such account as the Lender or the Security Trustee may have notified to the Agent not less
than 5 Business Days previously; and 
 amounts to be applied in satisfying amounts of a particular category which are due to
the Lenders generally shall be distributed by the Agent to each Lender pro rata to the amount in that category which is due to it. 
 Permitted deductions by Agent 
 Notwithstanding any other provision of this
Agreement or any other Finance Document, the Agent may, before making an amount available to a Lender, deduct and withhold from that amount any sum which is then due and payable to the Agent from that Lender under any Finance Document or any sum
which the Agent is then entitled under any Finance Document to require that Lender to pay on demand. 
 Agent only obliged to
pay when monies received 
 Notwithstanding any other provision of this Agreement or any other Finance Document, the Agent
shall not be obliged to make available to the Borrowers or any Lender any sum which the Agent is expecting to receive for remittance or distribution to the Borrowers or that Lender until the Agent has satisfied itself that it has received that sum.

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

 refund the sum in full to the Agent; and 

  
 44 

 pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent
against any funding or other loss, liability or expense incurred by the Agent as a result of making the sum available before receiving it. 
 Agent may assume receipt 
 Clause 16.7 shall not affect any claim which the
Agent has under the law of restitution, and applies irrespective of whether the Agent had any form of notice that it had not received the sum which it made available. 
 Creditor Party accounts 
 Each Creditor Party shall maintain accounts
showing the amounts owing to it by the Borrowers (or either of them) and each Security Party under the Finance Documents and all payments in respect of those amounts made by the Borrowers (or either of them) and any Security Party. 

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

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

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

FIRST: in or towards satisfaction of any amounts then due and payable under the Finance Documents in the following order and proportions:

  

	 	(i)	firstly, in or towards satisfaction pro rata of all amounts then due and payable to the Creditor Parties under the Finance Documents other than those amounts referred
to at paragraphs (ii) and (iii) (including, but without limitation, all amounts payable by the Borrowers under Clauses 20, 21 and 22 of this Agreement or by the Borrowers or any Security Party under any corresponding or similar provision
in any other Finance Document); 

  

	 	(ii)	secondly, in or towards satisfaction pro rata of any and all amounts of interest or default interest payable to the Creditor Parties under the Finance Documents; and

  

	 	(iii)	thirdly, in or towards satisfaction of the Loan; 

 SECONDLY: in retention (in an interest bearing account) of an amount equal to any amount not then due and payable under any Finance Document but which the Agent, by notice to the Borrowers, the Security
Parties and the other Creditor Parties, states in its opinion will either or may become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the provisions of Clause
17.1(a); and 

  
 45 

 THIRDLY: any surplus shall be paid to the Borrowers or to any other person appearing to be
entitled to it. 
 Variation of order of application 

The Agent may, with the authorisation of the Majority Lenders, by notice to the Borrowers, the Security Parties and the other Creditor
Parties provide for a different manner of application from that set out in Clause 17.1 either as regards a specified sum or sums or as regards sums in a specified category or categories Provided that Clause 17.1(c) shall not be deleted or
rendered ineffective unless an Event of Default has occurred or is continuing. 
 Notice of variation of order of application

 The Agent may give notices under Clause 17.2 from time to time; and such a notice may be stated to apply not only to sums
which may be received or recovered in the future, but also to any sum which has been received or recovered on or after the third Business Day before the date on which the notice is served. 

Appropriation rights overridden 
 This Clause 17 and any notice which the Agent gives under Clause 17.2 shall override any right of appropriation possessed, and any appropriation made, by either Borrower or any Security Party. 

APPLICATION OF EARNINGS; SWAP PAYMENTS 
 Payment of Earnings and swap payments 
 Each Borrower undertakes with each
Creditor Party to ensure that, throughout the Security Period (and subject only to the provisions of the relevant General Assignment) all Earnings of the Ship owned by it are paid to the Earnings Account applicable thereto. 

Monthly retentions 
 The Borrowers undertake with each Creditor Party to ensure that throughout the Security Period commencing on the date falling one month after each Drawdown Date and on the same day in each subsequent
month, there is transferred to the Retention Account out of the Earnings received in the Earnings Accounts during the preceding calendar month: 
 one-third of the amount of the Instalment in respect of the Tranche to which that Drawdown Date relates falling due under Clause 8.1 on the next Repayment Date in
respect of that Tranche; and 
 the Relevant Fraction of the aggregate amount of interest on that Tranche which is payable on
the next due date for payment of interest under this Agreement. 
 In this Clause 18.3 “Relevant Fraction”
means a fraction of which the numerator is 1 and the denominator the number of months comprised in the then current Interest Period for that Tranche (or, if that Interest Period ends after the next due date for payment of interest under this
Agreement the number of months from the later of the commencement of that Interest Period or the last due date for payment of interest to the next due date for payment of interest on that Tranche under this Agreement). 

Shortfall in Earnings 
 If the aggregate Earnings received in the Earnings Accounts are insufficient in any month for the required amount to be transferred to the Retention Account under Clause 18.2, the Borrowers shall make up
the amount of the insufficiency on demand from the Agent. 

  
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 Application of retentions 

Until an Event of Default or a Potential Event of Default occurs, the Agent shall on each Repayment Date in respect of a Tranche and on
each due date for the payment of interest under this Agreement distribute to the Lenders in accordance with Clause 16.4 so much of the then balance on the Retention Account as equals: 

the Instalment due on that Repayment Date for that Tranche pursuant to Clause 8.1; or 

the amount of interest in respect of that Tranche payable on that interest payment date, 

in discharge of the Borrowers’ liability for that Instalment or that interest. 

Location of Accounts 
 The Borrowers shall promptly: 
 comply with any requirement of the Agent as to the
location or re-location of the Accounts (or any of them); and 
 execute any documents which the Agent specifies to create or
maintain in favour of the Security Trustee a Security Interest over (and/or rights of set-off, consolidation or other rights in relation to) the Accounts. 
 Debits for fees, expenses etc. 
 The Agent shall be entitled (but not
obliged) from time to time to debit the Earnings Account, with not later than 5 Business Days prior notice to the Borrowers, in order to discharge any amount due and payable under Clause 20.1 or 21 to a Creditor Party or payment of which any
Creditor Party has become entitled to demand under Clause 20.1 or 21 and, in the case of Clause 20.1, the Borrowers shall ensure that the aggregate amount standing to the credit of the Earnings Account at the relevant time is sufficient for the
payment of the second instalment of the arrangement fee referred to in that Clause. 
 EVENTS OF DEFAULT 

Events of Default 
 An Event of Default occurs if: 
 either Borrower or any Security Party fails to
pay not later than 3 Business Days after the relevant due date or (if so payable) the making of a demand any sum payable under a Finance Document or under any document relating to a Finance Document; or 

any breach occurs of Clause 9.2, 10.17, 10.18, 11.2, 11.3, 11.17, 12.2, 12.3 or 15.2 or Clause 12.3 of the Corporate Guarantee; or

 any breach by either Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach
covered by paragraphs (a) or (b)) which, in the reasonable opinion of the Majority Lenders, is capable of remedy, and such default continues unremedied 14 Business Days after written notice from the Agent requesting action to remedy the same;
or 
 (subject to any applicable grace period specified in the Finance Document) any material breach by the Borrowers or any
Security Party occurs of any provision of a Finance Document (other than a breach falling within paragraphs (a), (b) or (c)); or 
 any representation, warranty or statement made by, or by an officer of, the Borrowers or a Security Party in a Finance Document or in a Drawdown Notice or any other notice or document relating to a
Finance Document is untrue or misleading in any material respect when it is made or repeated; or 

  
 47 

 any of the following occurs in relation to any Financial Indebtedness of a Relevant Person:

  

	 	(i)	any Financial Indebtedness of a Relevant Person is not paid when due unless the Relevant Person is contesting its obligation to pay the relevant amount in good faith
and on substantial grounds and by appropriate proceedings and adequate reserves having being set aside for its payment if such proceedings fail; or 

  

	 	(ii)	any Financial Indebtedness of a Relevant Person, which in the case of any Relevant Person other than a Borrower exceeds $5,000,000 (or the equivalent in any other
currency), becomes due and payable or capable of being declared due and payable prior to its stated maturity date as a consequence of any event of default; or 

 

	 	(iii)	any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee, foreign exchange or other facility, or any swap or other derivative contract or
transaction, relating to any Financial Indebtedness of a Relevant Person which in the case of any Relevant Person other than a Borrower exceeds $5,000,000 (or the equivalent in any other currency) ceases to be available or becomes capable of being
terminated as a result of any event of default, or cash cover is required, or becomes capable of being required, in respect of such a facility as a result of any event of default; or 

 

	 	(iv)	any Security Interest securing any Financial Indebtedness of a Relevant Person, which in the case of any Relevant Person other than a Borrower exceeds an amount of
$5,000,000 (or the equivalent in any other currency), becomes enforceable; or 

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

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

  

	 	(ii)	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress or any form of freezing order, which in the case of
any Relevant Person other than a Borrower exceeds $5,000,000 (or the equivalent in any other currency), and such execution, attachment, arrest, sequestration, distress or freezing order is not withdrawn within thirty (30) Business Days; or

  

	 	(iii)	any administrative or other receiver is appointed over any asset of a Relevant Person; or 

 

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

 

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

  

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

  

	 	(vii)	 a resolution is passed, an administration notice is given or filed, an application or petition to a court is made or presented or any other step is
taken by (aa) a Relevant Person, (bb) the members or directors of a Relevant Person, (cc) a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person, or (dd) a government minister or public or
regulatory authority of a 

  
 48 

	 	
Pertinent Jurisdiction for or with a view to the winding up of that or another Relevant Person or the appointment of a provisional liquidator or administrator in respect of that or another
Relevant Person, or that or another Relevant Person ceasing or suspending business operations or payments to creditors, save that this paragraph does not apply to a fully solvent winding up of a Relevant Person other than the Borrowers or the
Corporate Guarantor which is, or is to be, effected for the purposes of an amalgamation or reconstruction previously approved by the Majority Lenders and effected not later than 3 months after the commencement of the winding up; or

  

	 	(viii)	an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by a creditor of a Relevant Person
(other than a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person) for the winding up of a Relevant Person or the appointment of a provisional liquidator or administrator in respect of a
Relevant Person in any Pertinent Jurisdiction, unless the proposed winding up, appointment of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not with a view to some other insolvency law
procedure being implemented instead and either (aa) the application or petition is dismissed or withdrawn within 60 days of being made or presented, or (bb) within 60 days of the administration notice being given or filed, or the other relevant
steps being taken, other action is taken which will ensure that there will be no administration and (in both cases (aa) or (bb)) the Relevant Person will continue to carry on business in the ordinary way and without being the subject of any actual,
interim or pending insolvency law procedure; or 

  

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

  

	 	(x)	any meeting of the members or directors, or of any committee of the board or senior management, of a Relevant Person is held or summoned for the purpose of considering
a resolution or proposal to authorise or take any action of a type described in paragraphs (iv) to (ix) or a step preparatory to such action, or (with or without such a meeting) the members, directors or such a committee resolve or agree
that such an action or step should be taken or should be taken if certain conditions materialise or fail to materialise; or 

  

	 	(xi)	in a country other than England, any event occurs, any proceedings are opened or commenced or any step is taken which, in the reasonable opinion of the Majority Lenders
is similar to any of the foregoing; or 

 a Borrower ceases or suspends carrying on its business or a part of its
business which, in the opinion of the Majority Lenders, is material in the context of this Agreement; or 
 it becomes unlawful
in any Pertinent Jurisdiction or is impossible: 
  

	 	(i)	for the Borrowers, the Corporate Guarantor or any other Security Party to discharge any liability under a Finance Document or to comply with any other obligation which
the Majority Lenders consider material under a Finance Document; or 

  

	 	(ii)	for the Agent, the Security Trustee or the Lenders to exercise or enforce any right under, or to enforce any Security Interest created by, a Finance Document; or

  
 49 

 any official consent necessary to enable a Borrower to own, operate or charter its Ship or
to enable the Borrowers or any Security Party to comply with any provision which the Majority Lenders reasonably consider material of a Finance Document or an Underlying Document is not granted, expires without being renewed, is revoked or becomes
liable to revocation or any condition of such a consent is not fulfilled unless such revocation is validly contested in good faith by that Borrower or, as the case may be, Security Party; or 

any Approved Charter is terminated or rescinded prior to its contractual termination date or for any reason ceases to remain in full
force and effect prior to its contractual termination date and is not replaced within thirty (30) days with a Charterparty acceptable to the Majority Lenders; or 
 a change has occurred after the date of this Agreement in the legal and beneficial ownership of any of the shares in a Borrower or in the control of the voting rights attaching to any of those shares or
Navios Holdings Inc., Mrs Angeliki Frangou and their respective affiliates own, in aggregate, less than 30 per cent. of the voting rights in the Corporate Guarantor; or 
 any provision which the Majority Lenders reasonably consider material of a Finance Document proves to have been or becomes invalid or unenforceable, or a Security Interest created by a Finance Document
proves to have been or becomes invalid or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security Interest or any other third party claim or interest (excluding any Permitted Security
Interests); or 
 the security constituted by a Finance Document is in any way imperilled or in jeopardy; or 

any other event occurs or any other circumstances arise or develop including, without limitation: 

 

	 	(i)	a change in the financial position, state of affairs or prospects of any Relevant Person; or 

 

	 	(ii)	the commencement of legal or administrative action involving a Borrower, its Ship or any Security Party, 

which in the reasonable opinion of the Lenders constitutes a Material Adverse Change. 

Actions following an Event of Default 
 On, or at any time after, the occurrence of an Event of Default: 
 the Agent may,
and if so instructed by the Majority Lenders, the Agent shall: 
  

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

  

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

  

	 	(iii)	take any other action which, as a result of the Event of Default or any notice served under paragraph (i) or (ii), the Agent and/or the Lenders are entitled to
take under any Finance Document or any applicable law; and/or 

 the Security Trustee may, and if so instructed by
the Agent, acting with the authorisation of the Majority Lenders, the Security Trustee shall take any action which, as a result of the Event of 

  
 50 

 
Default or any notice served under paragraph (a)(i) or (a)(ii), the Security Trustee, the Agent, the Mandated Lead Arranger and/or the Lenders are entitled to take under any Finance Document or
any applicable law. 
 Termination of Commitments 

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

On the service of a notice under Clause 19.2(a)(ii), the Loan, all accrued interest and all other amounts accrued or owing from a Borrower
or any Security Party under this Agreement and every other Finance Document shall become immediately due and payable or, as the case may be, payable on demand. 
 Multiple notices; action without notice 
 The Agent may serve notices under
Clauses 19.2(a)(i) or 19.2(a)(ii) simultaneously or on different dates and it and/or the Security Trustee may take any action referred to in Clause 19.2 if no such notice is served or simultaneously with or at any time after the service of both or
either of such notices. 
 Notification of Creditor Parties and Security Parties 

The Agent shall send to each Lender, the Security Trustee and each Security Party a copy or the text of any notice which the Agent serves
on the Borrowers under Clause 19.2; but the notice shall become effective when it is served on the Borrowers, and no failure or delay by the Agent to send a copy or the text of the notice to any other person shall invalidate the notice or provide
the Borrowers or any Security Party with any form of claim or defence. 
 Creditor Party’s rights unimpaired

 Nothing in this Clause shall be taken to impair or restrict the exercise of any right given to individual Lenders under a
Finance Document or the general law; and, in particular, this Clause is without prejudice to Clause 3.1. 
 Exclusion of
Creditor Party liability 
 No Creditor Party, and no receiver or manager appointed by the Security Trustee, shall have any
liability to the Borrowers or a Security Party: 
 for any loss caused by an exercise of rights under, or enforcement of a
Security Interest created by, a Finance Document or by any failure or delay to exercise such a right or to enforce such a Security Interest; or 
 as mortgagee in possession or otherwise, for any income or principal amount which might have been produced by or realised from any asset comprised in such a Security Interest or for any reduction (however
caused) in the value of such an asset, 
 except that this does not exempt a Creditor Party or a receiver or manager from
liability for losses shown to have been directly and mainly caused by gross negligence, the dishonesty or the wilful misconduct of such Creditor Party’s own officers and employees or (as the case may be) such receiver’s or manager’s
own partners or employees. 

  
 51 

 Relevant Persons 

In this Clause 19, a “Relevant Person” means either Borrower or any Security Party (other than the Approved Manager).

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

 Arrangement end and commitment fees 
 The Borrowers: 
 shall pay to the Agent on the date of this Agreement a
non-refundable arrangement fee of $201,500 (representing 0.50 per cent. of the Total Commitments). 
 have paid to the
Agent on 13 August 2013 a non-refundable structuring fee of $201,500 (representing 0.50 per cent. of the Total Commitments); and 
 shall pay to the Agent quarterly in arrears during the period from (and including) 7 August 2013 (being the date of your acceptance of the firm offer regarding the Loan) to the earlier of
(i) the final Drawdown Date and (ii) the last day of the Availability Period (and on the last day of such period), a non-refundable commitment fee at the rate of 1.00 per cent. per annum on the undrawn amount of the Loan, for
distribution among the Lenders pro rata to their Commitments. 
 Costs of negotiation, preparation etc. 

The Borrowers shall pay to the Agent on its demand the amount of all expenses (including, without limitation, legal fees and expenses)
incurred by the Agent or the Security Trustee in connection with the negotiation, preparation, execution or registration of any Finance Document or any related document or with any transaction contemplated by a Finance Document or a related
document. 
 Costs of variations, amendments, enforcement etc. 

The Borrowers shall pay to the Agent, on the Agent’s demand, for the account of the Creditor Party concerned, the amount of all
expenses incurred by a Creditor Party in connection with: 
 any amendment or supplement (or any proposal for such an amendment
or supplement) requested (or, in the case of a proposal, made) by or on behalf of the Borrowers and relating to a Finance Document or any other Pertinent Document; 
 any consent, waiver or suspension of rights by the Lenders, the Majority Lenders or the Creditor Party concerned or any proposal for any of the foregoing requested (or, in the case of a proposal, made) by
or on behalf of the Borrowers under or in connection with a Finance Document or any other Pertinent Document; 
 the valuation
of any security provided or offered under Clause 15 or any other matter relating to such security; or 
 any step taken by the
Lender concerned with a view to the preservation, protection, exercise or enforcement of any rights or Security Interest created by a Finance Document or for any similar purpose including, without limitation, any proceedings to recover or retain
proceeds of enforcement or any other proceedings following enforcement proceedings until the date all outstanding indebtedness to the Creditor Parties under the Finance Documents and any other Pertinent Document is repaid in full. 

  
 52 

 There shall be recoverable under paragraph (d) the full amount of all legal expenses,
such as would be allowed under rules of court or any taxation or other procedure carried out under such rules. 
 Documentary
taxes 
 The Borrowers shall promptly pay any tax payable on or by reference to any Finance Document, and shall, on the
Agent’s demand, fully indemnify each Creditor Party against any claims, expenses, liabilities and losses resulting from any failure or delay by the Borrowers to pay such a tax. 

Certification of amounts 
 A notice which is signed by 2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause 20 and which indicates (without
necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due. 

INDEMNITIES 
 Indemnities regarding borrowing and repayment of Loan 
 The Borrowers shall
fully indemnify the Agent and each Lender on the Agent’s demand and the Security Trustee on its demand in respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by that Creditor Party, or which
that Creditor Party reasonably and with due diligence estimates that it will incur, as a result of or in connection with: 
 a
Tranche not being borrowed on the date specified in the applicable Drawdown Notice for any reason other than a default by the Lender claiming the indemnity after the Drawdown Notice has been served in accordance with the provisions of this
Agreement; 
 the receipt or recovery of all or any part of a Tranche or an overdue sum otherwise than on the last day of an
Interest Period or other relevant period; 
 any failure (for whatever reason) by the Borrowers to make payment of any amount
due under a Finance Document on the due date or, if so payable, on demand (after giving credit for any default interest paid by the Borrowers on the amount concerned under Clause 7); and 

the occurrence and/or continuance of an Event of Default or a Potential Event of Default and/or the acceleration of repayment of the Loan
under Clause 19, 
 and in respect of any tax (other than tax on its overall net income) for which a Creditor Party is liable in
connection with any amount paid or payable to that Creditor Party (whether for its own account or otherwise) under any Finance Document. 
 Break Costs 
 If a Lender (the “Notifying Lender”) notifies
the Agent that as a consequence of receipt or recovery of all or any part of the Loan (a “Payment”) on a day other than the last day of an Interest Period applicable to the sum received or recovered the Notifying Lender has or will,
with effect from a specified date, incur Break Costs: 
 the Agent shall promptly notify the Borrowers of a notice it receives
from a Notifying Lender under this Clause 21.2; 

  
 53 

 the Borrowers shall, within 3 Business Days of the Agent’s demand, pay to the Agent for
the account of the Notifying Lender the amount of such Break Costs; and 
 the notifying Lender shall, as soon as reasonably
practicable, following a request by the Borrowers, provide a certificate confirming the amount of the Notifying Lender’s Break Costs for the Interest Period in which they accrue, such certificate to be, in the absence of manifest error,
conclusive and binding on the Borrowers. 
 In this Clause 21.2, “Break Costs” means, in relation to a Payment
the amount (if any) by which: 
  

	 	(i)	the interest which the Notifying Lender, should have received in respect of the sum received or recovered from the date of receipt or recovery of such Payment to the
last day of the then current Interest Period applicable to the sum received or recovered had such Payment been made on the last day of such Interest Period; 

 exceeds 
  

	 	(ii)	the amount which the Notifying Lender, would be able to obtain by placing an amount equal to such Payment on deposit with a leading bank in the London Interbank Market
for a period commencing on the Business Day following receipt or recovery of such Payment (as the case may be) and ending on the last day of the then current Interest Period applicable to the sum received or recovered. 

Other breakage costs 
 Without limiting its generality, Clause 21.1 covers any claim, expense, liability or loss, including a loss of prospective profit, incurred by a Lender in borrowing, liquidating or re-employing deposits
from third parties acquired, contracted for or arranged to fund, effect or maintain all or any part of its Contribution and/or any overdue amount (or an aggregate amount which includes its Contribution or any overdue amount) other than claims,
expenses, liabilities and losses which are shown to have been directly and mainly caused by the gross negligence or wilful misconduct of the officers or employees of the Creditor Party concerned. 

Miscellaneous indemnities 
 The Borrowers shall fully indemnify each Creditor Party severally on their respective demands, without prejudice to any of their other rights under any of the Finance Documents, in respect of all claims,
expenses, liabilities and losses which may be made or brought against or sustained or incurred by a Creditor Party, in any country, as a result of or in connection with: 
 any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Agent, the Security Trustee or any other Creditor Party or by any receiver appointed under a
Finance Document; 
 investigating any event which the Creditor Party concerned reasonably believes constitutes an Event of
Default or Potential Event of Default; or 
 acting or relying on any notice, request or instruction which the Creditor Party
concerned reasonably believes to be genuine, correct and appropriately authorised, 

  
 54 

 
other than claims, expenses, liabilities and losses which are shown to have been directly and mainly caused by the dishonesty, gross negligence or wilful misconduct of the officers or employees
of the Creditor Party concerned. 
 Without prejudice to its generality, Clause 21.1 and this Clause 21.4 cover any claims,
expenses, liabilities and losses which arise, or are asserted, under or in connection with any law relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law. 

Environmental Indemnity 
 Without prejudice to its generality, Clause 21.3 covers any claims, demands, proceedings, liabilities, taxes, losses or expenses of every kind which arise, or are asserted, under or in connection with any
law relating to safety at sea, pollution or the protection of the environment, the ISM Code or the ISPS Code. 
 Currency
indemnity 
 If any sum due from the Borrowers or any Security Party to a Creditor Party under a Finance Document or under
any order, award or judgment relating to a Finance Document (a “Sum”) has to be converted from the currency in which the Finance Document provided for the Sum to be paid (the “Contractual Currency”) into another
currency (the “Payment Currency”) for the purpose of: 
 making, filing or lodging any claim or proof against
the Borrowers or any Security Party, whether in its liquidation, any arrangement involving it or otherwise; or 
 obtaining an
order, judgment or award from any court or other tribunal in relation to any litigation or arbitration proceedings; or 

enforcing any such order, judgment or award, 
 the Borrowers shall as an independent obligation, within 3 Business Days of demand, indemnify the Creditor Party to whom that Sum is due against any cost, loss or liability arising when the payment
actually received by that Creditor Party is converted at the available rate of exchange back into the Contractual Currency including any discrepancy between (A) the rate of exchange actually used to convert the Sum from the Payment Currency
into the Contractual Currency and (B) the available rate of exchange. 
 In this Clause 21.6, the “available rate of
exchange” means the rate at which the Creditor Party concerned is able at the opening of business (London time) on the Business Day after it receives the Sum to purchase the Contractual Currency with the Payment Currency. 

Each Borrower waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that
in which it is expressed to be payable. 
 If any Creditor Party receives any Sum in a currency other than the Contractual
Currency, the Borrowers shall indemnify the Creditor Party concerned against any cost, loss or liability arising directly or indirectly from any conversion of such Sum to the Contractual Currency. 

This Clause 21.6 creates a separate liability of each Borrower which is distinct from its other liabilities under the Finance Documents
and which shall not be merged in any judgment or order relating to those other liabilities. 
 Certification of amounts

 A notice which is signed by 2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is
due to that Creditor Party under this Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or
aggregate amount, is due. 

  
 55 

 Sums deemed due to a Lender 

For the purposes of this Clause 21, a sum payable by the Borrowers to the Agent or the Security Trustee for distribution to a Lender shall
be treated as a sum due to that Lender. 
 NO SET-OFF OR TAX DEDUCTION 

No deductions 
 All amounts due from each Borrower under a Finance Document to which that Borrower is a party shall be paid: 
 without any form of set-off, counter-claim or condition; and 
 free and clear of any tax deduction except a tax deduction which that Borrower is required by law to make. 
 Grossing-up for taxes 
 If, at any time, a Borrower is required by law,
regulation or regulatory requirement to make a tax deduction from any payment due under a Finance Document: 
 the Borrowers
shall notify the Agent as soon as it becomes aware of the requirement; 
 the amount due in respect of the payment shall be
increased by the amount necessary to ensure that, after the making of such tax deduction, each Creditor Party receives on the due date for such payment (and retains free from any liability relating to the tax deduction) a net amount which is equal
to the full amount which it would have received had no such tax deduction been required to be made; and 
 that Borrower shall
pay the full amount of the tax required to be deducted to the appropriate taxation authority promptly in accordance with the relevant law, regulation or regulatory requirement, and in any event before any fine or penalty arises. 

Indemnity and evidence of payment of taxes 
 The Borrowers shall fully indemnify each Creditor Party on the Agent’s demand in respect of all claims, expenses, liabilities and losses incurred by any Creditor Party by reason of any failure of the
Borrowers to make any tax deduction or by reason of any increased payment not being made on the due date for such payment in accordance with Clause 22.2. Within 30 days after making any tax deduction, the Borrowers or, as the case may be, the
Borrowers shall deliver to the Agent any receipts, certificates or other documentary evidence satisfactory to the Agent that the tax had been paid to the appropriate taxation authority. 

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

  
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 ILLEGALITY, ETC 

Illegality 

This Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent that it has become, or will with effect
from a specified date, become: 
 unlawful or prohibited as a result of the introduction of a new law, an amendment to an
existing law or a change in the manner in which an existing law is or will be interpreted or applied; or 
 contrary to, or
inconsistent with, any regulation, 
 for the Notifying Lender to perform, maintain or give effect to any of its obligations
under this Agreement in the manner contemplated by this Agreement or to fund or maintain the Loan. 
 Notification of
illegality 
 The Agent shall promptly notify the Borrowers, the Security Parties, the Security Trustee and the other Lenders
of the notice under Clause 23.1 which the Agent receives from the Notifying Lender. 
 Prepayment; termination of Commitment

 On the Agent notifying the Borrowers under Clause 23.2, the Notifying Lender’s Commitment shall be immediately
cancelled; and thereupon or, if later, on the date specified in the Notifying Lender’s notice under Clause 23.1 as the date on which the notified event would become effective the Borrowers shall prepay the Notifying Lender’s Contribution
on the last day of the then current Interest Period in accordance with Clause 8. 
 INCREASED COSTS 

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

the introduction or alteration after the date of this Agreement of a law or an alteration after the date of this Agreement in the manner
in which a law is interpreted or applied (disregarding any effect which relates to the application to payments under this Agreement of a tax on a Lender’s overall net income); or 

complying with any regulation (including any which relates to capital adequacy or liquidity controls or which affects the manner in which
the Notifying Lender allocates capital resources to its obligations under this Agreement) which is introduced, or altered, or the interpretation or application of which is altered, after the date of this Agreement; or 

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

the Notifying Lender (or a parent company of it) has incurred or will incur an “increased cost”. 

  
 57 

 Meaning of “increase cost” 

In this Clause 24, “increased cost” means, in relation to a Notifying Lender: 

an additional or increased cost incurred as a result of, or in connection with, the Notifying Lender having entered into, or being a
party to, this Agreement or a Transfer Certificate, of funding or maintaining its Commitment or Contribution or performing its obligations under this Agreement, or of having outstanding all or any part of its Contribution or other unpaid sums;

 a reduction in the amount of any payment to the Notifying Lender under this Agreement or in the effective return which such a
payment represents to the Notifying Lender or on its capital; 
 an additional or increased cost of funding all or maintaining
all or any of the advances comprised in a class of advances formed by or including the Notifying Lender’s Contribution or (as the case may require) the proportion of that cost attributable to the Contribution; or 

a liability to make a payment, or a return foregone, which is calculated by reference to any amounts received or receivable by the
Notifying Lender under this Agreement, 
 but not an item attributable to a change in the rate of tax on the overall net income
of the Notifying Lender (or a parent company of it) or an item covered by the indemnity for tax in Clause 21.1 or by Clause 22. 

For the purposes of this Clause 24.2 the Notifying Lender may in good faith allocate or spread costs and/or losses among its assets and
liabilities (or any class of its assets and liabilities) on such basis as it considers appropriate. 
 Notification to
Borrowers of claim for increased costs 
 The Agent shall promptly notify the Borrowers and the Security Parties of the
notice which the Agent received from the Notifying Lender under Clause 24.1. 
 Payment of increased costs 

The Borrowers shall pay to the Agent, not later than 5 days after the Agent’s demand, for the account of the Notifying Lender the
amounts which the Agent from time to time notifies the Borrowers that the Notifying Lender has specified to be necessary to compensate the Notifying Lender for the increased cost. 

Notice of prepayment 
 If the Borrowers are not willing to continue to compensate the Notifying Lender for the increased cost under Clause 24.4, the Borrowers may give the Agent not less than 14 days’ notice of their
intention to prepay the Notifying Lender’s Contribution at the end of an Interest Period. 
 Prepayment; termination of
Commitment 
 A notice under Clause 24.5 shall be irrevocable; the Agent shall promptly notify the Notifying Lender of the
Borrowers’ notice of intended prepayment; and: 
 on the date on which the Agent serves that notice, the Commitment of the
Notifying Lender shall be cancelled; and 
 on the date specified in its notice of intended prepayment, the Borrowers shall
prepay (without premium or penalty) the Notifying Lender’s Contribution, together with accrued interest thereon at the applicable rate plus the Margin and the Mandatory Cost (if any). 

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

  
 58 

 SET-OFF 
 Application of credit balances 
 Each Creditor Party may without prior
notice to the Borrowers: 
 apply any balance (whether or not then due) which at any time stands to the credit of any account in
the name of either Borrower at any office in any country of that Creditor Party in or towards satisfaction of any sum then due from the Borrowers to that Creditor Party under any of the Finance Documents; and 

for that purpose: 
  

	 	(i)	break, or alter the maturity of, all or any part of a deposit of that Borrower; 

 

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

 

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

Existing rights unaffected 
 No Creditor Party shall be obliged to exercise any of its rights under Clause 25.1; and those rights shall be without prejudice and in addition to any right of set-off, combination of accounts, charge,
lien or other right or remedy to which a Creditor Party is entitled (whether under the general law or any document). 
 Sums
deemed due to a Lender 
 For the purposes of this Clause 25, a sum payable by the Borrowers to the Agent or the Security
Trustee for distribution to, or for the account of, a Lender shall be treated as a sum due to that Lender; and each Lender’s proportion of a sum so payable for distribution to, or for the account of, the Lenders shall be treated as a sum due to
such Lender. 
 No Security Interest 
 This Clause 25 gives the Creditor Parties a contractual right of set-off only, and does not create any equitable charge or other Security Interest over any credit balance of the Borrower. 

TRANSFERS AND CHANGES IN LENDING OFFICES 
 Transfer by Borrower 
 Each Borrower may not assign or transfer any of its
rights, liabilities or obligations under any Finance Document. 
 Transfer by a Lender 

Subject to Clause 26.4, a Lender (the “Transferor Lender”) may, without the prior written consent of, but in consultation with,
the Borrowers, at any time, or any Security Party, cause: 
 its rights in respect of all or part of its Contribution; or

 its obligations in respect of all or part of its Commitment; or 

  
 59 

 a combination of (a) and (b); or 

all or part of its credit risk under this Agreement and the other Finance Documents, 

to be syndicated to or, (in the case of its rights) assigned, pledged or transferred to, or (in the case of its obligations) pledged or
assumed by, any third party (a “Transferee Lender”) by delivering to the Agent a completed certificate in the form set out in Schedule 5 with any modifications approved or required by the Agent (a “Transfer
Certificate”) executed by the Transferor Lender and the Transferee Lender. 
 However any rights and obligations of the
Transferor Lender in its capacity as Agent or Security Trustee will have to be dealt with separately in accordance with the Agency and Trust Agreement. All costs and expenses relating to a transfer effected pursuant to this Clause 26.2 shall be
borne by the Transferee Lender. 
 Transfer Certificate, delivery and notification 

As soon as reasonably practicable after a Transfer Certificate is delivered to the Agent, it shall (unless it has reason to believe that
the Transfer Certificate may be defective): 
 sign the Transfer Certificate on behalf of itself, the Borrowers, the Security
Parties, the Security Trustee and each of the other Lenders; 
 on behalf of the Transferee Lender, send to the Borrowers and
each Security Party letters or faxes notifying them of the Transfer Certificate and attaching a copy of it; and 
 send to the
Transferee Lender copies of the letters or faxes sent under paragraph (b) above. 
 Effective Date of Transfer
Certificate 
 A Transfer Certificate becomes effective on the date, if any, specified in the Transfer Certificate as its
effective date, Provided that it is signed by the Agent under Clause 26.3 on or before that date. 
 No transfer without
Transfer Certificate 
 Except as provided in Clause 26.16, no assignment or transfer of any right or obligation of a Lender
under any Finance Document is binding on, or effective in relation to, the Borrowers, any Security Party, the Agent or the Security Trustee unless it is effected, evidenced or perfected by a Transfer Certificate. 

Lender re-organisation; waiver of Transfer Certificate 
 However, if a Lender enters into any merger, de-merger or other reorganisation as a result of which all its rights or obligations vest in another person (the “successor”), the Agent may, if it
sees fit, by notice to the successor and the Borrowers and the Security Trustee waive the need for the execution and delivery of a Transfer Certificate; and, upon service of the Agent’s notice, the successor shall become a Lender with the same
Commitment and Contribution as were held by the predecessor Lender. 
 Effect of Transfer Certificate 

A Transfer Certificate takes effect in accordance with English law as follows: 

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

  
 60 

 the Transferor Lender’s Commitment is discharged to the extent specified in the
Transfer Certificate; 
 the Transferee Lender becomes a Lender with the Contribution previously held by the Transferor Lender
and a Commitment of an amount specified in the Transfer Certificate; 
 the Transferee Lender becomes bound by all the
provisions of the Finance Documents which are applicable to the Lenders generally, including those about pro-rata sharing and the exclusion of liability on the part of, and the indemnification of, the Agent and the Security Trustee and, to the
extent that the Transferee Lender becomes bound by those provisions (other than those relating to exclusion of liability), the Transferor Lender ceases to be bound by them; 
 any part of the Loan which the Transferee Lender advances after the Transfer Certificate’s effective date ranks in point of priority and security in the same way as it would have ranked had it been
advanced by the transferor, assuming that any defects in the transferor’s title and any rights or equities of the Borrowers or any Security Party against the Transferor Lender had not existed; 

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

 in respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document or any
misrepresentation made in or in connection with a Finance Document, the Transferee Lender shall be entitled to recover damages by reference to the loss incurred by it as a result of the breach or misrepresentation, irrespective of whether the
original Lender would have incurred a loss of that kind or amount. 
 The rights and equities of the Borrowers or any Security
Party referred to above include, but are not limited to, any right of set off and any other kind of cross-claim. 

Maintenance of register of Lenders 
 During the Security Period the Agent shall maintain a register in which it shall record the name, Commitment, Contribution and administrative details (including the lending office) from time to time of
each Lender holding a Transfer Certificate and the effective date (in accordance with Clause 26.4) of the Transfer Certificate; and the Agent shall make the register available for inspection by any Lender, the Security Trustee and the Borrowers
during normal banking hours, subject to receiving at least 3 Business Days’ prior notice. 
 Reliance on register of
Lenders 
 The entries on that register shall, in the absence of manifest error, be conclusive in determining the identities
of the Lenders and the amounts of their Commitments and Contributions and the effective dates of Transfer Certificates and may be relied upon by the Agent and the other parties to the Finance Documents for all purposes relating to the Finance
Documents. 
 Authorisation of Agent to sign Transfer Certificates 

The Borrowers, the Security Trustee and each Lender irrevocably authorises the Agent to sign Transfer Certificates on its behalf. The
Borrowers and each Security Party irrevocably agree to the transfer procedures set out in this Clause 26 and to the extent the cooperation of the Borrowers and/or any Security Party shall be required to effect any such transfer, the Borrowers and
such Security Party shall take all necessary steps to afford such cooperation Provided that this shall not result in any additional costs to the Borrowers or such Security Party. 

  
 61 

 Registration fee 

In respect of any Transfer Certificate, the Agent shall be entitled to recover a registration fee of $2,500 from the Transferor Lender or
(at the Agent’s option) the Transferee Lender. 
 Sub-participation; subrogation assignment 

A Lender may sub-participate all or any part of its rights and/or obligations under or in connection with the Finance Documents without
the consent of, or any notice to the Borrowers, any Security Party, the Agent or the Security Trustee or any other Creditor Party; and the Lenders may assign, in any manner and terms agreed by the Majority Lenders, the Agent and the Security
Trustee, all or any part of those rights to an insurer or surety who has become subrogated to them. 
 Disclosure of
information 
 A Lender may, without the prior consent of the Borrowers or any Security Party, disclose to a potential
Transferee Lender or sub participant as well as, where relevant, to rating agencies, trustees and accountants, any financial or other information which that Lender has received in relation to the Loan, the Borrowers (or either of them), any Security
Party or their affairs and collateral or security provided under or in connection with any Finance Document, their financial circumstances and any other information whatsoever, as that Lender may deem reasonably necessary or appropriate in
connection with the potential syndication, the assessment of the credit risk and the ongoing monitoring of the Loan by any potential Transferee Lender and that Lender shall be released from its obligation of secrecy and from banking confidentiality.

 In the event any such potential Transferee Lender, sub-participant, rating agency, trustee or accountant is not already bound
by any legal obligation of secrecy or banking confidentiality, the Lender concerned shall require such other party to sign a confidentiality agreement. The Borrowers shall, and shall procure that any other Security Party shall: 

provide the Creditor Parties (or any of them) with all information deemed, reasonably, necessary by the Creditor Parties (or any of them)
for the purposes of any transfer or sub-participation to be effected pursuant to this Clause 25; 
 procure that the directors
and offices of each Borrower or any Security Party are available to participate in any meeting with any Transferee Lender or any rating agency at such times and places as the Creditor Parties may reasonably request on notice (to be served on the
Borrowers reasonably in advance) to that Borrower or that Security Party; and 
 permit any Transferee Lender to board either
Ship at all reasonable times to inspect its condition with reasonable notice to the Borrowers (after taking into consideration the relevant Ship’s schedule). 
 Change of lending office 
 A Lender may change its lending office by giving
notice to the Agent and the change shall become effective on the later of: 
 the date on which the Agent receives the notice;
and 
 the date, if any, specified in the notice as the date on which the change will come into effect. 

  
 62 

 Notification 
 On receiving such a notice, the Agent shall notify the Borrowers and the Security Trustee; and, until the Agent receives such a notice, it shall be entitled to assume that a Lender is acting through the
lending office of which the Agent last had notice. 
 Security over Lenders’ rights 

In addition to the other rights provided to Lenders under this Clause 26, each Lender may without consulting with or obtaining consent
from the Borrowers or any Security Party, at any time charge, assign or otherwise create a Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that
Lender including, without limitation: 
 any charge, assignment or other Security Interest to secure obligations to a federal
reserve or central bank; and 
 in the case of any Lender which is a fund, any charge, assignment or other Security Interest
granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities; 
 except that no such charge, assignment or Security Interest shall: 
  

	 	(i)	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the
Lender as a party to any of the Finance Documents; or 

  

	 	(ii)	require any payments to be made by the Borrowers or any Security Party or grant to any person any more extensive rights than those required to be made or granted to the
relevant Lender under the Finance Documents. 

 Replacement of Reference Bank 

If the Reference Bank ceases to be a Lender or is unable on a continuing basis to supply quotations for the purposes of Clause 5 then,
unless the Borrowers, the Agent and the Majority Lenders otherwise agree, the Agent, acting on the instructions of the Majority Lenders, and after consulting the Borrowers, shall appoint another bank (whether or not a Lender) to be a replacement
Reference Bank; and, when that appointment comes into effect, the first-mentioned Reference Bank’s appointment shall cease to be effective. 

VARIATIONS AND WAIVERS 
 Required consents 
 Subject to Clause 27.2 (Exceptions) any term of the
Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Borrowers and any such amendment or waiver will be binding on all Creditor Parties and the Borrowers. 

Any instructions given by the Majority Lenders will be binding on all the Creditor Parties. 

The Agent may effect, on behalf of any Creditor Party, any amendment or waiver permitted by this Clause. 

Exceptions 
 An amendment or waiver that has the effect of changing or which relates to: 
  

	 	(i)	the definition of “Majority Lenders” or “Finance Documents” in Clause 1.1 (Definitions); 

  
 63 

	 	(ii)	an extension to the date of payment of any amount under the Finance Documents; 

 

	 	(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest fees, commission or other amount payable under any of the Finance
Documents; 

  

	 	(iv)	an increase in or an extension of any Lender’s Commitment; 

  

	 	(v)	any provision which expressly requires the consent of all the Lenders; or 

  

	 	(vi)	Clause 3 (Position of the Lenders), Clause 11.5, 11.6 and 11.7, Clause 26 (Transfers and Changes in Lending Offices) or this Clause 27.2; 

 

	 	(vii)	any release of any Security Interest, guarantee, indemnities or subordination arrangement created by any Finance Document; 

 

	 	(viii)	any change of the currency in which the Loan is provided or any amount is payable under any of the Finance Documents; 

 

	 	(ix)	extend the Availability Period; 

  

	 	(x)	change clauses 22 (grossing-up) and 16.4 (distribution of payment to Creditor Parties). 

An amendment or waiver which relates to the rights or obligations of the Agent, the Arranger or the Security Trustee may not be effected
without the consent of the Agent, the Arranger or the Security Trustee, as the case may be. 
 Exclusion of other or implied
variations 
 Except for a document which satisfies the requirements of Clauses 27.1 and 27.2, no document, and, subject to
Clause 27.4, no act, course of conduct, failure or neglect to act, delay or acquiescence on the part of the Creditor Parties or any of them (or any person acting on behalf of any of them) shall result in the Creditor Parties or any of them (or any
person acting on behalf of any of them) being taken to have varied, waived, suspended or limited, or being precluded (permanently or temporarily) from enforcing, relying on or exercising: 

a provision of this Agreement or another Finance Document; or 
 an Event of Default; or 
 a breach by a Borrower or a Security Party of an
obligation under any Finance Document or the general law; or 
 any right or remedy conferred by any Finance Document or by the
general law, 
 and there shall not be implied into any Finance Document any term or condition requiring any such provision to be
enforced, or such right or remedy to be exercised, within a certain or reasonable time. 
 Deemed consent 

With respect to any amendment, variation, waiver, suspension or limit requested by any party to this Agreement and which requires the
approval of all the Lenders or the Majority Lenders (as the case may be), the Agent shall provide each Lender with written notice of such request accompanied by such detailed background information as may be reasonably necessary (in the opinion of
the Agent) to determine whether to approve such action. A 

  
 64 

 
Lender shall be deemed to have approved such action if such Lender fails to object to such action by written notice to the Agent within 10 days of that Lender’s receipt of the Agent’s
notice or such other time as the Agent may state in the relevant notice as being the time available for approval of such action. 
 NOTICES 
 General 

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

  

			
	to the Borrower:	 	c/o the Approved Manager
	 85 Akti Miaouli
 Piraeus 185 38
 Greece

		
		 	Fax No: 30 210 453 1984
		
	to a Lender:	 	 At the address below its name in Schedule 1 or (as
 the case may require) in the relevant Transfer
 Certificate

		
	to the Agent and Security Trustee:	 	HSH Nordbank AG
		 	CRM Shipping Europe & Offshore
		 	Gerhart-Hauptmann-Platz 50
		 	20095 Hamburg
		 	Germany
		
		 	Fax No: +49 40 3333 34118

 or to such other address as the relevant party may notify the Agent or, if the relevant party is the Agent
or the Security Trustee, the Borrowers, the Lenders and the Security Parties. 
 Effective date of notices 

Subject to Clauses 28.4 and 28.5: 
 a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered; and 

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

 Service outside business hours 
 However, if under Clause 28.3 a notice would be deemed to be served: 
 on a day
which is not a business day in the place of receipt; or 
 on such a business day, but after 5 p.m. local time, 

  
 65 

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

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

Valid notices 
 A notice under or in connection with a Finance Document shall not be invalid by reason that its contents or the manner of serving it do not comply with the requirements of this Agreement or, where
appropriate, any other Finance Document under which it is served if: 
 the failure to serve it in accordance with the
requirements of this Agreement or other Finance Document, as the case may be, has not caused any party to suffer any significant loss or prejudice; or 
 in the case of incorrect and/or incomplete contents, it should have been reasonably clear to the party on which the notice was served what the correct or missing particulars should have been. 

Electronic communication 
 Any communication to be made between the Agent and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Agent and the relevant
Creditor Party: 
 agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

 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 
 notify each other of any change to their respective addresses or any other such
information supplied to them. 
 Any electronic communication made between the Agent and a Lender will be effective only when
actually received in readable form and, in the case of any electronic communication made by a Creditor Party to the Agent, only if it is addressed in such a manner as the Agent shall specify for this purpose. 

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

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

JOINT AND SEVERAL LIABILITY 
 General 
 All liabilities and obligations of the Borrowers under this
Agreement shall, whether expressed to be so or not, be several and, if and to the extent consistent with Clause 29.2, joint. 

  
 66 

 No impairment of a Borrowers’ obligations 

The liabilities and obligations of a Borrower shall not be impaired by: 

this Agreement being or later becoming void, unenforceable or illegal as regards the other Borrower; 

any Lender or the Security Trustee entering into any rescheduling, refinancing or other arrangement of any kind with the other Borrower;

 any Lender or the Security Trustee releasing the other Borrower or any Security Interest created by a Finance Document; or

 any combination of the foregoing. 
 Principal debtors 
 Each Borrower declares that it is and will, throughout
the Security Period, remain a principal debtor for all amounts owing under this Agreement and the Finance Documents and neither Borrower shall in any circumstances be construed to be a surety for the obligations of the other Borrower under this
Agreement. 
 Subordination. 
 Subject to Clause 29.5, during the Security Period, no Borrower shall: 
 claim any
amount which may be due to it from the other Borrower whether in respect of a payment made, or matter arising out of, this Agreement or any Finance Document, or any matter unconnected with this Agreement or any Finance Document; or 

take or enforce any form of security from the other Borrower for such an amount, or in any other way seek to have recourse in respect of
such an amount against any asset of the other Borrower; or 
 set off such an amount against any sum due from it to the other
Borrower; or 
 prove or claim for such an amount in any liquidation, administration, arrangement or similar procedure involving
the other Borrower or other Security Party; or 
 exercise or assert any combination of the foregoing. 

Borrowers’ required action 
 If during the Security Period, the Agent, by notice to a Borrower, requires it to take any action referred to in paragraphs (a) to (d) of Clause 29.4, in relation to the other Borrower, that
Borrower shall take that action as soon as practicable after receiving the Agent’s notice 
 SUPPLEMENTAL

 Rights cumulative, non-exclusive 
 The rights and remedies which the Finance Documents give to each Creditor Party are: 
 cumulative; 
 may be exercised as often as appears expedient; and 

  
 67 

 shall not, unless a Finance Document explicitly and specifically states so, be taken to
exclude or limit any right or remedy conferred by any law. 
 Severability of provisions 

If any provision of a Finance Document is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity,
enforceability or legality of the other provisions of that Finance Document or of the provisions of any other Finance Document. 

Counterparts 
 A Finance Document may be executed in any number of counterparts. 
 Third party
rights 
 A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999
to enforce or to enjoy the benefit of any term of this Agreement. 
 Benefit and binding effect 

The terms of this Agreement shall be binding upon, and shall enure to the benefit of, the parties hereto and their respective (including
subsequent) successors and permitted assigns and transferees. 
 LAW AND JURISDICTION 

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

Exclusive English jurisdiction 
 Subject to Clause 31.3, the courts of England shall have exclusive jurisdiction to settle any Dispute. 
 Choice of forum for the exclusive benefit of the Creditor Parties 
 Clause
31.2 is for the exclusive benefit of the Creditor Parties, each of which reserves the right: 
 to commence proceedings in
relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and 
 to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings in England. 

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

Process agent 
 Each Borrower irrevocably appoints HFW Nominees Limited, at its registered office for the time being, presently at 65 Crutched Friars, London EC3N 2AE England to act as its agent to receive and accept on
its behalf any process or other document relating to any proceedings in the English courts which are connected with a Dispute. 

  
 68 

 Creditor Party rights unaffected 

Nothing in this Clause 31 shall exclude or limit any right which any Creditor Party may have (whether under the law of any country, an
international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction. 

Meaning of “proceedings” and “Dispute” 

In this Clause 31, “proceedings” means proceedings of any kind, including an application for a provisional or protective measure
and a “Dispute” means any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement) or any non-contractual obligation arising out of or in
connection with this Agreement. 
 THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

  
 69 

 EXECUTION PAGES 

 

					
	BORROWERS	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	
	for and on behalf of	  	)	  	/s/ Todd Johnson
	DONOUSSA SHIPPING CORPORATION	  	)	  	
	in the presence of:	  	)	  	
			
	            /s/ Christoforos Bismpikos	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	
	for and on behalf of	  	)	  	/s/ Todd Johnson
	SCHINOUSA SHIPPING CORPORATION	  	)	  	
	in the presence of:	  	)	  	
			
	            /s/ Christoforos Bismpikos	  		  	
			
	LENDERS	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	
	for and on behalf of	  	)	  	/s/ Elektra Stamatopoulos
	HSH NORDBANK AG	  	)	  	
	in the presence of:	  	)	  	
			
	            /s/ Christoforos Bismpikos	  		  	
			
	AGENT	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	
	for and on behalf of	  	)	  	/s/ Elektra Stamatopoulos
	HSH NORDBANK AG	  	)	  	
	in the presence of:	  	)	  	
			
	            /s/ Christoforos Bismpikos	  		  	

  
 70 

					
	MANDATED LEAD ARRANGER	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	
	for and on behalf of	  	)	  	/s/ Elektra Stamatopoulos
	HSH NORDBANK AG	  	)	  	
	in the presence of:	  	)	  	
			
	            /s/ Christoforos Bismpikos	  		  	
			
	SECURITY TRUSTEE	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	
	for and on behalf of	  	)	  	/s/ Elektra Stamatopoulos
	HSH NORDBANK AG	  	)	  	
	in the presence of:	  	)	  	
			
	            /s/ Christoforos Bismpikos	  		  	

  
 71EX-10.1

 Exhibit 10.1 
 MEDTRONIC, INC. 
 2013 STOCK AWARD AND INCENTIVE PLAN 

Section 1. Purpose; Definitions. 
 1.1 Purpose. The purpose of this Medtronic, Inc. 2013 Stock Award and Incentive Plan (this “Plan”) is to give the Company and its Affiliates and Subsidiaries (each as defined below) a
competitive advantage in attracting, retaining, and motivating officers, employees, directors, and consultants, to provide the ability for the Company to provide such individuals with financial rewards that are intended to be deductible to the
maximum extent possible as “performance-based compensation” within the meaning of Section 162(m) of the Code (as defined below), and to provide the Company and its Subsidiaries and Affiliates with an incentive plan that gives
officers, employees, directors, and consultants financial incentives directly linked to shareholder value. This Plan is intended to serve as the Company’s primary vehicle for equity compensation awards and long-term cash incentive awards for
employees, directors, and other service providers, as well as annual bonus awards for the Company’s executive officers. Following the date that this Plan is approved by the Company’s shareholders, no further equity compensation awards
shall be granted pursuant to any other Company plan (it being understood that outstanding awards under such plans will continue to be settled pursuant to the terms of such plans). 

1.2 Definitions. Certain terms used herein have definitions given to them in the first place in which they are used. In addition,
for purposes of this Plan, the following terms are defined as set forth below: 
 (a) “Act” means the Securities
Exchange Act of 1934, as amended from time to time, any regulations promulgated thereunder, and any successor thereto. 
 (b)
“Administrator” shall have the meaning set forth in Section 2.2. 
 (c) “Affiliate” means a corporation
or other entity controlled by, controlling, or under common control with, the Company. 
 (d) “Applicable Exchange”
means the New York Stock Exchange or such other securities exchange as may at the applicable time be the principal market for the Common Stock. 

 (e) “Award” means an Option, Stock Appreciation Right, Restricted Stock,
Restricted Stock Unit, Other Stock-Based Award, or Performance Award granted pursuant to the terms of this Plan. 
 (f)
“Award Agreement” means a written document or agreement setting forth the terms and conditions of a specific Award. 

(g) “Beneficial Owner” shall have the meaning given in Rule 13d-3, promulgated pursuant to the Act. 

(h) “Board” means the Board of Directors of the Company. 

(i) “Cause” means, unless otherwise provided in an Award Agreement, (i) “Cause” as defined in any Individual
Agreement to which the applicable Participant is a party and which is operative at the time in question, or (ii) if there is no such Individual Agreement, or if it does not define “Cause”: (A) commission by the Participant of a
felony under federal law or the law of the state in which such action occurred, (B) failure on the part of the Participant to perform such Participant’s employment duties in any material respect, (C) the Participant’s prolonged
absence from duty without the consent of the Company, (D) intentional engagement by the Participant in any activity that is in conflict with or adverse to the business or other interests of the Company, or (E) willful misconduct or
malfeasance of duty which is reasonably determined to be detrimental to the Company. Notwithstanding the general rule of Section 2.3, following a Change of Control, any determination by the Committee as to whether “Cause” exists shall
be subject to de novo review. 
 (j) “Change of Control” shall have the meaning set forth in Section 10.2.

 (k) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto,
regulations promulgated thereunder, and other relevant interpretive guidance issued by the Internal Revenue Service or the Treasury Department. Reference to any specific section of the Code shall be deemed to include such regulations and guidance,
as well as any successor provision of the Code. 
 (l) “Committee” means a committee or subcommittee of the Board,
appointed from time to time by the Board, which committee or subcommittee shall consist of two or more non-employee directors, each of whom is intended to be, to the extent required by Rule 16b-3, a “non-employee director” as defined in
Rule 16b-3 and, to the extent required by Section 162(m) of the Code and any regulations promulgated thereunder, an “outside director” as defined under Section 162(m) of the Code. Initially, and unless and until otherwise
determined by the Board, “Committee” means the Compensation Committee of the Board. 

 (m) “Common Stock” means common stock, par value $0.10 per share, of the Company.

 (n) “Company” means Medtronic, Inc., a Minnesota corporation. 

(o) “Disaffiliation” means a Subsidiary’s or Affiliate’s ceasing to be a Subsidiary or Affiliate for any reason
(including, without limitation, as a result of a public offering, or a spinoff or sale by the Company, of the stock of the Subsidiary or Affiliate) or a sale of a division of the Company or its Affiliates. 

(p) “Eligible Individuals” means directors, officers, employees, and consultants of the Company or any Subsidiary or Affiliate,
and prospective employees, officers and consultants, who have accepted offers of employment or consultancy from the Company or any Subsidiary or Affiliate; provided however, that no grant shall be effective prior to the date on which such
individual’s employment or consultancy commences. 
 (q) “Fair Market Value” means, unless otherwise determined
by the Committee, the closing price of a share of Common Stock on the Applicable Exchange on the date of measurement or, if Shares were not traded on the Applicable Exchange on such measurement date, on the next preceding date on which Shares were
traded, all as reported by such source as the Committee may select. If the Common Stock is not listed on a national securities exchange, Fair Market Value shall be determined by the Committee in its good faith discretion, taking into account, to the
extent appropriate, the requirements of Section 409A of the Code. 
 (r) “Free-Standing SAR” shall have the
meaning set forth in Section 5.3. 
 (s) “Full-Value Award” means any Award other than an Option, Stock
Appreciation Right, or Performance Cash Award. 
 (t) “Good Reason” for termination means, unless otherwise provided
in an Award Agreement, a Termination of Employment during the two-year period following a Change of Control by a Participant if (i) such Termination of Employment constitutes a termination for “good reason” or qualifies under any
similar constructive termination provision, in either case, in any Individual Agreement applicable to such Participant, or (ii) if the Participant is not party to any such Individual Agreement, or if such Individual Agreement does not contain

 
such a provision, any Termination of Employment following the occurrence of: (A) an involuntary relocation that increases the Participant’s commute by more than 50 miles from the
commute in effect immediately prior to the applicable Change of Control, (B) a material reduction in either the Participant’s base pay or in the Participant’s overall compensation opportunity from the levels in effect immediately
prior to the applicable Change of Control or (C) a material reduction in the Participant’s authority, duties or responsibilities below the levels in effect immediately prior to the applicable Change of Control. Notwithstanding the
foregoing, a Termination of Employment shall be deemed to be for Good Reason under clause (ii) of this Section 1.2(t) only if the Participant provides written notice to the Company of the existence of one or more of the conditions giving
rise to Good Reason within 90 days of the initial existence of such condition, the Company fails to cure such condition during the 30-day period (the “ Cure Period “) following its receipt of such notice, and the Participant terminates
employment within 180 days following the conclusion of the Cure Period. 
 (u) “Grant Date” means (i) the date on
which the Committee (or its delegate, if applicable) takes action to select an Eligible Individual to receive a grant of an Award and determines the number of Shares to be subject to such Award, or (ii) such later date as is provided by the
Committee (or its delegate, if applicable). 
 (v) “Incentive Stock Option” means any Option that is designated in the
applicable Award Agreement as an “incentive stock option” within the meaning of Section 422 of the Code or any successor provision thereto, and that in fact qualifies. 

(w) “Individual Agreement” means an employment, consulting, severance, change of control, or similar agreement between a
Participant and the Company or between the Participant and any of the Company’s Subsidiaries or Affiliates. For purposes of this Plan, an Individual Agreement shall be considered “operative” during its term; provided , that an
Individual Agreement under which severance or other substantive protections, compensation and/or benefits are provided only following a change of control or termination of employment in anticipation of a change of control shall not be considered
“operative” until the occurrence of a Change of Control or Termination of Employment in anticipation of a Change of Control, as the case may be. 
 (x) “ISO Eligible Employee” means an employee of the Company, any subsidiary corporation (within the meaning of Section 424(f) of the Code) of the Company, or parent corporation (within the
meaning of Section 424(e) of the Code) of the Company. 
 (y) “Nonqualified Option” means any Option that either
(i) is not designated as an Incentive Stock Option or (ii) is so designated but fails to qualify as such. 

 (z) “Option” means an Award granted under Section 5.1. 

(aa) “Other Stock-Based Awards” means Awards of Common Stock and other Awards that are valued in whole or in part by reference
to, or are otherwise based upon, Common Stock, including (without limitation) unrestricted stock, dividend equivalents, and convertible debentures. 
 (bb) “Other Stock-Based Performance Award” shall have the meaning given in Section 8. 
 (cc) “Participant” means an Eligible Individual to whom an Award is or has been granted. 
 (dd) “Performance Award” means a Performance Cash Award, an Other Stock-Based Performance Award, an Award of Performance-Based Restricted Stock, or Performance Units, as each is defined herein.

 (ee) “Performance-Based Restricted Stock” shall have the meaning given in Section 6.1. 

(ff) “Performance Cash Award” shall have the meaning set forth in Section 9. 

(gg) “Performance Goals” means the performance goals established by the Committee in connection with the grant of a Performance
Award. In the case of Qualified Performance-Based Awards, (i) such Performance Goals shall be based on the attainment of or changes in specified levels of one or more of the following measures: sales, net sales, revenue, revenue growth or
product revenue growth, operating income (before or after taxes), return on invested capital, return on capital employed, pre- or after-tax income (before or after allocation or corporate overhead and bonus), net earnings, earnings per share,
diluted earnings per share, consolidated earnings before or after taxes (including earnings before some or all of the following: interest, taxes, depreciation and amortization), net income, gross profit, gross margin, year-end cash, debt reductions,
book value per share, return on equity, expense management, return on investment, improvements in capital structure, profitability of an identifiable business unit or product, maintenance or improvements of profit margins, stock price, market share,
costs, cash flow, working capital, return on assets or net assets, asset turnover, inventory turnover, economic value added (economic profit) or equivalent metrics, comparison with various stock market indices, appreciation in and/or maintenance of
share price, reductions in costs, regulatory achievements, implementation, completion or attainment of measurable objectives with respect 

 
to research, development, products or projects and recruiting or maintaining personnel, and total shareholder return; each as measured with respect to the Company or one or more Affiliates,
Subsidiaries, divisions, business units, or business segments of the Company, either in absolute terms or relative to the performance of one or more other companies or an index covering multiple companies; (ii) such Performance Goals shall be
set by the Committee in the time period prescribed by Section 162(m) of the Code and the regulations promulgated thereunder; (iii) such Performance Goals shall be objective, preestablished performance goals within the meaning of
Section 162(m) of the Code and the regulations promulgated thereunder and (iv) the achievement of such Performance Goals shall be certified in accordance with the requirements of Section 162(m) of the Code. 

(hh) “Performance Period” means that period established by the Committee at the time any Performance Award is granted or at any
time thereafter during which any Performance Goal specified by the Committee with respect to such Award is to be measured. 

(ii) “Performance Units” shall have the meaning given in Section 7.1. 

(jj) “Plan” means this Medtronic, Inc. 2013 Stock Award and Incentive Plan, as set forth herein and as hereafter amended from
time to time. 
 (kk) “Predecessor Plans” means the Company’s Amended and Restated 1994 Stock Award Plan, the
Medtronic, Inc. 1998 Outside Director Stock Compensation Plan, the Medtronic, Inc. Executive Incentive Plan, the Medtronic, Inc. – Kyphon Inc. 2002 Stock Plan, the Medtronic, Inc. 2003 Long-Term Incentive Plan and the Medtronic, Inc. 2008 Stock
Award and Incentive Plan. 
 (ll) “Qualified Performance-Based Award” means an Award intended to qualify for the
Section 162(m) Exemption, as provided in Section 11. 
 (mm) “Replaced Award” shall have the meaning given
in Section 10.1. 
 (nn) “Replacement Award” shall have the meaning given in Section 10.1. 

(oo) “Restricted Stock” shall have the meaning given in Section 6. 

(pp) “Restricted Stock Units” shall have the meaning given in Section 7. 

 (qq) “Restriction Period” means, with respect to Restricted Stock and Restricted
Stock Units, the period commencing with the Grant Date and ending upon the expiration of the applicable vesting conditions or the achievement of the applicable Performance Goals (it being understood that the Committee may provide that restrictions
shall lapse with respect to portions of the applicable Award during the Restriction Period). 
 (rr) “Section 162(m)
Exemption” means the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(C) of the Code. 
 (ss) “Share” means a share of Common Stock. 
 (tt) “Stock
Appreciation Right” or “SAR” shall have the meaning set forth in Section 5.3. 
 (uu) “Subsidiary”
means any corporation, partnership, joint venture, limited liability company, or other entity during any period in which at least a 50% voting or profits interest is owned, directly or indirectly, by the Company or any successor to the Company.

 (vv) “Substitute Award” means any Award granted in assumption of, or in substitution for, an award of a company or
business (that is not, prior to the applicable transaction, a Subsidiary or Affiliate of the Company) acquired by the Company or a Subsidiary or Affiliate or with which the Company or a Subsidiary or Affiliate combines. 

(ww) “Tandem SAR” shall have the meaning set forth in Section 5.3. 

(xx) “Ten Percent Shareholder” means a person owning stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company, any subsidiary corporation (within the meaning of Section 424(f) of the Code), or parent corporation (within the meaning of Section 424(e) of the Code). 

(yy) “Term” means the maximum period during which an Option or Stock Appreciation Right may remain outstanding, subject to
earlier termination upon Termination of Employment or otherwise, as specified in the applicable Award Agreement. 

 (zz) “Termination of Employment” means, unless otherwise provided in the Award
Agreement, the termination of the applicable Participant’s employment with, or performance of services for, the Company and any of its Subsidiaries or Affiliates. Unless otherwise determined by the Committee, a Participant employed by, or
performing services for, a Subsidiary or an Affiliate or a division of the Company or its Affiliates shall be deemed to incur a Termination of Employment if, as a result of a Disaffiliation, such Subsidiary, Affiliate, or division ceases to be a
Subsidiary, Affiliate or division, as the case may be, and the Participant does not immediately become an employee of, or service provider for, the Company or another Subsidiary or Affiliate. Temporary absences from employment because of illness,
vacation, or leave of absence, and transfers among the Company and its Subsidiaries and Affiliates, shall not be considered Terminations of Employment. Notwithstanding the foregoing, with respect to any Award that constitutes “nonqualified
deferred compensation” within the meaning of Section 409A of the Code, “Termination of Employment” shall mean a “separation from service” as defined under Section 409A of the Code. 

Section 2. Administration. 
 2.1 Committee. The Plan shall be administered by the Committee or a duly designated Administrator, as defined herein. The Committee shall, subject to Section 11, have plenary authority to
grant Awards to Eligible Individuals pursuant to the terms of the Plan. Among other things, the Committee shall have the authority, subject to the terms and conditions of the Plan: 

(a) To select the Eligible Individuals to whom Awards may be granted; 

(b) To determine whether and to what extent Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Other
Stock-Based Awards, or Performance Awards, or any combination thereof, are to be granted hereunder; 
 (c) To determine the
number of Shares to be covered by each Award granted under the Plan; 
 (d) To determine the terms and conditions of each Award
granted hereunder, based on such factors as the Committee shall determine; 
 (e) Subject to Section 12, to modify, amend,
or adjust the terms and conditions of any Award; 
 (f) To adopt, alter, or repeal such administrative rules, guidelines, and
practices governing the Plan as the Committee shall from time to time deem advisable; 

 (g) To interpret the terms and provisions of the Plan and any Award issued under the Plan
(and any agreement relating thereto); 
 (h) Subject to Sections 11 and 12, to accelerate the vesting or lapse of restrictions
of any outstanding Award, based in each case on such considerations as the Committee in its sole discretion may determine; 

(i) To decide all other matters that must be determined in connection with an Award; 

(j) To determine whether, to what extent, and under what circumstances cash, Shares, and other property and other amounts payable with
respect to an Award under this Plan shall be deferred either automatically or at the election of the Participant; and 
 (k) To
otherwise administer the Plan. 
 2.2 Committee Procedures; Board Authority. The Committee shall exercise its authority
under the Plan as follows: 
 (a) The Committee may act only with the assent of a majority of its members then in office, except
that the Committee may, except to the extent prohibited by applicable law or the listing standards of the Applicable Exchange and subject to Section 11.3, allocate all or any portion of its responsibilities and powers to any one or more of its
members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it (the “ Administrator “). Notwithstanding the foregoing, the Committee may not so delegate any responsibility or power to
the extent that such delegation would cause a Qualified Performance-Based Award hereunder not to qualify for the Section 162(m) Exemption, or make any Award hereunder subject to (and not exempt from) the short-swing recovery rules of
Section 16(b) of the Act. Without limiting the generality of the foregoing, the Committee may not delegate its responsibilities and powers to grant, establish the terms and conditions of, and otherwise administer Qualified Performance-Based
Awards, nor its responsibilities and powers to grant and establish the terms and conditions of Awards to Participants who are subject to Section 16(b) (as defined in Section 11.4 below). 

(b) Subject to Section 11.3, any authority granted to the Committee may also be exercised by the full Board. To the extent that any
permitted action taken by the Board conflicts with action taken by the Committee, the Board action shall control. 

 2.3 Discretion of Committee. Subject to Section 1.2(i), any determination made
by the Committee or by the Administrator under the provisions of the Plan with respect to any Award shall be made in the sole discretion of the Committee or the Administrator at the time of the grant of the Award or, unless in contravention of any
express term of the Plan, at any time thereafter. All decisions made by the Committee or the Administrator shall be final and binding on all persons, including the Company, Participants, and Eligible Individuals, and by accepting an Award under the
Plan, each Participant acknowledges that all decisions of the Committee shall be final and binding on the Participant, his or her beneficiaries and any other person having a claim or an interest in the Award. 

2.4 Award Agreements. Unless otherwise determined by the Committee, the terms and conditions of each Award, as determined by the
Committee, shall be set forth in a written Award Agreement. Award Agreements may be amended only in accordance with Section 12 hereof. 
 Section 3. Common Stock Subject to Plan. 
 3.1 Plan Maximums.
Subject to adjustment as provided in Section 3.4, (a) the maximum number of Shares that may be issued pursuant to Awards under the Plan shall be the sum of (i) 50,000,000 Shares, (ii) any Shares which are available for grant as
of August 22, 2013 under the Medtronic, Inc. 2008 Stock Award and Incentive Plan and (iii) any Shares relating to Predecessor Plans which become available for grants under the Plan pursuant to Section 3.2; and (b) the maximum
number of Shares that may be issued pursuant to Options intended to be Incentive Stock Options shall be 50,000,000. Shares subject to an Award under the Plan may be authorized and unissued Shares or may be treasury Shares. 

3.2 Rules for Calculating Shares Issued. For purposes of the limits set forth in Section 3.1 (but not for purposes of the
limits set forth in Section 3.3), each Share that is subject to a Full-Value Award shall be counted as 3.0 Shares. To the extent that any Award under this Plan or the Predecessor Plans is forfeited, or any Option and related Tandem SAR or any
Free-Standing SAR granted under this Plan or the Predecessor Plans terminates, expires, or lapses without being exercised, or any Award is settled for cash, the Shares subject to such Awards not delivered as a result thereof shall thereupon become
available (in the case of Full-Value Awards, based upon the share-counting ratio set forth in the first sentence of this Section 3.2) for Awards under the Plan. In the event that any Shares of Common Stock are withheld by the Company or
previously acquired Shares are tendered (either actually or by attestation) by a Participant to satisfy any tax withholding obligation with respect to an Award other than an Option or SAR, then the Shares so tendered or withheld shall automatically
again become available for issuance under the Plan and correspondingly increase the total number of Shares available for issuance under Section 3.1 in accordance with the same ratio specified in this Section 3.2. Notwithstanding anything
to the contrary in this Section 3.2, the following Shares will not again become available for issuance under the Plan: (a) any Shares which would have been issued upon any exercise of an Option but for the fact that the exercise price was
paid by a “net exercise” pursuant to Section 5.8(c) or any previously acquired Shares tendered (either 

 
actually or by attestation) by a Participant in payment of the exercise price of an Option; (b) any Shares withheld by the Company or previously acquired Shares tendered (either actually or
by attestation) by a Participant to satisfy any tax withholding obligation with respect to an Option or SAR (but not other Awards); (c) Shares covered by a SAR that are not issued in connection with the stock settlement of the SAR upon its
exercise; and (d) Shares that are repurchased by the Company using Option exercise proceeds. In addition, in the case of any Substitute Award, Shares delivered or deliverable in connection with such Substitute Award shall not be deemed granted
or issued under the Plan for purposes of Sections 3.1 or 3.3. 
 3.3 Individual Limits. Subject to adjustment as provided
in Section 3.4, no Participant may be granted (a) Options and Stock Appreciation Rights relating to more than 2,000,000 Shares under the Plan during any fiscal year and (b) Awards other than Options or Stock Appreciation Rights
relating to more than 2,000,000 Shares under the Plan during any fiscal year. In addition to the foregoing, the maximum dollar value that may be paid to any Participant in Qualified Performance-Based Awards denominated in cash in any fiscal year
shall be $20,000,000 for the Company’s Chief Executive Officer and $10,000,000 for each other Participant, including any amounts earned during such fiscal year and deferred. If an Award is cancelled, the cancelled Award shall continue to be
counted towards the limitations set forth in this Section 3.3. 
 3.4 Adjustment Provision. The Committee shall have
authority to make adjustments under the Plan as provided below: 
 (a) In the event of a merger, consolidation, acquisition of
property or shares, stock rights offering, liquidation, separation, spinoff, Disaffiliation, extraordinary dividend of cash or other property, or similar event affecting the Company or any of its Subsidiaries (a “ Corporate Transaction “),
the Committee, or the Board shall make such substitutions or adjustments as it deems appropriate and equitable to (i) the aggregate number and kind of Shares or other securities reserved for issuance and delivery under the Plan, (ii) the
various maximum share limitations set forth in Sections 3.1 and 3.3, (iii) the number and kind of Shares or other securities subject to outstanding Awards, and (iv) the exercise price of outstanding Awards. Any fractional Shares resulting
from such adjustment shall be eliminated. Any adjustments determined by the Committee shall be final, binding and conclusive. 

(b) In the event of a stock dividend, stock split, reverse stock split, reorganization, share combination, recapitalization, or similar
event affecting the capital structure of the Company, the Committee or the Board shall make such substitutions or adjustments as it deems appropriate and equitable to (i) the aggregate number and kind of Shares or other securities reserved for
issuance and delivery under the Plan, (ii) the various share maximum limitations set forth in Sections 3.1 and 3.3, (iii) the number and kind of Shares or other securities subject to outstanding Awards, and (iv) the exercise price of
outstanding Awards. Any fractional Shares resulting from such adjustment shall be eliminated. Any adjustments determined by the Committee shall be final, binding and conclusive. 

 (c) In the case of Corporate Transactions, such adjustments may include, without
limitation, (i) the cancellation of outstanding Awards in exchange for payments of cash, property, or a combination thereof having an aggregate value equal to the value (if any) of such Awards, as determined by the Committee or the Board in its
sole discretion (it being understood that, in the case of a Corporate Transaction with respect to which shareholders of Common Stock receive consideration other than publicly traded equity securities of the Surviving Corporation (as defined below in
Section 10.2), any such determination by the Committee that the value of an Option or Stock Appreciation Right shall for this purpose be deemed to equal the excess, if any, of the value of the consideration being paid for each Share pursuant to
such Corporate Transaction over the exercise price of such Option or Stock Appreciation Right shall conclusively be deemed valid), (ii) the substitution of other property (including, without limitation, cash or other securities of the Company
and securities of entities other than the Company) for the Shares subject to outstanding Awards, and (iii) in connection with a Disaffiliation, arranging for the assumption of Awards, or replacement of Awards with new awards based on other
property or other securities (including, without limitation, other securities of the Company and securities of entities other than the Company), by the affected Subsidiary, Affiliate, or division of the Company or by the entity that controls such
Subsidiary, Affiliate, or division of the Company following such Corporate Transaction (as well as any corresponding adjustments to Awards that remain based upon Company securities). For the avoidance of doubt, if the Committee determines that, as
of the date of the Corporate Transaction, the Award has no value, then such Award may be terminated by the Company without payment. 
 (d) The Committee may, in its sole discretion, provide that one or more objectively determinable adjustments shall be made to one or more of the Performance Goals. Such adjustments may include, but
are not limited to, one or more of the following: (i) items related to a change in accounting principle; (ii) items relating to financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other
non-operating items; (v) items related to acquisitions; (vi) items attributable to the business operations of any entity acquired by the Company during the Performance Period; (vii) items related to the disposal or sale of a business
or segment of a business; (viii) items related to discontinued operations that do not qualify as a segment of a business under applicable accounting standards; (ix) items attributable to any stock dividend, stock split, combination or
exchange of stock occurring during the Performance Period; (x) any other items of significant income or expense which are determined to be appropriate adjustments; (xi) items relating to unusual or extraordinary corporate transactions,
events or developments, (xii) items related to amortization of acquired intangible assets; (xiii) items that are outside the scope of the Company’s core, on-going business activities; (xiv) items related to acquired in-process
research and development; (xv) items relating to changes in tax laws; (xvi) items relating to major licensing or partnership arrangements; (xvii) items relating to asset impairment charges; (xviii) items relating to gains or
losses for litigation, arbitration and contractual settlements; or (xix) items relating to any other unusual or 

 
nonrecurring events or changes in applicable laws, accounting principles or business conditions. For all Awards intended to qualify for the Section 162(m) Exemption, such determinations
shall be made within the time prescribed by, and otherwise in compliance with, Section 162(m) of the Code. 
 (e)
Notwithstanding the foregoing: (a) any adjustments made pursuant to Section 3.4 to Awards that are considered “deferred compensation” within the meaning of Section 409A of the Code shall be made in compliance with the
requirements of Section 409A of the Code and (b) any adjustments made pursuant to Section 3.4 to Awards that are not considered “deferred compensation” subject to Section 409A of the Code shall be made in such a manner
as to ensure that, after such adjustment, the Awards either (i) continue not to be subject to Section 409A of the Code, or (ii) comply with the requirements of Section 409A of the Code. 

Section 4. Eligibility. 
 4.1 Eligible Individuals; Incentive Stock Options. Awards may be granted under the Plan to Eligible Individuals; provided, that Incentive Stock Options may be granted only to employees of the
Company and its Subsidiaries or parent corporation (within the meaning of Section 424(f) of the Code). 

Section 5. Options and Stock Appreciation Rights. 
 5.1 Types of Options. Options may be of two types: Incentive Stock Options and Nonqualified Options. The Award Agreement for an Option shall indicate whether the Option is intended to be an
Incentive Stock Option or a Nonqualified Option; provided, that any Option that is designated as an Incentive Stock Option but fails to meet the requirements therefor (as described in Section 5.2 or otherwise), and any Option that is not
expressly designated as intended to be an Incentive Stock Option shall be treated as a Nonqualified Option. 
 5.2 Incentive
Stock Option Limitations. To the extent that the aggregate Fair Market Value, determined at the time of grant, of the Shares with respect to which Incentive Stock Options are exercisable for the first time during any calendar year under the Plan
or any other stock option plan of the Company, any subsidiary corporation (within the meaning of Section 424(f) of the Code), or parent corporation (within the meaning of Section 424(e) of the Code) exceeds $100,000, Options relating to
such Shares in excess of the limit shall be deemed Nonqualified Options. If an ISO Eligible Employee does not remain employed by the Company, any subsidiary corporation (within the meaning of Section 424(f) of the Code), or parent corporation
(within the meaning of Section 424(e) of the Code) at all times from the time an Incentive Stock Option is granted until 3 months prior to the date of exercise thereof (or such other period as required by applicable law), such Option shall be
treated as a Nonqualified Stock Option. Should any provision of the Plan not be necessary in order for any Options to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee may amend the Plan accordingly,
without the necessity of obtaining the approval of the shareholders of the Company. 

 5.3 Types and Nature of Stock Appreciation Rights. Stock Appreciation Rights may be
“Tandem SARs”, which are granted in conjunction with an Option, or “ Free-Standing SARs “, which are not granted in conjunction with an Option. Upon the exercise of a Stock Appreciation Right, the Participant shall be entitled to
receive an amount in cash, Shares, or both, in value equal to the product of (a) the excess of the Fair Market Value of one Share over the exercise price of the applicable Stock Appreciation Right, multiplied by (b) the number of Shares in
respect of which the Stock Appreciation Right has been exercised. The applicable Award Agreement shall specify whether such payment is to be made in cash or Common Stock or both, or shall reserve to the Committee or the Participant the right to make
that determination prior to or upon the exercise of the Stock Appreciation Right. 
 5.4 Tandem SARs. A Tandem SAR may be
granted at the Grant Date of the related Option. A Tandem SAR shall be exercisable only at such time or times and to the extent that the related Option is exercisable in accordance with the provisions of this Section 5, and shall have the same
exercise price as the related Option. A Tandem SAR shall terminate or be forfeited upon the exercise or forfeiture of the related Option, and the related Option shall terminate or be forfeited upon the exercise or forfeiture of the Tandem SAR.

 5.5 Exercise Price. Except in respect of Replacement Awards or Substitute Awards, the exercise price per Share subject
to an Option or Free-Standing SAR shall be determined by the Committee and set forth in the applicable Award Agreement, and shall not be less than the Fair Market Value of a share of the Common Stock on the applicable Grant Date; provided, that if
an Incentive Stock Option is granted to a Ten Percent Shareholder, the exercise price shall be no less than 110% of the Fair Market Value of the Stock on the applicable Grant Date. 

5.6 Term. The Term of each Option and each Free-Standing SAR shall be fixed by the Committee, but shall not exceed 10 years from
the Grant Date. 
 5.7 Vesting and Exercisability. Except as otherwise provided herein, Options and Free-Standing SARs
shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee. Subject to the terms of the Plan and the applicable Award Agreement, in no event shall the vesting schedule of an Option or
Free-Standing SAR provide that such Option or Free-Standing SAR vest prior to the first anniversary of the Grant Date. The minimum vesting periods specified in the preceding sentence shall not apply: (A) to Awards made in payment of earned
performance-based Awards and other earned cash-based incentive compensation; (B) upon a termination of employment due to death, disability or retirement; (C) upon a Change of Control; (D) to a Substitute Award that does not reduce the
vesting period of the award being replaced; or (E) to Awards involving an aggregate number of shares of Common Stock not in excess of five percent of the Shares available for grant as Options or Free-Standing SARs. 

 5.8 Method of Exercise. Subject to the provisions of this Section 5, Options and
Free-Standing SARs may be exercised, in whole or in part, at any time during the applicable Term by giving written notice of exercise to the Company specifying the number of Shares as to which the Option or Free-Standing SAR is being exercised. In
the case of the exercise of an Option, such notice shall be accompanied by payment in full of the purchase price (which shall equal the product of such number of shares multiplied by the applicable exercise price) and an amount equal to any federal,
state, local or foreign withholding taxes. If approved by the Committee (which approval may be set forth in the applicable Award Agreement or otherwise), payment, in full or in part, may be made by certified or bank check or such other instrument or
such other method as the Company may accept, as follows: 
 (a) Payment may be made in the form of Shares (by delivery of such
shares or by attestation) of the same class as the Common Stock subject to the Option already owned by the Participant (based on the Fair Market Value of the Common Stock on the date the Option is exercised); provided that, in the case of an
Incentive Stock Option, the right to make a payment in the form of already owned Shares of the same class as the Common Stock subject to the Option may be authorized only at the time the Option is granted. 

(b) To the extent permitted by applicable law, payment may be made by delivering a properly executed exercise notice to the Company,
together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds necessary to pay the purchase price, and the amount of any federal, state, local, or foreign withholding taxes. To
facilitate the foregoing, the Company may, to the extent permitted by applicable law, enter into agreements for coordinated procedures with one or more brokerage firms. 
 (c) Payment may be made by instructing the Company to withhold a number of Shares having a Fair Market Value (based on the Fair Market Value of the Common Stock on the date the applicable Option is
exercised) equal to the product of (i) the exercise price multiplied by (ii) the number of Shares in respect of which the Option shall have been exercised and an amount equal to any federal, state, local and/or foreign withholding taxes.

 5.9 Delivery; Rights of Shareholders. No Shares shall be delivered pursuant to the exercise of an Option until the
exercise price therefor has been fully paid and applicable taxes have been withheld. The applicable Participant shall have all of the rights of a shareholder of the Company holding the class or series of Common Stock that is subject to the Option or
Stock Appreciation Right (including, if applicable, the right to vote the applicable Shares and the right to receive dividends), when (a) the Company has received a written notice from the Participant of exercise that complies with all
procedures established under this Plan for effective exercise, including, without limitation, completion and delivery of all required forms, (b) the Participant has, if requested, given the representation described in Section 15.1, and
(c) in the case of an Option, the Participant has paid in full for such Shares. 

 5.10 Nontransferability of Options and Stock Appreciation Rights. No Option or
Free-Standing SAR shall be transferable by a Participant other than, for no value or consideration, (a) by will or by the laws of descent and distribution, or (b) in the case of a Nonqualified Option or Free-Standing SAR, as otherwise
expressly permitted by the Committee including, if so permitted, pursuant to a transfer to the Participant’s family members, whether directly or indirectly or by means of a trust or partnership or otherwise. For purposes of this Plan, unless
otherwise determined by the Committee, “family member” shall have the meaning given to such term in General Instructions A.1(a)(5) to Form S-8 under the Securities Act of 1933, as amended, and any successor thereto. A Tandem SAR shall be
transferable only with the related Option and only to the extent the Option is transferable pursuant to the preceding sentence. Any Option or Stock Appreciation Right shall be exercisable, subject to the terms of this Plan, only by the applicable
Participant, the guardian or legal representative of such Participant, or any person to whom such Option or Stock Appreciation Right is permissibly transferred pursuant to this Section 5.10, it being understood that the term
“Participant” includes such guardian, legal representative and other transferee; provided , that the term “Termination of Employment” shall continue to refer to the Termination of Employment of the original Participant.

 5.11 No Dividend or Dividend Equivalents. No dividend or other distribution or award of dividend equivalents may be
granted with respect to any Option or SAR granted under this Plan. 
 5.12 No Repricing. Notwithstanding any other
provision of this Plan other than Section 3.4, the Committee may not, without prior approval of the Company’s stockholders, seek to effect any repricing of any previously granted, “underwater” Option or SAR by: (i) amending
or modifying the terms of the Option or SAR to lower the exercise price; (ii) canceling the underwater Option or SAR and granting either replacement Options or SARs having a lower exercise price; or other Awards or cash in exchange; or
(iii) repurchasing the underwater Options or SARs. For purposes of this Section 5.12, an Option or SAR will be deemed to be “underwater” at any time when the Fair Market Value of the Common Stock is less than the exercise price
of the Option or SAR. 
 Section 6. Restricted Stock (Including Performance-Based Restricted Stock). 

6.1 Nature of Award; Certificates. Shares of Restricted Stock are actual Shares issued to a Participant, and shall be evidenced in
such manner as the Committee may deem appropriate, including book-entry registration or issuance of one or more stock certificates or delivery to an account in the Participant’s name at a broker designated by the Company. “
Performance-Based Restricted Stock “ is an Award of Shares of Restricted Stock, the vesting of which is subject to the attainment of Performance Goals. In the event that the Committee grants Shares of Performance-Based Restricted Stock, the
performance levels to be achieved for each Performance Period and the amount of the Award to be distributed shall be conclusively determined by the Committee. Any certificate issued in respect of Shares of Restricted Stock shall be registered in the
name of the applicable Participant and, in the case of Restricted Stock, shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to 

 
such Award. The Committee may require that the certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed and that, as a condition of
any Award of Restricted Stock, the applicable Participant shall have delivered a stock power, endorsed in blank, relating to the Common Stock covered by such Award. 
 6.2 Terms and Conditions. Shares of Restricted Stock shall be subject to the following terms and conditions: 
 (a) The Committee shall, prior to or at the time of grant, condition the vesting or transferability of an Award of Restricted Stock upon the continued service of the applicable Participant or the
attainment of Performance Goals, or the attainment of Performance Goals and the continued service of the applicable Participant. In the event that the Committee conditions the grant or vesting of an Award of Restricted Stock upon the attainment of
Performance Goals (or the attainment of Performance Goals and the continued service of the applicable Participant), the Committee may, prior to or at the time of grant, designate such an Award as a Qualified Performance-Based Award. The conditions
for grant, vesting, or transferability and the other provisions of Restricted Stock Awards (including without limitation any Performance Goals applicable to Performance-Based Restricted Stock) need not be the same with respect to each Participant.

 (b) Subject to the terms of the Plan and the applicable Award Agreement, any Award of Restricted Stock shall be subject to a
vesting period of at least three years following the date of grant, provided that vesting during a period of at least one year following the date of grant is permissible if vesting is conditioned upon the achievement of Performance Goals, and
provided , further, that an Award may vest in part on a pro rata basis (as specified in the applicable Award Agreement) prior to the expiration of any vesting period. The minimum vesting periods specified in the preceding sentence shall not apply:
(A) to Awards made in payment of earned performance-based Awards and other earned cash-based incentive compensation; (B) upon a termination of employment due to death, disability or retirement; (C) upon a Change of Control;
(D) to a Substitute Award that does not reduce the vesting period of the award being replaced; or (E) to Awards involving an aggregate number of shares of Common Stock not in excess of five percent of Shares available for grant as
Restricted Stock (together with all other Shares available for grant as Full-Value Awards). Subject to the provisions of the Plan and the applicable Award Agreement, during the Restriction Period, the Participant shall not be permitted to sell,
assign, transfer, pledge, or otherwise encumber Shares of Restricted Stock. 

 (c) If any applicable Performance Goals and/or continued service periods are satisfied and
the Restriction Period expires without a prior forfeiture of the Shares of Restricted Stock for which legended certificates have been issued, either (i) unlegended certificates for such Shares shall be delivered to the Participant upon
surrender of the legended certificates, or (ii) such Shares shall be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or delivery to an account in the Participant’s name at a broker
designated by the Company. 
 6.3 Rights of Shareholder. Except as provided in the applicable Award Agreement, the
applicable Participant shall have, with respect to Shares of Restricted Stock, all of the rights of a shareholder of the Company holding the class or series of Common Stock that is the subject of the Restricted Stock, including, if applicable, the
right to vote the Shares and the right to receive any dividends and other distributions, provided, however, that in no event shall a dividend or other distribution or dividend equivalent be paid on Performance-Based Restricted Stock until all
applicable Performance Goals have been attained and the Award has vested. 
 Section 7. Restricted Stock Units
(Including Performance Units). 
 7.1 Nature of Award. Restricted Stock Units are Awards denominated in Shares that
will be settled, subject to the terms and conditions of the applicable Award Agreement, (a) in cash, based upon the Fair Market Value of a specified number of Shares, (b) in Shares, or (c) a combination thereof. “ Performance
Units “ are Restricted Stock Units, the vesting of which are subject to the attainment of Performance Goals. In the event that the Committee grants Performance Units, the performance levels to be achieved for each Performance Period and the
amount of the Award to be distributed shall be conclusively determined by the Committee. 
 7.2 Terms and Conditions.
Restricted Stock Units shall be subject to the following terms and conditions: 
 (a) The Committee shall, prior to or at the
time of grant, condition the grant, vesting, or transferability of Restricted Stock Units upon the continued service of the applicable Participant or the attainment of Performance Goals, or the attainment of Performance Goals and the continued
service of the applicable Participant. In the event that the Committee conditions the grant or vesting of Restricted Stock Units upon the attainment of Performance Goals (or the attainment of Performance Goals and the continued service of the
applicable Participant), the Committee may, prior to or at the time of grant, designate such an Award as a Qualified Performance-Based Award. The conditions for grant, vesting or transferability and the other provisions of Restricted Stock Units
(including without limitation any Performance Goals applicable to Performance Units) need not be the same with respect to each Participant. An Award of Restricted Stock Units shall be settled as and when the Restricted Stock Units vest or at a later
time specified by the Committee or in accordance with an election of the Participant, if the Committee so permits. 

 (b) Subject to the terms of the Plan and the applicable Award Agreement, any Restricted
Stock Units shall be subject to a vesting period of at least three years following the date of grant, provided that vesting during a period of at least one year following the date of grant is permissible if vesting is conditioned upon the
achievement of Performance Goals, and provided , further, that Restricted Stock Units may vest in part on a pro rata basis (as specified in the applicable Award Agreement) prior to the expiration of any vesting period. The minimum vesting periods
specified in the preceding sentence shall not apply: (A) to Awards made in payment of earned performance-based Awards and other earned cash-based incentive compensation; (B) upon a termination of employment due to death, disability or
retirement; (C) upon a Change of Control; (D) to a Substitute Award that does not reduce the vesting period of the award being replaced; or (E) to Awards involving an aggregate number of shares of Common Stock not in excess of five
percent of Shares available for grant as Restricted Stock Units (together with all other Shares available for grant as Full-Value Awards). 
 (c) Subject to the provisions of the Plan and the applicable Award Agreement, during the period, if any, set by the Committee, during the Restriction Period the Participant shall not be permitted to sell,
assign, transfer, pledge, or otherwise encumber Restricted Stock Units. 
 (d) The Award Agreement for Restricted Stock Units
may specify whether, to what extent, and on what terms and conditions the applicable Participant shall be entitled to receive current or deferred payments of cash, Shares, or other property corresponding to the dividends payable on the
Company’s Stock (subject to Section 15.5 below), provided, however, that in no event shall a dividend or other distribution or dividend equivalent be paid on a Performance Unit until all applicable Performance Goals have been attained and
the Award has vested. 

 Section 8. Other Stock-Based Awards (Including Other Stock-Based Performance
Awards). Other Stock-Based Awards may be granted under the Plan, provided that any Other Stock-Based Awards that are Awards of Common Stock that are unrestricted shall only be granted in lieu of other compensation due and payable to the
Participant. “Other Stock-Based Performance Awards” are Other Stock-Based Awards, the vesting of which is subject to the attainment of Performance Goals. In the event that the Committee grants Other Stock-Based Performance Awards, the
performance levels to be achieved for each Performance Period and the amount of the Award to be distributed shall be conclusively determined by the Committee. Subject to the terms of the Plan and the applicable Award Agreement, any Other Stock-Based
Award that is a Full-Value Award (and is not an Award of unrestricted stock) shall be subject to a vesting period of at least three years following the Grant Date; provided that a vesting period of at least one year is permissible if vesting is
conditioned upon the achievement of Performance Goals, and provided , further, that any Other Stock-Based Award may vest in part on a pro rata basis prior to the expiration of any vesting period. The minimum vesting periods specified in the
preceding sentence shall not apply: (A) to Awards made in payment of earned performance-based Awards and other earned cash-based incentive compensation; (B) upon a termination of employment due to death, disability or retirement;
(C) upon a Change of Control; (D) to a Substitute Award that does not reduce the vesting period of the award being replaced; or (E) to Awards involving an aggregate number of shares of Common Stock not in excess of five percent of
Shares available for grant as Other Stock Based-Awards that are Full-Value Awards (together with all other Shares available for grant as Full-Value Awards). In no event shall a dividend or other distribution or dividend equivalent be paid on an
Other-Stock Based Award that is conditioned upon the achievement of Performance Goals until all applicable Performance Goals have been attained and the Award has vested. 
 Section 9. Performance Cash Awards. Performance Cash Awards may be issued under the Plan, for no cash consideration or for such minimum consideration as may be required by applicable law,
either alone or in addition to other Awards. A “Performance Cash Award” is an Award entitling the recipient to payment of a cash amount subject to the attainment of Performance Goals. The Committee may, in connection with the grant of a
Performance Cash Award, designate the Award as a Qualified Performance-Based Award. The conditions for grant or vesting and the other provisions of a Performance Cash Award (including without limitation any applicable Performance Goals) need not be
the same with respect to each Participant. Performance Cash Awards may be paid in cash, Shares, other property or any combination thereof, in the sole discretion of the Committee as set forth in the applicable Award Agreement. The performance levels
to be achieved for each Performance Period and the amount of the Award to be distributed shall be conclusively determined by the Committee. 
 Section 10. Change of Control Provisions. 
 10.1 Impact of
Event. Notwithstanding any other provision of this Plan to the contrary, the provisions of this Section 10 shall apply in the event of a Change of Control, unless otherwise provided in the applicable Award Agreement. 

 (a) Upon a Change of Control, (i) all then-outstanding Options and SARs shall become
fully vested and exercisable, and any Full-Value Award (other than a Performance Award) shall vest in full, be free of restrictions, and be deemed to be earned and immediately payable in an amount equal to the full value of such Award, except in
each case to the extent that another Award meeting the requirements of Section 10.1(b) (any award meeting the requirements of Section 10.1(b), a “ Replacement Award “) is provided to the Participant pursuant to Section 3.4
to replace such Award (any award intended to be replaced by a Replacement Award, a “ Replaced Award “), and (ii) any Performance Award that is not replaced by a Replacement Award shall be deemed to be earned and immediately payable in
an amount equal to the full value of such Performance Award (with all applicable Performance Goals deemed achieved at the greater of (x) the applicable target level and (y) the level of achievement of the Performance Goals for the Award as
determined by the Committee not later than the date of the Change of Control, taking into account performance through the latest date preceding the Change of Control as to which performance can, as a practical matter, be determined (but not later
than the end of the Performance Period)) multiplied by a fraction, the numerator of which is the number of days during the applicable Performance Period before the date of the Change of Control, and the denominator of which is the number of days in
the applicable Performance Period; provided, however, that such fraction shall be equal to one in the event that the applicable Performance Goals in respect of such Performance Award have been fully achieved as of the date of such Change of Control.

 (b) An Award shall meet the conditions of this Section 10.1(b) (and hence qualify as a Replacement Award) if:
(i) it is of the same type as the Replaced Award; (ii) it has a Fair Market Value at least equal to the value of the Replaced Award as of the date of the Change of Control; (iii) if the underlying Replaced Award was an equity-based
award, it relates, following the Change of Control, to publicly traded equity securities of the Company or the Surviving Corporation or the ultimate parent company which results from the Change of Control; and (iv) its other terms and
conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change of Control) as of the date of the Change of Control. Without
limiting the generality of the foregoing, a Replacement Award may take the form of a continuation of the applicable Replaced Award if the requirements of the preceding sentence are satisfied. The determination whether the conditions of this
Section 10.1(b) are satisfied shall be made by the Committee, as constituted immediately before the Change of Control, in its sole discretion. 
 (c) Upon a Termination of Employment of a Participant occurring in connection with or during the two years following the date of a Change of Control, by the Company other than for Cause or by the
Participant for Good Reason, (i) all Replacement Awards held by such Participant shall vest in full, be free of restrictions, and be deemed to be earned and immediately payable in an amount equal to the full value of such Replacement Award, and
(ii) all Options and SARs held by the Participant immediately before the Termination of Employment that the Participant held as of the date of the Change of Control or that constitute Replacement Awards shall remain exercisable until the
earlier of (1) the third anniversary of the Change of Control and (2) the expiration of the stated Term of such Option or SAR; provided, that if the applicable Award Agreement provides for a longer period of exercisability, that provision
shall control. 

 10.2 Definition of Change of Control. For purposes of the Plan, a “Change of
Control” shall mean any of the following events: 
 (a) Any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Act) (a “Person”) becomes the Beneficial Owner (within the meaning of Rule 13d-3 promulgated under the Act) or 30% or more of either (i) the then-outstanding shares of Common Stock of the
Company (the “ Outstanding Company Common Stock “) or (ii) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “ Outstanding Company
Voting Securities “); provided that, for purposes of this subsection (a), the following acquisitions shall not constitute a Change of Control: (1) an acquisition directly from the Company; (2) an acquisition by the Company or a
Subsidiary; (3) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary; (4) any acquisition by an underwriter temporarily holding securities pursuant to an offering of such
securities or (5) an acquisition pursuant to a transaction that complies with Sections 10.2(c)(i), 10.2(c)(ii), and 10.2(c)(iii) below; 
 (b) Individuals who, on the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided that any person
becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific vote
or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be considered an Incumbent Director; but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on
behalf of any Person other than the Board; or 
 (c) The consummation of a reorganization, merger, statutory share exchange or
consolidation (or similar corporate transaction) involving the Company or a Subsidiary, the sale or other disposition of all or substantially all of the Company’s assets, or the acquisition of assets or stock of another entity (a “
Business Combination “), unless immediately following such Business Combination: (i) substantially all of the individuals and entities who were Beneficial Owners, respectively, of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities immediately prior to such Business Combination 

 
beneficially own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of common stock and the total voting power of (A) the corporation resulting from such
Business Combination (the “ Surviving Corporation “) or (B) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 80% or more of the voting securities eligible to elect directors of the
Surviving Corporation (the “ Parent Corporation “), in substantially the same proportion as their ownership, immediately prior to the Business Combination, of the Outstanding Company Common Stock and the Outstanding Company Voting
Securities, as the case may be, (ii) no Person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the Beneficial Owner, directly or indirectly,
of 30% or more of the outstanding shares of common stock and the total voting power of the outstanding securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and
(iii) at least a majority of the members of the Board of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of
the Board’s approval of the initial agreement providing for such Business Combination; or 
 (d) Approval by the
shareholders of the Company of a complete liquidation or dissolution of the Company. 
 10.3 Section 409A of the
Code. Notwithstanding the foregoing, if any Award is subject to Section 409A of the Code, (a) this Section 10 shall be applicable only to the extent specifically provided in the Award Agreement and as permitted pursuant to
Section 11.6; and (b) in respect of any Award subject to Section 409A of the Code, to the extent required to avoid an accelerated or additional tax under Section 409A of the Code, in no event shall a Change of Control be treated
as having occurred if such event is not a “change in control event” for purposes of Section 409A of the Code. 

Section 11. Qualified Performance-Based Awards; Performance Cash Awards. 

11.1 Qualified Performance-Based Awards. The provisions of this Plan are intended to ensure that all Options and Stock Appreciation
Rights granted hereunder to any Participant who is or may be a “covered employee” (within the meaning of Section 162(m)(3) of the Code) in the tax year in which such Option or Stock Appreciation Right is expected to be deductible to
the Company qualify for the Section 162(m) Exemption, and all such Awards shall therefore be considered Qualified Performance-Based Awards and this Plan shall be interpreted and operated consistent with that intention. When granting any Award
other than an Option or Stock Appreciation Right, the Committee may designate such Award as a Qualified Performance-Based Award, based upon a determination that (a) the recipient is or may be a “covered employee” (within the meaning
of Section 162(m)(3) of the Code) with respect to such Award, and (b) the Committee wishes such Award to qualify for the Section 162(m) Exemption, and the terms of any such Award (and of the grant thereof) shall be consistent with
such designation. Within 90 days after the commencement of a Performance Period or, if earlier, prior to the expiration of 25% of a Performance Period, the Committee will designate one or more Performance Periods, determine the Participants for the
Performance Periods, and establish the Performance Goals for the Performance Periods on terms consistent with Section 1.2(ff)(iii). 

 11.2 Performance Goals and Other Conditions. Each Qualified Performance-Based Award
(other than an Option or Stock Appreciation Right) shall be earned, vested, and/or payable (as applicable) upon the achievement of one or more Performance Goals, together with the satisfaction of any other conditions, such as continued employment,
as the Committee may determine to be appropriate. Moreover, no Qualified Performance-Based Award may be amended, nor may the Committee exercise any discretionary authority it may otherwise have under this Plan with respect to a Qualified
Performance-Based Award under this Plan, in any manner that would cause the Qualified Performance-Based Award to cease to qualify for the Section 162(m) Exemption; provided , that (i) the Committee may provide, either in connection with
the grant of the applicable Award or by amendment thereafter, that achievement of such Performance Goals will be waived upon the death or disability of the Participant (or under any other circumstance with respect to which the existence of such
possible waiver will not cause the Award to fail to qualify for the Section 162(m) Exemption), and (ii) the provisions of Section 10 shall apply notwithstanding this Section 11.2. 

11.3 Limits on Board and Administrator Authority. Neither the full Board nor the Administrator shall be permitted to exercise
authority granted to the Committee to the extent that the grant or exercise of such authority to or by the Board or the Administrator would cause an Award designated as a Qualified Performance-Based Award not to qualify for, or to cease to qualify
for, the Section 162(m) Exemption. 
 11.4 Section 16(b). The provisions of this Plan are intended to ensure
that no transaction under the Plan is subject to (and not exempt from) the short-swing recovery rules of Section 16(b) of the Act (“ Section 16(b) “). Accordingly, the composition of the Committee shall be subject to such
limitations as the Board deems appropriate to permit transactions pursuant to this Plan to be exempt (pursuant to Rule 16b-3 promulgated under the Act) from Section 16(b), and no delegation of authority by the Committee shall be permitted if
such delegation would cause any such transaction to be subject to (and not exempt from) Section 16(b). 
 11.5 Awards
Valid Notwithstanding Committee Composition. Notwithstanding any other provision of the Plan to the contrary, if for any reason the appointed Committee does not meet the requirements of Rule 16b-3 or Section 162(m) of the Code, such
noncompliance with the requirements of Rule 16b-3 and Section 162(m) of the Code shall not affect the validity of Awards, grants, interpretations of the Plan, or other actions of the Committee. 

 11.6 Section 409A of the Code. 

(a) It is the intention of the Company that no Award shall be “deferred compensation” subject to Section 409A of the Code,
unless and to the extent that the Committee specifically determines otherwise as provided in the immediately following sentence, and the Plan and the terms and conditions of all Awards shall be interpreted accordingly. The terms and conditions
governing any Awards that the Committee determines will be subject to Section 409A of the Code, including any rules for elective or mandatory deferral of the delivery of cash or Shares pursuant thereto and any rules regarding treatment of such
Awards in the event of a Change of Control, shall be set forth in the applicable Award Agreement, and shall comply in all respects with Section 409A of the Code. In no event whatsoever shall the Company be liable for any additional tax,
interest or penalty that may be imposed on a Participant by Section 409A of the Code or damages for failing to comply with Section 409A of the Code. 
 (b) The intent of the parties is that payments and benefits under this Plan comply with Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this
Plan shall be interpreted and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary, a Participant shall not be considered to have terminated employment with the Company for purposes of any payments
under the Plan which are subject to Section 409A of the Code until the Participant has incurred a “separation from service” from the Company within the meaning of Section 409A of the Code. Each amount to be paid or benefit to be
provided under this Plan shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order
to avoid an accelerated or additional tax under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Plan during the six-month period immediately following a
Participant’s separation from service shall instead be paid on the first business day after the date that is six months following the Participant’s separation from service (or, if earlier, the Participant’s date of death). The Company
makes no representation that any or all of the payments described in this Plan will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment.

 Section 12. Term, Amendment, and Termination. 

12.1 Effectiveness. The Plan was approved by the Board on June 20, 2013 (the “Effective Date”), subject to and
contingent upon approval by the shareholders of the Company. 
 12.2 Termination. The Plan will terminate on the tenth
anniversary of the Effective Date. Awards outstanding as of such termination date shall not be affected or impaired by the termination of the Plan. 
 12.3 Amendment of Plan. The Board or the Committee may amend, alter, or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made which would materially impair the rights
of any Participant with respect to a previously granted Award without such Participant’s consent, except such an amendment made to comply with applicable law, including, without limitation, Section 409A of the Code, Section 162(m) of
the Code, 

 
Section 422 of the Code, stock exchange rules or accounting rules. In addition, no such amendment shall be made without the approval of the Company’s shareholders to the extent that
such approval is required by applicable law or by the listing standards of the Applicable Exchange. 
 12.4 Amendment of
Awards. Subject to Section 5.12, the Committee may unilaterally amend the terms of any Award theretofore granted; provided, however, that no such amendment shall cause a Qualified Performance-Based Award to cease to qualify for the
Section 162(m) Exemption. Subject to the foregoing, the amendment authority of the Committee shall include, without limitation, the authority to modify the number of Shares or other terms and conditions of an Award; extend the term of an Award;
accelerate the exercisability or vesting or otherwise terminate any restrictions relating to an Award; accept the surrender of any outstanding Award; and, to the extent not previously exercised or vested, authorize the grant of new Awards in
substitution for surrendered Awards; provided, however that (a) the amended or modified terms are permitted by the Plan as then in effect; (b) any Participant adversely affected by such amended or modified terms shall have consented to
such amendment or modification unless such amendment is necessary to comply with applicable law, including, without limitation, Section 409A of the Code, Section 162(m) of the Code, Section 422 of the Code, stock exchange rules or
accounting rules; and (c) the authority to accelerate the exercisability or vesting or otherwise terminate restrictions relating to an Award may be exercised only in connection with a Participant’s death, disability or retirement, in
connection with a Change of Control, or to the extent such actions involve an aggregate number of shares of Common Stock not in excess of 5% of the number of shares available for Awards. 

Section 13. Forfeiture. 
 13.1 Forfeiture. All Awards under this Plan shall be subject to forfeiture or other penalties pursuant (a) to the Medtronic, Inc. Incentive Compensation Forfeiture Policy, as amended from time
to time, and (b) such other forfeiture and/or penalty conditions and provisions as determined by the Committee and set forth in the applicable Award Agreement. 
 13.2 Effect of Change of Control. Notwithstanding the foregoing provisions, unless otherwise provided by the Committee in the applicable Award Agreement or required by applicable law, this
Section 13 shall not be applicable to any Participant following a Change of Control. 

 Section 14. Unfunded Status of Plan. Unfunded Status; Committee Authority. It is
presently intended that the Plan will constitute an “unfunded” plan for incentive and deferred compensation. The Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver
Shares or make payments; provided , that unless the Committee otherwise determines, the existence of such trusts or other arrangements is consistent with the “unfunded” status of the Plan . 

Section 15. General Provisions. 
 15.1 Conditions for Issuance. The Committee may require each Participant purchasing or receiving Shares pursuant to an Award to represent to and agree with the Company in writing that such person
is acquiring the Shares without a view to the distribution thereof. The certificates for such Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer. Notwithstanding any other provision of the
Plan or agreements made pursuant thereto, the Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to fulfillment of all of the following conditions: (a) listing or approval for
listing upon notice of issuance of such Shares on the Applicable Exchange, (b) any registration or other qualification of such Shares of the Company under any state or federal law or regulation, or the maintaining in effect of any such
registration or other qualification which the Committee shall, in its absolute discretion upon the advice of counsel, deem necessary or advisable, and (c) obtaining any other consent, approval, or permit from any state or federal governmental
agency which the Committee shall, in its absolute discretion after receiving the advice of counsel, determine to be necessary or advisable. 
 15.2 Additional Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Subsidiary or Affiliate from adopting other or additional compensation arrangements for its
employees. 
 15.3 No Contract of Employment. The Plan shall not constitute a contract of employment, and adoption of the
Plan shall not confer upon any employee any right to continued employment, nor shall it interfere in any way with the right of the Company or any Subsidiary or Affiliate to terminate the employment of any employee at any time. 

15.4 Required Taxes. No later than the date as of which an amount first becomes includible in the gross income of a Participant for
federal, state, local, or foreign income or employment or other tax purposes with respect to any Award under the Plan, such Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any federal,
state, local, or foreign taxes of any kind required by law to be withheld with respect to such amount. Unless otherwise determined by the Company, withholding obligations may be settled with Shares, including Shares that are part of the Award that
gives rise to the withholding requirement, having a Fair Market Value on the date of withholding equal to [the minimum amount (and not any greater amount)] required to be withheld for tax purposes, all in accordance with such procedures as the
Committee establishes. The obligations of the Company under the Plan shall be conditioned on such payment or arrangements, and the 

 
Company and its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to such Participant. The Committee may establish such
procedures as it deems appropriate, including making irrevocable elections, for the settlement of withholding obligations with Common Stock. 
 15.5 Limit on Dividend Reinvestment and Dividend Equivalents. Reinvestment of dividends in additional Restricted Stock Units to be settled in Shares, and the payment of Shares with respect to
dividends to Participants holding Awards of Restricted Stock Units, shall only be permissible if sufficient Shares are available under Section 3 for such reinvestment or payment (taking into account then outstanding Awards). In the event that
sufficient Shares are not available for such reinvestment or payment, such reinvestment or payment shall be made in the form of a grant of Restricted Stock Units equal in number to the Restricted Stock Units or Shares that would have been obtained
by such payment or reinvestment, the terms of which Restricted Stock Units shall provide for settlement in cash and for dividend equivalent reinvestment in further Restricted Stock Units on the terms contemplated by this Section 15.5.

 15.6 Written Materials; Electronic Documents. Electronic documents may be substituted for any written materials
required by the terms of the Plan, including, without limitation, Award Agreements. 
 15.7 Designation of Death
Beneficiary. The Committee shall establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable in the event of such Participant’s death are to be paid or by whom any rights of
such Participant after such Participant’s death may be exercised. If no beneficiary designation is in effect for a Participant at the time or his or her death, any such amounts shall be paid to, and any such rights may be exercised by, the
estate of the Participant. 
 15.8 Subsidiary Employees. In the case of a grant of an Award to any employee of a
Subsidiary of the Company, the Company may, if the Committee so directs, issue or transfer the Shares, if any, covered by the Award to the Subsidiary, for such lawful consideration as the Committee may specify, upon the condition or understanding
that the Subsidiary will transfer the Shares to the employee in accordance with the terms of the Award specified by the Committee pursuant to the provisions of the Plan. All Shares underlying Awards that are forfeited or canceled shall revert to the
Company. 
 15.9 Governing Law. The Plan and all Awards made and actions taken thereunder shall be governed by and
construed in accordance with the laws of the State of Minnesota, without reference to principles of conflict of laws. 
 15.10
Non-Transferability. Except as otherwise provided in Section 5.10 or by the Committee, Awards under the Plan are not transferable except by will or by laws of descent and distribution. 

 15.11 Foreign Employees and Foreign Law Considerations. The Committee may grant
Awards to Eligible Individuals who are foreign nationals, who are located outside the United States, who are United States citizens or resident aliens on global assignments in foreign nations, who are not compensated from a payroll maintained in the
United States, or who are otherwise subject to (or could cause the Company to be subject to) legal or regulatory provisions of countries or jurisdictions outside the United States, on such terms and conditions different from those specified in the
Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote achievement of the purposes of the Plan, and, in furtherance of such purposes, the Committee may make such modifications, amendments, procedures, or
subplans as may be necessary or advisable to comply with such legal or regulatory provisions. 
 15.12 No Rights to Awards;
Non-Uniform Determinations. No Participant or Eligible Individual shall have any claim to be granted any Award under the Plan. The Company, its Affiliates, or the Committee shall not be obligated to treat Participants or Eligible Individuals
uniformly, and determinations made under the Plan may be made by the Committee selectively among Participants and/or Eligible Individuals, whether or not such Participants and Eligible Individuals are similarly situated. Awards under a particular
Section of the Plan need not be uniform between and among Participants. 
 15.13 Relationship to Other Benefits. No
payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare, or benefit plan of the Company or any Affiliate unless provided otherwise in such plan.

 15.14 Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries or
Affiliates. 
 15.15 Titles and Headings. The titles and headings of the Sections in the Plan are for convenience of
reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

15.16 Fractional Shares. No fractional Shares shall be issued under the Plan. 

15.17 Government and Other Regulations. 
 Notwithstanding any other provision of the Plan: 
 (a) No Participant who acquires
Shares pursuant to the Plan may, during any period of time that such Participant is an affiliate of the Company (within the meaning of regulations promulgated pursuant to the Securities Act of 1933 (the “ 1933 Act “)), offer or sell such
Shares, unless such offer and sale are made (i) pursuant to an effective registration statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration
requirements of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act. 

 (b) If at any time the Committee shall determine that the registration, listing, or
qualification of the Shares covered by an Award upon the Applicable Exchange or under any foreign, federal, state, or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of,
or in connection with, the granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered, or received pursuant to such Award unless and until such registration, listing, qualification, consent, or
approval shall have been effected or obtained free of any condition not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and furnish such information as
the Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to the
Committee’s determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any Shares or any other securities pursuant to the 1933 Act or applicable state or foreign law or to take any
other action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation, or requirement. 
 15.18 Additional Provisions. Each Award Agreement may contain such other terms and conditions as the Committee may determine; provided that such other terms and conditions are not inconsistent with
the provisions of the Plan. 
 15.19 No Limitations on Rights of the Company. The grant of any Award shall not in any way
affect the right or power of the Company to make adjustments, reclassifications, or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell, or transfer all or any part of its business or assets. The Plan
shall not restrict the authority of the Company, for proper corporate purposes, to draft, grant, or assume Awards, other than under the Plan, with respect to any person. 
 15.20 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 15.21 Blackout
Periods. Notwithstanding any other provision of this Plan or any Award to the contrary, the Company shall have the authority to establish any “blackout” period that the Company deems necessary or advisable with respect to any or all
Awards.

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