Document:

Exhibit 4.22

 

 

EXECUTION VERSION

 

CONFIDENTIAL

 

Dated 24 January 2011

 

Restructuring Agreement

 

in relation to Danaos Corporation and its group

 

Norton Rose LLP
 3 More London Riverside
 London SE1 2AQ
 United Kingdom

 

 

Contents

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1 - INTERPRETATION
    	
2
    
	
 
    	
 
    	
 
    
	
1
    	
Definitions and interpretation
    	
2
    
	
 
    	
 
    	
 
    
	
SECTION 2 - RESTRUCTURING
    	
30
    
	
 
    	
 
    	
 
    
	
2
    	
Conditions of effectiveness
    	
30
    
	
 
    	
 
    	
 
    
	
3
    	
Restructuring
    	
30
    
	
 
    	
 
    	
 
    
	
4
    	
Termination
    	
33
    
	
 
    	
 
    	
 
    
	
5
    	
Variation of the Finance Documents
    	
35
    
	
 
    	
 
    	
 
    
	
6
    	
Amendments and Most Favoured Lender
    	
40
    
	
 
    	
 
    	
 
    
	
7
    	
New Money Facility Agreements and Existing Hedging   Agreements
    	
41
    
	
 
    	
 
    	
 
    
	
8
    	
Exclusion of liability and release of the   Participating Lenders
    	
41
    
	
 
    	
 
    	
 
    
	
SECTION 3 - PRICING, INDEMNITIES AND FEES
    	
44
    
	
 
    	
 
    	
 
    
	
9
    	
Interest
    	
44
    
	
 
    	
 
    	
 
    
	
10
    	
Interest Periods
    	
45
    
	
 
    	
 
    	
 
    
	
11
    	
Changes to the calculation of interest
    	
45
    
	
 
    	
 
    	
 
    
	
12
    	
Tax gross-up and indemnities
    	
48
    
	
 
    	
 
    	
 
    
	
13
    	
Other indemnities
    	
50
    
	
 
    	
 
    	
 
    
	
14
    	
Costs and expenses
    	
51
    
	
 
    	
 
    	
 
    
	
SECTION 4 - REPAYMENT, PREPAYMENT AND   CANCELLATION
    	
53
    
	
 
    	
 
    	
 
    
	
15
    	
Repayment
    	
53
    
	
 
    	
 
    	
 
    
	
16
    	
Cash Management
    	
59
    
	
 
    	
 
    	
 
    
	
17
    	
Illegality, voluntary prepayment and cancellation
    	
59
    
	
 
    	
 
    	
 
    
	
18
    	
Mandatory prepayment
    	
60
    
	
 
    	
 
    	
 
    
	
19
    	
Restrictions
    	
68
    
	
 
    	
 
    	
 
    
	
SECTION 5 - FINANCIAL COVENANTS
    	
70
    
	
 
    	
 
    	
 
    
	
20
    	
Financial covenants
    	
70
    
	
 
    	
 
    	
 
    
	
SECTION 6 - REPRESENTATIONS, UNDERTAKINGS AND   EVENTS OF DEFAULT
    	
79
    
	
 
    	
 
    	
 
    
	
21
    	
Representations and Warranties
    	
79
    
				

 

 

	
22
    	
Information undertakings
    	
84
    
	
 
    	
 
    	
 
    
	
23
    	
General undertakings
    	
91
    
	
 
    	
 
    	
 
    
	
24
    	
Sinosure Vessels covenants
    	
99
    
	
 
    	
 
    	
 
    
	
SECTION 7 - EVENTS OF DEFAULT AND ENFORCEMENT
    	
101
    
	
 
    	
 
    	
 
    
	
25
    	
Events of Default
    	
101
    
	
 
    	
 
    	
 
    
	
26
    	
Consequences of an Event of Default
    	
104
    
	
 
    	
 
    	
 
    
	
27
    	
Application of proceeds of Shared Security Document
    	
107
    
	
 
    	
 
    	
 
    
	
SECTION 8 - INTRA-GROUP LIABILITIES
    	
110
    
	
 
    	
 
    	
 
    
	
28
    	
Intra-Group Lenders and Intra-Group Liabilities
    	
110
    
	
 
    	
 
    	
 
    
	
29
    	
Effect of Insolvency Event
    	
111
    
	
 
    	
 
    	
 
    
	
30
    	
Turnover of receipts
    	
112
    
	
 
    	
 
    	
 
    
	
31
    	
Intra-Group Lenders: power of attorney
    	
113
    
	
 
    	
 
    	
 
    
	
SECTION 9 - CHANGES TO PARTIES
    	
114
    
	
 
    	
 
    	
 
    
	
32
    	
Changes to the Parties
    	
114
    
	
 
    	
 
    	
 
    
	
33
    	
Change of Intercreditor Agent and Delegation
    	
116
    
	
 
    	
 
    	
 
    
	
34
    	
Debt Purchase Transactions
    	
118
    
	
 
    	
 
    	
 
    
	
SECTION 10 - THE FINANCE PARTIES
    	
120
    
	
 
    	
 
    	
 
    
	
35
    	
Role of the Intercreditor Agent and others
    	
120
    
	
 
    	
 
    	
 
    
	
36
    	
Role of the Account Bank
    	
120
    
	
 
    	
 
    	
 
    
	
37
    	
Conduct of business by the Finance Parties
    	
121
    
	
 
    	
 
    	
 
    
	
38
    	
Sharing among the Finance Parties
    	
121
    
	
 
    	
 
    	
 
    
	
SECTION 11 - ADMINISTRATION
    	
123
    
	
 
    	
 
    	
 
    
	
39
    	
Payment mechanics
    	
123
    
	
 
    	
 
    	
 
    
	
40
    	
Set-off
    	
125
    
	
 
    	
 
    	
 
    
	
41
    	
Notices
    	
125
    
	
 
    	
 
    	
 
    
	
42
    	
Calculations and certificates
    	
128
    
	
 
    	
 
    	
 
    
	
43
    	
Partial invalidity
    	
128
    
	
 
    	
 
    	
 
    
	
44
    	
Remedies and waivers
    	
128
    
	
 
    	
 
    	
 
    
	
45
    	
Amendments and waivers
    	
128
    
	
 
    	
 
    	
 
    
	
46
    	
Confidentiality
    	
129
    

 

 

	
47
    	
Counterparts
    	
132
    
	
 
    	
 
    	
 
    
	
SECTION 12 - GOVERNING LAW AND ENFORCEMENT
    	
133
    
	
 
    	
 
    	
 
    
	
48
    	
Governing law
    	
133
    
	
 
    	
 
    	
 
    
	
49
    	
Enforcement
    	
133
    
	
 
    	
 
    	
 
    
	
Schedule 1 The Original Parties
    	
134
    
	
 
    	
 
    
	
Schedule 2 Fixed Amortisation Schedule
    	
157
    
	
 
    	
 
    
	
Schedule 3 Existing Facility Agreements and Existing Hedging   Agreements
    	
159
    
	
 
    	
 
    
	
Schedule 4 New Money Facility Agreements
    	
168
    
	
 
    	
 
    
	
Schedule 5 Conditions Precedent
    	
171
    
	
 
    	
 
    
	
Schedule 6 Form of Group Company Accession Deed
    	
175
    
	
 
    	
 
    
	
Schedule 7 Form of Creditor/Agent Accession Undertaking
    	
177
    
	
 
    	
 
    
	
Schedule 8 Intercreditor Voting Schedule
    	
178
    
	
 
    	
 
    
	
Schedule 9 Intercreditor Agent
    	
180
    
	
 
    	
 
    
	
Schedule 10 Forms of Notifiable Debt Purchase Transaction Notice
    	
189
    
	
 
    	
 
    
	
Schedule 11 Timetables
    	
191
    
	
 
    	
 
    
	
Schedule 12 Form of Compliance Certificate
    	
192
    
	
 
    	
 
    
	
Schedule 13 Mandatory Cost formula
    	
193
    
	
 
    	
 
    
	
Schedule 14 Security Documents
    	
195
    
	
 
    	
 
    
	
Schedule 15 Hedging Strategy
    	
210
    
	
 
    	
 
    
	
Schedule 16 Amended and Restated Existing Hedging Agreements
    	
214
    
	
 
    	
 
    
	
Schedule 17 Sinosure
    	
227
    

 

 

THIS AGREEMENT is dated 24 January 2011

 

AND MADE BY

 

(1)                      DANAOS CORPORATION a company domesticated and existing under the laws of the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, The Marshall Islands MH 96960 (the Company);

 

(2)                      THE SUBSIDIARIES of the Company listed in Part 1a of Schedule 1 (The Original Parties) as original guarantors and security providers (the Original Group Companies);

 

(3)                      THE ROYAL BANK OF SCOTLAND PLC as intercreditor agent and security trustee of the Participating Lenders (the Intercreditor Agent);

 

(4)                      THE ROYAL BANK OF SCOTLAND PLC as account bank for the Participating Lenders (the Account Bank);

 

(5)                      THE FINANCIAL INSTITUTIONS listed in Part 2 of Schedule 1 (The Original Parties) as participating lenders (the Original Participating Lenders);

 

(6)                      THE FINANCIAL INSTITUTIONS listed in Part 3, of Schedule 1 (The Original Parties) as relevant facility agents (the Original Relevant Facility Agents);

 

(7)                      THE FINANCIAL INSTITUTIONS listed in Part 4 of Schedule 1 (The Original Parties) as relevant security trustees (the Original Relevant Security Trustees);

 

(8)                      THE PERSONS listed in Part 5 of Schedule 1 (The Original Parties) as hedge counterparties (the Original Hedge Counterparties); and

 

(9)                      THE FINANCIAL INSTITUTIONS listed in Part 6 of Schedule 1 (The Original Parties) as further finance parties (the Original Further Finance Parties).

 

RECITALS

 

(A)                  The Company (on behalf of itself and each of the Original Group Companies) has been in negotiations with the Participating Lenders with the objective of implementing a restructuring of the Group and certain payment obligations.

 

(B)                    The Parties have entered into this Agreement in order to document the agreement reached in relation to such restructuring.

 

(C)                    This Agreement will, subject to its terms, amend certain provisions of the Existing Facility Agreements as set out in this Agreement.

 

(D)                   From the Closing Date, each Facility Agreement must be read and construed together with this Agreement.

 

IT IS AGREED as follows:

 

1

 

SECTION 1 - INTERPRETATION

 

1                              Definitions and interpretation

 

Definitions

 

1.1                      In this Agreement, unless the context otherwise requires:

 

1992 ISDA Master Agreement means the Master Agreement (Multicurrency - Cross Border) as published by the International Swaps and Derivatives Association, Inc.

 

2002 ISDA Master Agreement means the 2002 Master Agreement as published by the International Swaps and Derivatives Association, Inc.

 

Acceptable Bank means:

 

(a)                        a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of A or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or A2 or higher by Moody’s Investor Services Limited or a comparable rating from an internationally recognised credit rating agency; or

 

(b)                       any other bank or financial institution approved by the Relevant Finance Parties

 

Accounting Principles means generally accepted accounting principles in the United States of America including, after its adoption by the Company, IFRS

 

Accounting Reference Date means 31 December in each year

 

Additional Group Company means a company which accedes to this Agreement in accordance with clause 32.10 (Additional Group Companies)

 

Additional HSH Second Lien Vessel means the following Vessels:

 

(a)                        the Deva (formerly Bunga Raya Tujuh), a 4,253 TEU vessel currently chartered to Maersk B.V.;

 

(b)                       the CSCL Europe, a 8,468 TEU vessel currently chartered to China Shipping Container Lines (Asia) Co., Ltd; and

 

(c)                        the CSCL Pusan, a 9,580 TEU vessel currently chartered to China Shipping Container Lines (Asia) Co., Ltd,

 

each of which shall secure all amounts owed to the Participating Lenders and any other Finance Parties (who are parties to the relevant agreement) under the HSH Facility Agreement (as defined in Schedule 3 (Existing Facility Agreements and Existing Hedging Agreements)) and the New HSH Facility Agreement (as defined in Schedule 4 (New Money Facility Agreements)) and any Hedging Agreement entered into in accordance with those Facility Agreements (an Additional HSH Second Lien Vessel Finance Party)

 

Additional RBS Second Lien Vessel means the following Vessels:

 

(a)                        the Bunga Raya Tiga, a 4,253 TEU vessel currently chartered to Malaysia International Shipping Corporation;

 

(b)                       the CSCL America, a 8,468 TEU vessel currently chartered to China Shipping Container Lines (Asia) Co., Ltd; and

 

2

 

(c)                        the CSCL Le Havre, a 9,580 TEU vessel currently chartered to China Shipping Container Lines (Asia) Co., Ltd,

 

each of which shall secure all amounts owed to the Participating Lenders and any other Finance Parties (who are parties to the relevant agreement) under the RBS Facility Agreement (as defined in Schedule 3 (Existing Facility Agreements and Existing Hedging Agreements)) and the New RBS Facility Agreement (as defined in Schedule 4 (New Money Facility Agreements)) and any Hedging Agreement entered into in accordance with those Facility Agreements (an Additional RBS Second Lien Vessel Finance Party)

 

Additional Second Lien Intercreditor Agreements means the HSH Intercreditor Agreements and the RBS Intercreditor Agreements

 

Affiliate means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of such a Holding Company

 

Annual Financial Statements has the meaning given to it in clause 22.3(a) (Financial statements)

 

Applicable Second Lien Vessel is an Additional HSH Second Lien Vessel or an Additional RBS Second Lien Vessel

 

Applicable Second Lien Vessel Finance Party means an Additional HSH Second Lien Vessel Finance Party or an Additional RSB Second Lien Vessel Finance Party

 

Approved Budget has the meaning given to it in clause 15.12

 

Associate has the meaning given to that in section 435 of the Insolvency Act 1986 of England and Wales provided that only sub-sections (2) and (5) of such section shall apply insofar as it relates to the definition of Coustas Family

 

Auditors means one of PricewaterhouseCoopers, Ernst & Young, KPMG or Deloitte & Touche or any other firm approved as auditors for the Company in advance by the Majority Participating Lenders (such approval not to be unreasonably withheld or delayed)

 

Authorisation means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration

 

Balancing Payment has the meaning given to it in clause 15.8 (Balancing Payment calculation)

 

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

 

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

 

exceeds:

 

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

 

3

 

Budget means:

 

(a)                        in relation to the period up to 31 December 2010 and the Financial Year ending 31 December 2011, the budget delivered by the Company to the Participating Lenders pursuant to clause 2.1 (Conditions precedent); and

 

(b)                       in relation to any other period, any budget delivered by the Company in respect of that period pursuant to clause 22.11 (Budget)

 

Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business in Amsterdam, Athens, Basel, Hamburg, London and New York

 

Cash means, at any time, cash denominated in US Dollars (or any other currency which is freely transferable and freely convertible) in hand or at bank and (in the latter case) credited to an account in the name of any Group Company with an Acceptable Bank or a Participating Lender and to which the relevant Group Company is alone beneficially entitled and, where held in an account rather than in hand, for so long as:

 

(a)                        that cash is repayable within 30 days after the relevant date of calculation;

 

(b)                       repayment of that cash is not contingent on the prior discharge of any other indebtedness of any Group Company or of any other person whatsoever or on the satisfaction of any other condition;

 

(c)                        there is no Security over that cash except for any Security or netting or set-off arrangement entered into by any Group Company, which is permitted under clause 23.10(c); and

 

(d)                       the cash is freely and (except as mentioned in paragraph (a) above) immediately available to be applied in repayment or prepayment of the Facilities

 

Cash Cover has the meaning given to it in clause 18.5

 

Cash Equivalent means at any time:

 

(a)                        certificates of deposit maturing within one year after the relevant date of calculation and issued by an Acceptable Bank or a Participating Lender;

 

(b)                       any investment in marketable debt obligations issued or guaranteed by the government of the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State (provided always that any such government has a rating for its long-term unsecured and non credit-enhanced debt obligations of A or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or A2 or higher by Moody’s Investor Services Limited or a comparable rating from an internationally recognised credit rating agency) or by an instrumentality or agency of any of them having an equivalent credit rating, maturing within one year after the relevant date of calculation and not convertible or exchangeable to any other security;

 

(c)                        commercial paper not convertible or exchangeable to any other security:

 

(i)                          for which a recognised trading market exists;

 

(ii)                       issued by an issuer incorporated in the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State;

 

4

 

(iii)                    which matures within one year after the relevant date of calculation; and

 

(iv)                   which has a credit rating of either A-1 or higher by Standard & Poor’s Rating Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor Services Limited, or, if no rating is available in respect of the commercial paper, the issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt obligations, an equivalent rating;

 

(d)                       any investment in money market funds which (i) have a credit rating of either A-1 or higher by Standard & Poor’s Rating Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor Services Limited, (ii) which invest substantially all their assets in securities of the types described in paragraphs (a) to (c) above and (iii) can be turned into cash on not more than 30 days’ notice; or

 

(e)                        any other debt security approved by the Majority Participating Lenders,

 

in each case, denominated in US Dollars (or any other currency which is freely transferable and freely convertible) and to which the Company is alone beneficially entitled at that time and which is not issued or guaranteed by any Group Company or subject to any Security (other than Security arising under the Restructuring Documents or any Security permitted under clause 23.10(c) constituted by a netting or set-off arrangement entered into by the Company in the ordinary course of its banking arrangements)

 

Change of Control shall be deemed to occur if:

 

(a)                        the Coustas Family does not at any time own and control (either directly or through companies beneficially owned by them or trusts or foundations of which members of the Coustas Family are beneficiaries) at least one third plus one share of the Company’s issued voting share capital;

 

(b)                       Dr John Coustas ceases to be the Chief Executive Officer of the Company, unless this is due to his death or disability and, in such case, a replacement person is appointed by the Company’s board of directors, following consultation with the Participating Lenders (through the Relevant Finance Parties), in accordance with the applicable corporate policy of the Company within 60 days and has given a legally binding acceptance of an offer of employment and, if appropriate, resigned from his existing employment within that time period. This paragraph shall also apply to any replacement person as if references to Dr. John Coustas were references to that replacement person;

 

(c)                        whilst an Event of Default is continuing, there is a Change of SPC Control;

 

(d)                       the shares of the Company cease to be listed on NYSE or NASDAQ or any recognised investment exchange (as that term is used in the Financial Services and Markets Act 2000); or

 

(e)                        a proportion of the issued voting share capital of the Company is held, legally or beneficially, by one or more persons who are not members of the Coustas Family or other owning entities referred to in paragraph (a) above and who, either individually or when acting in concert, control more than 20% of the voting rights in the Company

 

For these purposes, acting in concert means a group of persons who, pursuant to a formal agreement or understanding, actively co-operate:

 

(A)                    in the exercise of voting rights attached to shares directly or indirectly controlled by them; or

 

5

 

(B)                      through the ownership or acquisition directly or indirectly of such shares by any of them, either directly or indirectly, to obtain or consolidate control over such shares

 

Change of SPC Control means a change in the ultimate beneficial ownership of any shares in any Group Company (other than the Company) or ultimate control of voting rights of any of those shares

 

Close-Out Netting means:

 

(a)                        in respect of a Hedging Agreement based on a 1992 ISDA Master Agreement, any step involved in determining the amount payable in respect of an Early Termination Date (as defined in the 1992 ISDA Master Agreement) under section 6(e) of the 1992 ISDA Master Agreement before the application of any subsequent set-off (as defined in the 1992 ISDA Master Agreement);

 

(b)                       in respect of any Hedging Agreement based on a 2002 ISDA Master Agreement, any step involved in determining an Early Termination Amount (as defined in the 2002 ISDA Master Agreement) under section 6(e) of the 2002 ISDA Master Agreement; and

 

(c)                        in respect of any Hedging Agreement not based on an ISDA Master Agreement, any step involved on a termination of the hedging transactions under that Hedging Agreement pursuant to any provision of that Hedging Agreement which has a similar effect to the provision referenced in paragraph (a) and paragraph (b) above

 

Closing Date means the date on which the Intercreditor Agent provides the notification that conditions precedent have been satisfied pursuant to clause 2.1 (Conditions precedent)

 

Commitment means:

 

(a)                        in relation to an Original Participating Lender, the amount set opposite its name in Part 2 of Schedule 1 (The Original Parties) and the amount of any other Commitment transferred to it under a Facility Agreement or any commitment under a Qualifying Refinancing Agreement; and

 

(b)                       in relation to any other Participating Lender, the amount of any Commitment transferred to it under a Facility Agreement or a Qualifying Refinancing Agreement,

 

to the extent not cancelled, reduced or transferred by it under a Facility Agreement or a Qualifying Refinancing Agreement

 

Commitment Fee Letter means the fee letter dated 6 August 2010 as amended prior to the date of this Agreement between the Company and the Original Participating Lenders

 

Commitment Letter means the commitment letter dated 6 August 2010 (as amended on 5 November 2010 and on 15 December 2010) between the Company and Original Participating Lenders in relation to the Transaction

 

Common Account means a Holding Account, a Mandatory Prepayment Account or a Surplus Cash Account

 

Company Affiliate means each member of the Coustas Family, each of their Associates, any trust of which a member of the Coustas Family or any of their Associates is a trustee, any partnership of which a member of the Coustas Family or any of their Associates is a partner and any trust, fund or other entity which is managed

 

6

 

by, or is under the control of, a member of the Coustas Family or any of their Associates

 

Compliance Certificate means a certificate substantially in the form set out in Schedule 12 (Form of Compliance Certificate)

 

Confidential Information means all information relating to the Company, any Group Company, the Group or the Finance Documents of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents from either:

 

(a)                        any Group Company or any of its advisers; or

 

(b)                       another Finance Party, if the recipient is aware that such information was obtained by that Finance Party directly or indirectly from any Group Company or any of its advisers,

 

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:

 

(i)                          is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of clause 46 (Confidentiality); or

 

(ii)                       is identified in writing at the time of delivery as non-confidential by any Group Company or any of its advisers; or

 

(iii)                    is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality

 

Confidentiality Undertaking means a confidentiality undertaking substantially in a recommended form of the Loan Market Association from time to time or in any other form agreed between the Company and the Relevant Finance Parties

 

Consolidated Debt has the meaning given to it in clause 20.1 (Financial definitions)

 

Consolidated EBITDA has the meaning given to it in clause 20.1 (Financial definitions)

 

Consolidated Net Leverage has the meaning given to it in clause 20.1 (Financial definitions)

 

Coustas Family means Dr. John Coustas and any Associate of Dr. John Coustas

 

Debt Purchase Transaction means, in relation to a person, a transaction where such person:

 

(a)                        purchases by way of assignment or transfer;

 

(b)                       enters into any sub-participation in respect of; or

 

(c)                        enters into any other agreement or arrangement having an economic effect substantially similar to a sub-participation in respect of,

 

7

 

any Commitment or any amount outstanding under any Facility Agreement

 

Default means an Event of Default or any event or circumstance specified in clause 25 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default

 

Defaulting Participating Lender means any Participating Lender:

 

(a)                        which in breach of its obligations under a Finance Document, has failed to make its participation in a Loan available or has notified a Relevant Finance Party that it will not make its participation in a Loan available by the proposed drawdown date of that Loan in accordance with the provisions of the relevant Facility Agreement;

 

(b)                       which, in breach of its obligations under a Finance Document, has otherwise rescinded or repudiated a Finance Document; or

 

(c)                        with respect to which a Finance Party Insolvency Event has occurred and is continuing,

 

unless:

 

(i)                          its failure to pay is caused by:

 

(A)                    administrative or technical error; or

 

(B)                      a Disruption Event; and

 

payment is made within 3 Business Days of its due date; or

 

(ii)                       the Participating Lender is:

 

(A)                    disputing in good faith whether it is contractually obliged to make the payment in question; or

 

(B)                      is asserting in good faith that it is entitled to rescind or repudiate the relevant Finance Documents,

 

and has provided reasonably detailed information to the Company (with a copy to the Intercreditor Agent) setting out on what basis it believes that it is not contractually obliged to make such payment or is entitled to rescind or repudiate the relevant Finance Document

 

Delegate means any delegate, agent, attorney or co-trustee appointed by the Intercreditor Agent

 

Disruption Event means either or both of:

 

(a)                        a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with a Facility or Facilities (or otherwise in order for the transactions contemplated by a Finance Document to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

 

(b)                       the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party:

 

8

 

(i)                          from performing its payment obligations under the Finance Documents to which it is a party; or

 

(ii)                       from communicating with other Parties in accordance with the terms of the Finance Documents to which it is a party,

 

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted

 

Distribution has the meaning given to it in clause 23.23 (Dividends and share redemption)

 

Dormant Subsidiary means a member of the Group which does not trade (for itself or as agent for any person) and does not own, legally or beneficially, assets (including, without limitation, indebtedness owed to it)

 

Earnings Account has the meaning given to it in clause 15.16 (Earnings accounts)

 

Employee Share Plan means the Company’s 2006 Equity Incentive Plan as disclosed in the Company’s Annual Report on Form 20-F filed with the SEC on 18 June 2010 and Form 6-K filed with the SEC on 28 July 2010 and delivered to the Participating Lenders pursuant to clause 2.1 (Conditions precedent)

 

Enforcement Action means:

 

(a)                        in relation to any Liabilities:

 

(i)                          the acceleration of any Liabilities or the making of any declaration that any Liabilities are prematurely due and payable (other than as a result of it becoming unlawful for a Finance Party to perform its obligations under, or of any voluntary or mandatory prepayment arising under, the Finance Documents to which it is a party);

 

(ii)                       the making of any declaration that any Liabilities are payable on demand;

 

(iii)                    other than in relation to the reimbursement of costs and expenses incurred by a Finance Party which a Group Company is obliged to reimburse under the terms of a Finance Document, the making of a demand in relation to a Liability that is payable on demand;

 

(iv)                   the making of any demand against any Group Company in relation to any Guarantee Liabilities of that Group Company;

 

(v)                      the exercise of any right of set-off, account combination or payment netting against any Group Company in respect of any Liabilities other than the exercise of any such right:

 

(A)                    as Close-Out Netting by a Hedge Counterparty (where such netting follows a premature termination or close-out of any hedging transaction under any Hedging Agreement as permitted under this Agreement);

 

(B)                      as Payment Netting by a Hedge Counterparty;

 

(C)                      as Inter-Hedging Agreement Netting by a Hedge Counterparty; and

 

(vi)                   the suing for, commencing or joining of any legal or arbitration proceedings against any Group Company to recover any Liabilities;

 

9

 

(b)                       the premature termination or close-out of any hedging transaction under any Hedging Agreement;

 

(c)                        the taking of any steps to enforce or require the enforcement of any Security under the Finance Documents (including the crystallisation of any floating charge forming part of such Security);

 

(d)                       other than as expressly permitted or contemplated by this Agreement, the entering into of any composition, compromise, assignment or arrangement with any Group Company which owes any Liabilities, or has given any Security, guarantee or indemnity or other assurance against loss in respect of the Liabilities; or

 

(e)                        the petitioning, applying or voting for, or the taking of any steps (including the appointment of any liquidator, receiver, administrator or similar officer) in relation to, the winding up, dissolution, administration or reorganisation of any Group Company which owes any Liabilities, or has given any Security, guarantee, indemnity or other assurance against loss in respect of any of the Liabilities, or any of such Group Company’s assets or any suspension of payments or moratorium of any indebtedness of any such Group Company, or any analogous procedure or step in any jurisdiction,

 

except that the following shall not constitute Enforcement Action:

 

(i)                          the taking of any action falling within paragraphs (a)(vi) or (e) above which is necessary (but only to the extent necessary) to preserve the validity, existence or priority of claims in respect of Liabilities, including the registration of such claims before any court or governmental authority and the bringing, supporting or joining of proceedings to prevent any loss of the right to bring, support or join proceedings by reason of applicable limitation periods; or

 

(ii)                       a Finance Party bringing legal proceedings against any person solely for the purpose of:

 

(A)                    obtaining injunctive relief (or any analogous remedy outside England and Wales) to restrain any actual or putative breach of any Finance Document to which it is party;

 

(B)                    obtaining specific performance (other than specific performance of an obligation to make a payment) with no claim for damages; or

 

(C)                      requesting judicial interpretation of any provision of any Finance Document to which it is party with no claim for damages

 

Enforcement Standstill Period has the meaning given to it in clause 26.3

 

Event of Default means an event or circumstance specified as such in clause 25 (Events of Default)

 

Existing Facility Agreement means each of the existing facility agreements listed in part 1 of Schedule 3

 

Existing Facility Loan means a loan made or to be made under an Existing Facility Agreement or the principal amount outstanding for the time being of that loan including an Advance, Tranche or Loan under, and as defined in, the relevant Existing Facility Agreement

 

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Existing Finance Document has the meaning given to the term Finance Document in each Existing Facility Agreement (other than the ABN AMRO Facility Agreement (as defined in Schedule 3)) and the terms Security Document and Transaction Document in the ABN AMRO Facility Agreement

 

Existing Finance Document Default means the defaults (however described) under the Existing Finance Documents, Existing Hedging Agreements and/or Existing Hedging Transactions outstanding at the date of this Agreement as waived by the relevant Participating Lenders and as disclosed to the Participating Lenders in writing by the Company in the list delivered pursuant to clause 2.1 (Conditions precedent)

 

Existing Hedging Agreements means each of the Hedging Agreements listed in Part 2 of Schedule 3 (Existing Facility Agreements and Existing Hedging Agreements)

 

Existing Hedging Transactions means each of the hedging transactions listed in Part 3 of Schedule 3 (Existing Facility Agreements and Existing Hedging Agreements)

 

Facility means a facility or a loan made available under a Facility Agreement

 

Facility Agreement means:

 

(a)                        any Existing Facility Agreement;

 

(b)                       any New Money Facility Agreement; and

 

(c)                        any Qualifying Refinancing Agreement

 

Facility Office means, in relation to each Finance Party, the office in the jurisdiction in which the relevant Finance Party is resident for tax purposes in relation to the receipt of payments in respect of this Agreement

 

Final Discharge Date means the first date on which:

 

(a)                        all Liabilities to the Finance Parties under the Finance Documents have been fully and finally discharged to the satisfaction of the relevant Finance Parties who are party to those documents, whether or not as the result of an enforcement; and

 

(b)                       no Finance Party is under any further obligation to provide financial accommodation to any of the Group Companies under any of the Finance Documents to which they are a party

 

Final Maturity Date means 31 December 2018

 

Finance Document Default means a Finance Document Event of Default or any event or circumstance which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be a Finance Document Event of Default

 

Finance Document Event of Default means any event of default (howsoever described) under any Finance Document but excluding any Existing Finance Document Default

 

Finance Documents means each of the Existing Finance Documents, any Hedging Agreements, the New Money Finance Documents, any Qualifying Refinancing Agreement, the Restructuring Documents, the Vendor Finance Intercreditor Agreements, the Additional Second Lien Intercreditor Agreements, any Security Documents, any other document designated as such by a Relevant Finance Party and

 

11

 

the Company in accordance with a Facility Agreement and any other document designated as such by the Intercreditor Agent and the Company

 

Finance Lease means any lease or hire purchase contract which would, in accordance with the Accounting Principles, be treated as a finance or capital lease

 

Finance Party means a Participating Lender, a Hedge Counterparty, the Intercreditor Agent, the Account Bank, a Relevant Security Trustee, a Relevant Facility Agent, a Relevant Finance Party or a Further Finance Party

 

Finance Party Accession Deed means a document substantially in the form set out in Schedule 7 (Form of Creditor/Agent Accession Deed)

 

Finance Party Insolvency Event in relation to a Finance Party means that Finance Party:

 

(a)                        is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

(b)                       becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;

 

(c)                        makes a general assignment, arrangement or composition with or for the benefit of its creditors;

 

(d)                       institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;

 

(e)                        has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:

 

(i)                          results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or

 

(ii)                       is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;

 

(f)                          has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

 

(g)                       seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets;

 

(h)                       has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;

 

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(i)                           causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or

 

(j)                           takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts

 

Financial Indebtedness means any indebtedness for or in respect of:

 

(a)                        moneys borrowed and debit balances at banks or other financial institutions;

 

(b)                       any acceptance under any acceptance credit or bill discounting facility (or dematerialised equivalent);

 

(c)                        any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

 

(d)                       the amount of any liability in respect of Finance Leases;

 

(e)                        receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis and meet any requirement for de-recognition under the Accounting Principles);

 

(f)                          any Treasury Transaction (and, when calculating the value of that Treasury Transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that Treasury Transaction, that amount) shall be taken into account);

 

(g)                       any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution in respect of an underlying liability of an entity which is not a Group Company which liability would fall within one of the other paragraphs of this definition;

 

(h)                       any amount raised by the issue of redeemable shares which are redeemable (other than at the option of the issuer) before the 31 December 2018 or are otherwise classified as borrowings under the Accounting Principles;

 

(i)                           any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind entering into the agreement is to raise finance or to finance the acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 90 days after the date of supply;

 

(j)                           any amount raised under any other transaction (including any forward sale or purchase, sale and sale back or sale and leaseback agreement) having the commercial effect of a borrowing or otherwise classified as borrowings under the Accounting Principles; and

 

(k)                        the amount of any liability in respect of any guarantee for any of the items referred to in paragraphs (a) to (j) above

 

Financial Statements means the Annual Financial Statements and/or the Quarterly Financial Statements

 

Financial Year has the meaning given to it in clause 20 (Financial Covenants)

 

Fixed Amortisation Amount has the meaning given to it in clause 15.4 (Repayment of Loans - Phase II and Phase III - Fixed Amortisation Amounts)

 

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Further Finance Party means:

 

(a)                        any Original Further Finance Party; and

 

(b)                       any entity which has become a Party as a Further Finance Party in accordance with clause 32 (Changes to the Parties),

 

which in each case has not ceased to be a Further Finance Party in accordance with the terms of this Agreement

 

Group means the Company and its Subsidiaries from time to time

 

Group Companies’ Agent means the Company, appointed to act on behalf of each Group Company in relation to the Restructuring Documents pursuant to clauses 5.17 and 5.18 (Group Companies’ Agent)

 

Group Company means any member of the Group including any Original Group Company and any Additional Group Company

 

Group Company Accession Deed means a document substantially in the form set out in Schedule 6 (Form of Group Company Accession Deed)

 

Guarantee Liabilities means, in relation to a Group Company, the liabilities under the Finance Documents (present or future, actual or contingent and whether incurred solely or jointly) it may have to a Finance Party as or as a result of its being a guarantor or surety (including, without limitation, liabilities arising by way of guarantee, indemnity, contribution or subrogation and in particular any guarantee or indemnity arising under or in respect of the Finance Documents)

 

Hedge Counterparty means:

 

(a)                        any Original Hedge Counterparty; and

 

(b)                       any person which has become a Party as a Hedge Counterparty in accordance with clause 32 (Changes to the Parties),

 

which in each case has not ceased to be a Hedge Counterparty in accordance with the terms of this Agreement

 

Hedging Agreement means any master agreement (including all Existing Hedging Agreements), confirmation, schedule or other agreement entered into (including all Existing Hedging Transactions) or to be entered into by the Company and a Hedge Counterparty for the purpose of hedging the types of liabilities and/or risks in relation to the Facilities which (other than in relation to an Existing Hedging Transaction), at the time that that master agreement, confirmation, schedule or other agreement (as the case may be) is entered into, the Hedging Strategy requires to be hedged

 

Hedging Liabilities means the Liabilities owed by any Group Company to the Hedge Counterparties under or in connection with the Hedging Agreements

 

Hedging Strategy means the provisions relating to Hedging Agreements set out in Schedule 15 (Hedging Strategy)

 

Holding Account means an account:

 

(a)                        held by the Company with the Account Bank, provided that the Account Bank has agreed not to exercise any right of combination, consolidation or set-off which it may have in respect of the account;

 

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(b)                       identified in a letter between the Company and the Account Bank as a Holding Account;

 

(c)                        subject to Security in favour of the Intercreditor Agent which Security is in form and substance satisfactory to the Intercreditor Agent and the Relevant Finance Parties; and

 

(d)                       from which no withdrawals may be made by any Group Company except as contemplated by this Agreement,

 

(as the same may be redesignated, substituted or replaced from time to time)

 

Holding Company means, in relation to a company or corporation, any other company or corporation in respect of which that first company or corporation is a Subsidiary

 

HSH Bridge Facility Agreement means the US$25,000,000 bridge facility agreement dated 30 June 2010 entered into between, amongst others, the Company and HSH Nordbank AG

 

HSH Intercreditor Agreements means the intercreditor agreements between, amongst others, Aegean Baltic Bank SA regulating the priorities in respect of certain Applicable Second Lien Vessels

 

Hyundai means Hyundai Samho Heavy Industries Co., Ltd of 1700, Yongdang-Ri, Samho-Eup, Young am-Gum, Chollanam-Do, Korea

 

IFRS means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements

 

Impaired Agent means the Intercreditor Agent at any time when:

 

(a)                        it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Restructuring Documents by the due date for payment;

 

(b)                       the Intercreditor Agent otherwise rescinds or repudiates a Restructuring Document;

 

(c)                        (if the Intercreditor Agent is also a Participating Lender) it is a Defaulting Participating Lender under paragraph (a) or (b) of the definition of Defaulting Participating Lender; or

 

(d)                       a Finance Party Insolvency Event has occurred and is continuing with respect to the Intercreditor Agent;

 

unless, in the case of paragraph (a) above:

 

(i)                          its failure to pay is caused by:

 

(A)                    administrative or technical error; or

 

(B)                      a Disruption Event; and

 

payment is made within 3 Business Days of its due date; or

 

(ii)                       the Intercreditor Agent is disputing in good faith whether it is contractually obliged to make the payment in question and has provided reasonably detailed information to the Relevant Finance Party and the Company

 

15

 

setting out on what basis it believes that it is not contractually obliged to make such payments

 

Increased Costs means:

 

(a)                        any additional or increased cost;

 

(b)                       a reduction in the rate of return from a Facility or on a Finance Party’s (or its Affiliate’s) overall capital; or

 

(c)                        a reduction of an amount due and payable under any Finance Documents,

 

which is incurred or suffered by a Finance Party or any of its Affiliates but only to the extent attributable to that Finance Party having entered into any Finance Document or funding or performing its obligations under any Finance Document

 

Insolvency Default has the meaning given to it in clause 26.5 (Enforcement Standstill Period)

 

Insolvency Event means, in relation to any Group Company:

 

(a)                        any resolution is passed or order made for the winding up, dissolution, administration or reorganisation of that Group Company, a moratorium is declared in relation to any indebtedness of that Group Company or an administrator is appointed to that Group Company;

 

(b)                       any composition, compromise, assignment or arrangement is made with any of its creditors;

 

(c)                        the appointment of any liquidator, receiver, administrator, administrative receiver, compulsory manager or other similar officer in respect of that Group Company or any of its assets;

 

(d)                       any conciliation or reorganisation process is entered into pursuant to the Greek Bankruptcy Code (Law 3588/2007) or any order is made under the United States Bankruptcy Code; or

 

(e)                        any analogous procedure or step is taken in any jurisdiction

 

(excluding in the cases of paragraphs (a) or (b) above any such action taken pursuant to this Agreement) or any analogous procedure, application or action is taken, made or presented in any jurisdiction

 

Instalment Date means 15 February, 15 May, 15 August and 15 November in each year

 

Intercreditor Voting Schedule means Schedule 8 (Intercreditor Voting Schedule) to this Agreement

 

Interest Period means, in relation to a Loan, each period determined in accordance with clause 10 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with clauses 9.5 to 9.7 (Default interest)

 

Interest Rate Swap Rate means, for any applicable period:

 

(a)                                            the rate per annum equal to the quotation for US Dollars for a period equal to, or as near as possible equal to, the relevant applicable period which appears on page ISDAFIX1 (or other replacement or appropriate page) of the Reuters

 

16

 

Monitor Money Rates Service on the second Business Day prior to the commencement of the applicable period as of 11.00 am New York time; and

 

(b)                                           if the Majority Participating Lenders do not consider the rate quoted by Reuters Monitor Money Rates Service to accurately reflect the interest swap rate or if no rate is quoted on the appropriate page of the Reuters Monitor Money Rates Service, the rate per annum determined by the Majority Participating Lenders to be the Interest Rate Swap Rate for a period equal to, or as near as possible equal, to the relevant applicable period. If the agreed service ceases to be available, the Intercreditor Agent may specify another page or service displaying the appropriate rate after consultation with the Company and the Participating Lenders

 

Inter-Hedging Agreement Netting means the exercise of any right of set-off, account combination, close-out netting or payment netting (whether arising out of a cross agreement netting agreement or otherwise) by a Hedge Counterparty against liabilities owed to a Group Company by that Hedge Counterparty under a Hedging Agreement in respect of Hedging Liabilities owed to that Hedge Counterparty by that Group Company under another Hedging Agreement

 

Intra-Group Lenders means each Group Company which has made a loan available to, granted credit to or made any other financial arrangement having similar effect with another Group Company

 

Intra-Group Liabilities means the Liabilities owed by any Group Company to any of the Intra-Group Lenders

 

ISDA Master Agreement means a 1992 ISDA Master Agreement or a 2002 Master Agreement

 

Joint Security Vessel means a Vessel which secures amounts outstanding under a New Money Facility Agreement and which also secures amounts outstanding under an Existing Facility Agreement and/or any Hedging Liabilities under an Existing Hedging Transaction but shall not include an Applicable Second Lien Vessel

 

KEXIM means The Export-Import Bank of Korea acting through its branch at 16-1 Yoido-Dong, Youngdeungpo-Gu, Seoul 150-996, Korea

 

KEXIM Facility Agreements means:

 

(a)                        the US$127,856,000 term loan facility dated 13 May 2003 between, amongst others, KEXIM, Oceanew Shipping Limited and Oceanprize Navigation Limited; and

 

(b)                       the US$144,000,000 term loan facility dated 29 January 2004 between, amongst others, KEXIM and Fortis Capital Corp (now ABN AMRO Bank N.V.)

 

Legal Reservations means:

 

(a)                        the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors;

 

(b)                       the time barring of claims under the Limitation Acts, the possibility that an undertaking to assume liability for or indemnify a person against non-payment of UK stamp duty may be void and defences of set-off or counterclaim; and

 

(c)                        similar principles, rights and defences under the laws of any Relevant Jurisdiction

 

17

 

Liabilities means all present and future liabilities and obligations at any time of any Group Company to any Finance Party under the Finance Documents or another Group Company, both actual and contingent and whether incurred solely or jointly or in any other capacity together with any of the following matters relating to or arising in respect of those liabilities and obligations:

 

(a)                        any refinancing, novation, deferral or extension;

 

(b)                       any claim for breach of representation, warranty or undertaking or on an event of default or under any indemnity given under or in connection with any document or agreement evidencing or constituting any other liability or obligation falling within this definition;

 

(c)                        any claim for damages or restitution; and

 

(d)                       any claim as a result of any recovery by any Group Company of a Payment on the grounds of preference or otherwise,

 

and any amounts which would be included in any of the above but for any discharge, non-provability, unenforceability or non-allowance of those amounts in any insolvency or other proceedings

 

LIBOR means, in relation to any Loan:

 

(a)                        the applicable Screen Rate; or

 

(b)                       (if no Screen Rate is available for the currency or Interest Period of that Loan) the Reference Bank Rate,

 

as of the Specified Time on the Quotation Day for the currency of that Loan and a period comparable to the Interest Period of that Loan

 

Limitation Acts means the Limitation Act 1980 and the Foreign Limitation Periods Act 1984

 

Loan means an Existing Facility Loan or a New Money Facility Loan

 

Majority Participating Lenders has the meaning given to it in the Intercreditor Voting Schedule set out in Schedule 8 (Intercreditor Voting Schedule)

 

Mandatory Cost means the percentage rate per annum calculated by a Relevant Finance Party in accordance with Schedule 13 (Mandatory Cost formula) and notified by such Relevant Finance Party to the Intercreditor Agent and the Participating Lenders party to the Finance Document to which that Relevant Finance Party is a party

 

Mandatory Prepayment Account means an interest-bearing account:

 

(a)                        held by the Company with the Account Bank, provided that the Account Bank has agreed not to exercise any right of combination, consolidation or set-off which it may have in respect of the account;

 

(b)                       identified in a letter between the Company and the Account Bank as a Mandatory Prepayment Account;

 

(c)                        subject to Security in favour of the Intercreditor Agent which Security is in form and substance satisfactory to the Intercreditor Agent and the Relevant Finance Parties; and

 

18

 

(d)                       from which no withdrawals may be made by any Group Company except as contemplated by this Agreement,

 

(as the same may be redesignated, substituted or replaced from time to time)

 

Margin means:

 

(a)                        in relation to the Existing Facility Loans, the Margin Existing Loans; and

 

(b)                       in relation to the New Money Loans, the Margin New Money Loans

 

Margin Existing Loans means 1.85 per cent. per annum

 

Margin New Money Loans means:

 

(a)                        from the date of this Agreement until and including 31 December 2012, 1.85 per cent. per annum; and

 

(b)                       at any time thereafter,

 

(i)                          if the outstanding aggregate principal amount of the New Money Facility Loans is less than or equal to US$276,000,000, 1.85 per cent. per annum;

 

(ii)                       if the outstanding aggregate principal amount of the New Money Facility Loans is greater than US$276,000,000 but less than or equal to US$326,000,000, 2.50 per cent. per annum;

 

(iii)                    if the outstanding aggregate principal amount of the New Money Facility Loans is greater than US$326,000,000 but less than or equal to US$376,000,000, 3.00 per cent. per annum; and

 

(iv)                   if the outstanding aggregate principal amount of the New Money Facility Loans is greater than US$376,000,000, 3.50 per cent. per annum

 

However any increase or decrease in the Margin for a New Money Facility Loan shall take effect on the first day of the next Interest Period for that New Money Facility Loan following receipt by the Intercreditor Agent of the relevant Compliance Certificate pursuant to clause 22.4 (Provision and contents of Compliance Certificate)

 

Material Adverse Effect means, in the reasonable opinion of the Majority Participating Lenders, a material adverse effect on:

 

(a)                        the business, operations, property, condition (financial or otherwise) or prospects of the Group taken as a whole; or

 

(b)                       the ability of a Group Company to perform its obligations under the Restructuring Documents; or

 

(c)                        the validity or enforceability of, or the effectiveness or ranking of any Security granted or purporting to be granted pursuant to any of, the Restructuring Documents or the rights or remedies of any Finance Party under any of the Restructuring Documents

 

Month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that in the last Month of any period:

 

19

 

(a)                        if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; and

 

(b)                       if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month.

 

and Monthly shall be construed accordingly

 

New Money Facility Agreement means each of the new money facility agreements listed in Schedule 4 (New Money Facility Agreements)

 

New Money Facility Loan means a loan made or to be made under a New Money Facility Agreement or the principal amount outstanding for the time being of that loan including an Advance, Tranche or Loan under, and as defined in, the relevant Facility Agreement

 

New Money Finance Document has the meaning given to the term Finance Document in each New Money Facility Agreement

 

New Money Participating Lenders means the Participating Lenders in their capacity as lenders under the New Money Facility Agreements

 

New Security Documents means those security documents listed in Part 2 of Schedule 14 (New Security Documents)

 

Notifiable Debt Purchase Transaction has the meaning given to that term in clause 34.3 (Disenfranchisement on Debt Purchase Transactions entered into by Company Affiliates)

 

Original Financial Statements means the consolidated financial statements delivered pursuant to clause 2.1 (Conditions precedent)

 

Participating Lender means:

 

(a)                        any Original Participating Lender; and

 

(b)                       any bank, financial institution, trust, fund or other entity which has become a Party as a Participating Lender in accordance with clause 32 (Changes to the Parties),

 

which in each case has not ceased to be a Participating Lender in accordance with the terms of this Agreement

 

Participating Member State means any member state of the European Communities that adopts or has adopted the euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union

 

Party means a party to this Agreement

 

Payment means, in respect of any Liabilities (or any other liabilities or obligations), a payment, prepayment, repayment, redemption, defeasance or discharge of those Liabilities (or other liabilities or obligations)

 

Payment Netting means:

 

(a)                        in respect of a Hedging Agreement based on an ISDA Master Agreement, netting under section 2(c) of the relevant ISDA Master Agreement; and

 

20

 

(b)                       in respect of a Hedging Agreement not based on an ISDA Master Agreement, netting pursuant to any provision of that Hedging Agreement which has a similar effect to the provision referenced in paragraph (a) above

 

Permitted Liens means, in relation to a Vessel, any lien on that Vessel for master’s, officer’s or crew’s wages outstanding in the ordinary course of trading, any lien for salvage and any ship repairer’s or outfitter’s possessory lien which liens shall, in aggregate, in relation to a Vessel not exceed the sum of US$750,000

 

Permitted Transaction means any disposal required, Financial Indebtedness incurred, guarantee, indemnity or Security or Quasi-Security given, or other transaction arising, under the Finance Documents

 

Preference Share Facility Agreement means the preference share facility agreement dated 29 July 2008 between the Company and Alpha Asset Finance X B.V.

 

Proceeds Application Date means, in relation to the obligation to provide Cash Cover under clauses 18.3 (Change of SPC Control), 18.4 (Prepayment upon Total Loss), 18.10 (Qualifying Refinancing) and 23.12 (Disposals), the date on which such obligation to provide Cash Cover arose under each such clause

 

Qualifying Indebtedness Amount means all amounts outstanding under each Facility Agreement which is being refinanced by the Qualifying Refinancing and, in the event that a Facility Agreement that is being refinanced is a New Money Facility Agreement shall also include all amounts outstanding under the Existing Facility Agreement and/or any Hedging Liabilities under any Existing Hedging Transaction which is secured by the relevant Joint Security Vessel

 

Qualifying Refinancing means Financial Indebtedness arising in connection with the refinancing of amounts outstanding under an Existing Facility Agreement and/or a New Money Facility Agreement provided that (and subject to the provisions of clause 6 (Amendments and Most Favoured Lender), unless the Final Discharge Date will occur following the application of any refinancing proceeds):

 

(a)                        the amortisation profile of such Financial Indebtedness is no more front ended or favourable to the Qualifying Refinancing Lender(s) than the amortisation profile set out in clause 15 (Repayment);

 

(b)                       the final repayment dates applicable to such Financial Indebtedness fall on or after the Final Maturity Date;

 

(c)                        the rights of the Qualifying Refinancing Lender(s) and the obligations of each Qualifying Refinancing Lender under, and in connection with, such Financial Indebtedness shall be no more favourable to the Qualifying Refinancing Lender(s) (including in particular the pricing) than the rights and obligations under the Facility Agreements;

 

(d)                       the Qualifying Refinancing Lender(s) and the relevant finance parties party to the documents relating to the new Financial Indebtedness accede to this Agreement on terms acceptable to the Majority Participating Lenders;

 

(e)                        the amount of the aggregate of the Financial Indebtedness of the Group after the refinancing of amounts outstanding under an Existing Facility Agreement and/or a New Money Facility Agreement shall not exceed the aggregate amount of the Financial Indebtedness of the Group prior to such refinancing; accordingly, any refinancing proceeds exceeding the amount to be refinanced are to be used in accordance with subclause (g) below;

 

(f)                          the amount of such Financial Indebtedness shall be sufficient to repay in full or in the case of Hedging Liabilities provide Cash Cover in full, the Qualifying

 

21

 

Indebtedness Amount (save as otherwise agreed with those Participating Lenders who are being refinanced with the proceeds of the Qualifying Indebtedness Amount); and

 

(g)                       following repayment of the Qualifying Indebtedness Amount, the Qualifying Refinancing Surplus Proceeds (if any) are applied in making prepayments in accordance with clause 18.10 (Qualifying Refinancing)

 

Qualifying Refinancing Agreement means a facility agreement setting out the terms on which Qualifying Refinancing is made available

 

Qualifying Refinancing Lender means any bank or financial institution which provides Qualifying Refinancing

 

Qualifying Refinancing Surplus Proceeds means the aggregate proceeds of the Qualifying Refinancing less the Qualifying Indebtedness Amount

 

Quarter Date means each of 31 March, 30 June, 30 September and 31 December

 

Quarterly Financial Statements has the meaning given to it in clause 22.3(b) (Financial statements)

 

Quasi-Security has the meaning given to that term in clause 23.10 (Negative pledge)

 

Quotation Day means, in relation to any period for which an interest rate is to be determined, two Business Days before the first day of that period

 

RBS Intercreditor Agreements means the intercreditor agreements between, amongst others, The Royal Bank of Scotland plc regulating the priorities in respect of certain Applicable Second Lien Vessels

 

Receiver means a receiver or receiver and manager or administrative receiver of the whole or any part of the assets of a Group Company

 

Reference Bank Rate means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Relevant Finance Parties at their request by the Reference Banks, as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in US Dollars for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period

 

Reference Banks means the principal London offices of Credit Suisse, Deutsche Bank AG and The Royal Bank of Scotland plc or such other banks as may be appointed by the Intercreditor Agent in consultation with the Company

 

Related Fund in relation to a fund (the first fund), means a fund which is managed or advised by the same investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser of the first fund

 

Relevant Facility Agent means:

 

(a)                        any Original Relevant Facility Agent; and

 

(b)                       any entity which has become a Party as a Relevant Facility Agent in accordance with clause 32 (Changes to the Parties),

 

22

 

which in each case has not ceased to be a Relevant Facility Agent in accordance with the terms of this Agreement

 

Relevant Finance Parties means:

 

(a)                        the Relevant Facility Agents;

 

(b)                       in relation to the Credit Suisse Facility Agreement (as defined in Schedule 3), Credit Suisse AG; and

 

(c)                        in relation to the Emporiki Facility Agreement (as defined in Schedule 3), Emporiki Bank of Greece S.A.

 

Relevant Jurisdiction means, in relation to a Group Company:

 

(a)                        its jurisdiction of incorporation;

 

(b)                       any jurisdiction where any asset subject to or intended to be subject to the Security under any Security Document to be created by it is situated;

 

(c)                        any jurisdiction where it conducts its business; and

 

(d)                       the jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it

 

Relevant Security Trustee means:

 

(a)                        any Original Relevant Security Trustee; and

 

(b)                       any entity which has become a Party as a Relevant Security Trustee in accordance with clause 32 (Changes to the Parties),

 

which in each case has not ceased to be a Relevant Security Trustee in accordance with the terms of this Agreement

 

Repayment Instalment means any payment made in accordance with clause 15 (Repayment) including:

 

(a)                        the payment of Fixed Amortisation Amounts; and

 

(b)                       the payment of any Balancing Payments

 

Repeating Representations means each of the representations set out in clause 21 (Representations and Warranties) other than 21.13 (No filing or stamp taxes), 21.14 (Deduction of Tax), clause 21.33 and clause 21.34 (Taxation), clause 21.37 (Ranking), clause 21.44 and clause 21.45 (No adverse consequences)

 

Representative means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

 

Required Equity Issue means the issue or sale of at least US$200,000,000 of common stock in the Company the entire proceeds of which are received by the Company in cleared funds and which are available for general corporate purposes of the Group

 

Requisition Compensation in relation to a Vessel has the meaning given to it in the Facility Agreement pursuant to which financing is provided in relation to that Vessel

 

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Restructuring Documents means:

 

(a)                        this Agreement;

 

(b)                       the Commitment Fee Letter;

 

(c)                        the Commitment Letter;

 

(d)                       each Compliance Certificate;

 

(e)                        the Shared Security Documents;

 

(f)                          the Warrant Documents; and

 

(g)                       any other document designated as such by the Intercreditor Agent and the Company

 

Restructuring Termination Date has the meaning given to it in clause 4.1 (Restructuring Termination Date)

 

Screen Rate means the British Bankers’ Association Interest Settlement Rate for the relevant currency and period displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Intercreditor Agent may specify another page or service displaying the appropriate rate after consultation with the Company and the Participating Lenders

 

SEC means the US Securities and Exchange Commission

 

Security means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect

 

Security Document means any agreement, instrument or other document pursuant to or by which any Security is created in favour of any Finance Party as Security for the obligations of any Group Company under or in connection with a Finance Document (including any Security given in connection with a guarantee thereof or other surety arrangement) whether before or after the date of this Agreement including the Shared Security Documents, each security document listed in Part 1 of Schedule 14 (Existing Facility Agreement (Restructuring) Security Documents) entered into in relation to the Existing Facility Agreements and the New Security Documents

 

Semi-annual Date means each of 31 March and 30 September

 

Shared Security Documents means:

 

(a)                        the agreement creating or expressed to create Security in favour of the Intercreditor Agent (on behalf of the Finance Parties) over certain Intra-Group Liabilities and delivered pursuant to clause 2.1 (Conditions precedent);

 

(b)                       any agreement creating or expressed to create Security in favour of the Intercreditor Agent (on behalf of the Finance Parties)  entered into in accordance with clause 20.5(a) (Minimum Corporate Cover - Charter Free) or 20.6(a) (Minimum Corporate Cover - Charter Attached);

 

(c)                        any agreement creating or expressed to create Security in favour of the Intercreditor Agent (on behalf of the Finance Parties)  over a Common Account;

 

24

 

(d)                       any agreement, instrument or other document creating or expressed to create Security in favour of all Finance Parties or the Intercreditor Agent pursuant to this Agreement; and

 

(e)                        any other document designated as a “Shared Security Document” by the Intercreditor Agent and the Company

 

Sinosure Backed Facility means the US$203,400,000 facility to be entered into between, amongst others, the Company, as guarantor, Citibank, N.A. (or any Affiliate) and The Export-Import Bank of China as, lenders and supported by the China Export & Credit Insurance Corporation on the terms, including as to guarantees and Security, set out in clause 24.1(a) and Schedule 17 to finance the acquisition of the vessels with hull numbers Z00002, Z00003 and Z00004 being constructed by Jiangnan Changxing Heavy Industry Company Limited (the Sinosure Vessels)

 

Sinosure Vessels Alternative Financing means a facility agreement, other than the Sinosure Backed Facility, to finance, on a committed basis, the acquisition of the Sinosure Vessels on the terms set out in clause 24.1(b)

 

Specified Time means a time determined in accordance with Schedule 11 (Timetables)

 

Subsidiary means, in relation to any company or corporation, a company or corporation:

 

(a)                        which is controlled, directly or indirectly, by the first mentioned company or corporation;

 

(b)                       more than half the issued share capital of which is beneficially owned, directly or indirectly by the first mentioned company or corporation; or

 

(c)                        which is a Subsidiary of another Subsidiary of the first mentioned company or corporation,

 

and for this purpose, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to direct its affairs and/or to control the composition of its board of directors or equivalent body

 

Surplus Cash Account means an account:

 

(a)                        held by the Company with the Account Bank, provided that the relevant Account Bank has agreed not to exercise any right of combination, consolidation or set-off which it may have in respect of the account;

 

(b)                       identified in a letter between the Company and the Account Bank as a Surplus Cash Account;

 

(c)                        subject to Security in favour of the Intercreditor Agent which Security is in form and substance satisfactory to the Intercreditor Agent and the Relevant Finance Parties; and

 

(d)                       from which no withdrawals may be made by any Group Company except as contemplated by this Agreement,

 

(as the same may be redesignated, substituted or replaced from time to time)

 

Swap Exposure has the meaning given to it in Schedule 15 (Hedging Strategy)

 

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Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying the same)

 

Third Parties Act means the Contracts (Rights of Third Parties) Act 1999

 

Total Commitments means the aggregate of the Commitments, being US$2,921,725,000 at the date of this Agreement

 

Total Consolidated Assets has the meaning given to it in clause 20.1 (Financial definitions)

 

Total Outstandings means the aggregate principal amount outstanding at any time under all Facility Agreements

 

Total Loss in relation to a Vessel, has the meaning given to it in the Facility Agreement pursuant to which financing is provided in relation to that Vessel

 

Transaction means the transaction(s) contemplated by this Agreement and the Finance Documents other than in the context of the Hedging Strategy where it shall have the meaning given to it therein

 

Transaction Documents means the Finance Documents, the KEXIM Facility Agreements, the Sinosure Backed Facility loan agreement or Sinosure Vessels Alternative Financing, the Vendor Finance Documents and any Underlying Document, under and as defined in each New Money Facility Agreement

 

Treasury Transactions means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price

 

Unpaid Sum means any sum due and payable but unpaid by a Group Company under the Finance Documents

 

US Dollars or US$ means the lawful currency for the time being of the United States of America and in respect of all payments to be made under any of the Finance Documents means funds which are for same day settlement in the New York Clearing House Interbank Payments System (or such other US Dollar funds as may at the relevant time be customary for the settlement of international banking transactions denominated in US dollars)

 

Valuation Date means each Semi-annual Date following a Proceeds Application Date provided that at least six Months have passed since that relevant Proceeds Application Date

 

Vendor Finance Documents means:

 

(a)                                            the Vendor Finance Facility Agreements;

 

(b)                                           the Vendor Finance Intercreditor Agreements; and

 

(c)                                            any Security created or expressed to be created by any Group Company or over any asset of any Group company in favour of Hyundai and the guarantee provided by the Company, in each case in support of the Vendor Finance Facility Agreements

 

Vendor Finance Facility Agreements means each of the following agreements dated 27 September 2010 in relation to the financing of the acquisition of the Vendor Finance Vessels:

 

26

 

(a)                        the agreement between Megacarrier (No.1) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 28 September 2007 between those parties for the construction and sale of Vessel S456;

 

(b)                       the agreement between Megacarrier (No.2) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 28 September 2007 between those parties for the construction and sale of Vessel S457;

 

(c)                        the agreement between Megacarrier (No.3) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 28 September 2007 between those parties for the construction and sale of Vessel S458;

 

(d)                       the agreement between Megacarrier (No.4) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 28 September 2007 between those parties for the construction and sale of Vessel S459;

 

(e)                        the agreement between Megacarrier (No.5) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 28 September 2007 between those parties for the construction and sale of Vessel S460;

 

(f)                          the agreement between Cellcontainer (No.6) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 9 November 2007 between those parties for the construction and sale of Vessel S461;

 

(g)                       the agreement between Cellcontainer (No.7) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 9 November 2007 between those parties for the construction and sale of Vessel S462; and

 

(h)                       the agreement between Cellcontainer (No.8) Corp. and Hyundai to amend and supplement the shipbuilding contract dated 9 November 2007 between those parties for the construction and sale of Vessel S463

 

Vendor Finance Intercreditor Agreements means each intercreditor agreement entered into or to be entered into between Hyundai and certain Finance Parties in relation to the ranking and priority of liabilities of Group Companies under the Finance Documents and the Vendor Facility Agreements (and of any related Security created or expressed to be created in favour of Hyundai) in relation to the Vendor Finance Vessels

 

Vendor Finance Vessels means Vessels S456, S457, S458, S459, S460, S461, S462 and S463 being constructed by Hyundai

 

Vessel Finance Document has the meaning given to it in clause 15.16 (Earnings accounts)

 

Vessel Receipts has the meaning given to it in clause 15.16 (Earnings accounts)

 

Vessels means, together all of the vessels (including but not limited to the vessels financed by a Facility Agreement and vessels under construction) from time to time owned or leased by Group Companies which, at the relevant time, are included within Total Consolidated Assets in the Financial Statements or which would be included within Total Consolidated Assets in the Financial Statements if the Financial Statements were required to be prepared at that time and Vessel shall be construed accordingly

 

Warrant Documents means:

 

(a)                        the warrant instrument between the Company and American Stock Transfer Trust Company in agreed form (the Warrant Instrument);

 

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(b)                       the resale registration agreement between the Company and the Participating Lenders (or their Affiliates or any other person nominated by a Participating Lender); and

 

(c)                        any other document or agreement entered into or executed in connection with that warrant instrument or resale registration agreement or the rights set out in that instrument or agreement

 

Zim Addenda means the addenda to charter parties as entered into between Zim Integrated Shipping Services Ltd and a Group Company in relation to the former’s financial restructuring in 2009 as delivered pursuant to clause 2.1 (Conditions precedent)

 

Construction

 

1.2                      Unless a contrary indication appears, any reference in this Agreement to:

 

(a)                        the Intercreditor Agent, the Account Bank, any Finance Party, any Relevant Finance Party, any Relevant Facility Agent, any Relevant Security Trustee, the Company, any Group Company, any Participating Lender, any Hedge Counterparty or any Party shall be construed so as to include its successors in title, permitted assigns and permitted transferees and, in the case of any Relevant Facility Agent or any Relevant Security Trustee any person for the time being appointed as facility agent or security trustee in accordance with the relevant Finance Documents;

 

(b)                       a document in agreed form is a document which is previously agreed in writing by or on behalf of the Company and by or on behalf of the relevant Finance Parties to that document or that take the benefit thereof or, if not so agreed, is in the form specified by those relevant Finance Parties to that document;

 

(c)                        assets includes present and future properties, revenues and rights of every description;

 

(d)                       a Finance Document or a Transaction Document or any other agreement or instrument is a reference to that Finance Document or a Transaction Document or other agreement or instrument as amended, novated, supplemented, extended or restated by this Agreement or otherwise;

 

(e)                        guarantee means any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

 

(f)                          indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

 

(g)                       a person includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality);

 

(h)                       a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

(i)                           including, include or includes shall be construed without limitation;

 

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(j)                           a reference to Security under shall be construed as Security created or expressed or purported to be created pursuant to the document to which such expression refers;

 

(k)                        words importing the plural shall include the singular and vice versa;

 

(l)                           a provision of law is a reference to that provision as amended or re-enacted;

 

(m)                     a time of day is a reference to London time; and

 

(n)                       a reference to any party acting in good faith shall, in the case of the Relevant Finance Parties and any Party acting in the capacity as a trustee by reason of their administrative role only be deemed not to be satisfied if such party acts contrary to specific and binding instructions received from, in the case of each such party, the party or parties entitled to give such instructions.

 

1.3                      Section, clause and Schedule headings are for ease of reference only.

 

1.4                      A Default or an Event of Default is continuing if it has not been remedied or waived.

 

Third party rights

 

1.5                      Unless expressly provided to the contrary in a Finance Document a person who is not a Party has no right under the Third Parties Act to enforce or enjoy the benefit of any term of this Agreement.

 

1.6                      Notwithstanding any term of any Finance Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time.

 

1.7                      Any Receiver or Delegate may, subject to clauses 1.5 and 1.6 and the Third Parties Act, rely on any clause of this Agreement which expressly confers rights on it.

 

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SECTION 2 - RESTRUCTURING

 

 

2                              Conditions of effectiveness

 

Conditions precedent

 

2.1                      Unless otherwise specified in clause 2.2 (Clauses having immediate effect), the provisions of this Agreement and the rights and the obligations of the Parties hereunder shall become effective when the Relevant Finance Parties have received the documents and other evidence listed in Part I of Schedule 5 (Conditions precedent) in form and substance (including as to all commercial terms) satisfactory to all of them.  The Intercreditor Agent shall notify the Company and the other Finance Parties promptly upon the Relevant Finance Parties having confirmed to the Intercreditor Agent that they are so satisfied.

 

Clauses having immediate effect

 

2.2                      The following clauses will be effective from the date of execution of this Agreement:

 

(a)                        clause 2 (Conditions of effectiveness);

 

(b)                       clause 7 (New Money Facility Agreements and Existing Hedging Agreements);

 

(c)                        clause 8 (Exclusion of liability and release of the Participating Lenders);

 

(d)                       clause 13 (Other indemnities);

 

(e)                        clause 14 (Costs and expenses);

 

(f)                          clause 32 (Changes to the Parties) to clause 37 (Conduct of business by the Finance Parties); and

 

(g)                       clauses 41 (Notices) to clause 49 (Enforcement), but excluding clauses 45.5 and 45.6 (Disenfranchisement of Defaulting Participating Lenders) insofar as it relates to any Participating Lender failing to make its participation in a Loan available or has notified a Relevant Finance Party that it will not make its participation in a Loan available prior to the occurrence of the Closing Date.

 

3                              Restructuring

 

Status of this Agreement

 

3.1                      Each Party hereby agrees that for the purposes of each Facility Agreement to which it is a party, each Restructuring Document to which it is a party and the Shared Security Documents shall be treated as:

 

(a)                        a Finance Document;

 

(b)                       to the extent that such Facility Agreement includes a definition of Transaction Document, a Transaction Document thereunder; and

 

(c)                        in relation to the ABN AMRO Facility Agreement (as defined in Schedule 3), a Security Document.

 

Waivers of defaults

 

3.2                      Subject to clause 4.7 (Rights after the Restructuring Termination Date), from the Closing Date:

 

30

 

(a)                        any Existing Finance Document Defaults; and

 

(b)                       any Finance Document Defaults which would arise or have arisen upon the expiration of any existing waivers of any of the financial covenants contained in the Existing Facility Agreements, Existing Hedging Agreements and Existing Hedging Transactions,

 

are waived by the relevant Finance Parties except to the extent that such Existing Finance Document Default or Finance Document Default would also constitute a Default under this Agreement. For the avoidance of doubt, the execution of this Agreement shall not constitute a release or discharge of any amounts outstanding under a Finance Document.

 

Waivers in respect of this Agreement

 

3.3                      Each of the Finance Parties hereby waives all restrictions under and requirements of the Finance Documents to which they are a party to the extent necessary to permit execution of this Agreement and the other Finance Documents and to give effect to and permit performance of the arrangements contemplated in the Finance Documents, including, as necessary to permit Group Companies to incur Financial Indebtedness under the New Money Facility Agreements, the Vendor Finance Facility Agreements and the Sinosure Backed Facility Agreement and to grant the Security under the Shared Security Documents, any other Security referred to in this Agreement and, subject to the provisions of this Agreement and the Vendor Finance Intercreditor Agreements, any Security in relation to the New Money Facility Agreements, the Sinosure Backed Facility Agreement and the Vendor Finance Facility Agreements.

 

Continuing provision of Facilities under Existing Facility Agreements

 

3.4                      Subject to clause 5 (Variation of the Finance Documents) and the other provisions of this Agreement, the Participating Lenders shall continue to make available the Facilities under the Existing Facility Agreements to which they are a party (on the same terms as were in place at 6 August 2010) up to the amount of any commitment under, and as defined in, the Existing Facility Agreement(s) to which they are a party.

 

3.5                      Clause 3.4 shall not apply to the HSH Bridge Facility Agreement from the date on which the New HSH Facility Agreement (as defined in Schedule 4 (New Money Facility Agreements)) is available to be drawn in repayment of the HSH Bridge Facility Agreement.

 

Revolving Facilities under Existing Facility Agreements

 

3.6                      From the Closing Date:

 

(a)                        each Existing Facility Loan which is a revolving loan shall be converted into a term loan, mature on the Final Maturity Date and, to the extent (p)repaid prior to the Final Maturity Date shall not be available to be reborrowed;

 

(b)                       subject to clause 3.7, no further drawdowns of a revolving Facility will be permitted under the Existing Facility Agreements.

 

3.7                      The amounts that are still available to be drawndown on or after the Closing Date under, and pursuant to, the RBS Facility Agreement shall, subject to the terms of the RBS Facility Agreement, continue to be available to be drawn down provided that any amount drawn down will be immediately converted into a term loan, mature on the Final Maturity Date and, to the extent (p)repaid prior to the Final Maturity Date shall not be available to be reborrowed.

 

31

 

Optional currencies

 

3.8                      From the Closing Date, no Group Company may borrow an amount under an Existing Facility Agreement in a currency other than US Dollars and any provisions of an Existing Facility Agreement that would allow a Group Company to request a drawdown in a currency other than US Dollars shall no longer be effective.

 

Continuing provision of Existing Hedging Agreements

 

3.9                      Subject to clause  5 (Variation of the Finance Documents) and the other provisions of this Agreement including the Hedging Strategy, the Hedge Counterparties shall continue to make available to the relevant Group Companies the Existing Hedging Agreements as amended and restated in accordance with clause 7.2 (New Money Facility Agreements and Existing Hedging Agreements) on the revised terms set out in Schedule 16 (Amended and Restated Existing Hedging Agreements).

 

Rights of Participating Lenders to take Enforcement Action

 

3.10                Subject to clause 3.11, clause 3.12 and clause 3.13 (Reservation of Rights) and clause 4.7 (Rights after the Restructuring Termination Date), no Finance Party shall be entitled to take any Enforcement Action other than as expressly permitted under this Agreement.

 

3.11                In the event that any beneficiary calls on any letter of guarantee, performance guarantee or other contingent liability provided by any Finance Party triggering any obligation of any Group Company to pay any amount to any Finance Party by way of counter-indemnity, the relevant Finance Party (for itself and on behalf of any other relevant Finance Parties who are expressed to benefit from such arrangements) shall have recourse to all cash collateral deposited with that Finance Party in relation to those arrangements.  In addition, any amount of restricted deposits held with a Finance Party as cash collateral for progress payments for Vessels (or otherwise standing as collateral and held as such) may be applied in accordance with the arrangements (a) in place prior to the execution of this Agreement and (b) which are put in place under, and in relation to, the New Money Facility Agreements.

 

Reservation of Rights

 

3.12                The Parties agree that, save as varied by and subject to this Agreement and the other Restructuring Documents, all the other existing provisions of the Finance Documents (including the Security and guarantees under, and in relation to, the Existing Finance Documents and remedies relating thereto) shall continue in full force and effect.

 

3.13                Subject to the provisions of this clause 3 and the other provisions of this Agreement:

 

(a)                      neither this Agreement (nor any other Restructuring Document) nor any other act or omission of any Finance Party constitutes a waiver by that Finance Party of any rights or remedies available under any Finance Document to which it is party; and

 

(b)                     the rights of each Finance Party (including (i) any rights which would but for this Agreement arise or be capable of exercise prior to the Restructuring Termination Date as a result of a breach of any Finance Document and (ii) any rights to receive payment) to take any action or pursue any remedy available to such Finance Party whether pursuant to applicable law or contract at any time after the Restructuring Termination Date, are expressly reserved.

 

Finance Document Defaults

 

3.14                Each Finance Party (other than the Intercreditor Agent) shall:

 

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(a)                       in relation to a Finance Document to which it is a party, as soon as reasonably practicable after a reasonable request, provide information requested by the Intercreditor Agent in relation to that Finance Document (including that necessary to determine whether payments have been properly made in accordance with this Agreement).  For the avoidance of doubt, the Intercreditor Agent shall not be required to make any calculations or to consider the accuracy of any calculations it receives in accordance with this clause 3;

 

(b)                      as soon as reasonably practicable after becoming aware of its occurrence, be obliged to inform the Intercreditor Agent of:

 

(i)             a Group Company’s breach of, or failure to comply with, any provision of a Finance Document to which it is a party; and

 

(ii)          the occurrence of any Finance Document Default in relation to a Finance Document to which it is a party;

 

(c)                       as soon as reasonably practicable after receipt, provide to the Intercreditor Agent copies of any waiver, amendment or consent request received by it from a Group Company in relation to a Finance Document to which it is a party,

 

unless that Finance Party is aware that the information has already been provided by another Finance Party.  No Finance Party shall be liable to any Party for failure to comply with the provisions of this clause other than as a result of wilful misconduct, wilful default or gross negligence.

 

4                              Termination

 

Restructuring Termination Date

 

4.1                      Other than as set out in clause 4.2 (Surviving provisions), the provisions of this Agreement shall terminate on the earliest of:

 

(a)                        15 February 2011, if by such date the Closing Date has not occurred;

 

(b)                       the expiry of any applicable Enforcement Standstill Period following the occurrence of an Event of Default which is continuing;

 

(c)                        the expiry of any applicable Enforcement Standstill Period following the occurrence of a Finance Document Event of Default which is continuing;

 

(d)                       the occurrence of any Insolvency Event in respect of the Company or any Group Company;

 

(e)                        the Final Discharge Date;

 

(f)                          all Parties agreeing that the Restructuring Termination Date has occurred; and

 

(g)                       the Final Maturity Date,

 

(the Restructuring Termination Date).

 

Surviving provisions

 

4.2                      Without prejudice to clause 4.1 (Restructuring Termination Date), the following provisions shall survive and continue after the Restructuring Termination Date until the Final Discharge Date:

 

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(a)                        clause 5.1 (Intercreditor Agent monitoring), 5.3 (Overridden provisions), clause 5.4 (Supplemented provisions), clauses 5.5 to 5.6 (Amendments to Existing Finance Documents) and clause 5.7 (Inconsistency);

 

(b)                       clause 9 (Interest);

 

(c)                        clause 10 (Interest Periods);

 

(d)                       clause 11 (Changes to the calculation of interest);

 

(e)                        clause 13 (Other indemnities);

 

(f)                          clause 14 (Costs and expenses);

 

(g)                       clause 15 (Repayment);

 

(h)                       clauses 17 (Illegality, voluntary prepayment and cancellation), 18 (Mandatory prepayment) and 19 (Restrictions);

 

(i)                           clause 27 (Application of proceeds of Shared Security Document);

 

(j)                           clause 28 (Intra-Group Lenders and Intra-Group Liabilities) to clause 31 (Intra-Group Lenders: power of attorney);

 

(k)                        clause 33 (Change of Intercreditor Agent and Delegation);

 

(l)                           clause 34 (Debt Purchase Transactions)

 

(m)                     clause 18.4 (Prepayments upon a Total Loss) clause 18.5(b)(Cash Cover) and paragraphs 3 and 5.2 of the Hedging Strategy;

 

4.3                      Without prejudice to clause 4.1 (Restructuring Termination Date), the following provisions shall survive and continue after the Restructuring Termination Date and the Final Discharge Date:

 

(a)                        clause 35 (Role of Intercreditor Agent and others) to clause 38 (Sharing among the Finance Parties) and including Schedule 9 (Intercreditor Agent);

 

(b)                       clause 39 (Payment mechanics) to clause 49 (Enforcement); and

 

(c)                        the Intercreditor Voting Schedule.

 

4.4                      Notwithstanding the provisions of clause 4.2, clause 4.3, clause 45 (Amendments and waivers) and any other relevant provisions of this Agreement but subject to clause 4.5, following the occurrence of the Restructuring Termination Date and the expiration of any Enforcement Standstill Period, the Participating Lenders and any relevant Finance Parties under the relevant Finance Document may agree with the Company and any other Group Companies amendments and waivers to any Finance Document to which they are a party in accordance with its terms without reference to any of the Participating Lenders or Finance Parties who are not a party to that agreement and such amendments and/or waivers shall be binding on those Finance Parties, the Company and any other relevant Group Company.

 

4.5                      No Participating Lender shall be entitled to an increased share of the proceeds of the enforcement of the Shared Security Documents in accordance with clause 27.1 from that which it would have received had no such amendment or waiver under clause 4.4 been made.

 

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4.6                      Other than as set out in clause 4.2 and clause 4.3, no other provisions of this Agreement shall survive the Restructuring Termination Date.

 

Rights after the Restructuring Termination Date

 

4.7                      Each of the Parties agree that on and from the Restructuring Termination Date (other than where the Restructuring Termination Date has occurred as a result of the occurrence of the Final Discharge Date), and unless otherwise agreed in writing by the relevant Finance Parties to that Finance Document:

 

(a)                        all waivers of a breach of a Finance Document (including the Existing Finance Document Defaults) shall terminate and all rights of the Finance Parties in respect thereof shall be immediately exercisable in accordance with the relevant Finance Documents but subject to the terms of this Agreement (including those set out in clause 4.2 (Surviving provisions));

 

(b)                       all amounts outstanding under the Finance Documents shall, subject to their terms, become immediately repayable (or subject to an immediate requirement for cash cover in respect of contingent indebtedness) on demand; and

 

(c)                        the Finance Parties shall immediately be entitled (but not required) to take any Enforcement Action in accordance with the terms of this Agreement and the other Finance Documents.

 

4.8                      The Company shall promptly notify the Intercreditor Agent and the Relevant Finance Parties of the occurrence of the Restructuring Termination Date.

 

5                              Variation of the Finance Documents

 

Unaffected provisions

 

5.1                      The Intercreditor Agent is not obliged to monitor and/or exercise any discretion in respect of any matter referred to in this clause 5.  Each Finance Party which is a party to the relevant Finance Document shall be at liberty to monitor such matters.

 

5.2                      From the Closing Date, subject to the provisions of clause 26 (Consequences of an Event of Default) and the other provisions of this Agreement, the following provisions which are, or may be, contained in an Existing Facility Agreement and/or a New Money Facility Agreement or any related Finance Document (other than an Existing Hedging Agreement) shall remain in full force and effect without being overridden, replaced, amended or supplemented by any provision of this Agreement:

 

(a)                        any provision relating to the amount of a Facility or the manner in which such Facility is provided or a Participating Lender’s obligation to fund a drawdown including conditions precedent to a drawdown;

 

(b)    any provision relating to the rights of Participating Lenders and Hedge Counterparties against a Group Company or Participating Lenders and any rights or limitations on their rights to initiate proceedings;

 

(c)                        any mechanics for requesting and funding a drawdown and any disbursement thereof (including to third parties) as well as the availability of drawdowns, their purpose, notification to Participating Lenders on receipt of a drawdown notice, the irrevocability of a drawdown notice and the consolidation of Loans and tranches of Loans;

 

(d)                       any mechanics and the manner in which payments are made to Finance Parties under the Finance Documents (other than the Restructuring Documents) to

 

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which they are a party including the order of application and distribution between the Finance Parties which are party to those Finance Documents;

 

(e)                        any obligation to make a mandatory prepayment which is not specifically dealt with in this Agreement including those provisions referred to in clause 18.12 (Mandatory prepayment provisions in Facility Agreements);

 

(f)                          any covenants, undertakings, representations and warranties which are not referred to in this Agreement or another Restructuring Document;

 

(g)                       subject to clause 5.3 (Overridden provisions), any events of default which are not referred to in this Agreement or another Restructuring Document;

 

(h)                       actions following an event of default and any acceleration or enforcement action;

 

(i)                           arrangements relating to fees, expenses, indemnities and increased costs;

 

(j)                           changes to the parties thereunder provided that the provisions of clause 32 (Changes to the Parties) are complied with; and

 

(k)                        any other provision that does not have a similar, equivalent or conflicting provision in a Restructuring Document.

 

Overridden provisions

 

5.3                      From the Closing Date and subject to clause 4.2 to clause 4.6 (Surviving provisions) and the other provisions of this Agreement (including this clause 5.3), the following provisions which are, or may be, contained in an Existing Facility Agreement and/or a New Money Facility Agreement or any related Finance Document (other than an Existing Hedging Agreement) shall be overridden and replaced in full by the relevant provisions of this Agreement:

 

(a)                        subject to clause 9.2 (Calculation of interest), any provision regarding the calculation of the rate of interest (including LIBOR, mandatory costs and the margin), the application and calculation of default interest, market disruption, break costs (as each may be described in the relevant agreement) and the calculation and selection of interest periods which shall be replaced in full by the provisions of clause 9 (Interest) to clause 11 (Changes to the calculation of interest) and any related definitions;

 

(b)                       any provision relating to the final repayment date of a Loan, contractual amortisation and scheduled repayments of amounts owing under a Finance Document which shall be replaced in full by the provisions of clause 15 (Repayment) to clause 19 (Restrictions);

 

(c)                        any provision relating to a mandatory prepayment which is specifically included in clause 18 (Mandatory prepayment) or clause 23.12 (Disposals) of this Agreement;

 

(d)    any provision containing financial covenants, references to financial covenants (including specific covenants relating to security cover and conditions precedent to drawdown which refer to financial covenants and/or security cover) which shall be replaced in full by the provisions of clause 20 (Financial Covenants);

 

(e)                        any information relating to the timing of the delivery and the contents of financial statements and compliance certificates which shall be replaced by the provisions of clause 22.3 (Financial statements) to clause 22.10 (Requirements as to financial statements);

 

(f)                          any events of default relating to:

 

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(i)                          a failure to make a payment when due shall be replaced by the provisions of clause 25.2 (Non-payment);

 

(ii)                       non-compliance with financial covenants shall be replaced by the provisions of clause 25.3;

 

(iii)                    a grace period for breaches of provisions of Finance Documents which can be remedied shall be replaced by the provisions of clause 25.5 and clause 25.6 (Other obligations);

 

(iv)                   a breach of representation shall be replaced by the provisions of clause 25.7 (Misrepresentation);

 

(v)                      cross-default shall be replaced by the provisions of clause 25.8 to clause 25.12 (Cross default);

 

(vi)                   insolvency, insolvency proceedings and any analogous process shall be replaced by the provisions of clause 25.13 (Insolvency) to clause 25.18 (Creditors’ process);

 

(g)                       any provision relating to a change of control, the status of Dr. John Coustas within the Company or the Company’s listing on any stock exchange;

 

(h)                       any provision relating to the application or receipt of earnings prior to an Event of Default shall be replaced by clause 15.16 to clause 15.17 (Earnings accounts);

 

(i)                           any provision in an Existing Facility Agreement requiring the unwinding of hedging transactions under Existing Hedging Agreements upon repayment and prepayment of an Existing Facility Agreement, which shall be modified up to the Restructuring Termination Date by the Hedging Strategy and the provisions relating to Cash Cover; and

 

(j)                           any provision relating to account blocking rights shall be modified by clause 26 (Consequences of an Event of Default).

 

Supplemented provisions

 

5.4                      From the Closing Date and subject to clause 4.2 to clause 4.6 (Surviving provisions) and the other provisions of this Agreement, the following provisions which are, or may be, contained in an Existing Facility Agreement and/or a New Money Facility Agreement or any related Finance Document (other than an Existing Hedging Agreement which shall be amended in accordance with clause 7) shall be supplemented by the provisions of this Agreement such that the relevant provisions of the relevant Finance Document as supplemented by this Agreement shall be read as though they were one instrument, with the following supplemental terms applying:

 

(a)                        any representations and warranties not referred to in clause 5.1 (Unaffected provisions);

 

(b)                       any covenants and undertakings not referred to in clause 5.1 (Unaffected provisions) or clause 5.3 (Overridden provisions);

 

(c)                        any information covenants not referred to in clause 5.3 (Overridden provisions); and

 

(d)                       any events of default not referred to in clause 5.1 (Unaffected provisions) or clause 5.3 (Overriden provisions).

 

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Amendments to Existing Finance Documents

 

5.5                     From the Closing Date each of the Existing Finance Documents shall be, and shall be deemed by this Agreement to be, amended as follows:

 

(a)                        the definition of, and references throughout each of the Existing Finance Documents to an Existing Facility Agreement, an Existing Hedging Agreement and any of the other Existing Finance Documents (each howsoever described therein) shall be construed as if the same referred to an Existing Facility Agreement, an Existing Hedging Agreement and those other Existing Finance Documents as amended or supplemented by, or pursuant to, this Agreement;

 

(b)                       the definition of, and references throughout each of the Existing Finance Documents to, each Finance Document, Security Document and/or Transaction Document (as defined in the relevant Existing Facility Agreement), shall be construed as if the same referred to each such document as amended or supplemented whether before or after the date of this Agreement; and

 

(c)                        by construing references throughout each of the Existing Finance Documents to “this Agreement”, “this Deed”, “hereunder” and other like expressions as if the same referred to such Existing Finance Documents as amended or supplemented by, or pursuant to, this Agreement.

 

5.6                     In the event of any inconsistency between clause 5.5 and any term of any document specifically amending any Existing Finance Document (including, without limitation, any mortgage addenda or other document amending any Finance Document, Security Document and/or Transaction Document (as defined in the relevant Existing Facility Agreement)), delivered pursuant to 2(c) of Schedule 5 (Conditions Precedent) the provisions of that other document will prevail.

 

Inconsistency

 

5.7                     Subject to clause 5.6, in the event of an inconsistency between a provision of this Agreement and a provision of any other Finance Document, the provisions of this Agreement shall prevail.

 

No discharge

 

5.8                     This Agreement shall not constitute a discharge, cancellation or novation of the Finance Documents save that any repayments or prepayments made under, or in accordance with, this Agreement and actually received by a Finance Party shall operate to discharge the corresponding sums payable under or in respect of the Finance Documents to which it is a party.

 

Rights, obligations and liabilities several

 

5.9                     The rights, obligations and liabilities of the Finance Parties under this Agreement and the other Restructuring Documents are several.  The failure by a Participating Lender or other Finance Party to perform any obligation under any Restructuring Document does not affect the obligations of any other Party under the Restructuring Documents nor shall it release any Party from any of its obligations under any Restructuring Document.

 

Severance

 

5.10               Each provision of this Agreement is severable and distinct from the others and, if any provision is, or at any time becomes, to any extent or in any circumstances invalid, illegal or unenforceable for any reason, that provision shall to that extent be deemed not to form part of this Agreement but the validity, legality and enforceability of the remaining parts of this Agreement shall not be affected or impaired, it being the Parties’

 

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intention that every provision of this Agreement shall be and remain valid and enforceable to the fullest extent permitted by law.

 

Continuation of Security

 

5.11               Each Group Company hereby confirms for the benefit of the Finance Parties, for the avoidance of doubt, that:

 

(a)                        each Security Document to which it is a party and any guarantee and/or indemnity contained in any Finance Document to which it is a party extends, in accordance with their terms, to its obligations arising under this Agreement; and

 

(b)                       its obligations under each such Security Document (which is an Existing Finance Document) and/or any guarantee and indemnity contained in an Existing Finance Document to which it is a party are not otherwise affected by this Agreement or anything contained in it and shall, in accordance with their terms, remain in full force and effect.

 

5.12               It is hereby acknowledged that the Participating Lenders will receive Security for amounts outstanding under the Existing Facility Agreements and Existing Hedging Transactions to which they are a party under certain New Security Documents as set out in Schedule 14 (New Security Documents).

 

Governing Laws

 

5.13               If under the governing law of any Finance Document, this Agreement does not override the terms that are required to be overridden under that Finance Document (an Affected Original Contract) then this Agreement will operate as a separate collateral contract (the Collateral Contract) between each of the parties to the Affected Original Contract.

 

5.14               Each Party which is a party to the Affected Original Contract agrees to:

 

(a)                        have a Collateral Contract on the terms of this Agreement; and

 

(b)                       if the relevant Finance Parties which are party to the Affected Original Contracts   so request in writing, but not otherwise, waive any rights they have under the Affected Original Contract to the extent that they conflict with the Collateral Contract.

 

5.15               If the Intercreditor Agent or the Relevant Finance Parties so request, the relevant parties must enter into an agreement under the governing law of the Affected Original Contract to override the same terms of that Affected Original Contract that this Agreement would have overridden if it had been effective.

 

5.16               In addition to, and without limiting clause 23.32 and clause 23.33 (Further assurance), each Group Company shall (and the Company shall procure that each Group Company will) promptly do all such acts or execute all such documents as the Intercreditor Agent or the Relevant Finance Parties may reasonably specify (and in such form as the Intercreditor Agent or the Relevant Finance Parties may reasonably require) to facilitate the implementation of the provisions set out in clause 5.13 to clause 5.15.

 

Group Companies’ Agent

 

5.17               Each Group Company (other than the Company) by its execution of this Agreement or a Group Company Accession Deed irrevocably appoints the Company to act on its behalf as its agent in relation to the Restructuring Documents and irrevocably authorises:

 

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(a)        the Company on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions, to execute on its behalf any Group Company Accession Deed, to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by any Group Company notwithstanding that they may affect the Group Company, without further reference to or the consent of that Group Company; and

 

(b)        each Finance Party to give any notice, demand or other communication to that Group Company pursuant to the Restructuring Documents to the Company,

 

and in each case the Group Company shall be bound as though the Group Company itself had given the notices and instructions or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication.

 

5.18     Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Group Companies’ Agent or given to the Group Companies’ Agent under any Restructuring Document on behalf of another Group Company or in connection with any Restructuring Document (whether or not known to any other Group Company and whether occurring before or after such other Group Company became a Group Company under any Restructuring Document) shall be binding for all purposes on that Group Company as if that Group Company had expressly made, given or concurred with it. In the event of any conflict between any notices or other communications of the Group Companies’ Agent and any other Group Company, those of the Group Companies’ Agent shall prevail.

 

6          Amendments and Most Favoured Lender

 

Amendments

 

6.1       Subject to the provisions of this clause 6 and the other provisions contained in this Agreement, each Participating Lender and each other Finance Party may waive, amend, vary or modify the terms of any Finance Document to which it is a party.

 

Most Favoured Lender

 

6.2       Neither the Company nor any other Group Company will enter into any waiver, modification or amendment to any Existing Facility Agreement, any New Money Facility Agreement, any Hedging Agreement, any other Finance Document, any Vendor Finance Document, the Sinosure Backed Facility loan agreement or the Sinosure Vessels Alternative Financing, any Qualifying Refinancing Agreement or other document relating to Financial Indebtedness or otherwise enter into any new credit facility or financing document, that contains covenants or default provisions or otherwise grants more favourable provisions or treatment to the lender or financier thereunder unless each of the Finance Parties receives the benefit of such more favourable provisions at the same time and on the same terms.

 

6.3       Save for any guarantee given in connection with, or any Security permitted by, clauses 23.10(c)(iii), (iv), (vi), (vii), (viii) and (ix), no additional guarantees and/or Security will be provided by any Group Company to any creditor in respect of Financial Indebtedness unless similar Security and/or guarantees are given in favour of the Finance Parties who are still owed money under a Finance Document.

 

Notice of waivers, modification or amendments

 

6.4       Without prejudice to clause 3.14(c), the Company and the Finance Parties must provide details to the Intercreditor Agent of any formal waiver, any modification or any amendment that they intend to enter into in respect of a Finance Document prior to

 

40

 

entering into any such waiver, modification or amendment.  For the avoidance of doubt, the Intercreditor Agent shall not be required to consider the merits of any such waiver, modification or amendment and consent to any such waiver, modification or amendment shall not be required from the Intercreditor Agent.

 

6.5       The Company and the Finance Parties must provide to the Intercreditor Agent a copy of any reservation of rights, acceleration, enforcement, event of default or similar notice provided to a Group Company by a Finance Party at the same time such notice is sent to the relevant Group Company.  The Intercreditor Agent shall not be required to consider the merits of any such notice nor shall it take any action in respect of such notice save as directed in accordance with this Agreement.

 

7          New Money Facility Agreements and Existing Hedging Agreements

 

7.1       On or as soon as reasonably practicable following the date of this Agreement each Finance Party will enter into such of the New Money Facility Agreements and those other New Money Finance Documents to which they are expressed to be a party, as are in an agreed form. Each Finance Party will make available the Facilities under the New Money Facility Agreements to which they are a party in accordance with the terms of, and to the extent of their obligations under the New Money Facility Agreements to which they are a party. In relation to those New Money Finance Documents which cannot be entered into on the date of this Agreement, those New Money Finance Documents will be entered into in the agreed form subject to any amendments that may be required to reflect changes in law, regulation or custom or which are required in order to ensure that a clean opinion is given without qualifications and assumptions in addition to those that would be customary.

 

7.2       On the Closing Date each Finance Party will enter into an amendment and restatement of the Existing Hedging Agreement to which it is a party so that the terms of such Existing Hedging Agreement reflect the terms set out in Schedule 16 (Amended and Restated Existing Hedging Agreements).

 

8          Exclusion of liability and release of the Participating Lenders

 

8.1       Each Party acknowledges and agrees that, other than as expressly provided in a Restructuring Document or as a consequence of a breach of, or failure to comply with a provision of, a Restructuring Document, no Participating Lender (including in its capacity as a member of CoCom) is or will be liable for any action taken by it (or any inaction) under or in connection with the Transaction, unless directly caused by its gross negligence or wilful misconduct.

 

8.2       Each Party acknowledges and agrees in favour of each Participating Lender (including in its capacity as a member of CoCom) that:

 

(a)        it is acting for its own account and it has made and will make its own independent decisions to enter into (as applicable) the Restructuring Documents and the New Money Finance Documents and to give effect to the transactions contemplated in those agreements and as to whether these arrangements are appropriate or proper for them based upon their own judgement and upon advice from such advisers as it has deemed necessary;

 

(b)        it is not relying on any communication (written or oral) from any or all of the Participating Lenders or CoCom as investment advice or as a recommendation to enter into (as applicable) the Restructuring Documents and the New Money Finance Documents, it being understood that information and explanations related to the terms and conditions of the Restructuring Documents and/or the New Money Finance Documents shall not be considered investment advice or a recommendation to enter into the Restructuring Documents and/or New Money Finance Documents.  No communication (oral or written) received from any or all

 

41

 

of the Participating Lenders and/or CoCom shall be deemed to be an assurance or guarantee as to the expected results of the Restructuring Documents and/or the New Money Finance Documents;

 

(c)        no Participating Lender nor any member of CoCom has or will act for any other Party in any representative capacity and owes no fiduciary duties to any other Party;

 

(d)        it is and will remain capable of assessing the merits of and understanding (on its own behalf and through independent professional advice) and understands and accepts the terms, conditions and risk associated with the Restructuring Documents and/or the New Money Finance Documents;

 

(e)        no Participating Lender nor any member of CoCom has any obligation or liability to any other Party for any act or omission prior to the Closing Date unless directly caused by its gross negligence or wilful misconduct; and

 

(f)         it has no claims resulting from any action, fact or circumstance known or unknown against any Participating Lender or any member of CoCom, in its capacity solely as a Participating Lender or member of CoCom.

 

8.3       Other than in respect of liability directly caused by gross negligence or wilful misconduct, no Party may take any proceedings against a Participating Lender or any member of the CoCom (in such capacity) in respect of any claim it might have against any Participating Lender or a member of CoCom (in such capacity) or in respect of any act or omission of any kind by that Party in relation to that Party’s entry into the Transaction.

 

8.4       No Party may take any proceedings against any director, officer, employee or agent of any Participating Lender or any member of CoCom in respect of any claim it might have against a Participating Lender or a member of CoCom or in respect of any act or omission of any kind by that director, officer, employee or agent in relation to the Transaction and any director, officer, employee or agent of any Participating Lender or a member of CoCom may rely on this clause subject to clauses 1.5 and 1.6 (Third Party Rights) and the provisions of the Third Parties Act.

 

8.5       Each Party agrees that it shall to the extent it is able and with effect from the Closing Date:

 

(a)        unconditionally and irrevocably release each Participating Lender and each member of CoCom from any obligation or liability that it may have incurred or that may have arisen prior to the Closing Date; and

 

(b)        waive each and every claim resulting from any action, fact or circumstance known or unknown against any Participating Lender or a member of CoCom,

 

PROVIDED THAT nothing in this Agreement shall release any Participating Lender or member of CoCom from any liability or obligation directly caused by its gross negligence or wilful misconduct.

 

8.6       For the purposes of this clause, CoCom means the ad hoc co-ordinating committee in relation to the Company of which the following Participating Lenders were members of the committee with a view to facilitating restructuring discussions with the Company in relation to the Transaction:

 

(a)        ABN AMRO Bank N.V. (formerly Fortis Bank (Nederland) N.V.);

 

(b)        Credit Suisse AG;

 

(c)        Deutsche Schiffsbank Aktiengesellschaft,

 

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(d)        National Bank of Greece S.A.; and

 

(e)        The Royal Bank of Scotland plc,

 

and it is acknowledged by each Party that each of the above institutions is a Party to this Agreement and has entered in this Agreement in its capacity as a member of CoCom (in addition to any other capacity) for the purposes of receiving the benefit of this clause 8.

 

8.7       It is acknowledged by each Party that each Participating Lender has entered into this Agreement in each of its capacities under the Finance Documents to which it is a party for the purposes of receiving the benefit of this clause 8.

 

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SECTION 3 - PRICING, INDEMNITIES AND FEES

 

9          Interest

 

Calculation of interest

 

9.1       With effect from the Closing Date, but subject to clause 9.2, the rate of interest on each Loan for each Interest Period shall be the percentage rate per annum which is the aggregate of the applicable:

 

(a)        Margin;

 

(b)        LIBOR; and

 

(c)        Mandatory Cost, if any.

 

9.2       For the purpose of determining the rate of interest on each Existing Facility Loan drawn down on or prior to the Closing Date, for the period from the Closing Date until the end of the then current Interest Period, LIBOR and mandatory cost shall be as determined in accordance with the provisions of the relevant Existing Facility Agreement which applied at the commencement of such Interest Period.

 

Payment of interest

 

9.3       The Group Company to which a Loan has been made shall pay accrued interest on that Loan on the last day of each Interest Period (including the end of the Interest Period which is current on the Closing Date in relation to Existing Facility Loans).

 

9.4       Any payments made pursuant to this clause 9 shall be payable in accordance with, and in the manner described in, each Facility Agreement as if the terms of this clause 9 had been incorporated in that Facility Agreement in full.

 

Default interest

 

9.5       If a Group Company fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to clause 9.6 below, is 2 per cent. higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Relevant Finance Party under that Finance Document (acting reasonably) provided that in the event that the amount was payable in a currency other than US Dollars the base rate applicable shall be determined by the Relevant Finance Party in accordance with the base rate offered by that Relevant Finance Party for loans in that currency for that period.  Any interest accruing under clauses 9.5 to 9.7 shall be immediately payable to a Relevant Finance Party by the Group Company on demand by that Relevant Finance Party.

 

9.6       If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

 

(a)        the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

 

(b)        the rate of interest applying to the overdue amount during that first Interest Period shall be 2 per cent. higher than the rate which would have applied if the overdue amount had not become due.

 

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9.7       Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

 

Notification of rates of interest

 

9.8       Each Relevant Finance Party shall determine the rate of interest payable in relation to the Facility Agreement to which it is a party in accordance with the provisions of this Agreement. Each Relevant Finance Party shall promptly notify the Intercreditor Agent, the Company and, if applicable, the Participating Lenders under the Facility Agreement in relation to which it is the Relevant Facility Agent of the determination of a rate of interest under this Agreement. The Intercreditor Agent shall promptly notify the Participating Lenders of any discrepancy between the rates of interest notified to it under this clause.

 

Mandatory Cost

 

9.9       Each Participating Lender under a Facility Agreement shall supply the Relevant Finance Party under that Facility Agreement with any information required by that Relevant Finance Party in order to calculate the Mandatory Cost in accordance with Schedule 13 (Mandatory Cost formula).

 

10        Interest Periods

 

Interest Periods

 

10.1     The period for which each Loan shall be outstanding shall be divided into successive Interest Periods.

 

10.2     Subject to clause 10.4, the duration of the first Interest Period for each Loan will start on the date on which it is drawndown and end on the first Instalment Date to occur after that date.

 

10.3     The duration of each subsequent Interest Period will, save as otherwise provided in this Agreement, start on each Instalment Date and end on the next Instalment Date provided that, if an Interest Period would otherwise extend beyond the Final Maturity Date, that Interest Period will be shortened to end on the Final Maturity Date.

 

10.4     Existing Facility Loans which are outstanding on the date of this Agreement will retain their existing interest periods provided that on the next interest payment date, a new Interest Period will start and end on the first Instalment Date to occur after that date.

 

Non-Business Days

 

10.5     If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

 

11        Changes to the calculation of interest

 

With effect from the Closing Date, the provisions of this clause 11 shall apply to all Loans under each Facility Agreement including Existing Facility Loans under the Existing Facility Agreements and New Money Facility Loans under the New Money Facility Agreements.

 

Absence of quotations

 

11.1     Subject to clauses 11.2 to 11.5 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation

 

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by the Specified Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

 

Market disruption

 

11.2     If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Participating Lender’s share of that Loan for the Interest Period shall be the percentage rate per annum which is the sum of:

 

(a)        the applicable Margin;

 

(b)        subject to any cap referred to in clause 11.5(b)(ii), the rate notified to the Intercreditor Agent by that Participating Lender as soon as practicable and in any event prior to the date on which interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Participating Lender of funding its participation in that Loan from whatever source it may reasonably select; and

 

(c)        the Mandatory Cost, if any, applicable to that Participating Lender’s participation in the Loan.

 

11.3     For the avoidance of doubt, nothing in this clause 11 shall require the Intercreditor Agent to calculate the rate of interest applicable to any Loan.

 

11.4     If:

 

(a)        the percentage rate per annum notified by a Participating Lender pursuant to clause 11.2(b) above is less than LIBOR; or

 

(b)        a Participating Lender has not notified the Intercreditor Agent of a percentage rate per annum pursuant to clause 11.2(b) above; or

 

(c)        a Participating Lender has not provided the information in accordance with clause 11.5(b)(ii)(B) below,

 

the cost to that Participating Lender of funding its participation in that Loan for that Interest Period shall be deemed, for the purposes of clause 11.1 above, to be LIBOR.

 

11.5     In this Agreement:

 

Market Disruption Event means:

 

(a)        at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference Banks supplies a rate to the Intercreditor Agent to determine LIBOR for the Interest Period; or

 

(b)        before close of business in London on the Quotation Day for the relevant Interest Period:

 

(i)         at any time, the Intercreditor Agent receives notifications from Participating Lenders (whose participations in Loans exceed 50 per cent. of the aggregate amount of all Loans (including the Existing Facility Loans and the New Money Facility Loans) and which represent half or more in number of all Participating Lenders to whom amounts are outstanding under a Finance Document at that time) that the cost to it of funding its participation in a Loan from whatever source it may reasonably select would be in excess of LIBOR; or

 

46

 

(ii)        for any Interest Period ending on or before 31 December 2011 in the event that the Intercreditor Agent has not received the notifications described in 11.5(b)(i), the Intercreditor Agent receives notifications from Participating Lenders (whose participations in Loans exceed 33.33 per cent. of the aggregate amount of all Loans (including the Existing Facility Loans and the New Money Facility Loans) and which represent four or more in number of all Original Participating Lenders to whom amounts are outstanding under a Finance Document at that time) that the cost to it of funding its participation in a Loan from whatever source it may reasonably select would be in excess of LIBOR PROVIDED THAT:

 

(A)       the rate of interest on each such relevant Participating Lender’s share of any Loan for the relevant Interest Period shall not exceed the sum of (i) the applicable Margin, (ii) LIBOR, (iii) the Mandatory Cost Rate plus (iv) 0.35 per cent. per annum; and

 

(B)       a Participating Lender shall only be entitled to invoke the provisions of this clause (ii) in the event that that Participating Lender provides (within 5 Business Days of its notification) a certificate or letter signed by a senior official of the relevant Participating Lender to the Intercreditor Agent for distribution to all Participating Lenders confirming that the cost to that Participating Lender of funding its participation in a Loan from whatever source it may reasonably select would be in excess of LIBOR and, if such excess is below 0.35 per cent. per annum, the cost to that Participating Lender of funding its participation in a Loan and if in excess of the sum of LIBOR plus 0.35 per cent. per annum, confirming that the cost to that Participating Lender exceeds this sum.

 

11.6     The Intercreditor Agent shall notify the Participating Lenders and the Company as soon as reasonably practicable after becoming aware of the occurrence of a Market Disruption Event.

 

Alternative basis of interest or funding

 

11.7     If a Market Disruption Event occurs and the Relevant Finance Parties or the Company so require, the Relevant Finance Parties and the Company shall enter into negotiations conducted in good faith (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest. For the avoidance of doubt, in the absence of agreement, the rate of interest shall be determined in accordance with clause 11.2 and clause 11.4  (Market disruption).

 

11.8     Any alternative basis agreed pursuant to clause 11.7 above shall, with the prior consent of all the Participating Lenders and the Company, be binding on all Parties.

 

Break Costs

 

11.9     The Company shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by the Company or another Group Company on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

 

11.10   Each Participating Lender shall, as soon as reasonably practicable after a demand by the Intercreditor Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

 

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12        Tax gross-up and indemnities

 

Definitions

 

12.1     In this clause:

 

Protected Party means a Finance Party which is or will be subject to any liability for, or required to make any payment for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

 

Tax Deduction means a deduction or withholding for or on account of Tax from a payment under a Finance Document.

 

Unless a contrary indication appears, in this clause 12 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination.

 

Tax gross-up

 

12.2     Each Group Company shall make all payments to be made by it under, and in connection with, the Finance Documents, without any Tax Deduction, unless a Tax Deduction is required by law.

 

12.3     The Company shall promptly upon becoming aware that a Group Company must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Intercreditor Agent accordingly.  Similarly, a Participating Lender shall notify the Intercreditor Agent on becoming so aware in respect of a payment payable to that Participating Lender.  If the Intercreditor Agent receives such notification from a Participating Lender it shall notify the Company.

 

12.4     If a Tax Deduction is required by law to be made by a Group Company, the amount of the payment due from that Group Company shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

 

12.5     If a Group Company is required to make a Tax Deduction, that Group Company shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.

 

12.6     Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Group Company making that Tax Deduction shall deliver to the Intercreditor Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

Tax indemnity

 

12.7     The Company shall (within three Business Days of demand by the Intercreditor Agent or Relevant Finance Party) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

 

12.8     Clause 12.7 above shall not apply:

 

(a)        with respect to any Tax assessed on a Finance Party:

 

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(i)         under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or

 

(ii)        under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,

 

if that Tax is imposed on or calculated by reference to the overall net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or

 

(b)        to the extent a loss, liability or cost is compensated for by an increased payment under clauses 12.2 to 12.6  (Tax gross-up).

 

12.9     A Protected Party making, or intending to make a claim under clause 12.7 above shall promptly notify the Intercreditor Agent of the event which will give, or has given, rise to the claim, following which the Intercreditor Agent shall notify the Company.

 

12.10   A Protected Party shall, on receiving a payment from a Group Company under clauses 12.7, notify the Intercreditor Agent.

 

Stamp taxes

 

12.11   The Company shall pay and, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability which that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

 

VAT

 

12.12   All amounts set out or expressed in a Finance Document to be payable by any Party to a Finance Party which (in whole or in part) constitute the consideration for a supply or supplies for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such supply or supplies, and accordingly, subject to clause 12.13 below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document, that Party shall pay to the Finance Party (in addition to and at the same time as paying any other  consideration for such supply) an amount equal to the amount of such VAT (and such Finance Party shall promptly provide an appropriate VAT invoice to such Party).

 

12.13   If VAT is or becomes chargeable on any supply made by any Finance Party (the Supplier) to any other Finance Party (the Recipient) under a Finance Document, and any Party other than the Recipient (the Subject Party) is required by the terms of any Finance Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being required to reimburse the Recipient in respect of that consideration), such Party shall also pay to the Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT.  The Recipient will promptly pay to the Subject Party an amount equal to any credit or repayment obtained by the Recipient from the relevant tax authority which the Recipient reasonably determines is in respect of such VAT.

 

12.14   Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

 

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13        Other indemnities

 

Currency indemnity

 

13.1     If any sum due from a Group Company under the Finance Documents (a Sum), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the First Currency) in which that Sum is payable into another currency (the Second Currency) for the purpose of:

 

(a)        making or filing a claim or proof against that Group Company; or

 

(b)        obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

 

that Group Company shall as an independent obligation, within three Business Days of demand, indemnify the Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

13.2     Each Group Company waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

 

Other indemnities

 

13.3     The Company shall (or shall procure that a Group Company will), within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by it as a result of:

 

(a)        the occurrence of any Event of Default;

 

(b)        a failure by a Group Company to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of clause 38 (Sharing among the Finance Parties);

 

(c)        funding, or making arrangements to fund, its participation in a drawdown requested by the Company or a Group Company in a drawdown request but not made by reason of the operation of any one or more of the provisions of this Agreement or a Finance Document (other than by reason of default or negligence by that Finance Party alone); or

 

(d)        a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Company.

 

13.4     The Company shall promptly indemnify each Finance Party, each Affiliate of a Finance Party and each officer or employee of a Finance Party or its Affiliate, against any cost, loss or liability incurred by that Finance Party or its Affiliate (or officer or employee of that Finance Party or Affiliate) in connection with or arising out of the Transaction (including but not limited to those incurred in connection with any litigation, arbitration or administrative proceedings or regulatory enquiry concerning the Transaction), unless such loss or liability is caused by the gross negligence or wilful misconduct of that Finance Party or its Affiliate (or employee or officer of that Finance Party or Affiliate).  Any Affiliate or any officer or employee of a Finance Party or its Affiliate may rely on this clause 13.4 subject to clauses 1.5 and 1.6 (Third party rights) and the provisions of the Third Parties Act.

 

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Indemnity to the Intercreditor Agent

 

13.5     Each Group Company hereby indemnifies the Intercreditor Agent and shall at all times keep indemnified the Intercreditor Agent against any cost, loss or liability incurred by the Intercreditor Agent (acting reasonably) as a result of:

 

(a)        investigating any event which it reasonably believes is a Default; or

 

(b)        acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised.

 

13.6     Each Group Company shall promptly indemnify and shall at all times keep the Intercreditor Agent and every Receiver and Delegate indemnified against any cost, loss or liability incurred by any of them as a result of:

 

(a)        the taking, holding, protection or enforcement of the Security under any Shared Security Document;

 

(b)        the exercise of any of the rights, powers, discretions and remedies vested in the Intercreditor Agent and each Receiver and Delegate by the Restructuring Documents or by law; or

 

(c)        any default by any Group Company in the performance of any of the obligations expressed to be assumed by it in the Restructuring Documents.

 

13.7     The Intercreditor Agent is senior to all other Parties and may, in priority to any payment to the other Finance Parties, indemnify itself out of the assets subject to Security under the Shared Security Documents in respect of, and pay and retain, all sums necessary to give effect to the indemnity in clauses 13.5 and 13.6 and shall have a lien on the Security under the Shared Security Documents and the proceeds of the enforcement of the Security under the Shared Security Documents for all monies payable to it.

 

14        Costs and expenses

 

Transaction expenses

 

14.1     The Company shall promptly on demand pay the Participating Lenders and the Intercreditor Agent the amount of all costs and expenses (including legal fees) reasonably incurred by any of them in connection with:

 

(a)        the negotiation, preparation, printing, execution and perfection of this Agreement and any other Restructuring Documents and in relation to the Transaction being (i) the fees and expenses of Norton Rose LLP, Holland & Knight LLP, and in relation to Citibank, N.A. and EFG Eurobank Ergasias S.A., Latham & Watkins LLP; (ii) the fees and expenses of one local counsel in each other relevant jurisdiction (other than England and Wales) and (ii) Deloitte & Touche LLP;

 

(b)        any other Restructuring Document executed after the date of this Agreement; and

 

(c)        any investigative work carried out pursuant to clause 22.22 (Presentations and Briefings).

 

14.2     Notwithstanding any provision of a Finance Document, other than as set out in this Agreement or reimbursed prior to the date of this Agreement, no Finance Party may claim reimbursement for any costs and expenses (including legal fees) incurred by a Finance Party prior to the date of this Agreement:

 

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(a)        in relation to the negotiation, preparation, printing, execution and perfection of this Agreement and any other Restructuring Document;

 

(b)        in relation to the Transaction; or

 

(c)        in connection with the enforcement of or the preservation of any rights under any Finance Document.

 

Amendment costs

 

14.3     If:

 

(a)        a Group Company requests an amendment, waiver or consent; or

 

(b)        an amendment is required pursuant to clauses 39.17 and 39.18 (Change of currency),

 

the Company shall, within three Business Days of demand, reimburse the Intercreditor Agent for the amount of all costs and expenses (which shall include legal fees) incurred by the Intercreditor Agent and the Relevant Finance Parties (or by any Receiver or Delegate) or in relation to a Hedging Agreement only, a Hedge Counterparty, in responding to, evaluating, negotiating or complying with that request or requirement.

 

Intercreditor Agent’s ongoing costs

 

14.4     In the event of:

 

(a)        a Default; or

 

(b)        the Intercreditor Agent being requested by a Group Company or the Majority Participating Lenders to undertake duties which the Intercreditor Agent and the Company agree to be of an exceptional nature and/or outside the scope of the normal duties of the Intercreditor Agent under the Finance Documents,

 

the Company shall pay to the Intercreditor Agent any additional remuneration that may be agreed between them.

 

14.5     If the Intercreditor Agent and the Company fail to agree upon the nature of the duties or upon any additional remuneration, that dispute shall be determined by arbitration in London in accordance with the rules of the London Maritime Arbitrators Association and shall be final and binding upon the parties to this Agreement.

 

Enforcement and preservation costs

 

14.6     The Company shall, within three Business Days of demand, pay to the Finance Parties the amount of all costs and expenses (including legal fees) incurred by them in connection with the enforcement of or the preservation of any rights under any Restructuring Document and any proceedings instituted by or against the Intercreditor Agent as a consequence of taking or holding the Security under the Shared Security Documents or enforcing these rights.

 

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SECTION 4 - REPAYMENT, PREPAYMENT AND CANCELLATION

 

15        Repayment

 

Maturity

 

15.1     The final repayment date (however described) of each Facility (including a revolving credit facility under an Existing Facility Agreement) under:

 

(a)        an Existing Facility Agreement shall be rescheduled to; and

 

(b)        under a New Money Facility Agreement shall be,

 

the Final Maturity Date such that, unless otherwise repaid in accordance with this clause 15 or prepaid in accordance with, or as contemplated by, clauses 17 (Illegality, voluntary prepayment and cancellation) to 19 (Restrictions), each of the Existing Facility Agreements and the New Money Facility Agreements will have the same final repayment date of the Final Maturity Date. All amounts outstanding under the Finance Documents must be repaid in full on the Final Maturity Date.

 

15.2     The termination dates in relation to the Existing Hedging Agreements and any Existing Hedging Transactions shall remain unchanged.

 

Repayment of Loans - Phase I

 

15.3     No Group Company shall be obliged to pay any amortisation or scheduled repayments of any Loans under any Facility Agreement in the period from the Closing Date up to the first Instalment Date falling after 31 March 2013. For the avoidance of doubt, this clause 15.3 shall not apply to mandatory or voluntary prepayments.

 

Repayment of Loans - Phase II and Phase III - Fixed Amortisation Amounts

 

15.4     Subject to clauses 15.5 and 15.6, the Company must repay (or procure the repayment of) the Loans in instalments by repaying on each Instalment Date falling after 31 March 2013 an amount which reduces the amount outstanding under each individual Facility Agreement by the amount set out opposite the relevant Instalment Date for that Facility Agreement as specified in Schedule 2 (Fixed Amortisation Schedule) (the Fixed Amortisation Amount).

 

15.5     In the event of any voluntary prepayment made in accordance with clauses 17.3 to 17.5 (Voluntary prepayment) or any mandatory prepayment made in accordance with clause 18.2, 18.3 (as to the final paragraph of such clause), 18.4 (as to the final paragraph of such clause), 18.6, 18.8, 18.9, 18.10, 18.15 or 23.13 (Mandatory Prepayment), clause 24.2 or as specified for Zim Payments, such prepayments shall be applied so as to reduce the principal amount scheduled to be outstanding on the Final Maturity Date, which shall be calculated as of such date for these purposes as the principal amount outstanding on the Final Maturity Date after giving credit for Fixed Amortisation Amounts scheduled to be paid prior to that date, until the principal amount outstanding on the Final Maturity Date is zero and thereafter the balance of such prepayment shall be applied so as to reduce Fixed Amortisation Amounts of the relevant Facility Agreement for each Instalment Date falling after the date of prepayment in inverse chronological order. Any other voluntary or mandatory prepayments shall reduce the Fixed Amortisation Amounts of the relevant Facility Agreement for each Instalment Date falling after the day of prepayment by the proportion that the prepayment amount bears to the Loan amount at that time.  For the avoidance of doubt, the provisions of this clause 15.5 shall not apply to any prepayment made in accordance with clause 15.6 nor repayments in accordance with clauses 15.7 to 15.10 below.

 

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15.6     The Company may, upon giving 5 Business Days’ prior written notice to the Intercreditor Agent, prepay a Fixed Amortisation Amount on the Instalment Date (the First Instalment Date) preceding the Instalment Date on which it would otherwise fall due (the Second Instalment Date) provided that the aggregate payment amount is sufficient to pay all Fixed Amortisation Amounts falling due under each Facility Agreement on the First Instalment Date and the Second Instalment Date, following which:

 

(a)        the Fixed Amortisation Amount due on the Second Instalment Date were it not for prepayment in accordance with this clause shall not be due and payable and;

 

(b)        that for the purposes of calculating the Balancing Payment due on the First Instalment Date and the Second Instalment Date it shall, conditional upon prepayment as described above, be as though the Fixed Amortisation Amount otherwise due on the Second Instalment Date was paid on the Second Instalment Date.

 

Balancing Payments

 

15.7     In addition to the Fixed Amortisation Amounts payable in accordance with clause 15.4 (Repayment of Loans - Phase II and Phase III - Fixed Amortisation Amounts), the Company shall repay (or procure the repayment of), on each Instalment Date falling on or after 31 March 2013, the Loans under each Facility Agreement by an amount equal to the Balancing Payment (as calculated in accordance with clause 15.8 (Balancing Payment calculation)) for that Facility Agreement (such Balancing Payment being paid at the same time as, and in addition to, the Fixed Amortisation Amount).

 

Balancing Payment calculation

 

15.8     The Balancing Payment for Loans under each Facility Agreement shall be as follows:

 

(a)        for any Instalment Date falling after 31 March 2013 up to and including the earlier of:

 

(i)         15 February 2015 (by reference to the Financial Quarter ending on 31 December 2014); and

 

(ii)        the date on which Consolidated Net Leverage is below 6:1 (as tested by reference to the most recent Financial Statements and/or each Compliance Certificate delivered pursuant to clauses 22.4 to 22.6 (Provision and contents of Compliance Certificate)),

 

(such date being the Phase II End Date),

 

an amount which, when aggregated with the amount of the Fixed Amortisation Amount which is due and payable on that Instalment Date (excluding any additional amount for which an election that it is payable on such date under clause 15.6 has been made), is equal to 92.5 per cent. of the Actual Free Cash Flow for that Facility Agreement for the preceding Financial Quarter; and

 

(b) for any Instalment Date falling after the Phase II End Date until the Final Maturity Date (such period being Phase III), an amount which, when aggregated with the amount of the Fixed Amortisation Amount which is due and payable on that Instalment Date (excluding any additional amount for which an election that it is payable on such date under clause 15.5 has been made), is equal to 89.5 per cent. of the Actual Free Cash Flow for that Facility Agreement for the preceding Financial Quarter.

 

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Retention of certain amounts

 

15.9     During Phase III, following the calculation of the Balancing Payment in accordance with clause 15.8(b) (Balancing payment calculation) (and on condition that all Fixed Amortisation Amounts and all Balancing Payments have been paid or will be paid on that Instalment Date) together with all other obligations of the Group to make payments to Participating Lenders in accordance with this Agreement), the Group, in aggregate, shall be entitled to retain an amount which is the greater of:

 

(a)        US$50,000,000 of accumulated non-restricted cash or Cash Equivalents available to it on a consolidated basis which remains in the business; and

 

(b)        2% of Consolidated Debt,

 

(the Retention Amount and the amount of accumulated non-restricted cash or Cash Equivalents available to the Group in excess of the Retention Amount shall be the Excess Amount)

 

each as tested by reference to the most recent Financial Statements and/or each Compliance Certificate delivered pursuant to clauses 22.4 to 22.6 (Provision and contents of Compliance Certificate)) provided that in no circumstances will this limit the Fixed Amortisation Amount or the Balancing Payment.

 

Additional repayment

 

15.10   During Phase III, in addition to the Balancing Payment payable in accordance with clause 15.7 (Balancing Payments), the Company shall promptly repay (or procure the repayment of), on the relevant Instalment Date, the Loans under all Facility Agreements by the amount (if any) equal to the Excess Amount in the following order:

 

(a)        firstly, all New Money Facility Loans in amounts which reduce the New Money Facility Loans by the same proportion until all New Money Loans have been repaid in full; and

 

(b)        secondly, all Existing Facility Loans in amounts which reduce the Existing Facility Loans by the same proportion.

 

Applicable Second Lien Vessel Free Cash Flow

 

15.11   After full discharge of any and all amounts of a Loan secured in favour of the first mortgagee (in such capacity) on an Applicable Second Lien Vessel in accordance with the terms of the relevant finance documents of the first mortgagee including, in the case of the HSH US$60 million Facility Agreement (as defined in Part 1 of Schedule 3) as specified by and in the manner prescribed by this Agreement, the Applicable Second Lien Vessel Free Cash Flow in respect of such Applicable Second Lien Vessel:

 

(a)        if it is an Additional HSH Second Lien Vessels, shall constitute Free Cash Flow under the New HSH Facility Agreement (as defined in  Schedule 4 (New Money Facility Agreements)) and thereafter shall constitute Free Cash Flow under the HSH Facility Agreement (as defined in Schedule 3 (Existing Facility Agreements and Existing Hedging Agreements);

 

(b)        if it is an Additional RBS Second Lien Vessels, shall constitute Free Cash Flow under the New RBS Facility Agreement (as defined in Schedule 4 (New Money Facility Agreements)) and thereafter shall constitute Free Cash Flow under the RBS Facility Agreement (as defined in Schedule 3 (Existing Facility Agreements and Existing Hedging Agreements),

 

prior to (in each case) it becoming Unencumbered Free Cash Flow available to all Participating Lenders.

 

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Definitions

 

15.12   For the purposes of this clause 15:

 

Actual Free Cash Flow means, with respect to each Facility Agreement, the aggregate amount of Free Cash Flow as calculated in relation to the relevant Financial Quarter and confirmed in the Compliance Certificate for that Financial Quarter PLUS a pro rata allocation to that Facility Agreement of Unencumbered Free Cash Flow (if any), such pro rata allocation of Unencumbered Free Cash Flow being calculated by reference to the proportion that the principal amount outstanding in relation to the relevant Facility Agreement bears to the aggregate amount of Total Outstandings.

 

Applicable Second Lien Vessel Free Cash Flow with respect to each Applicable Second Lien Vessel, is equal to net receipts from or in connection with such Vessel (after full discharge of all and any Loans secured in favour of the first mortgagee (in such capacity) in accordance with the terms of relevant finance documents to which the first mortgagee is party including, in the case of the HSH US$60 million Facility Agreement as specified by this Agreement), less the sum of (a) operating expenses of the relevant Applicable Second Lien Vessel up to the Expenses Limit and (b) subject to the Expenses Limit, pro rata per Vessel allocation of general and administrative and other corporate expenses, being calculated on the basis of the proportion of Vessel Receipts (minus operating expenses for that Vessel) that each Applicable Second Lien Vessels bears to the overall Vessel Receipts (minus operating expenses for all Vessels) (as evidenced by the most recent Financial Statements delivered under this Agreement).

 

Approved Budget means, in relation to the Vessel(s) financed by a particular Facility Agreement:

 

(a)        initially and until the relevant Finance Parties have approved a new budget in the manner referred to in paragraph (b) a budget 3 per cent higher than, the budget delivered by the Company to the Participating Lenders prior to 6 August 2010, entitled by the Company “Danaos_Model_(Draft)_v118ab_Banks insofar as it sets out or allocates the aggregate operating expenses and general and administrative and other corporate expenses to those Vessels; and

 

(b)        thereafter, the most recent budget delivered by the Company in respect of that period pursuant to clause 22.11 (Budget) provided that such budget has been approved by the relevant Participating Lenders party to the Facility Agreement which has financed the Vessels under that Facility Agreement (such consent not to be unreasonably withheld or delayed).

 

Expenses Limit means an amount equal to 120 per cent. of the consolidated budget for the aggregate of (a) operating expenses for the Vessels financed by a Facility Agreement, and (b) general and administrative and other corporate expenses for the Vessels financed by a Facility Agreement as is calculated on the basis set out in paragraph (f) of the definition of Free Cash Flow, as in each case set out in the relevant Approved Budget.

 

Free Cash Flow means, with respect to each Facility Agreement, aggregate net receipts from or in connection with all Vessels securing amounts outstanding under the relevant Facility Agreement provided that in relation to the Existing Facility Agreements only, net receipts from a Joint Security Vessel shall not be taken into account until amounts outstanding under the relevant New Money Facility Agreement have been repaid in full,

 

but not including any proceeds from a disposal, Total Loss of or Requisition Compensation in relation to such Vessels and any amounts payable by Zim Integrated Shipping Services under the Zim Addenda as a consequence of its financial restructuring in 2009 (the Zim Payments) which shall in each case be excluded from

 

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the calculation of Free Cash Flow and which, for the avoidance of doubt, shall in each case constitute prepayments to be applied in full in accordance with:

 

(A)       the provisions of the relevant Facility Agreement in relation to a disposal and otherwise in accordance with clause 23.12 (Disposals);

 

(B)       the provisions of the relevant Facility Agreement in relation to Total Loss or Requisition Compensation and otherwise in accordance with clause 18.4 (Prepayments upon a Total Loss); and

 

(C)       in the case of the Zim Payments, the relevant Vessels to which such Zim Payments relate,

 

LESS a deduction of an amount equal to:

 

(a)        facility interest expenses (or amounts paid or payable as a result of any tax gross up) (provided that in relation to receipts from a Joint Security Vessel no facility interest expense attributable to that Existing Facility Agreement shall be deducted from net receipts until such time as amounts outstanding under the relevant New Money Facility Agreement secured by the Joint Security Vessel have been repaid in full);

 

(b)        pro rata portion of all periodic swap payments of the Group which are payable on a monthly or quarterly basis (but not including any margin calls, collateral posting, close out amounts or other similar payments) pursuant to any Hedging Agreement with the pro rata portion of such aggregate swap payments which shall be attributable to a particular Facility Agreement being calculated by reference to the proportion that the principal amount outstanding in relation to that Facility Agreement bears to the aggregate amount of Total Outstandings;

 

(c)        in the case of a Facility Agreement where the Vessels financed are also Vendor Finance Vessels, subject to the terms of the relevant Vendor Finance Intercreditor Agreement, scheduled interest payable under the Vendor Finance Facility Agreement in respect of the relevant Vendor Finance Vessel;

 

(d)        in the case of a Facility Agreement where the Vessels financed are also Vendor Finance Vessels, subject to the terms of the relevant Vendor Finance Intercreditor Agreement, scheduled amortisation payable under the relevant Vendor Finance Facility Agreement;

 

(e)        operating expenses of the relevant Vessels provided that no deduction shall be made for any operating expenses which exceed or would exceed, when aggregated with all other operating expenses and general and administrative and other corporate expenses in any Financial Year, the Expenses Limit attributable to the Vessels financed under the relevant Facility Agreement for the relevant period;

 

(f)         subject to the Expenses Limit,- pro rata per Facility Agreement allocation of general and administrative and other corporate expenses with the portion of aggregate general and administrative and other corporate expenses of the Group which are attributable to a particular Facility Agreement being calculated on the basis of the proportion of Vessel Receipts (minus operating expenses for that Vessel) that the Vessel securing that Facility Agreement bears to the overall Vessel Receipts (minus operating expenses for all Vessels) (as evidenced by the most recent Financial Statements delivered under this Agreement),

 

PROVIDED THAT no deductions pursuant to (a) to (f) shall be made in respect of any expense or cost (or expense or cost allocation) in relation to any Applicable Second Lien Vessel save in circumstances where its net receipts are to be taken into account as Free Cash Flow and further provided that net receipts from Applicable Second Lien

 

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Vessels shall only be taken into account, either to the extent set out in clause 15.10 (Applicable Second Lien Vessel Free Cash Flow) or where the relevant Facility Agreement is the HSH US$60 million Facility Agreement in which case net receipts from or in connection with the relevant Additional HSH Second Lien Vessels secured by that facility shall constitute Free Cash Flow payable to the relevant Participating Lenders under that facility prior to full discharge of any and amounts of a Loan under that facility,

 

net means after deduction of any Taxes or other directly attributable and reasonable expenses incurred in connection with collection of the relevant receipt but without double counting of amounts to be deducted in accordance with paragraphs (e) and (f) of the definition of Free Cash Flow

 

Unencumbered Free Cash Flow means net receipts from or in connection with any Vessels which from time to time are not subject to any Security.

 

Additional Information regarding expenses exceeding the Expenses Limit

 

15.13   In the event that aggregate operating expenses and general and administrative and other corporate expenses would exceed the Expenses Limit, the Company shall provide the Relevant Finance Parties with such additional information, as a Relevant Finance Party may reasonably request, in relation to such expenses.

 

Effect of cancellation and prepayment on scheduled repayments and reductions

 

15.14   If the Commitment of any Participating Lender is reduced under clause 17.1 (Illegality) then the amount of the Fixed Amortisation Amount due in relation to the relevant Facility Agreement to which that Participating Lender is a party will reduce pro rata by the amount cancelled and the amount of the Balancing Payment will be reduced accordingly. The amount of the Repayment Instalments due to other Participating Lenders shall not be affected by the operation of this clause or clause 17.1 (Illegality).

 

15.15   If any of the Loans are prepaid in accordance with clause 17.1 (Illegality) then the amount of the Repayment Instalment due in relation to the relevant Facility Agreement for each Instalment Date falling after that prepayment will be reduced by the difference between the original Fixed Amortisation Amount and the Fixed Amortisation Amount after such adjustment; any such difference shall be deducted from any payment due under the Balancing Payment as well such that the overall Repayment Instalment is reduced accordingly.

 

Earnings accounts

 

15.16   Subject to clause 15.17, all receipts from or in connection with a Vessel (Vessel Receipts) will be paid into the relevant earnings account (the Earnings Account) in the manner contemplated by the Facility Agreement or related Finance Document which finances or financed that Vessel (a Vessel Finance Document) to be applied, inter alia, for application towards amortisation in the manner described in, or towards meeting payments due in respect of, that Facility Agreement in accordance with clause 15.4 (Repayment of Loans - Phase II and Phase III - Fixed Amortisation Amounts) of this Agreement and clause 15.7 (Balancing Payments) or in paying facility interest expenses or operating expenses, general and administrative expenses or periodic swap payments in accordance with this Agreement. For the avoidance of doubt, any earnings paid into an Earnings Account with a Group Company other than the Company shall be available for application in the manner described in accordance with clause 15.4 (Repayment of Loans - Phase II and Phase III - Fixed Amortisation Amounts) and clause 15.7 (Balancing Payments) as though they were earnings payable to the Company

 

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15.17   Subject to the provisions of this Agreement, unless:

 

(a)        an Event of Default or Default is continuing; or

 

(b)        a Finance Document Event of Default or a Finance Document Default is continuing in relation to a Vessel Finance Document and any Enforcement Standstill Period has elapsed,

 

(whereupon in the case of (b) above, the provisions of the relevant Facility Agreement or related Finance Document shall be and become applicable), the Vessel Receipts shall be available, up until either (a) or (b) applies but not after, for application by the Group:

 

(i)         in or towards meeting the costs and expenses from time to time incurred by or on behalf of the relevant Group Company in connection with the operation of that Vessel;

 

(ii)        in or towards making payments (or transfers which need to be made including, under clause 20.7 (Minimum Liquidity Covenant) of all amounts due and payable by a Group Company under the relevant Vessel Finance Document and this Agreement (other than the payments of principal and interest pursuant to clause 9 (Interest) and clause 15 (Repayment) which may be paid from the surplus referred to in paragraph (iii) below); and

 

(iii)       as to any surplus from time to time arising on the relevant Earnings Account following application as aforesaid, subject to clause 15.9 and 16, to be paid in accordance with clause 16 (Cash Management).

 

16        Cash Management

 

16.1     The Company may not (and shall procure that no Group Company may) transfer money from an Earnings Account or any other account which secures amounts outstanding under a Vessel Finance Document into any other accounts other than in accordance with clause 16.2.

 

16.2     Conditional upon, but subject to clause 26.6(b) (blocking of accounts during an Enforcement Standstill Period), no Default continuing or occurring as a result of the transfer, the Company may transfer money from an account referred to in clause 16.1 to:

 

(a)        the Surplus Cash Account in accordance with clause 20.7; or

 

(b)        another account of a Group Company to make a payment that is due and payable within the 5 Business Days following that transfer in respect of expenditure of the type referred to in paragraphs (a) to (f) of the definition of Free Cash Flow or otherwise to facilitate repayment or prepayment of amounts due to Participating Lenders as permitted by this Agreement, loans permitted pursuant to clause 23.19 (Loans or credit) or loans permitted by clause 23.27(b), 23.27(c) or 23.27(d) (Permitted Financial Indebtedness)

 

17        Illegality, voluntary prepayment and cancellation

 

Illegality

 

17.1     If it becomes unlawful in any applicable jurisdiction for a Participating Lender to perform any of its obligations as contemplated by this Agreement or to fund, issue or maintain its participation in any Loan under a Facility Agreement:

 

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(a)        that Participating Lender, shall promptly notify the Intercreditor Agent, the Relevant Facility Agents and the Company upon becoming aware of that event;

 

(b)        upon the Participating Lender notifying the Company, the Commitment of that Participating Lender will be immediately cancelled; and

 

(c)        the Company shall repay (or procure the repayment of) that Participating Lender’s participation in the Loans on the last day of the Interest Period for each Loan occurring after the Participating Lender has notified the Company or, if earlier, the date specified by the Participating Lender in the notice delivered to the Company (being no earlier than the last day of any applicable grace period permitted by law).

 

Voluntary cancellation

 

17.2     The Company may not, unless the Majority Participating Lenders agree, cancel the whole or any part of any Facility under a Facility Agreement. Any cancellation under this clause 17.2 shall reduce the Commitments of the relevant Participating Lenders rateably under that Facility.

 

Voluntary prepayment

 

17.3     Subject to clause 17.5 below and provided that no Default would result from such prepayment, the Company may, if it gives the Intercreditor Agent and the Relevant Facility Agents not less than 15 Business Days’ (or such shorter period as the Majority Participating Lenders may agree) prior notice, prepay the whole or any part of a Loan (but, if in part, being an amount that reduces the Loan by a minimum amount of US$1,000,000) with Surplus Equity Proceeds or from Free Cash Flow that does not have to be applied in accordance with clause 15 (Repayment). Neither the Company (nor any Group Company) shall make any other voluntary prepayments under any Finance Document.

 

17.4     A Loan may only be prepaid after the last day of the availability period for all Loans (or, if earlier, the day on which amounts are no longer available under any Facility Agreement).

 

17.5     A Loan shall only be prepaid in accordance with clause 17.3 and clause 17.4 if all the Loans are:

 

(a)        prepaid at the same time; and

 

(b)        prepaid in amounts which reduce the Loans by the same proportion.

 

18        Mandatory prepayment

 

Exit

 

18.1     For the purpose of clause 18:

 

Debt Financing means any Financial Indebtedness raised by any Group Company pursuant to a debt facility or any public or private bond or other debt linked capital markets sale, offer or issue other than under (a) the Existing Facility Agreements, (b) the New Money Facility Agreements, (c) the Vendor Finance Facility Agreements, (d) the Sinosure Backed Facility or Sinosure Vessels Alternative Financing, (e) the KEXIM Facility Agreements or (f) a Qualifying Refinancing Agreement.

 

Debt Proceeds means any cash or cash equivalent amount received by any Group Company as a result of a Debt Financing less all Taxes and costs and expenses

 

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reasonably incurred by the relevant Group Company in connection with that Debt Financing.

 

Equity Issue means any public or private equity capital markets sale, offer or issue by the Company of all or part of the common stock of the Company (other than the Required Equity Issue) or any redeemable preference shares, convertible bonds, hybrid instruments or any similar instrument.

 

Equity Proceeds means any cash or cash equivalent amount received by any Group Company as a result of an Equity Issue less all Taxes and costs and expenses reasonably incurred by the relevant Group Company in connection with that Equity Issue.

 

Excess Realisation Proceeds means any amounts received by the Company or a Group Company from a Security Trustee, other Finance Party or a Receiver in accordance with provisions in a Finance Document which relate to the application of moneys or proceeds in accordance with an order of payment waterfall (however described) set out in a Finance Document.

 

Surplus Equity Proceeds means the Equity Proceeds that do not have to be applied in prepayment in accordance with clause 18.6 (Equity Issue).

 

Change of Control

 

18.2     If a Change of Control occurs, the Company shall promptly notify the Intercreditor Agent and the Relevant Finance Parties upon becoming aware of that event and if any Participating Lender so requires (by notice given to the Intercreditor Agent and the Company) that Participating Lender’s obligations in relation to a Facility will be cancelled immediately on issue of such notice and all outstanding Loans advanced by that Participating Lender, together with accrued interest, and all other amounts accrued under the Finance Documents which are attributable to that Participating Lender, shall become immediately due and payable.

 

Change of SPC Control

 

18.3     If a Change of SPC Control occurs, the Loans under the Facility Agreements under which the relevant Group Company (other than the Company) was a borrower, guarantor or, in relation to a Joint Security Vessel, the mortgagor in relation to that Joint Security Vessel together with accrued interest, and all other amounts accrued under the relevant Finance Documents, shall, unless the relevant Finance Parties agree otherwise, become immediately due and payable (but, for the avoidance of doubt, the Hedge Counterparties shall not be at liberty to agree any change to the ranking of indebtedness owed to any Finance Party, which is not a Hedge Counterparty without the written consent of the relevant Finance Parties).  Without prejudice to any obligation to make a prepayment under this clause, subject (if applicable) to the provisions of the relevant Vendor Finance Intercreditor Agreement, the Loans and other amounts outstanding which are secured by a Security Document (other than a Shared Security Document) granted by the Group Company to which the Change of SPC Control relates, shall, unless the relevant Finance Parties agree otherwise be prepaid and provided with Cash Cover in the following order:

 

(a)        in the event that the Change of SPC Control relates to a company that owns a Joint Security Vessel and unless the relevant Participating Lenders and/or Hedge Counterparties (but, for the avoidance of doubt, the Hedge Counterparties shall not be at liberty to agree any change to the ranking of indebtedness owed to any Finance Party, which is not a Hedge Counterparty without the written consent of the relevant Finance Parties) agree otherwise, the Company shall firstly prepay all amounts of outstanding indebtedness under the Loan or the Advance (as defined in the New Money Facility Agreement) relating to such Joint Security Vessel under the New Money Facility Agreement secured

 

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by that Joint Security Vessel and, following such prepayment, shall prepay any other Advance (and, in the case of the New HSH Facility Agreement (as defined in Schedule 4 (New Money Facility Agreements)), in prepayment of any other Advances on a pro rata basis between Advances) under that New Money Facility Agreement in accordance with the provisions thereof, secondly, following the above-mentioned prepayments shall prepay indebtedness under the Existing Facility Agreements (if any) secured by that Joint Security Vessel and provide Cash Cover in respect of an Existing Hedging Transaction secured by that Joint Security Vessel on a pari passu basis to the extent such ranking is provided for in the relevant Existing Finance Document or New Money Finance Document (such that, for the avoidance of doubt, in circumstances where there is no Existing Facility Agreement secured over a Vessel, Cash Cover shall be provided for Existing Hedging Transactions secured by that Joint Security Vessel prior to any application in accordance with (b) below), and thirdly, following the above-mentioned prepayments provide Cash Cover other than in respect of Existing Hedging Transactions secured by that Joint Security Vessel; or

 

(b)        in the event that the Change of SPC Control relates to a company that owns the Vessel which is not a Joint Security Vessel (or following all amounts of outstanding indebtedness under any relevant New Money Facility Agreement ranking in priority to an Existing Facility Agreement having previously been repaid in full and requisite Cash Cover having been provided), the Company shall, prepay on the basis of its ranking to the extent such ranking is provided for in the relevant Existing Finance Documents all amounts of outstanding indebtedness under the Existing Facility Agreements and provide Cash Cover for any Existing Hedging Transaction (whether or not it relates to the acquisition cost of that Vessel) secured by a mortgage over that Vessel in accordance with the provisions thereof, or

 

(c)        in the event that the Change of SPC Control relates to a company that owns a Vessel which is an Applicable Second Lien Vessel, the Company shall, prepay to the relevant Applicable Second Lien Vessel Finance Party an amount equal to the Loan secured over that Applicable Second Lien Vessel and shall provide Cash Cover for any Hedging Liabilities (whether or not it relates to the acquisition cost of that Vessel) secured by a mortgage over that Applicable Second Lien Vessel in accordance with the provisions thereof;

 

and, in each case, in the event that after application in discharge of amounts payable in accordance with clause 18.3(a), (b) or (c) above, there are any surplus disposal proceeds remaining, such disposal proceeds thereafter must be applied in prepayment of all Loans under all Facility Agreements so that all Loans under each Facility Agreement are reduced by the same proportion in accordance with the provisions of the relevant Facility Agreement or related Finance Documents.

 

Prepayments upon a Total Loss

 

18.4     In the event of a Total Loss, subject (if applicable) to the provisions of the Vendor Finance Intercreditor Agreement, either:

 

(a)        on the date ninety (90) days after the date on which a Joint Security Vessel became a Total Loss or, if earlier, on the date upon which the insurance proceeds in respect of such Total Loss are or Requisition Compensation is received by the relevant Group Company (or by any Finance Party pursuant to the relevant Finance Documents), the Company shall, (or shall procure that the relevant Group Company shall where it is a borrower under the relevant Facility Agreement), unless the relevant Participating Lenders and/or Hedge Counterparties agree otherwise (but, for the avoidance of doubt, the Hedge Counterparties shall not be at liberty to agree any change to the ranking of indebtedness owed to any Finance Party, which is not a Hedge Counterparty without the written consent of the relevant Finance Parties):

 

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(i)         firstly prepay all amounts of outstanding indebtedness under the Loan or the Advance (as defined in the New Money Facility Agreement) relating to such Joint Security Vessel under the New Money Facility Agreement secured by that Joint Security Vessel and, following such prepayment, the higher of (i) balance of any insurance proceeds or Requisition Compensation received by the relevant Group Company (or by the relevant Finance Party) and (ii) the difference (if any) between the prepayment amount and the amount for which that Joint Security Vessel is required by the New Money Facility Documents to be insured against Total Loss, shall be applied in prepayment of any other Advance (and, in the case of the New HSH Facility Agreement (as defined in Schedule 4 (New Money Facility Agreements)), in prepayment of any other Advances on a pro rata basis as between Advances) under that New Money Facility Agreement in accordance with the provisions thereof;

 

(ii)        secondly, apply any balance of  the higher of (i) any insurance proceeds or Requisition Compensation received by the relevant Group Company (or by the relevant Finance Party) and (ii) the amount for which that Joint Security Vessel is required by the New Money Facility Documents to be insured against Total Loss following the above-mentioned prepayments, in prepayment of indebtedness under the Existing Facility Agreements (if any) secured by that Joint Security Vessel and in providing Cash Cover under any Existing Hedging Transaction secured by that Joint Security Vessel on a pari passu basis (if applicable) as between the relevant Existing Facility Agreements (if any) and the relevant Existing Hedging Transaction to the extent such ranking is provided for in the relevant Existing Finance Document or New Money Finance Document (such that, for the avoidance of doubt, in circumstances where there is no Existing Facility Agreement secured over a Vessel, Cash Cover shall be provided for Existing Hedging Transactions secured by that Joint Security Vessel prior to any application in accordance with (iii) below); and

 

(iii)       thirdly, apply any balance of the higher of (i) any insurance proceeds or Requisition Compensation received by the relevant Group Company (or by the relevant Finance Party) and (ii) the amount for which that Joint Security Vessel is required by the New Money Facility Documents to be insured against Total Loss, following the above-mentioned prepayments as Cash Cover in respect of Hedging Liabilities secured by a mortgage over the relevant Joint Security Vessel other than under an Existing Hedging Transaction; or

 

(b)        on the date ninety (90) days after that on which a Vessel which is either (a) not a Joint Security Vessel or (b) a Joint Security Vessel in respect of which all amounts of outstanding indebtedness under any relevant New Money Facility Agreement ranking in priority to an Existing Facility Agreement have previously been repaid in full and Cash Cover has been provided, became a Total Loss or, if earlier, on the date upon which the insurance proceeds in respect of such Total Loss are or Requisition Compensation is received by the relevant Group Company (or by any Finance Party pursuant to the relevant Finance Documents), the Company shall pay an amount equal to the higher of (i) balance of any insurance proceeds or Requisition Compensation received by the relevant Group Company (or by the relevant Finance Party) and (ii) the difference (if any) between the prepayment amount and the amount for which that Vessel is required by the relevant Finance Documents to be insured against Total Loss in order to prepay on the basis of its ranking to the extent such ranking is provided for in the relevant Existing Finance Documents all amounts of outstanding indebtedness under the Existing Facility Agreements and to provide Cash Cover for any other Hedging Liabilities (whether or not they relate to the acquisition cost of that Vessel) secured by a mortgage over that Vessel in accordance with the provisions thereof, or

 

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(c)        on the date ninety (90) days after that on which an Applicable Second Lien Vessel became a Total Loss or, if earlier, on the date upon which the insurance proceeds in respect of such Total Loss are or Requisition Compensation is received by the relevant Group Company (or by any Finance Party pursuant to the relevant Finance Documents), the Company shall, prepay to the relevant Applicable Second Lien Vessel Finance Parties an amount equal to the higher of (i) the balance of any insurance proceeds or Requisition Compensation received by the relevant Group Company (or by the relevant Finance Party) and (ii) the amount for which that Applicable Second Lien Vessel is required by the relevant Finance Documents to be insured against Total Loss LESS any amounts which are payable to the first mortgagee of the relevant Applicable Second Lien Vessel upon such occurrence in accordance with the Additional Second Lien Intercreditor Agreements and/or in providing Cash Cover for any other Hedging Liabilities (whether or not it relates to the acquisition cost of that Vessel) secured by a mortgage over that Applicable Second Lien Vessel in accordance with the provisions thereof;

 

and in each case in the event that after application in discharge of amounts payable in accordance with clause 18.4(a), 18.4(b) or 18.4(c) above, there are any surplus insurance proceeds or Requisition Compensation remaining such insurance proceeds or Requisition Compensation thereafter must be applied in prepayment of all Loans under all Facility Agreements so that all Loans under each Facility Agreement are reduced by the same proportion in accordance with the provisions of the relevant Facility Agreement or related Finance Documents.

 

Cash Cover

 

18.5     For the purposes of clause 18.3, 18.4 and 18.10 and clause 23.12 (Disposals), Cash Cover means cash collateral which is provided in respect of, and in an amount equal to, in the case of clauses 18.4 (Prepayments upon a Total Loss) and 23.12 (Disposals), the lower of any residual cash available after prepayments ranking in priority and the Swap Exposure, and, in the case of clauses 18.3 (Change of SPC Control) and 18.10 (Qualifying Refinancing), the Swap Exposure, in each case as at each Proceeds Application Date and which shall be deposited on or within 1 Business Day of such Proceeds Application Date into an account in the name of the Company where the following conditions are met:

 

(a)        the account is with the Hedge Counterparty;

 

(b)        withdrawals may only be made from the account to pay the Hedge Counterparty in such capacity for amounts due and payable to it in respect of the Hedging Liability due on an Early Termination Date (as defined in the ISDA Master Agreement) in respect of which Cash Cover has been provided;

 

(c)        the Company has entered into and delivered a Security document over that account, in form and substance satisfactory to the Hedge Counterparty for which the Cash Cover is provided, creating a first-ranking Security interest over that account and which shall constitute a Credit Support Document (as defined in a New Money Facility Agreement) or a Finance Document (as defined in an Existing Facility Agreement) as applicable;

 

(d)        the amount of Cash Cover will be ignored in calculating Cash for the purposes of this Agreement and shall not constitute unrestricted Cash,

 

PROVIDED THAT the Company may on, or within one Business Day of a Valuation Date, if the then current amount of Cash Cover exceeds the Swap Exposure (such sum being the Cash Excess) on the Valuation Date, transfer to the Company, the Cash Excess.  The balance of the Cash Cover will, upon such transfer, be reduced accordingly.

 

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Equity Issue

 

18.6     Upon the occurrence of an Equity Issue, the Company shall prepay (or procure the prepayment of) the Loans in the following amounts at the times and in the order of application contemplated by clauses, 15.5, 18.13 to 18.15 (Application of mandatory prepayments):

 

(a)        50 per cent. of any Equity Proceeds until an aggregate amount of the Loans equal to US$150,000,000 has been prepaid from Equity Proceeds; and

 

(b)        once the aggregate amount of the Loans equal to US$150,000,000 has been prepaid from Equity Proceeds, 25 per cent. of any Equity Proceeds in excess of an aggregate amount of US$300,000,000.

 

18.7     Prior to any Equity Issue, the Company must provide the Intercreditor Agent and the Relevant Finance Parties with details, in general terms, of the purpose of any Equity Issue provided that, for the avoidance of doubt, nothing in this clause shall prevent the Company from proceeding with an Equity Issue or imply that approval of any Finance Party is required to proceed with such Equity Issue.

 

18.8     Within 6 months of receipt of the Surplus Equity Proceeds, the Company must provide the Relevant Finance Parties (with copy to the Intercreditor Agent) with detailed terms (including details as to the projects, vessels, costs, proposed charter rates, newbuilds and other criteria as may be reasonably requested by the Intercreditor Agent  as directed by the Relevant Finance Parties and/or by the Relevant Finance Parties directly) (the Detailed Terms) describing the intended use of those Surplus Equity Proceeds.  In the event that:

 

(a)        the Detailed Terms are not produced as required or do not specify how the Surplus Equity Proceeds will be used in the period ending on the date falling 12 months after receipt by a Group Company of such proceeds; or

 

(b)        the Surplus Equity Proceeds are not used by the Group Company in full in accordance with the Detailed Terms within 12 months of the date on which such proceeds were received,

 

the Company shall prepay (or procure the prepayment of) the Surplus Equity Proceeds (or the remaining balance thereof) at the times and in the order of application contemplated by clauses 18.13 to 18.15 (Application of mandatory prepayments).

 

Debt Financing

 

18.9     Upon the occurrence of a Debt Financing, the Company shall prepay (or procure the prepayment of) the Loans by an amount equal to the relevant Debt Proceeds at the times and in the order of application contemplated by clauses 18.13 to 18.15 (Application of mandatory prepayments). Nothing in this clause shall override the provisions contained in clause 23.26 and 23.27 (Financial Indebtedness).

 

Qualifying Refinancing

 

18.10   Upon the occurrence of a Qualifying Refinancing, the Company shall prepay (or procure the prepayment of), or provide Cash Cover in respect of,:

 

(a)        firstly, the Qualifying Indebtedness Amounts which are being refinanced by the Qualifying Refinancing or in the case of any Hedging Liabilities under an Existing Hedging Transaction providing Cash Cover (save as otherwise agreed with those Participating Lenders who are being refinanced with the proceeds of the Qualifying Indebtedness Amount); and

 

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(b)        secondly, the other Loans by an aggregate amount equal to the Qualifying Refinancing Surplus Proceeds so that all Loans under each Facility Agreement are reduced by the same proportion in accordance with the provisions of the relevant Facility Agreement or related Finance Documents and thereafter in providing Cash Cover so that Cash Cover is provided in the same proportions in respect of any other Existing Hedging Transaction.

 

Realisation provisions under Finance Documents

 

18.11   In the event that the Company or any other Group Company receives any Excess Realisation Proceeds, the Company shall prepay (or procure the prepayment of) the Loans by an amount equal to the aggregate Excess Realisation Proceeds at the times and in the order of application contemplated by clauses 18.13 to 18.15 (Application of mandatory prepayments). Nothing in this clause shall override the obligations to make payments to a Finance Party under a Finance Document in accordance with the relevant provisions.

 

Mandatory prepayment provisions in Facility Agreements

 

18.12   The Company shall ensure that it (and each other Group Company) complies with all mandatory prepayment provisions in the Facility Agreements (except to the extent that they are overridden by a provision of this Agreement) including mandatory prepayment provisions in respect of Total Loss, insurance claims, rescission of shipbuilding contracts, the termination of refund guarantees, termination of charter and disposals of Vessels) in accordance with the terms of each Facility Agreement with the principle being that such mandatory prepayments (and any proceeds deriving therefrom) shall be mandatorily prepaid against each Facility secured by the relevant Vessel in accordance with the provisions of the relevant Facility Agreement or related Finance Document and thereafter:

 

(a)        in relation to the disposal of a Vessel, clause 23.12(Disposals);

 

(b)        in relation to an SPC Change of Control, clause 18.3 (Change of SPC Control); and

 

(c)        in relation to Excess Realisation Proceeds, clause 18.11 (Realisation provisions under Finance Documents).

 

Application of mandatory prepayments

 

18.13   A prepayment under clause 18.6, clause 18.8 (Equity Issue), clause 18.9 (Debt Financing), or clause 18.11 (Realisation provisions under Finance Documents) shall be applied in the following order:

 

(a)        firstly, all New Money Facility Loans in amounts which reduce the New Money Facility Loans by the same proportion until all New Money Facility Loans have been repaid in full; and

 

(b)        secondly, all Existing Facility Loans in amounts which reduce the Existing Facility Loans by the same proportion, and

 

in each case subject to the provisions of clause 15.5.

 

18.14   Unless the Company makes an election under clause 18.16 (Prepayment election), the Company shall prepay (or procure the prepayment of) the amounts of Equity Proceeds referred to in clause 18.6 (Equity Issue), Debt Proceeds, Qualifying Refinancing Surplus Proceeds or Excess Realisation Proceeds, promptly upon receipt of those proceeds.

 

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18.15   The Company shall prepay (or procure the prepayment of) the amounts of Surplus Equity Proceeds that have not been applied in accordance with the Detailed Terms on the date falling 12 months after receipt of those Surplus Equity Proceeds. The Company may not make an election under clause 18.16 (Prepayment election) in relation to Surplus Equity Proceeds.

 

Prepayment election

 

18.16   Subject to clause 18.17 below, the Company may elect that any prepayment of Equity Proceeds, Debt Proceeds, Qualifying Refinancing Surplus Proceeds or Excess Realisation Proceeds be applied in prepayment of the relevant Loans in accordance with clause 18.13 (Application of mandatory prepayments) on the last day of the then current Interest Period relating to those Loans.  If the Company makes that election then a proportion of the Loans equal to the amount of the relevant prepayment will be due and payable on the last day of such Interest Period in an amount equal to the amount by which each Loan would have been prepaid had the election not been made.

 

18.17   If the Company has made an election under clause 18.16 above but a Default has occurred and is continuing, that election shall no longer apply and a proportion of the Loans in respect of which the election was made equal to the amount of the relevant prepayment shall be immediately due and payable (unless the Majority Participating Lenders otherwise agree in writing) in an amount equal to the amount by which each Loan would have been prepaid had the election not been made.

 

Mandatory Prepayment Accounts and Holding Accounts

 

18.18   The Company shall ensure that:

 

(a)        Equity Proceeds, Debt Proceeds, Qualifying Refinancing Surplus Proceeds and/or Excess Realisation Proceeds in respect of which the Company has made an election under clause 18.16 (Prepayment election) are paid into a Mandatory Prepayment Account as soon as reasonably practicable after receipt by a Group Company; and

 

(b)        any Surplus Equity Proceeds are paid into a Holding Account as soon as reasonably practicable after receipt by a Group Company.

 

18.19   The Company and each Group Company irrevocably authorise the Account Bank to apply:

 

(a)        amounts credited to the Mandatory Prepayment Account; and

 

(b)        amounts credited to the Holding Account which have not been applied in accordance  with the Detailed Terms,

 

to pay amounts due and payable under clause 15.8 and clauses 18.13 to 18.17 (Application of mandatory prepayments) and otherwise under the Restructuring Documents.  The Company and each Group Company further irrevocably authorise the Account Bank to so apply amounts credited to the Holding Account if a Default has occurred and is continuing.  The Company and each Group Company also irrevocably authorise the Account Bank to transfer any amounts credited to the Holding Account referred to in this clause 18.19 to the Mandatory Prepayment Account pending payment of amounts due and payable under the Finance Documents (but if all such amounts have been paid any such amounts remaining credited to the Mandatory Prepayment Account may (unless a Default has occurred) be transferred back to the Holding Account.

 

18.20   A Participating Lender, Account Bank, Intercreditor Agent or Relevant Facility Agent with which a Mandatory Prepayment Account or Holding Account is held acknowledges and agrees that (a) interest shall accrue at normal commercial rates on amounts

 

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credited to those accounts and that the account holder shall be entitled to receive such interest (which shall be paid in accordance with the mandate relating to such account) unless a Default is continuing, (b) each such account is subject to Security under a Shared Security Document and (c) it shall not exercise any right of combination, consolidation or set-off which it may have in respect of the account.

 

Surplus Equity Proceeds

 

18.21   The Company shall ensure that Surplus Equity Proceeds are only used for the purposes set out in the Detailed Terms and shall promptly deliver a certificate to the Intercreditor Agent and the Relevant Finance Parties at the time of such application confirming the amount (if any) which has been applied in accordance with the Detailed Terms.

 

19        Restrictions

 

Notices of cancellation or prepayment

 

19.1     Any notice of cancellation, prepayment, authorisation or other election given by any Party under clause 15.6 (Repayment of Loans - Phase II and Phase III - Fixed Amortisation Amounts), clause 17 (Illegality, voluntary prepayment and cancellation) clause 18.16 (Prepayment election) or clauses 18.18 to 18.20 (Mandatory Prepayment Accounts and Holding Accounts) shall (subject to the terms of those clauses) be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

 

Interest and other amounts

 

19.2     Any prepayment under this Agreement or a relevant Finance Document shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

 

No reborrowing of Facilities

 

19.3     No Borrower may reborrow any part of a Facility which is prepaid.

 

Prepayment in accordance with Agreement

 

19.4     The Company shall not (and shall procure that no Group Company shall) repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement or, to the extent not contrary to the provisions of this Agreement, a Facility Agreement or with the consent of the Majority Participating Lenders.

 

No reinstatement of Commitments

 

19.5     No amount of the Total Commitments cancelled under this Agreement or any Facility Agreement may be subsequently reinstated except pursuant to any provision in a New Money Facility Agreement which enables the reinstatement of cancelled Commitments of a Defaulting Participating Lender.

 

Agent’s receipt of notices

 

19.6     If the Intercreditor Agent receives a notice under clause 17 (Illegality, voluntary prepayment and cancellation) or an election under clause 18.16 (Prepayment Election) it shall promptly forward a copy of that notice or election to either the Company or the

 

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affected Participating Lender, as appropriate with a copy in both cases to any Relevant Facility Agent.

 

Effect of Repayment and Prepayment on Commitments

 

19.7     If all or part of a Loan under a Facility Agreement is repaid or prepaid, an amount of the Commitments in respect of that Facility will be cancelled or deemed to be cancelled in accordance with the relevant Facility Agreement. Any cancellation under this clause 19.7 shall reduce the Commitments of the Participating Lenders under that Facility in accordance with the relevant Facility Agreement.

 

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SECTION 5 - FINANCIAL COVENANTS

 

20        Financial covenants

 

Financial definitions

 

20.1     In this Agreement:

 

Additional Security means Security provided by a Group Company or a third party to the Intercreditor Agent in accordance with clauses 20.5(a) and 20.6(a).

 

Approved Broker means Braemar Seascope Ltd, Howe Robinson & Co Ltd, H. Clarkson & Company Limited, Simpson Spence & Young, Maersk Broker K/S and any independent shipbrokers as may be approved by the Majority Participating Lenders from time to time.

 

Bareboat-equivalent Time Charter Income means, in relation to a Vessel, the aggregate charter hire due and payable to a Group Company for that Vessel for the remaining unexpired term of the charter or other contract of employment relative to that Vessel at the relevant time (excluding any relevant renewal periods referred to in clause 20.4) less in the case of a contract of employment other than a bareboat charter, the aggregate operating expenses, insurances and dry-docking costs of that Vessel which would be ordinarily borne by a bareboat charterer and certified to the satisfaction of the Relevant Finance Parties for the same period.

 

Book Net Worth means, as at the relevant date, the aggregate value of the stockholders’ equity of the Group as shown in the most recent Financial Statements.

 

Borrowings means, at any time, the aggregate outstanding principal, capital or nominal amount (and any fixed or minimum premium payable on prepayment or redemption) of any indebtedness of Group Companies for or in respect of:

 

(a)        moneys borrowed and debit balances at banks or other financial institutions;

 

(b)        any acceptances under any acceptance credit or bill discount facility (or dematerialised equivalent);

 

(c)        any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

 

(d)        any Finance Lease;

 

(e)        receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis and meet any requirements for de-recognition under the Accounting Principles);

 

(f)         any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution in respect of an underlying liability of an entity which is not a Group Company which liability would fall within one of the other paragraphs of this definition;

 

(g)        any amount raised by the issue of shares which are redeemable (other than at the option of the issuer) before the Final Maturity Date or are otherwise classified as borrowings under the Accounting Principles;

 

(h)        any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind the entry into the agreement is to raise finance or to finance the acquisition or construction of the asset or service in

 

70

 

question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 90 days after the date of supply;

 

(i)         any amount raised under any other transaction (including any forward sale or purchase agreement, sale and sale back or sale and leaseback agreement) having the commercial effect of a borrowing or otherwise classified as borrowings under the Accounting Principles; and

 

(j)         (without double counting) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (i) above,

 

and, for the avoidance of doubt, shall include any obligation in respect of a hedging agreement which has been entered into in breach of the provisions of this Agreement but does not include any obligation in respect of any Hedging Agreement or Existing Hedging Transaction.

 

Consolidated Debt means, at any time, the aggregate of all obligations of Group Companies for or in respect of Borrowings at that time but:

 

(a)        excluding any such obligations in respect of the HSH Guarantee Facility Agreement (as defined in Schedule 3); and

 

(b)        excluding any such obligations owing by a Group Company to another Group Company.

 

Consolidated EBITDA means, in respect of any Relevant Period, the Net Income:

 

(a)        before taking into account consolidated interest, gains or losses under any Hedging Agreements, tax, depreciation, amortisation and any other non cash item, capital gains or losses realised from the sale of any Vessel, Finance Charges and capital losses on Vessel cancellations each as reflected in the Financial Statements for the Relevant Period;

 

(b)        before taking into account Non-Recurring Items (subject to the limitation set out in that definition); and

 

(c)        excluding any accrued interest owing to any Group Company but not received on or before the last day of such period.

 

Consolidated Net Leverage means, in respect of any Relevant Period, the ratio of (a) Consolidated Debt (less Cash and Cash Equivalents) to (b) Consolidated EBITDA in respect of that Relevant Period.

 

Finance Charges means, for any Relevant Period, the aggregate amount of the accrued interest, commission, ticking fees, fees, discounts, prepayment fees, premiums or charges and other finance payments in respect of Borrowings whether paid, payable or capitalised by any Group Company (calculated on a consolidated basis) in respect of that Relevant Period:

 

(a)        including any upfront fees or costs which are included as part of the effective interest rate adjustments;

 

(b)        including the interest (but not the capital) element of payments in respect of Finance Leases;

 

(c)        including any commission, fees, discounts and other finance payments payable by (and deducting any such amounts payable to) any Group Company under any interest rate hedging arrangement;

 

71

 

(d)        taking no account of any unrealised gains or losses on any financial instruments; and

 

so that no amount shall be added (or deducted) more than once.

 

Financial Quarter means the period commencing on the day after one Quarter Date and ending on the next Quarter Date.

 

Financial Year means the annual accounting period of the Group ending on the Accounting Reference Date.

 

Market Value of each Vessel shall be calculated in the manner set out in clause 20.2 to clause 20.4 (Calculation of Market Value).

 

Market Value Adjusted Net Worth means, at any time, the amount by which Market Value Adjusted Total Consolidated Assets exceeds the Total Consolidated Liabilities after excluding the net asset or liability relating to the fair value of derivatives (where the entering into such derivative is not prohibited by this Agreement) as reflected in the Financial Statements for the Relevant Period.

 

Market Value Adjusted Total Consolidated Assets means, at any time, Total Consolidated Assets adjusted to reflect the Market Value of all Vessels on-the-water by replacing the aggregate net book value of such Vessels (as reflected in the Financial Statements for the Relevant Period) with the aggregate of their Market Values as at the relevant date less Cash and Cash Equivalents (being for these purposes cash available after meeting the Fixed Amortisation Amounts and Balancing Payments, interest and bank fees). For the avoidance of doubt, book value of the Vessels under construction shall not be subject to such adjustment.

 

Net Income means:

 

(a)        in relation to any Financial Year, the net income of the Group appearing in the Financial Statements for that Financial Year; and

 

(b)        in relation to any Financial Quarter, the net income of the Group appearing in the Financial Statements for that Financial Quarter.

 

Net Interest Expense is equal to consolidated:

 

(a)        interest expense (excluding capitalised interest), less

 

(b)        interest income, less

 

(c)        realised gains on interest rate swaps (excluding capitalised gains), plus

 

(d)        realised losses on interest rate swaps (excluding capitalised losses),

 

each as reflected in the Financial Statements for the Relevant Period. For the avoidance of doubt, Net Interest Expense excludes unrealised gains/losses on interest rate derivatives.

 

New Money Vessels means S456, S457, S458, S459, S460, S461, S462, S463 and CMA CGM RABELAIS (formerly S4004).

 

Non-Recurring Items means any exceptional, one off, non-recurring or extraordinary items (including Restructuring Expenses) up to a maximum of 5 per cent. of Consolidated EBITDA (excluding Non-Recurring Items) in any Relevant Period provided that for the Financial Year ending 31 December 2010 and any Financial Quarter in 2010 this 5 per cent. limit shall not include Restructuring Expenses.

 

72

 

Relevant Period means each period of twelve months ending on the last day of each Financial Quarter.

 

Restructuring Expenses means:

 

(a)        any fees payable to the Participating Lenders including the amendment fee pursuant to the Fee Letter but excluding for the avoidance of doubt any other fees set out in the Fee Letter;

 

(b)        any fees payable to any underwriters or other advisers in relation to the Required Equity Issue;

 

(c)        fees payable to Evercore and any other professional advisers to the Company (including legal fees); and

 

(d)        fees payable in relation to professional advisers of the Participating Lenders (including legal and financial adviser fees) for which the Company is liable,

 

provided in each case such that costs, fees or expenses are incurred solely in relation to the Transaction and shall not include any payments which are or could be construed as a Distribution or any fees which are normal in the context of a financing including but not limited to agency, security trustee, ticking or commitment fees or upfront fees for the financing on new vessels.

 

Total Consolidated Assets means, at any time, the aggregate value (on a consolidated basis) of all assets in the Group included in the Accounts as ‘current assets’ and the value of all investments (valued in accordance with the Accounting Principles) and all other tangible and intangible assets of the Group properly included in the Financial Statements as ‘fixed assets’ in accordance with the Accounting Principles.

 

Total Consolidated Liabilities means, as at the relevant date, Total Consolidated Assets less Book Net Worth.

 

Calculation of Market Value

 

20.2     Market Value for each Vessel shall be calculated:

 

(a)        for the purposes of clause 20.5 (Minimum Corporate Cover - Charter Free); and

 

(b)        for the purposes of clause 20.6 (Minimum Corporate Cover - Charter Attached) to the extent that such Vessel:

 

(i)         is not, at the relevant time, subject to a charter or other contract of employment; or

 

(ii)        is, at the relevant time, subject to a charter or other contract of employment having an unexpired term of less than 12 months,

 

by taking the average of the most recent two valuations prepared (and delivered pursuant to clause 20.12 (Financial testing)):

 

(a)        by two Approved Brokers which in any case shall have been prepared on or around the same date;

 

(b)        with or without physical inspection of that Vessel;

 

(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; and

 

73

 

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

 

PROVIDED THAT if the two valuations differ by more than 10% then a third valuation will also be obtained from a third Approved Broker and the Market Value of the relevant Vessel shall comprise the average of the three valuations obtained.

 

20.3     Market Value for Vessels under construction shall be valued at book value.

 

20.4     Market Value for each Vessel not calculated in accordance with clause 20.2 or clause 20.3 which, at the relevant time, is subject to a charter or other contract of employment having an unexpired term of 12 months or more with a first class charterer acceptable to the Majority Participating Lenders shall be the aggregate of:

 

(a)        the present value of the Bareboat-equivalent Time Charter Income of the relevant Vessel for the remaining term of such time charter or other contract of employment, excluding any renewal options or renewal periods; and

 

(b)        the present value of the residual value of the relevant Vessel at the end of the time charter or other contract of employment which shall be deemed to be equal to the current charter-free value of a vessel with similar characteristics to the relevant Vessel, but having the age which the relevant vessel will have at the expiration of the term of her time-charter or other contract of employment (excluding any renewal options).  The charter-free value of a Vessel will be determined in accordance with the provisions described in clause 20.2(a) to (d) above.

 

PROVIDED THAT for the purpose of determining the Market Value for testing the Minimum Corporate Cover pursuant to clause 20.5 (Minimum Corporate Cover - Charter Free) the valuation shall be made in accordance with clause 20.2 and clause 20.3 exclusively irrespective as to whether a charter or contract of employment with an unexpired term of 12 months and a first class charterer is in place for any relevant Vessel or not.

 

In calculating the above present values, the applicable discount rate shall be the Interest Rate Swap Rate at the time of the valuation for a period equal to the remaining term of the relevant Vessel’s charter or other contract of employment (excluding any renewal options).

 

Minimum Corporate Cover - Charter Free

 

20.5     If at any time on a Quarter Date on or after 30 September 2012, the Market Value of the New Money Vessels (plus the net realisable value of any Additional Security previously provided excluding, for the avoidance of doubt, refund guarantees in connection with the financed Vessels under construction) when expressed as a percentage of the total aggregate amount outstanding under the New Money Facility Agreements is less than 100 per cent., the Company must within 14 Business Days of the delivery of a relevant Compliance Certificate:

 

(a)        provide, or ensure a third party provides, Additional Security to the Intercreditor Agent (for and on behalf of each of the New Money Participating Lenders) which is acceptable to all Participating Lenders and which, in the opinion of all Participating Lenders, has a net realisable value at least equal to the shortfall and which, if it consists of or includes a Security interest, covers such asset or assets and is documented in such terms as all Participating Lenders approve, or require; or

 

(b)        prepay amounts outstanding under the New Money Facility Agreements by an amount which would reduce the amounts outstanding under each of the New Money Facility Agreements by the same proportion and by an aggregate amount

 

74

 

which would have ensured compliance with this covenant had such amounts been prepaid on the relevant Quarter Date.

 

On each Quarter Date prior to 30 September 2012, the covenant shall be tested by reference to Market Value as calculated in accordance with clause 20.2 and clause 20.3 (Definition of Market Value) for information purposes only.

 

Minimum Corporate Cover - Charter Attached

 

20.6     If at any time on a Quarter Date specified in column 1 below, the Market Value of all Vessels owned by the Group (plus the net realisable value of any Additional Security previously provided) when expressed as a percentage of total Consolidated Debt is less than the percentage specified in column 2 below, the Company must within 14 Business Days of the delivery of a relevant Compliance Certificate:

 

(a)        provide, or ensure a third party provides, Additional Security to the Intercreditor Agent (for and on behalf of each of the Participating Lenders) which is acceptable to all Participating Lenders and which, in the opinion of all Participating Lenders, has a net realisable value at least equal to the shortfall and which, if it consists of or includes a Security interest, covers such asset or assets and is documented in such terms as all Participating Lenders approve, or require; or

 

(b)        prepay amounts outstanding under the Facility Agreements by an amount which would reduce the amounts outstanding under each of the Facility Agreements by the same proportion and by an aggregate amount which would have ensured compliance with this covenant had such amounts been prepaid on the relevant Quarter Date (with such prepayments being applied (a) firstly towards all New Money Facility Loans in amounts which reduce the New Money Facility Loans by the same proportion until all New Money Facility Loans have been repaid in full and (b) secondly towards all Existing Facility Loans in amounts which reduce the Existing Facility Loans by the same proportion).

 

	
Column 1
    	
 
    	
Column 2
    	
 
    
	
Quarter Dates
    	
 
    	
Minimum percentage
    	
 
    
	
31   December 2010, 31 March 2011, 30 June 2011, 30   September 2011, 31 December 2011
    	
 
    	
90
    	
%
    
	
31   March 2012 and 30 June 2012, 30 September 2012, 31   December 2012, 31 March 2013, 30 June 2013
    	
 
    	
95
    	
%
    
	
30 September 2013, 31   December 2013, 31 March 2014
    	
 
    	
100
    	
%
    
	
30 June 2014, 30 September 2014,   31 December 2014
    	
 
    	
105
    	
%
    
	
31 March 2015, 30 June 2015
    	
 
    	
110
    	
%
    
	
30 September 2015, 31   December 2015, 31 March 2016, 30 June 2016
    	
 
    	
115
    	
%
    
	
30 September 2016, 31   December 2016, 31 March 2017
    	
 
    	
120
    	
%
    
	
30 June 2017
    	
 
    	
125
    	
%
    
	
30   September 2017, 31 December 2017, 31 March 2018, 30   June 2018, 30 September 2018
    	
 
    	
130
    	
%
    

 

75

 

Minimum Liquidity Covenant

 

20.7     The Company shall ensure, at all times, that the aggregate of:

 

(a)        all unrestricted Cash; less

 

(b)        to the extent not already paid, the aggregate of all Fixed Amortisation Amounts and Balancing Payments anticipated to be payable to the Participating Lenders during or in relation to the then current Financial Quarter,

 

shall not be less than US$30,000,000 or, in relation to the period from and including 31 March 2012 to and including 31 December 2012 only, US$20,000,000 and in each case Cash in such amounts must be held at all times in the Surplus Cash Account together with such other unrestricted Cash as is not required for discharge of amounts specified in clauses 15.17(b)(i) or 15.17(b)(ii) and which does not fall due for payment within a period of 30 days from time to time.

 

Consolidated Net Leverage

 

20.8     The Company shall ensure that for each Relevant Period ending on each Quarter Date specified in column 1 below, the Consolidated Net Leverage of the Company shall not exceed the ratio specified in column 2 below opposite that Quarter Date.

 

	
Column 1
    	
 
    	
Column 2
    	
 
    
	
Quarter Dates
    	
 
    	
Maximum ratio
    	
 
    
	
31   December 2010
    	
 
    	
12:1
    	
 
    
	
31   March 2011, 30 June 2011
    	
 
    	
12.25:1
    	
 
    
	
30   September 2011
    	
 
    	
11.50:1
    	
 
    
	
31   December 2011
    	
 
    	
11:00:1
    	
 
    
	
31   March 2012, 30 June 2012
    	
 
    	
10.75:1
    	
 
    
	
30 September 2012
    	
 
    	
10.00:1
    	
 
    
	
31   December 2012
    	
 
    	
9.25:1
    	
 
    
	
31   March 2013
    	
 
    	
9:00:1
    	
 
    
	
30   June 2013, 30 September 2013
    	
 
    	
8.50:1
    	
 
    
	
31   December 2013, 31 March 2014
    	
 
    	
8.25:1
    	
 
    
	
30   June 2014, 30 September 2014
    	
 
    	
8.00:1
    	
 
    
	
31   December 2014
    	
 
    	
7.75:1
    	
 
    
	
31   March 2015
    	
 
    	
7.50:1
    	
 
    
	
30 June 2015
    	
 
    	
7.25:1
    	
 
    

 

76

 

	
Column 1
    	
 
    	
Column 2
    	
 
    
	
Quarter Dates
    	
 
    	
Maximum ratio
    	
 
    
	
30   September 2015, 31 December 2015
    	
 
    	
7.00:1
    	
 
    
	
31   March 2016
    	
 
    	
6.75:1
    	
 
    
	
30 June 2016
    	
 
    	
6.50:1
    	
 
    
	
30   September 2016
    	
 
    	
6.25:1
    	
 
    
	
31   December 2016, 31 March 2017
    	
 
    	
6.00:1
    	
 
    
	
30 June 2017
    	
 
    	
5.75:1
    	
 
    
	
30   September 2017, 31 December 2017
    	
 
    	
5.50:1
    	
 
    
	
31   March 2018
    	
 
    	
5.25:1
    	
 
    
	
30 June 2018
    	
 
    	
5.00:1
    	
 
    
	
30   September 2018
    	
 
    	
4.75:1
    	
 
    

 

Interest Coverage Ratio Covenant

 

20.9     The Company shall ensure that for each Relevant Period ending on each Quarter Date specified in column 1 below, the ratio of Consolidated EBITDA to Net Interest Expense shall not be less than the ratio set out in column 2 opposite that Quarter Date.

 

	
Column 1
    	
 
    	
Column 2
    	
 
    
	
Quarter dates
    	
 
    	
Minimum ratio
    	
 
    
	
31   December 2010, 31 March 2011, 30 June 2011, 30   September 2011, 31 December 2011, 31 March 2012, 30   June 2012, 30 September 2012, 31 December 2012, 31   March 2013, 30 June 2013, 30 September 2013
    	
 
    	
1.50:1
    	
 
    
	
31 December 2013, 31 March 2014,   30 June 2014
    	
 
    	
1.60:1
    	
 
    
	
30 September 2014, 31   December 2014
    	
 
    	
1.70:1
    	
 
    
	
31 March 2015
    	
 
    	
1.80:1
    	
 
    
	
30 June 2015
    	
 
    	
1.90:1
    	
 
    
	
30 September 2015, 31   December 2015
    	
 
    	
2.00:1
    	
 
    
	
31 March 2016
    	
 
    	
2.10:1
    	
 
    
	
30 June 2016, 30 September 2016
    	
 
    	
2.20:1
    	
 
    
	
31 December 2016, 31 March 2017
    	
 
    	
2.30:1
    	
 
    

 

77

 

	
Column 1
    	
 
    	
Column 2
    	
 
    
	
Quarter dates
    	
 
    	
Minimum ratio
    	
 
    
	
30 June 2017
    	
 
    	
2.40:1
    	
 
    
	
30   September 2017, 31 December 2017
    	
 
    	
2.50:1
    	
 
    
	
31   March 2018
    	
 
    	
2.60:1
    	
 
    
	
30 June 2018
    	
 
    	
2.70:1
    	
 
    
	
30   September 2018
    	
 
    	
2.80:1
    	
 
    

 

Consolidated Market Value Adjusted Net Worth

 

20.10   The Company shall ensure that its Market Value Adjusted Net Worth is at all times at least US$400,000,000.

 

Financial testing

 

20.11   The financial covenants set out in this clause 20 shall be calculated and tested by reference to the most recent Financial Statements, valuations delivered in accordance with clause 20.12 and/or each Compliance Certificate delivered pursuant to clauses 22.4 to 22.6 (Provision and contents of Compliance Certificate).

 

20.12   The Company shall commission the valuations of the Vessels for the purposes of Market Value on a semi-annual basis (to be dated as at 30 June and 31 December in each year) and, to the extent the Majority Participating Lenders reasonably require having regard to the financial condition of the Group at the time, additionally on 31 March and 30 September. The valuations for 30 June and 31 December and, to the extent that additional valuations are commissioned in accordance with this clause, 31 March and 30 September, shall not have a date which is more than 1 week prior to the relevant Quarter Date on which a financial covenant in clause 20.5 (Minimum Corporate Cover - Charter Free) or 20.6 (Minimum Corporate Cover - Charter Attached) is tested.  In the event that no valuation has been commissioned for 31 March or 30 September in any year, Market Value for the relevant Quarter Date shall be calculated by reference to the most recent valuation delivered pursuant to this Agreement.

 

78

 

SECTION 6 - REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

 

21        Representations and Warranties

 

General

 

21.1     Each Group Company makes the representations and warranties set out in this clause 21 to each Finance Party.

 

Status

 

21.2     It and each of its Subsidiaries is a limited liability corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation.

 

21.3     It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted.

 

Binding obligations

 

21.4     Subject to the Legal Reservations:

 

(a)        the obligations expressed to be assumed by it in each Transaction Document to which it is a party are legal, valid, binding and enforceable obligations; and

 

(b)        (without limiting the generality of clause 21.4(a) above), each Security Document to which it is a party creates the security interests which that Security Document purports to create and those security interests are valid and effective.

 

Non-conflict with other obligations

 

21.5     The entry into and performance by it of, and the transactions contemplated by, the Transaction Documents and the granting of the Security under the Security Documents do not and will not conflict with:

 

(a)        any law or regulation applicable to it;

 

(b)        the constitutional documents of any Group Company; or

 

(c)        any agreement or instrument binding upon it or any Group Company or any of its or any Group Company’s assets or constitute a default or termination event (however described) under any such agreement or instrument.

 

Power and authority

 

21.6     It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Transaction Documents to which it is or will be a party and the transactions contemplated by those Transaction Documents.

 

21.7     No limit on its powers will be exceeded as a result of the borrowing, grant of security or giving of guarantees or indemnities contemplated by the Transaction Documents to which it is a party.

 

Validity and admissibility in evidence

 

21.8     All Authorisations required or desirable:

 

79

 

(a)        to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Transaction Documents to which it is a party; and

 

(b)        to make the Transaction Documents to which it is a party admissible in evidence in its Relevant Jurisdictions,

 

have been obtained or effected and are in full force and effect.

 

21.9     All Authorisations necessary for the conduct of the business, trade and ordinary activities of members of the Group have been obtained or effected and are in full force and effect if failure to obtain or effect those Authorisations has or is reasonably likely to have a Material Adverse Effect.

 

Governing law and enforcement

 

21.10   The choice of governing law of the Finance Documents will be recognised and enforced in its Relevant Jurisdictions.

 

21.11   Any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in its Relevant Jurisdictions.

 

Insolvency

 

21.12   No:

 

(a)        corporate action, legal proceeding or other procedure or step described in clause 25.16 (Insolvency proceedings); or

 

(b)        creditors’ process described in clause 25.18 (Creditors’ process),

 

has been taken or, to the knowledge of the Company, threatened in relation to a Group Company; and none of the circumstances described in clause 25.13 to 25.15 (Insolvency) applies to a Group Company.

 

No filing or stamp taxes

 

21.13   Under the laws of its Relevant Jurisdiction it is not necessary that the Transaction Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Transaction Documents or the transactions contemplated by the Transaction Documents except:

 

(a)        any filing, recording or enrolling or any tax or fee payable in relation to any Security Document  which is referred to in any legal opinion delivered pursuant to this Agreement and which will be made or paid promptly after the date of the relevant Security Document.

 

Deduction of Tax

 

21.14   It is not required to make any deduction for or on account of Tax from any payment it may make under any Transaction Document to a Participating Lender.

 

No Default

 

21.15   Other than the Existing Finance Document Defaults, no Default is continuing or is reasonably likely to result from the making of any drawdown under a Transaction Document or the entry into, the performance of, or any transaction contemplated by, any Transaction Document.

 

80

 

21.16   No other event or circumstance is outstanding which constitutes (or, with the expiry of a grace period, the giving of notice, the making of any determination or any combination of any of the foregoing, would constitute) a default or termination event (however described) under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries’) assets are subject which has or is reasonably likely to have a Material Adverse Effect.

 

No misleading information

 

21.17   Any factual information (including financial projections and the disclosure of fees payable to all Participating Lenders in connection with the Transaction) (the Information) provided to the Participating Lenders (or to a professional adviser preparing financial projections and other information) provided by or on behalf of a Group Company was true and accurate in all material respects as at the date of the relevant report or document containing the information or (as the case may be) as at the date the information is expressed to be given.

 

21.18   No event or circumstance has occurred or arisen and no information has been omitted from the Information and no information has been given or withheld that results in the Information being untrue or misleading in any material respect.

 

21.19   Any financial projection or forecast delivered or made available to the Participating Lenders has been prepared on the basis of recent historical information and on the basis of reasonable assumptions and was fair (as at the date of delivery of the document containing the projection or forecast) and arrived at after careful consideration.

 

21.20   All material information provided to a Participating Lender by or on behalf of the Company in connection with the Transaction on or before the date of this Agreement and not superseded before that date (whether or not contained in the Information) is accurate and not misleading in any material respect and all projections provided to any Participating Lender on or before the date of this Agreement have been prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied.

 

21.21   All other written information provided by any Group Company (including its advisers) to a Participating Lender was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any respect.

 

Original Financial Statements

 

21.22   Its Original Financial Statements were prepared in accordance with the Accounting Principles consistently applied.

 

21.23   Its unaudited Original Financial Statements fairly represent its financial condition and results of operations for the relevant financial quarter.

 

21.24   Its audited Original Financial Statements give a true and fair view of its financial condition and results of operations during the relevant financial year.

 

21.25   There has been no material adverse change in its assets, business or financial condition (or the assets, business or consolidated financial condition of the Group, in the case of the Company) since the date of the Original Financial Statements.

 

21.26   The Original Financial Statements of the Company do not consolidate the results, assets or liabilities of any person or business which does not form part of the Group.

 

21.27   Its most recent Financial Statements delivered pursuant to clause 22.3 (Financial Statements):

 

81

 

(a)        have been prepared in accordance with the Accounting Principles as applied to the Original Financial Statements; and

 

(b)        give a true and fair view of (if audited) or fairly present (if unaudited) its consolidated financial condition as at the end of, and consolidated results of operations for, the period to which they relate.

 

21.28   The budgets and forecasts supplied under this Agreement were arrived at after careful consideration and have been prepared in good faith on the basis of recent historical information and on the basis of assumptions which were reasonable as at the date they were prepared and supplied.

 

21.29   Since the date of the most recent Financial Statements delivered pursuant to clause 22.3 (Financial statements) there has been no material adverse change in the business, assets or financial condition of the Group.

 

No proceedings pending or threatened

 

21.30   No litigation, arbitration or administrative proceedings or investigations of, or before, any court, arbitral body or agency which, if adversely determined, are reasonably likely to have a Material Adverse Effect have (to the best of its knowledge and belief (having made due and careful enquiry)) been started or threatened against it or any of its Subsidiaries unless expressly disclosed to the Participating Lenders in writing before the date of this Agreement.

 

No breach of laws

 

21.31   It has not (and none of its Subsidiaries has) breached any law or regulation which breach has or is reasonably likely to have a Material Adverse Effect.

 

21.32   No labour disputes are current or, to the best of its knowledge and belief (having made due and careful enquiry), threatened against any Group Company which have or are reasonably likely to have a Material Adverse Effect.

 

Taxation

 

21.33   It is not (and none of its Subsidiaries is) materially overdue in the filing of any Tax returns and it is not (and none of its Subsidiaries is) overdue in the payment of any amount in respect of Tax of:

 

(a)        US$5,000,000 or more in relation to the Company or the Group taken as a whole; or

 

(b)        US$500,000 or more in relation to any Group Company (other than the Company),

 

or their equivalent in any other currency.

 

21.34   No claims or investigations are being, or are reasonably likely to be, made or conducted against it (or any of its Subsidiaries) with respect to Taxes such that a liability of, or claim against, any Group Company of:

 

(a)        US$5,000,000 or more in relation to the Company or the Group taken as a whole; or

 

(b)        US$500,000 or more in relation to any Group Company (other than the Company),

 

(or their equivalent in any other currency) is reasonably likely to arise.

 

82

 

Security and Financial Indebtedness

 

21.35   No Security or Quasi-Security exists over all or any of the present or future assets of any Group Company other than as permitted by this Agreement.

 

21.36   No Group Company has any Financial Indebtedness outstanding other than as permitted by this Agreement.

 

Ranking

 

21.37   The Security under the Shared Security Documents has or will have the ranking in priority which it is expressed to have in the Shared Security Documents and it is not subject to any prior ranking or pari passu ranking Security.

 

Good title to assets

 

21.38   It and each of its Subsidiaries has a good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business as presently conducted.

 

Shares

 

21.39   The shares of any Group Company which are subject to Security under the Security Documents are fully paid and not subject to any option to purchase or similar rights and are not bearer shares.  The constitutional documents of companies whose shares are subject to Security under the Security Documents do not and could not restrict or inhibit any transfer of those shares on creation or enforcement of the Security under the Security Documents.  Except as provided in the Warrant Documents and the Employee Share Plan or in relation to an Equity Issue that has been disclosed in accordance with clause 18.7 (Equity Issue), there are no agreements in force which provide for the issue or allotment of, or grant any person the right to call for the issue or allotment of, any share or loan capital of any Group Company (including any option or right of pre-emption or conversion).

 

Group Structure Chart

 

21.40   The group structure chart delivered pursuant to clause 2.1 (Conditions precedent) (as may be updated from time to time) is true, complete and accurate in all material respects and shows the following information:

 

(a)        each Group Company (other than a Dormant Subsidiary), including current name and company registration number, its jurisdiction of incorporation and/or establishment and a list of shareholders and indicating whether a company is not a company with limited liability; and

 

(b)        all minority interests in any Group Company and any person in which any Group Company holds shares in its issued share capital or equivalent ownership interest of such person.

 

Group Companies

 

21.41   Subject to any time period for accession of an Additional Group Company in accordance with the provisions of clause 32.10 (Additional Group Company), each Subsidiary of the Company (other than the Dormant Subsidiaries) is a party to this Agreement or has become a party to this Agreement. On the date of this Agreement, there are no other Group Companies other than the Original Group Companies and the Dormant Subsidiaries.

 

21.42   Each of the entities listed in Part 1b of Schedule 1 is a Dormant Subsidiary.

 

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Accounting reference date

 

21.43   The Accounting Reference Date of each Group Company is 31 December.

 

No adverse consequences

 

21.44   It is not necessary under the laws of its Relevant Jurisdictions:

 

(a)        in order to enable any Finance Party to enforce its rights under any Finance Document; or

 

(b)        by reason of the execution of any Transaction Document or the performance by it of its obligations under any Transaction Document,

 

that any Finance Party should be licensed, qualified or otherwise entitled to carry on business in any of its Relevant Jurisdictions.

 

21.45   No Finance Party is or will be deemed to be resident, domiciled or carrying on business in its Relevant Jurisdictions by reason only of the execution, performance and/or enforcement of any Finance Document.

 

Times when representations made

 

21.46   All the representations and warranties in this clause 21 are made by each Group Company on the date of this Agreement.

 

21.47   All the representations and warranties in this clause 21 are deemed to be made by each Group Company on the Closing Date.

 

21.48   The Repeating Representations are deemed to be made by each Group Company (including any Additional Group Company) on the first day of each Interest Period (except that those contained in clauses 21.22 to 21.26 (Original Financial Statements) will not be repeated once subsequent financial statements have been delivered under this Agreement).

 

21.49   All the representations and warranties in this clause 21 except clause 21.40 (Group Structure Chart) are deemed to be made by each Additional Group Company on the day on which it becomes (or it is proposed that it becomes) an Additional Group Company.

 

21.50   Each representation or warranty deemed to be made after the date of this Agreement shall be deemed to be made by reference to the facts and circumstances existing at the date the representation or warranty is deemed to be made.

 

22        Information undertakings

 

22.1     The undertakings in this clause 22 remain in force from the date of this Agreement for so long as any amount is outstanding (whether present, future, actually or contingently) under the Finance Documents or any Commitment is in force.

 

22.2     In this clause 22:

 

Annual Financial Statements means the financial statements for a Financial Year delivered pursuant to clause 22.3(a) (Financial statements).

 

Quarterly Financial Statements means the financial statements delivered pursuant to clause 22.3(b) (Financial statements).

 

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Financial statements

 

22.3     The Company shall supply to the Relevant Finance Parties in sufficient copies for all the Participating Lenders:

 

(a)        as soon as they are available, but in any event within 150 days after the end of each of its Financial Years, its audited consolidated financial statements for that Financial Year; and

 

(b)        as soon as they are available, but in any event within 40 days after the end of each Financial Quarter, its consolidated financial statements for that Financial Quarter as published.

 

Provision and contents of Compliance Certificate

 

22.4     The Company shall supply a Compliance Certificate to the Relevant Finance Parties with each set of its audited consolidated Annual Financial Statements and each set of its Quarterly Financial Statements and shall be accompanied by the most recent valuations commissioned pursuant to clause 20.12 (Financial testing).

 

22.5     The Compliance Certificate shall, amongst other things, set out (in reasonable detail):

 

(a)        computations as to compliance with clause 20 (Financial covenants);

 

(b)        the quantum of Actual Free Cash Flow (including details as to its calculation) for each Vessel for the previous Financial Quarter;

 

(c)        the computations as to the Balancing Payment and any payment due in accordance with clause 15.10 (Additional Repayment);

 

(d)        a calculation of the Margin New Money Loans applicable to the next Interest Period; and

 

(e)        the amount of Financial Indebtedness secured by any first mortgagee on any Applicable Second Lien Vessel.

 

22.6     Each Compliance Certificate shall be signed by the Chief Financial Officer of the Company or two directors of the Company.

 

Requirements as to financial statements

 

22.7     The Company shall procure that each set of Annual Financial Statements and Quarterly Financial Statements includes a balance sheet, profit and loss account and cashflow statement.  In addition the Company shall procure that:

 

(a)        each set of Annual Financial Statements shall be audited by the Auditors; and

 

(b)        each set of Quarterly Financial Statements includes a reconciliation of actual costs for that Financial Quarter against budgeted costs for that Financial Quarter (as calculated in accordance with the relevant Budget).

 

22.8     Each set of financial statements delivered pursuant to clause 22.3 (Financial statements):

 

(a)        shall be certified by an officer of the Company as giving a true and fair view of (in the case of Annual Financial Statements for any Financial Year), or fairly representing (in other cases), its financial condition and operations as at the date as at which those financial statements were drawn up and, in the case of the Annual Financial Statements, shall be accompanied by any letter addressed to 

 

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the management of the Company by the Auditors and accompanying those Annual Financial Statements;

 

(b)        in the case of consolidated financial statements of the Group, shall be accompanied by a statement by an officer of the Company comparing actual performance for the Relevant Period (as defined in clause 20.1 (Financial Definitions)) to which the financial statements relate to:

 

(i)         the projected performance for that period set out in the Budget; and

 

(ii)        the actual performance for the corresponding period in the preceding Financial Year of the Group; and

 

(c)        shall be prepared in accordance with the Accounting Principles unless, in relation to any set of financial statements, the Company notifies the Participating Lenders that there has been a change in the Accounting Principles or the accounting practices (including by the Group adopting IFRS reporting) and its Auditors deliver to the Participating Lenders:

 

(A)       a description of any change necessary for those financial statements to reflect the Accounting Principles or accounting practices upon which Original Financial Statements were prepared; and

 

(B)       sufficient information, in form and substance as may be reasonably required by the Participating Lenders to determine whether the provisions of clause 20 (Financial covenants) have been complied with and to make an accurate comparison between the financial position indicated in those financial statements and the Original Financial Statements.

 

Any reference in this Agreement to any financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial Statements were prepared.  Notwithstanding the foregoing or any other provision of this Agreement, for the purposes of determining compliance with the financial covenants contained in this Agreement, any election by a Group Company to measure any portion of a non-derivative financial liability at fair value (as permitted by International Accounting Standard 39 or any similar accounting standard), other than to reflect a hedge of such non-derivative financial liability (including both interest rate and foreign currency hedges), shall be disregarded and such determination shall be made as if such election had not been made.

 

22.9     If the Company notifies the Participating Lenders of a change in accordance with clause 22.8(c), the Company and the Participating Lenders (through the Relevant Finance Parties) shall enter into negotiations in good faith for a period of not more than 30 days with a view to agreeing any amendments to clause 20 (Financial Covenants) and any other relevant provisions of this Agreement which are necessary to place the Company and the Finance Parties in the same position as they were prior to the change in the Accounting Principles or the accounting practices (including by the Group adopting IFRS reporting). If no agreement is reached under this clause, the Participating Lenders (through the Relevant Finance Parties) shall notify the Company of the amendments that need to be made to ensure that the Finance Parties are placed in the same position as they were prior to the change in the Accounting Principles or the accounting practices (including by the Group adopting IFRS reporting). If any amendments are agreed or notified pursuant to this clause, they shall take effect and be binding on each of the Parties in accordance with their terms.

 

22.10   If one or more Participating Lenders wish to discuss the financial position of the Group with the Auditors, those Participating Lenders will notify the Company and the Intercreditor Agent, stating the questions or issues which those Participating Lenders 

 

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wish to discuss with the Auditors and the Intercreditor Agent shall, as soon as reasonably practicable following receipt of those questions or issues, notify the other Participating Lenders.  In this event, the Company must ensure that the Auditors are authorised (at the expense of the Company):

 

(a)        to discuss the financial position of the Group with those Participating Lenders and any other Participating Lenders who receive notice from the Intercreditor Agent and who wish to participate in the discussions; and

 

(b)        to disclose to the Participating Lenders and the Intercreditor Agent any information which those Participating Lenders may reasonably request.

 

Budget

 

22.11   The Company shall supply to the Relevant Finance Parties, as soon as the same become available but in any event at least 15 days prior to the start of each of its Financial Years, an annual Budget for that Financial Year.

 

22.12   The Company shall ensure that each Budget:

 

(a)        is in a form reasonably acceptable to the Majority Participating Lenders and includes a projected consolidated profit and loss, balance sheet and cashflow statement for the Group, projected financial covenant calculations and financial projections based on the same guiding principles and with the same level of detail as the agreed financial projections provided to the Finance Parties prior to the date of this Agreement;

 

(b)        enables the agreement of an Approved Budget;

 

(c)        is prepared in accordance with the Accounting Principles and the accounting practices and financial reference periods applied to financial statements under clause 22.3 (Financial statements); and

 

(d)        has been approved by the board of directors of the Company.

 

22.13   The Company shall brief, in the manner set out in clause 22.21, the Participating Lenders regarding projected operating expenses and general administrative expenses relating to the Vessels together with any contingencies and one-off or exceptional expenditure in relation to Vessels.

 

22.14   If the Majority Participating Lenders consider it necessary (acting reasonably having regard to the Company’s financial position at that time) they may request, at the cost of the Company, that the financial projections set out in the Budget are reviewed by a major accounting firm and that such accounting firm provides a reconciliation of such financial projections.

 

22.15   Any Budget that is delivered under this clause which is approved by the parties to a Facility Agreement shall be an Approved Budget for the purposes of clause 15 (Repayment) and the calculation of the Balancing Payment payable to the Participating Lenders party to that Facility Agreement.

 

Year-end

 

22.16   No Group Company shall change its Accounting Reference Date.

 

Information: miscellaneous

 

22.17   The Company shall supply to the Relevant Finance Parties:

 

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(a)        at the same time as they are dispatched, copies of all documents dispatched by the Company to its shareholders generally (or any class of them) or dispatched by the Company or any Group Company to its creditors generally (or any class of them);

 

(b)        promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any Group Company, and which, if adversely determined, are reasonably likely to have a Material Adverse Effect or which would involve a liability, or a potential or alleged liability, exceeding:

 

(i)         US$5,000,000 in relation to the Company or the Group taken as a whole; or

 

(ii)        US$500,000 in relation to any Group Company (other than the Company),

 

or their equivalent in other currencies;

 

(c)        promptly, details of any disposal or insurance claim or other event or circumstance which may require a prepayment under a Facility Agreement and/or this Agreement;

 

(d)        promptly, such information as a Relevant Finance Party may reasonably require about the assets which are subject to, or expressed to be subject to, Security under the Security Documents and compliance of the Group Companies with the terms of any Security Documents;

 

(e)        promptly on request, such further information regarding the financial condition, assets and operations of the Group and/or any Group Company (including any requested amplification or explanation of any item in the financial statements, budgets or other material provided by the Company under this Agreement, any changes to management of the Group and an up to date copy of its shareholders’ register (or equivalent in its jurisdiction of incorporation)) as any Finance Party through a Relevant Finance Party may reasonably request; and

 

(f)         by no later than 6 months prior to the expiration of any time charter or other contract of employment in respect of a Vessel, its proposals as to the chartering or employment of the relevant Vessel upon the expiration of the subsisting charter or other contract of employment;

 

(g)        promptly on request details of the earnings per Vessel (including upon reasonable request, an aged debtor list), payments, expenses and other amounts incurred (including upon reasonable request, an aged creditor list) in connection with the operation, maintenance and repair of the Vessels and the profitability level of the Vessels;

 

(h)        by no later than 30 June 2018, its proposals on how it will refinance any amounts that will remain outstanding under the Finance Documents on the Final Maturity Date; and

 

(i)         promptly upon becoming aware, notification that Dr. John Coustas has ceased to be Chief Executive Officer of the Company.

 

22.18   Each Group Company shall (and the Company shall procure that each Group Company shall) promptly notify the Participating Lenders if at any time the Company’s cashflow forecasts show the Cash balance of the Group being equal to or less than US$30,000,000, at any time during the subsequent 6 month period (or, in relation to the period from and including 31 March 2012 to and including 31 December 2012 only, US$20,000,000) and thereafter the Company will issue monthly cashflow forecasts until these forecasts show the balance being greater than US$30,000,000 (or, in relation to 

 

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the period from and including 31 March 2012 to and including 31 December 2012 only, US$20,000,000) for the subsequent 3 month period.

 

Notifications under this Agreement

 

22.19   Each Relevant Finance Party (acting by the Relevant Facility Agent if applicable) shall, in relation to each Facility Agreement to which they are a party, provide to the Intercreditor Agent, 5 Business Days prior to the end of each Interest Period the following:

 

(a)        a list of the respective Commitments under the relevant Facility Agreement, the amount of any (p)repayments made in relation to such Facility Agreement since the most recent list prepared pursuant to this clause, the amount of any cancellations made in relation to Commitments and details of the amounts outstanding under the Facility Agreement to which they are a party since the most recent list prepared pursuant to this clause,

 

(b)        any amounts being claimed under clause 9.5 (Default interest);

 

(c)        the information provided to them pursuant to clause 9.9 (Mandatory Cost); and

 

(d)        any payments due under clauses 11 (Changes to calculation of interest).

 

22.20   The Intercreditor Agent shall forward, within 3 Business Days of receipt, to each Relevant Finance Party (acting by the Relevant Facility Agent if applicable) the summary of all information delivered by each Relevant Finance Party under and as set out in clause 22.19.

 

Presentations and briefings

 

22.21   Once in each calendar month until 30 June 2011 and thereafter quarterly, the Company must ensure that one or more of the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer gives a briefing (by telephone or in person at the option of the Company) to the Participating Lenders about the on-going business and financial performance of the Group including:

 

(a)        the information referred to in, or delivered under, this clause 22 provided that there shall be no obligation to discuss the refinancing referred to in clause 22.17(h) prior to 30 June 2018;

 

(b)        the Company’s forward view of the remainder of the year;

 

(c)        the Company’s current liquidity position and forecasts for its liquidity position;

 

(d)        the earnings per Vessel (including an aged creditor list), payments, expenses and other amounts incurred (including an aged debtor list) in connection with the operation, maintenance and repair of the Vessels and the profitability level of the Vessels; and

 

(e)        in the final quarter of each year, its budget for the forthcoming year,

 

provided that, without prejudice to the other provisions of this Agreement, nothing in this clause shall oblige the Company to produce financial statements other than the Financial Statements in accordance with this Agreement or produce other figures (for example, liquidity or earnings) more than once in any Financial Quarter.

 

22.22   The Majority Participating Lenders will, having regard to any concerns at that time which warrant such work to be undertaken, be entitled to require a major accounting 

 

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firm (at the expense of the Company) to undertake such additional investigative work as may reasonably be required to explain and enable Finance Parties to understand management actions and the financial performance of the Company and each Group Company. The Majority Participating Lender shall provide brief details to the Company of the reason for requiring such additional investigative work provided that nothing in this clause shall imply that the consent of the Company is required for such additional investigative work to be carried out.

 

Notification of default

 

22.23   Each Group Company shall notify the Relevant Finance Parties and the Intercreditor Agent of any Default (and the steps, if any, being taken to remedy it or to prevent it becoming an Event of Default) promptly upon becoming aware of its occurrence (unless that Group Company is aware that a notification has already been provided by another Group Company).

 

22.24   Promptly upon a request by the Relevant Finance Parties, the Company shall supply to the Relevant Finance Parties and the Intercreditor Agent a certificate signed by two of its directors or senior officers on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

 

Know your customer checks

 

22.25   If:

 

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

 

(b)        any change in the status of a Group Company or the composition of the shareholders of a Group Company after the date of this Agreement; or

 

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

 

obliges any Finance Party (or, in the case of paragraph (c) above, any prospective new Finance Party) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Group Company shall promptly upon the request of any Finance Party supply, or procure the supply of, such documentation and other evidence as is reasonably requested by any Finance Party (for itself or, in the case of the event described in paragraph (c) above, on behalf of any prospective new Finance Party) in order for such Finance Party or, in the case of the event described in paragraph (c) above, any prospective new Finance Party 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.

 

22.26   Each Finance Party shall promptly upon the request of the Intercreditor Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Intercreditor Agent (for itself) in order for the Intercreditor Agent 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.

 

22.27   The Company shall, by not less than 10 Business Days’ prior written notice to the Intercreditor Agent, notify the Intercreditor Agent of its intention to request that a company becomes an Additional Group Company pursuant to clause 32.10 (Additional Group Company).

 

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22.28   Following the giving of any notice pursuant to clause 22.27 above, if the accession of such Additional Group Company obliges the Intercreditor Agent or any Participating Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Intercreditor Agent or any Participating Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Intercreditor Agent (for itself or on behalf of any Participating Lender) or any Participating Lender (for itself or on behalf of any prospective new Participating Lender) in order for the Intercreditor Agent or such Participating Lender or any prospective new Participating 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 accession of such Subsidiary to this Agreement as an Additional Group Company.

 

23        General undertakings

 

23.1     The undertakings in this clause 23 remain in force from the date of this Agreement for so long as any amount is outstanding (whether present, future, actually or contingently) under the Finance Documents or any Commitment is in force.

 

Authorisations and compliance with laws

 

Authorisations

 

23.2     Each Group Company shall promptly:

 

(a)        obtain, comply with and do all that is necessary to maintain in full force and effect; and

 

(b)        supply certified copies to the Participating Lenders of,

 

any Authorisation required under any law or regulation of a Relevant Jurisdiction to:

 

(i)         enable it to perform its obligations under the Transaction Documents;

 

(ii)        ensure the legality, validity, enforceability or admissibility in evidence of any Transaction Document; and

 

(iii)       carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

Compliance with laws

 

23.3     Each Group Company shall (and the Company shall ensure that each Group Company will) comply in all respects with all laws to which it may be subject, if failure so to comply has or is reasonably likely to have a Material Adverse Effect.

 

Taxation

 

23.4     Each Group Company shall (and the Company shall ensure that each Group Company will) pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

 

(a)        such payment is being contested in good faith;

 

(b)        adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered pursuant to clause 22.3 (Financial statements); and

 

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(c)        such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

 

23.5     No Group Company may change its residence for Tax purposes.

 

Restrictions on business focus

 

Merger

 

23.6     No Group Company shall (and the Company shall ensure that no other Group Company will) enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction.

 

23.7     Clause 23.6 shall not apply to any amalgamation, demerger, merger, consolidation or corporate reconstruction provided:

 

(a)        it is funded entirely from Surplus Equity Proceeds (as defined in clause 18.1 (Exit));

 

(b)        no Event of Default is continuing or would occur as a result of such merger;

 

(c)        the Company has delivered a pro forma Compliance Certificate to the Intercreditor Agent showing that the provisions of clause 20 (Financial covenants) would be complied with following such merger; and

 

(d)        it would not result in a Change of Control.

 

Change of business

 

23.8     The Company shall procure that no substantial change is made to the general nature of the business of the Company, the Group Companies or the Group taken as a whole from that carried on by the Group at the date of this Agreement.

 

Restrictions on dealing with assets and Security

 

Pari passu ranking

 

23.9     Each Group Company shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party or Hedge Counterparty against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

 

Negative pledge

 

23.10   In  this clause and clause 21.35, Quasi-Security means an arrangement or transaction described in clause 23.10(b) below.  Except as permitted under clause 23.10(c) below:

 

(a)        No Group Company shall (and the Company shall ensure that no other Group Company will) create or permit to subsist any Security over any of its assets.

 

(b)        No Group Company shall (and the Company shall ensure that no other Group Company will):

 

(i)         sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by a Group Company;

 

(ii)        sell, transfer or otherwise dispose of any of its receivables on recourse terms;

 

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(iii)       enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

 

(iv)      enter into any other preferential arrangement having a similar effect,

 

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

 

(c)        Clauses 23.10(a) and 23.10(b) above do not apply to any of the following:

 

(i)         any lien arising by operation of law and in the ordinary course of trading and not as a result of any default or omission by any Group Company;

 

(ii)        any Security created pursuant to a Finance Document;

 

(iii)       any netting or set-off arrangement entered into by any Group Company in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances of members of the Group;

 

(iv)      any payment or close out netting or set-off arrangement pursuant to any Treasury Transaction or foreign exchange transaction entered into by a Group Company which constitutes Financial Indebtedness which is permitted pursuant to clause 23.29 (Treasury Transactions), excluding any Security or Quasi-Security under a credit support arrangement unless approved in accordance with the Hedging Strategy or the Cash Cover arrangements set out in this Agreement;

 

(v)       any Security or Quasi-Security arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to a Group Company in the ordinary course of trading and on the supplier’s standard or usual terms and not arising as a result of any default or omission by any Group Company;

 

(vi)      any Security in connection with a Qualifying Refinancing;

 

(vii)     any Security to be granted to Hyundai as Security for amounts outstanding under the Vendor Finance Facility Agreements provided such Security is entered into in accordance with the Vendor Finance Facility Agreements and is subject to the Vendor Finance Intercreditor Agreement;

 

(viii)    Security in respect of, and in accordance with, the Sinosure Backed Facility over the Sinosure Vessels or a second ranking mortgage in favour of Citibank, N.A., ranking behind the Sinosure Backed Facility, such second ranking security and related intercreditor agreements being on terms no more favourable to Citibank N.A. than those set out in the form of the draft intercreditor agreement between, amongst others, Citibank, N.A. or its Affiliates and the Company in connection with the Sinosure Backed Facility (the Sinosure Intercreditor Agreement) and which is delivered as a condition precedent pursuant to clause 2.1 (for the avoidance of doubt, in draft form);

 

(ix)       Security in respect of, and in accordance with the Sinosure Vessels Alternative Financing; or

 

(x)        a Permitted Lien.

 

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Disposals

 

23.11   Except as permitted under clause 23.12 or clause 23.14 below, no Group Company shall (and the Company shall ensure that no Group Company will) enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

 

23.12   Clause 23.11 above shall not apply to any disposal of any Vessel which disposal is approved in writing by each Participating Lender and Hedge Counterparty having a Facility Agreement or a Hedging Agreement secured by a mortgage over such Vessel and where the full proceeds of such disposal shall, upon the date on which the disposal of the Vessel is completed by the relevant Group Company by the transfer of title to the purchaser in exchange for all or part of the relevant purchase price, subject (if applicable) to the provisions of the Vendor Finance Intercreditor Agreement, be applied:

 

(a)        where the disposal is of a Joint Security Vessel and, unless the relevant Participating Lenders and Hedging Counterparties secured over that Vessel agree otherwise,

 

(i)         first in prepayment of all amounts of outstanding indebtedness under the Loan or Advance (as defined in the New Money Facility Agreement) relating to such Joint Security Vessel under the New Money Facility Agreement secured by that Joint Security Vessel and, following such prepayment the proceeds shall be applied in prepayment of any other Advance (and, in the case of the New HSH Facility Agreement (as defined in Schedule 4 (New Money Facility Agreements)) in prepayment of any other Advances on a pro rata basis as between Advances) under that New Money Facility Agreement in accordance with the provisions thereof;

 

(ii)        second in prepayment of indebtedness under the Existing Facility Agreements secured by that Joint Security Vessel (if any) and in providing Cash Cover in respect of an Existing Hedging Transaction secured by that Joint Security Vessel on a pari passu basis to the extent provided for in the relevant Existing Finance Document or New Money Finance Document (such that, for the avoidance of doubt, in circumstances where there is no Existing Facility Agreement secured over that Vessel, Cash Cover shall be provided for Existing Hedging Transactions secured by that Vessel prior to any application in accordance with (iii) below); and

 

(iii)       third in providing Cash Cover in respect of Hedging Liabilities secured by a mortgage over such Joint Security Vessel other than under an Existing Hedging Transaction; or

 

(b)        save in the case of an Applicable Second Lien Vessel, where the disposal is either:

 

(i)         of a Vessel which is not a Joint Security Vessel; or

 

(ii)        a Joint Security Vessel in respect of which all amounts of outstanding indebtedness under any relevant New Money Facility Agreement and any Hedging Liabilities ranking in priority to an Existing Facility Agreement has previously been repaid in full or where Cash Cover has been provided,

 

in prepayment on the basis of its ranking to the extent such ranking is provided for in the relevant Existing Finance Documents (or in the case of (ii) above, the New Money Finance Documents) of all amounts of outstanding indebtedness under the Existing Facility Agreements and in providing Cash Cover for any Hedging Liabilities (whether or not it relates to the acquisition cost of that Vessel) 

 

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secured by a mortgage over that Vessel in accordance with the provisions thereof; or

 

(c)        where the disposal is of an Applicable Second Lien Vessel in prepayment on the basis of its ranking as provided for in the Additional Second Lien Intercreditor Agreements of all amounts of outstanding indebtedness secured by the relevant Applicable Second Lien Vessel and/or in providing Cash Cover for any Hedging Liabilities (whether or not it relates to the acquisition cost of that Vessel) secured by a mortgage over that Applicable Second Lien Vessel in accordance with the provisions thereof.

 

23.13   In the event that after application in discharge of amounts payable in accordance with 23.12, there are any surplus disposal proceeds remaining such surplus disposal proceeds thereafter must be applied in prepayment of all Loans under all Facility Agreements so that all Loans under each Facility Agreement are reduced by the same proportion in accordance with the provisions of the relevant Facility Agreement or related Finance Documents.

 

23.14   Clause 23.11 above does not apply to any sale, lease, transfer or other disposal which is a Permitted Transaction

 

Arm’s length basis

 

23.15   Except as permitted by clause 23.16 below, no Group Company shall (and the Company shall ensure no Group Company will) enter into any transaction with any person except on arm’s length terms and for full market value.

 

23.16   The following transactions shall not be a breach of clause 23.15 intra-Group loans permitted under clauses 23.18 and 23.19 (Loans or credit).

 

Dormant subsidiaries

 

23.17   No Group Company shall (and the Company shall ensure no Group Company will) cause or permit any Group Company which is a Dormant Subsidiary to commence trading or cease to satisfy the criteria for a Dormant Subsidiary unless such Dormant Subsidiary becomes an Additional Group Company in accordance with clause 32.10 (Additional Group Company).

 

Restrictions on movement of cash - cash out

 

Loans or credit

 

23.18   Except as permitted under clause 23.19 below, no Group Company shall (and the Company shall ensure that no Group Company will) be a creditor in respect of any Financial Indebtedness.

 

23.19   Conditional upon, but subject to clause 26.6(b) (blocking of accounts during an Enforcement Standstill Period), no Default continuing or occurring as a result of the loan being made, a Group Company may be a creditor in respect of:

 

(a)        loans made by a Group Company to the Company in order to enable the Company to meet its obligations under the Finance Documents; and

 

(b)        a loan made by one Group Company to another Group Company (i) to discharge expenditure of the type referred to in paragraphs (a) to (f) of the definition of Free Cash Flow or (ii) otherwise to facilitate repayment or prepayment of amounts due to Participating Lenders as permitted by this Agreement or (iii) loans permitted pursuant to clause 23.27.

 

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No guarantees or indemnities

 

23.20   Except as permitted under clause 23.21 and 23.22  below, no Group Company shall (and the Company shall ensure that no Group Company will) incur or allow to remain outstanding any guarantee in respect of any obligation of any person.

 

23.21   Clause 23.20 does not apply to  guarantees entered into in the ordinary course of trading up to a maximum aggregate liability of:

 

(a)        US$5,000,000 in respect of the Company or the Group taken as a whole; or; or

 

(b)        up to US$500,000 in relation to any Group Company (other than the Company).

 

23.22   Clause 23.20 does not apply to guarantees entered into pursuant to a Finance Document or otherwise to guarantee liabilities under any Security permitted by clauses 23.10(c) (ii),(iii),(iv),(vi),(vii) (viii) or (ix).

 

Dividends and share redemption

 

23.23   Except as permitted under clause 23.24 below, the Company shall not (and will ensure that no other Group Company will):

 

(a)        declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital);

 

(b)        repay or distribute any dividend or share premium reserve; or

 

(c)        redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so,

 

each a Distribution.

 

23.24   Clause 23.23 above does not apply to the following Distributions:

 

(a)        the payment of a dividend to the Company or any of its wholly-owned Subsidiaries provided such subsidiaries are guarantors or security providers under a Finance Document and that it is made when no Default is continuing or would occur immediately after the making of the Distribution;

 

(b)        the payment of a dividend by the Company to make Distributions provided that:

 

(i)         the Distribution is made when no Default is continuing or would occur immediately after the making of the Distribution;

 

(ii)        the Company has supplied the Intercreditor Agent for onward distribution to the Relevant Finance Parties with a certificate (signed by the Chief Financial Officer) showing in reasonable detail that each financial covenant set out in clause 20 (Financial covenants) is forecast on a pro forma basis to be complied with for the subsequent 6 month period;

 

(iii)       Consolidated Net Leverage has been below 6:1 for the previous four consecutive Financial Quarters (as tested by reference to the most recent Financial Statements and/or each Compliance Certificate delivered pursuant to clauses 22.4 to 22.6 (Provision and contents of Compliance Certificate));

 

(iv)      the consolidated Vessel Leverage has been above 125% for the previous four consecutive Financial Quarters; and

 

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(v)       all debt service obligations owed to the Participating Lenders have been paid at the date on which the Distribution is proposed to be made.

 

23.25   For the purposes of clause 23.24(b), Vessel Leverage means the aggregate Market Value of all Vessels (as determined pursuant to clause 20.2 to clause 20.4 (Calculation of Market Value)) divided by the Consolidated Debt when expressed as a percentage.

 

Financial Indebtedness

 

23.26   Except as permitted under clause 23.27 below, no Group Company shall (and the Company shall ensure that no Group Company will) incur or allow to remain outstanding any Financial Indebtedness.

 

23.27   Clause 23.26 above does not apply to Financial Indebtedness:

 

(a)        in respect of Financial Indebtedness owed from one Group Company to another Group Company provided the relevant creditors’ rights in respect of such Financial Indebtedness are assigned to, or otherwise subject to Security in favour of, the Intercreditor Agent on such terms as the Intercreditor Agent shall approve save that such Security will not be obliged to be granted to the extent that it would affect the arrangements under the Preference Share Facility Agreement;

 

(b)        arising under any of the Vendor Finance Facility Agreements in the form delivered pursuant to clause 2.1 (Conditions precedent);

 

(c)        in respect of Financial Indebtedness under the KEXIM Facility Agreements in the form existing as at the date of this Agreement;

 

(d)        arising under the Sinosure Backed Facility or the Sinosure Vessels Alternative Financing;

 

(e)        arising under a Qualifying Refinancing; or

 

(f)         Financial Indebtedness under the Finance Documents.

 

Miscellaneous

 

Access

 

23.28   If a Default is continuing or a Relevant Facility Agent reasonably suspects a Default is continuing or may occur, each Group Company shall, and the Company shall ensure that each Group Company will, permit the Relevant Facility Agent and/or the Intercreditor Agent and/or accountants or other professional advisers and contractors of the Relevant Facility Agent or Intercreditor Agent free access at all reasonable times and on reasonable notice at the risk and cost of the Group Company or Company to (a) the premises, assets, books, accounts and records of each Group Company and (b) meet and discuss matters with senior management of the Group.

 

Treasury Transactions

 

23.29   No Group Company shall (and the Company will procure that no members of the Group will) enter into any Treasury Transaction, other than:

 

(a)        the Existing Hedging Transactions documented by the Hedging Agreements;

 

(b)        any Treasury Transaction contemplated by, and entered into in accordance with, the Hedging Strategy; or

 

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(c)        spot and forward delivery foreign exchange contracts entered into in the ordinary course of trading and not for speculative purposes.

 

Compliance with Hedging Strategy

 

23.30   The Company shall (and shall procure that each Group Company shall) comply with the terms of the Hedging Strategy.

 

23.31   The Company shall ensure that all interest rate hedging arrangements required by the Hedging Strategy are implemented in accordance with the terms of the Hedging Strategy and that such arrangements are not terminated, varied or cancelled without the consent of the Intercreditor Agent (acting on the instructions of the Majority Participating Lenders), save as permitted by this Agreement.

 

Further assurance

 

23.32   Each Group Company shall (and the Company shall procure that each Group Company will) promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Relevant Facility Agents may reasonably specify (and in such form as the Relevant Facility Agents may reasonably require in favour of the Intercreditor Agent or its nominee(s)):

 

(a)        to perfect the Security created or intended to be created under or evidenced by the Security Documents (which may include the execution of a mortgage, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Security created by the Security Documents) or for the exercise of any rights, powers and remedies of the Intercreditor Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law;

 

(b)        to confer on the Intercreditor Agent or confer on the Finance Parties Security over any property and assets of that Group Company located in any jurisdiction equivalent or similar to the Security intended to be conferred by or pursuant to the Security Documents; and/or

 

(c)        to facilitate the realisation of the assets which are, or are intended to be, the subject of the Security under the Security Documents.

 

23.33   Each Group Company shall (and the Company shall procure that each Group Company shall) take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Intercreditor Agent or the Finance Parties by or pursuant to the Finance Documents.

 

Miscellaneous

 

23.34   Each Group Company shall (and the Company shall procure that each Group Company shall) ensure that all of its bank accounts are opened and maintained with a Finance Party or an Affiliate of a Finance Party (in such jurisdiction as nominated by the relevant Finance Parties) and are subject to valid Security under a Security Document other than in the case of a Common Account which must be deposited in an account which is secured in favour of the Intercreditor Agent pursuant to a Shared Security Document.

 

23.35   Each Group Company shall (and the Company shall procure that each Group Company shall) consult with the Participating Lenders as to the corporate governance arrangements for the Company, any replacement of any directors and any succession and recruitment planning at a board level.

 

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23.36   The Company shall use all reasonable endeavours to ensure that as soon as reasonably practicable, and in any event prior to any drawdown under a New Money Facility Agreement, the financial covenants under the KEXIM Facility Agreements are consistent with the terms of this Agreement, or long term waivers are entered into (each in form acceptable to the Majority Participating Lenders in their sole discretion) such that defaults are not triggered under the KEXIM Facility Agreements where they would not be triggered under this Agreement.

 

Restricted Persons

 

23.37   Each Group Company acknowledges and agrees that certain of the Finance Parties, be it due to applicable laws or to internal rules and regulations, are prohibited to conclude transactions or finance transactions with the government of or any person or entity owned or controlled by the government of certain countries (the Restricted Countries) subject to sanctions and/or trade embargoes, in particular but not limited to pursuant to the U.S.’s Office of Foreign Asset Control of the U.S. Department of Treasury (OFAC) or persons, entities or any other parties (hereinafter collectively referred to as Restricted Persons) (i) located, domiciled, resident or incorporated in Restricted Countries, and/or (ii) subject to any sanction administrated by the United Nations, the European Union, Switzerland, OFAC, HM Treasury and the Foreign and Commonwealth Office of the United Kingdom, the Monetary Authority of Singapore and the Hong Kong Monetary Authority and/or any other applicable country and/or (iii) owned or controlled by or affiliated with persons, entities or any other parties as defined in (i) and (ii) hereinbefore. As of the date of this Agreement such Restricted Countries are the following: Cuba, Iran, Myanmar, North Korea, Sudan and Syria.

 

23.38   No Group Company shall (and the Company shall ensure that no other Group Company will)  transfer, make use of or provide the benefits of any money, proceeds or services provided by or received from any Finance Party to such Restricted Persons or conduct any business activity such as entering into any ship acquisition agreement, any ship refinancing agreement and/or any charter agreement related to a vessel, project, asset or otherwise for which money, proceeds or services have been received from a Finance Party with such Restricted Persons. After having been notified by a Finance Party and based on respective sanctions being imposed by above mentioned regulative bodies, each Group Company hereby accepts any such additional countries to be included in the list of Restricted Countries.

 

24        Sinosure Vessels covenants

 

24.1     The Company shall use its best endeavours to initiate a sale process in respect of each of the Sinosure Vessels by March 31 2011 in the event that prior to that date, financing has not been entered into (on a committed basis and where the conditions precedent to a drawdown thereunder have been satisfied save for those that can only be satisfied by delivery of the relevant Sinosure Vessels) in an amount which is at least US$203,400,000 and which can be used to fund the remaining instalments due on such vessels under either:

 

(a)        the Sinosure Backed Facility (which shall be on terms which are no more favourable to the lenders under such facility, including as to guarantees and Security, than the terms set out in Schedule 17); or

 

(b)        the Sinosure Vessels Alternative Financing, which shall be on terms which:

 

(i)         shall be no less favourable to the Participating Lenders in respect of net receipts from such vessels becoming available to the Participating Lenders than those presently offered under the Sinosure Backed Facility in respect of the period until 31 December 2018; and

 

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(ii)        do not contain covenants, undertakings or default provisions or otherwise grant more favourable provisions or treatment to any financier than those set out for the Sinosure Backed Facility.

 

24.2     Upon the occurrence of a sale of the Sinosure Vessels which does not breach clause 25.30 (Sinosure Event of Default) either (a), (b) or (c) below shall apply to each Facility Agreement, as appropriate:

 

(a)        undrawn Commitments under each New Money Facility Agreement under which  no amounts have been drawn down shall be reduced by an amount which is equal to the first $81,000,000 of net sale proceeds, together with all net sale proceeds in excess of $101,000,000 (such aggregate amount being the Net Sale Proceeds) multiplied by such undrawn Commitments under that New Money Facility Agreement divided by Total Commitments; (the Cancelled Commitments);

 

(b)        total drawn Commitments under each Facility Agreement under which  no further amounts are available to be drawn down shall be prepaid by an amount which is equal to the Net Sale Proceeds multiplied by such drawn Commitments under that Facility Agreement divided by Total Commitments; or

 

(c)        total drawn Commitments under each Facility Agreement under which some amounts have been drawn down and some amounts remain available to be drawn down shall be prepaid by an amount which is equal to the Net Sale Proceeds multiplied by all such Commitments (drawn and undrawn) under that Facility Agreement divided by Total Commitments and where the prepayment amount exceeds the drawn Commitments, undrawn Commitments under each Facility Agreement shall be reduced by an amount which is equal to such excess (the Other Cancelled Commitments), and

 

the Company undertakes that the Net Sale Proceeds which result in Cancelled Commitments or Other Cancelled Commitments and which otherwise would have been applied in prepayment in accordance with clause 25.30 shall be paid by the Company into a separate designated account pending application towards instalments which the Cancelled Commitments or Other Cancelled Commitments were scheduled to finance.

 

24.3     The Company shall provide monthly updates on the progress of discussions as to the entry into the Sinosure Backed Facility, together with updates on the discussions as to alternative funding for the Sinosure Vessels and/or the marketing and sale plans relating to the Sinosure Vessels, with such updates, following 31 March 2011, to occur on at least a fortnightly basis.

 

24.4     The Company covenants that it will not request nor will it be entitled to a drawdown under the New Money Facility Agreements (save for the New RBS Facility, New HSH Facility and ABN AMRO Club Facility) unless and until there has occurred either:

 

(a)        the entry into of the Sinosure Backed Facility and satisfaction of the conditions precedent to first drawing thereunder; or

 

(b)        the entry into of the Sinosure Vessels Alternative Financing and satisfaction of the conditions precedent to first drawing thereunder ; or

 

(c)        a sale of the Sinosure Vessels which does not breach clause 25.30 (Sinosure Event of Default) .

 

There shall be no entitlement to drawdown under the New Money Facility Agreements to finance (in whole or in part) any pre-delivery financing unless and until one of the events described in sub-paragraphs (a) to (c) of this clause 24.4 has occurred.

 

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SECTION 7 - EVENTS OF DEFAULT AND ENFORCEMENT

 

25        Events of Default

 

25.1     Each of the events or circumstances set out in this clause 25 is an Event of Default.

 

Non-payment

 

25.2     A Group Company does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless:

 

(a)        its failure to pay is caused by:

 

(i)         administrative or technical error; or

 

(ii)        a Disruption Event; and

 

(b)        payment is made within 3 Business Days of its due date.

 

Financial covenants and other obligations

 

25.3     Any requirement of clauses 16 (Cash Management), clause 24 (Sinosure Vessel Covenants), clause 20 (Financial covenants)  and any requirement to provide Cash Cover in accordance with this Agreement is not satisfied or a Group Company does not comply with any of the provisions of clause 22 (Information undertakings).

 

25.4     A Group Company does not comply with any provision of any Security Document or any provision of a Finance Document for which there is no remedy period in that Finance Document.

 

Other obligations

 

25.5     A Group Company does not comply with any provision of the Finance Documents (other than those referred to in clause 25.2 (Non-payment) and clauses 25.3 and 25.4 (Financial covenants and other obligations)).

 

25.6     No Event of Default under clause 25.5 above will occur if the failure to comply is capable of remedy and is remedied within 10 Business Days of the earlier of (i) the Intercreditor Agent or a Relevant Finance Party giving notice to the Company or relevant Group Company and (ii) the Company or a Group Company becoming aware of the failure to comply.

 

Misrepresentation

 

25.7     Any representation or statement made or deemed to be made by a Group Company in the Finance Documents or any other document delivered by or on behalf of any Group Company under or in connection with any Finance Document is or proves to have been incorrect or misleading when made or deemed to be made.

 

Cross default

 

25.8     Any Financial Indebtedness of any Group Company is not paid when due nor within any originally applicable grace period.

 

25.9     Any Financial Indebtedness of any Group Company is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

 

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25.10   Any commitment for any Financial Indebtedness of any Group Company is cancelled or suspended by a creditor of any Group Company as a result of an event of default (however described).

 

25.11   Any creditor of any Group Company becomes entitled to declare any Financial Indebtedness of any Group Company due and payable prior to its specified maturity as a result of an event of default (however described).

 

25.12   No Event of Default will occur under clauses 25.8 to 25.11 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within clauses 25.8 to 25.11 above is less than US$5,000,000 (or its equivalent in any other currency or currencies).

 

Insolvency

 

25.13   A Group Company is unable or admits inability to pay its debts as they fall due or is deemed to or declared to be unable to pay its debts under applicable law or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (except the Participating Lenders) with a view to rescheduling any of its indebtedness.

 

25.14   Unless otherwise disclosed in writing to all Participating Lenders prior to the date of this Agreement, the value of the assets of any Group Company is less than its liabilities (taking into account contingent and prospective liabilities).

 

25.15   A moratorium is imposed by law or declared in respect of any indebtedness of any Group Company.  If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.

 

Insolvency proceedings

 

25.16   Any corporate action, legal proceedings or other procedure or step is taken in relation to:

 

(a)        the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any Group Company;

 

(b)        a composition, compromise, assignment or arrangement with any creditor of any Group Company;

 

(c)        the appointment of a liquidator, receiver, administrator, administrative receiver, compulsory manager or other similar officer in respect of any Group Company or any of its assets; or

 

(d)        enforcement of any Security (other than a Permitted Lien) over any assets of any Group Company,

 

or any analogous procedure or step is taken in any jurisdiction (including any conciliation or reorganisation process is entered into pursuant to the Greek Bankruptcy Code (Law 3588/2007) or any order is made under the United Stated Bankruptcy Code).

 

25.17   Clause 25.16 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 14 days of commencement. Clause 25.16(b) shall not apply to any action expressly permitted or contemplated by this Agreement.

 

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Creditors’ process

 

25.18   Any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of a Group Company having an aggregate value of US$5,000,000 or more and is not discharged within 14 days.

 

Unlawfulness and invalidity

 

25.19   It is or becomes unlawful for a Group Company to perform any of its obligations under the Finance Documents or any Security under any Security Documents ceases to be effective or any subordination created under this Agreement is or becomes unlawful.

 

25.20   Any obligation or obligations of any Group Company under any Finance Documents are not (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the Majority Participating Lenders under the Finance Documents.

 

25.21   Any Finance Document ceases to be in full force and effect or any Security under the Shared Security Documents and/or New Security Documents or any subordination created under any Transaction Document ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.

 

Cessation of business

 

25.22   Any Group Company suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of its business other than following a sale or Total Loss of the Vessel in accordance with the terms of the Facility Agreement pursuant to which financing was provided in relation to that Vessel.

 

Change of Control

 

25.23   A Change of Control occurs.

 

Audit qualification

 

25.24   The Auditors of the Group qualify, in the opinion of the Majority Participating Lenders, materially the audited annual consolidated financial statements of the Company for the financial years ending 31 December 2010 and thereafter unless previously disclosed and accepted by the Majority Participating Lenders prior to the relevant audited accounts being signed off by the Auditors.

 

Repudiation and rescission of agreements

 

25.25   A Group Company (or any other relevant party) rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or any of the Security under the Shared Security Documents or evidences an intention to rescind or repudiate a Finance Document or any Security under the Shared Security Documents.

 

25.26   Any party to the Sinosure Facility Agreement or Vendor Finance Documents rescinds or purports to rescind or repudiates or purports to repudiate any of those agreements or instruments in whole or in part where to do so has or is, in the reasonable opinion of the Majority Participating Lenders, likely to have a material adverse effect on the interests of the Participating Lenders under the Finance Documents.

 

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Litigation

 

25.27   Any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Transaction Documents or the transactions contemplated in the Transaction Documents or against any Group Company or its assets which has or is reasonably likely to have a Material Adverse Effect.

 

Material adverse change

 

25.28   Any event or circumstance occurs which the Majority Participating Lenders reasonably believe has or is reasonably likely to have a Material Adverse Effect.

 

Breach of a charter

 

25.29   There is a breach by any Charterer (as defined in any Existing Finance Document) of any Charter or Charterparty (as defined in any Existing Finance Document), which is a time charter or other contract of employment, which has not been remedied either by the curing of such breach by the Charterer or by a replacement charter or other contract of employment on substantially the same terms as the relevant charter or other contract of employment being entered into, in each case, on terms satisfactory to the Majority Participating Lenders within 60 days of the breach arising.

 

Sinosure

 

25.30   There shall be an immediate Event of Default if:

 

(a)        the Sinosure Vessels are not sold or financed (on a committed basis and where the conditions precedent to a drawing thereunder have been satisfied save for those that can only be satisfied by delivery of the relevant Sinosure Vessels) by either the Sinosure Backed Facility or the Sinosure Vessels Alternative Financing; or

 

(b)        in the case of a sale of such Sinosure Vessels, the net sale proceeds received are not at least US$101,000,000; or

 

(c)        the Participating Lenders do not receive prepayment of Facilities or cancellation of undrawn Commitments under the New Money Facility Agreements in accordance with 24.2 (Sinosure Vessel covenants) equal in aggregate to the total net sale proceeds less US$20,000,000 and such prepayments and/or cancellation of Commitments are not, in aggregate, at least US$81,000,000,

 

in each case on or before 26 June 2011.

 

26        Consequences of an Event of Default

 

Event of Default under this Agreement

 

26.1     On and at any time after the occurrence of an Event of Default which is continuing:

 

(a)        the Intercreditor Agent may, and shall if so directed by the Majority Participating Lenders, by notice to the Company:

 

(i)         exercise or direct each Relevant Security Trustee, Finance Party or any other holder or beneficiary of Security under a Shared Security Document to exercise any or all of its rights, remedies, powers or discretions under this Agreement and/or the Shared Security Documents; and/or

 

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(ii)        exercise or direct each Relevant Security Trustee, Finance Party or any other holder or beneficiary of Security under a Shared Security Document to exercise any or all of its rights, remedies, powers or discretions under the Shared Security Documents;

 

(b)        a Finance Document Event of Default shall be deemed to have occurred under each Facility Agreement and other relevant Finance Document and the term Event of Default in each Facility Agreement shall be construed accordingly; and

 

(c)        subject to clause 26.2 to clause 26.6 (Finance Document Event of Default (other than a Restructuring Document)), a Relevant Facility Agent, a Relevant Security Trustee, any other Further Finance Party and/or any other Finance Party may take such action under the Finance Documents to which they are a party as is permitted or contemplated under such Finance Document as a consequence of a Finance Document Event of Default.

 

Finance Document Event of Default

 

26.2     On and at any time after the occurrence of a Finance Document Event of Default which is continuing provided, subject to clause 26.5, the Enforcement Standstill Period in relation to that Finance Document Event of Default has elapsed:

 

(a)        a Finance Document Event of Default shall be deemed to have occurred under each Facility Agreement and other relevant Finance Document;

 

(b)        a Relevant Security Trustee, any other Further Finance Party and/or any other Finance Party may:

 

(i)         take such action (including as to the blocking of accounts) or Enforcement Action under the Finance Documents to which they are a party as is permitted or contemplated under such Finance Document as a consequence of a Finance Document Event of Default;

 

(ii)        take Enforcement Action unless that Finance Party is prohibited from taking such Enforcement Action under a Finance Document to which it is a party; and

 

(iii)       exercise any right of Close Out Netting by a Hedge Counterparty.

 

26.3     For the purposes of this clause 26:

 

Enforcement Standstill Period means, in relation to any Finance Document Event of Default, a period of 15 days from the date on which that Event of Default or Finance Document Event of Default occurred.

 

Payment Default means, irrespective of any carve out for a technical/administrative error or Disruption Event, the Company or any other Group Company fails to make any scheduled payment of interest, principal or swap payments or to pay any other amounts when due under a Finance Document or to provide Cash Cover when required.

 

Recoveries under Finance Documents which are not Restructuring Documents

 

26.4     Any enforcement recoveries under a guarantee or Security under a Finance Document (including pursuant to a Security Document relating to an Applicable Second Lien Vessel (including its earnings, owners and lessees)) which is not a Restructuring Document or expressed in this Agreement or another Restructuring Document to be in favour of all Finance Parties shall be applied in accordance with that Finance Document and no provision in a Restructuring Document shall oblige a Finance Party

 

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to share any such recoveries with any Finance Party which is not a party to that Finance Document.

 

Enforcement Standstill Period

 

26.5     The proviso under clause 26.2 that the Enforcement Standstill Period should have elapsed prior to taking the action specified in clause 26.2(a) or clause 26.2(b) shall not apply if:

 

(a)        the Majority Participating Lenders agree that the Enforcement Standstill Period should not apply or agree that Enforcement Action should be taken prior to the expiry of the relevant Enforcement Standstill Period;

 

(b)        a person that is not a Finance Party has taken any Enforcement Action; or

 

(c)        an Insolvency Event is commenced or arises (other than cashflow insolvency arising as a consequence of a Payment Default) (an Insolvency Default).

 

26.6     During the Enforcement Standstill Period or whilst a Default or Finance Document Default is continuing, each Participating Lender or Finance Party, as the case may be:

 

(a)        shall be entitled to refuse to fund a drawdown under the Facility Agreement(s) to which it is a party:

 

(i)         if the relevant Facility Agreement so provides and Payment Default or Insolvency Default has occurred and is continuing; or

 

(ii)        if a breach of clause 20 (Financial covenants) has occurred and is continuing and has not been waived by the Majority Participating Lenders,

 

(iii)       there occurs a breach by any Charterer (as defined in any New Money Facility Agreement) of a Charter (as defined in any New Money Facility Agreement) in relation to a Joint Security Vessel which would entitle the relevant Owner (as defined in any New Money Facility Agreement) to terminate the Charter, or any Charterer is subject to any of the proceedings described in clause 25.16.

 

PROVIDED THAT no Participating Lender shall be entitled to refuse to fund a drawdown under a Facility Agreement during the Enforcement Standstill Period for any other reason; and

 

(b)        may, subject to the terms of the relevant Finance Document, block any account subject to Security under the Finance Documents to which it is a party of a Group Company up to a maximum of the amounts then due and payable to that Finance Party or the Finance Parties under the Facility Agreement to which that Finance Document relates PROVIDED THAT this shall not entitle the Finance Party to block any amounts that would be payable:

 

(A)       by or to the Company for payment to another Participating Lender or for payment to a Hedge Counterparty; or

 

(B)       any operating expenses and general administrative expenses relative to the Vessels secured by that Facility Agreement which are reasonable and which needed to be discharged during the Enforcement Standstill Period in order to enable the continued operation of those Vessels and in circumstances where the Company has provided to that Finance Party reasonable evidence as to the payments that needed to be made,

 

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PROVIDED FURTHER that although the blocking of such accounts is restricted by this clause and modified by clause 5.3(j) it is acknowledged that the ability to block accounts will be governed by, and decided by reference to, the relevant Facility Agreement and related Finance Documents by the parties to those documents.

 

27        Application of proceeds of Shared Security Document

 

Order of application

 

27.1     Subject to clause 27.4 (Prospective Liabilities), all amounts from time to time received or recovered by the Intercreditor Agent pursuant to the terms of any Shared Security Document or in connection with the realisation or enforcement of all or any part of the Security under a Shared Security Document (for the purposes of this clause 27, the Recoveries) shall be held by the Intercreditor Agent on trust to apply them at any time to the extent permitted by applicable law (and subject to the provisions of this clause 27 (Application of Proceeds of Shared Security Document)), in the following order of priority:

 

(a)        in discharging any sums owing to the Intercreditor Agent, any Receiver or any Delegate;

 

(b)        in payment of all costs and expenses incurred by any Intercreditor Agent or any other Finance Party in connection with any realisation or enforcement of the Security under the Shared Security Documents taken in accordance with the terms of this Agreement or any action taken at the request of the Intercreditor Agent under clause 29.5 (Group Company’s actions);

 

(c)        subject to clause 27.2, in payment to the Finance Parties  for application towards the discharge of Liabilities under the Facility Agreements or related Finance Documents in the manner and in the order contemplated by the relevant Finance Document and which are certified by them as due;

 

(d)        PROVIDED THAT no Default is continuing, the balance, if any, in payment to the relevant Group Company.

 

27.2     Subject to clause 27.3, all sums to be applied pursuant to clause 27.1(c) will be allocated by the Relevant Finance Parties by reference to the proportion that the Liabilities owed to a Finance Party bears to the Liabilities owed to all Finance Parties at that time.

 

27.3     In relation to clause 27.12 (Shared Security in relation to the Intra-Group Liabilities), the relevant Finance Parties referred to in that clause shall rank ahead of the other Finance Parties.

 

Prospective Liabilities

 

27.4     The Intercreditor Agent may, in its discretion, hold any amount of the Recoveries in an interest bearing suspense or impersonal account(s) in the name of the Intercreditor Agent with such financial institution (including itself) and for so long as the Intercreditor Agent shall think fit (the interest being credited to the relevant account) for later application under clause 27.1 (Order of application) in respect of any sum to any Intercreditor Agent, any Receiver or any Delegate that the Intercreditor Agent reasonably considers, in each case, might become due or owing at any time in the future including in circumstances where there is a continuing Default.

 

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Investment of proceeds

 

27.5     Prior to the application of the proceeds of the enforcement of Shared Security Documents in accordance with clause 27.1 (Order of application) the Intercreditor Agent may, in its discretion, hold all or part of those proceeds in an interest bearing suspense or impersonal account(s) in the name of the Intercreditor Agent with such financial institution (including itself) and for so long as the Intercreditor Agent shall think fit (the interest being credited to the relevant account) pending the application from time to time of those monies in the Intercreditor Agent’s discretion in accordance with the provisions of this clause 27.

 

Currency conversion

 

27.6     For the purpose of, or pending, the discharge of, any of the Liabilities and all other present and future obligations at any time due, owing or incurred by any Group Company under the Finance Documents (both actual and contingent and whether incurred solely or jointly and as principal or surety or in any other capacity),  the Intercreditor Agent may convert any moneys received or recovered by the Intercreditor Agent from one currency to another, at the Intercreditor Agent’s spot rate of exchange in the London foreign exchange market at or about 11:00 am (London time) on a particular day.

 

27.7     The obligations of any Group Company to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting the costs of conversion.

 

Permitted deductions

 

27.8     The Intercreditor Agent shall be entitled, in its discretion, (a) to set aside by way of reserve amounts required to meet and (b) to make and pay, any deductions and withholdings (on account of taxes or otherwise) which it is or may be required by any applicable law to make from any distribution or payment made by it under this Agreement, and to pay all Taxes which may be assessed against it in respect of any of the property and assets secured by the Shared Security Documents, or as a consequence of performing its duties, or by virtue of its capacity as Intercreditor Agent under any of the Restructuring Documents or otherwise (other than in connection with its remuneration for performing its duties under this Agreement).

 

Good discharge

 

27.9     Any payment to be made in respect of the proceeds of enforcement of the Shared Security Documents by the Intercreditor Agent:

 

(a)        may be made to the Relevant Facility Agents on behalf of the Finance Parties under the Facility Agreements (or related Finance Document) pursuant to which a Relevant Facility Agent has been appointed or in the case of the Credit Suisse Facility Agreement (as defined in Schedule 3) and the Emporiki Facility Agreement (as defined in Schedule 3), directly to the relevant Participating Lender;

 

(b)        shall be made directly to the Hedge Counterparties (other than Hedge Counterparties which are entitled to payments under a Facility Agreement or Finance Document relating to that Facility Agreement),

 

and any payment made in that way shall be a good discharge, to the extent of that payment, by the Intercreditor Agent.

 

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Calculation of amounts

 

27.10   For the purpose of calculating any person’s share of any sum payable to or by the Intercreditor Agent, the Intercreditor Agent shall be entitled to:

 

(a)        notionally convert the Liabilities owed to any person into a common base currency (decided in its discretion by the Intercreditor Agent), that notional conversion to be made at the spot rate at which the Intercreditor Agent is able to purchase the notional base currency with the actual currency of the Liabilities owed to that person at the time at which that calculation is to be made; and

 

(b)        assume that all moneys received or recovered as a result of the enforcement or realisation of the assets and  property under the Shared Security Documents are applied in discharge of the Liabilities in accordance with the terms of the Finance Documents under which those Liabilities have arisen.

 

Shared Security in relation to Intra-Group Liabilities

 

27.11   If a Finance Party or Finance Parties is enforcing Security over shares in a Group Company (the Relevant Group Company), the Relevant Security Trustee which is taking such Enforcement Action shall be entitled to give a direction to the Intercreditor Agent to enforce, (in such manner as directed by the Relevant Security Trustee) the Security over Intra-Group Liabilities as between the Company and the Relevant Group Company or release such Intra-Group Liabilities.

 

27.12   The Intra-Group Liabilities owed by a Group Company to the Company or vice versa  pursuant to the up or down streaming of funds whereby financing has been provided for the construction and/or acquisition of the Vessel(s) owned by the relevant Group Company, and the Shared Security Documents which secure such Intra-Group Liabilities grant security for amounts owing to the Finance Parties under the Finance Documents pursuant to which such financing has been provided in priority, up to the amount of such upstream or down stream funds, to any other Finance Party and the provisions of clause 27.1 to clause 27.3 (Order of application) shall apply.

 

27.13   Intra-Group Liabilities owed by the Company to a Group Company or a Group Company (other than the Company) to another Group Company (including the Company) shall be secured (other than those Group Companies that are a party to the Additional Second Lien Intercreditor Agreements) for the benefit of all Finance Parties.

 

All enforcement action through the Intercreditor Agent

 

27.14   Without the prior written consent of the Intercreditor Agent, none of the other Finance Parties shall have any independent power to enforce any of the Shared Security Documents, in respect of which the Intercreditor Agent acts as security trustee or agent, or to exercise any rights, discretions or powers or to grant any consents or releases under or pursuant to any such Shared Security Documents or otherwise have direct recourse to the Security and/or guarantees constituted by any of such Shared Security Documents except through the Intercreditor Agent.  The Intercreditor Agent shall not be liable for any direct actions taken by any of the other Finance Parties.

 

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SECTION 8 - INTRA-GROUP LIABILITIES

 

28        Intra-Group Lenders and Intra-Group Liabilities

 

Payments:  Intra-Group Liabilities

 

28.1     Subject to clause 28.2 below, the Group Companies may make Payments in respect of the Intra-Group Liabilities (whether of principal, interest or otherwise) from time to time when due.

 

28.2     Payments in respect of the Intra-Group Liabilities may not be made pursuant to clause 28.1 above if, at the time of the Payment:

 

(a)        an Event of Default has occurred and is continuing; or

 

(b)        a Finance Document Event of Default would occur under any of the Finance Documents,

 

unless that Payment is made by a Group Company to the Company to facilitate Payment of the Liabilities under the Finance Documents.

 

Payment obligations continue

 

28.3     No Group Company shall be released from the liability to make any Payment (including of default interest, which shall continue to accrue) under any Finance Document by the operation of clause 28.1 or 28.2 (Payments: Intra-Group Liabilities) even if its obligation to make that Payment is restricted at any time by the terms of any of those clauses.

 

Security:  Intra-Group Lenders

 

28.4     Prior to the Final Discharge Date, the Intra-Group Lenders may not take, accept or receive the benefit of any Security, guarantee, indemnity or other assurance against loss in respect of the Intra-Group Liabilities unless:

 

(a)        that Security, guarantee, indemnity or other assurance against loss is expressly permitted under the terms of this Agreement; or

 

(b)        the prior consent of the Majority Participating Lenders is obtained.

 

Restriction on enforcement:  Intra-Group Lenders

 

28.5     Subject to clause 28.6 (Permitted enforcement: Intra-Group Lenders), none of the Intra-Group Lenders shall be entitled to take any Enforcement Action in respect of any of the Intra-Group Liabilities at any time prior to the Final Discharge Date.

 

Permitted enforcement:  Intra-Group Lenders

 

28.6     After the occurrence of an Insolvency Event in relation to any Group Company, each Intra-Group Lender may (unless otherwise directed by the Intercreditor Agent or unless the Intercreditor Agent has taken, or has given notice that it intends to take, action on behalf of that Intra-Group Lender in accordance with clause 29.4 (Filing of claims)), exercise any right it may otherwise have against that Group Company to:

 

(a)        accelerate any of that Group Company’s Intra-Group Liabilities or declare them prematurely due and payable or payable on demand;

 

(b)        make a demand under any guarantee, indemnity or other assurance against loss given by that Group Company in respect of any Intra-Group Liabilities;

 

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(c)        exercise any right of set-off or take or receive any Payment in respect of any Intra-Group Liabilities of that Group Company; or

 

(d)        claim and prove in the liquidation of that Group Company for the Intra-Group Liabilities owing to it.

 

29        Effect of Insolvency Event

 

Payment of distributions

 

29.1     After the occurrence of an Insolvency Event in relation to any Group Company, any Group Company entitled to receive a distribution out of the assets of that Group Company in respect of Intra-Group Liabilities owed to that Group Company shall, to the extent it is able to do so, direct the person responsible for the distribution of the assets of that Group Company to pay that distribution to the Intercreditor Agent until the Liabilities owing to the Finance Parties have been paid in full.

 

29.2     The Intercreditor Agent shall apply distributions paid to it under clause 29.1 above in accordance with clauses 27.1, 27.2 and 27.3 (Application of proceeds of Shared Security Document).

 

Non-cash distributions

 

29.3     If the Intercreditor Agent or any other Finance Party receives a distribution in a form other than in cash in respect of any of the Intra-Group Liabilities, the Intra-Group Liabilities will not be reduced by that distribution until and except to the extent that the realisation proceeds are actually applied towards the Intra-Group Liabilities.

 

Filing of claims

 

29.4     After the occurrence of an Insolvency Event in relation to any Group Company (the Insolvent Group Company), each Group Company irrevocably authorises the Intercreditor Agent (acting in accordance with clause 29.6 (Intercreditor Agent instructions)), on its behalf, to:

 

(a)        take any Enforcement Action (in accordance with the terms of this Agreement) against that Insolvent Group Company;

 

(b)        demand, sue, prove and give receipt for any or all of that Insolvent Group Company’s Intra-Group Liabilities;

 

(c)        collect and receive all distributions on, or on account of, any or all of that Insolvent Group Company’s Intra-Group Liabilities; and

 

(d)        file claims, take proceedings and do all other things the Intercreditor Agent considers reasonably necessary to recover that Insolvent Group Company’s Intra-Group Liabilities.

 

Group Company’s actions

 

29.5     Each Group Company will:

 

(a)        do all things that the Intercreditor Agent (acting in accordance with clause 29.6 (Intercreditor Agent instructions)) requests in order to give effect to this clause 29; and

 

(b)        if the Intercreditor Agent is not entitled to take any of the actions contemplated by this clause 29 or if the Intercreditor Agent (acting in accordance with clause 29.6 (Intercreditor Agent instructions)) requests that a Group Company take that

 

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action, undertake that action itself in accordance with the instructions of the Intercreditor Agent (acting in accordance with clause 29.6  (Intercreditor Agent Instructions)) or grant a power of attorney to the Intercreditor Agent (on such terms as the Intercreditor Agent, acting in accordance with clause 29.6  (Intercreditor Agent instructions), may reasonably require) to enable the Intercreditor Agent to take such action.

 

Intercreditor Agent instructions

 

29.6     For the purposes of clause 29.4 (Filing of claims) and clause 29.5 (Group Company’s actions) the Intercreditor Agent shall act on the instructions of the Majority Participating Lenders.

 

30        Turnover of receipts

 

Turnover by Group Companies

 

30.1     If at any time prior to the Final Discharge Date, any Group Company receives or recovers:

 

(a)        any Payment or distribution of, or on account of or in relation to, any of the Liabilities which is not either:

 

(i)         a Payment which is permitted under this Agreement; or

 

(ii)        made in accordance with clause 27 (Application of proceeds of Shared Security Documents);

 

(b)        any amount:

 

(i)         on account of, or in relation to, any of the Liabilities:

 

(A)       after the occurrence of an Event of Default or a Finance Document Event of Default; or

 

(B)       as a result of any other litigation or proceedings against a Group Company (other than after the occurrence of an Insolvency Event in respect of that Group Company); or

 

(c)        any distribution in cash or in kind or Payment of, or on account of or in relation to, any of the Liabilities owed by any Group Company which is not in accordance with clause 27 (Application of proceeds of Shared Security Documents) and which is made as a result of, or after, the occurrence of an Insolvency Event in respect of that Group Company,

 

that Group Company will in relation to receipts and recoveries hold such amount on trust for the Intercreditor Agent for application in accordance with the terms of this Agreement and shall promptly pay such amount to the Intercreditor Agent for application in accordance with the terms of this Agreement .

 

Saving provision

 

30.2     If, for any reason, the trust expressed to be created in this clause 30 (Turnover of Receipts) should fail or be unenforceable, the affected Group Company will promptly pay an amount equal to that receipt or recovery to the Intercreditor Agent to be held on trust by the Intercreditor Agent for application in accordance with the terms of this Agreement.

 

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Deferral of subrogation

 

30.3     No Group Company will exercise any rights which it may have to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights under the Finance Documents of any Group Company until such time as all of the Liabilities owing to each Finance Party have been irrevocably paid in full.

 

31        Intra-Group Lenders:  power of attorney

 

31.1     Each Intra-Group Lender and Group Company by way of security for its obligations under this Agreement irrevocably appoints the Intercreditor Agent to be its attorney to do anything which that Intra-Group Lender or Group Company has authorised the Intercreditor Agent or any other Party to do under this Agreement or is itself required to do under this Agreement but has failed to do (and the Intercreditor Agent may delegate that power on such terms as it sees fit).

 

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SECTION 9 - CHANGES TO PARTIES

 

32        Changes to the Parties

 

Assignments and transfers

 

32.1     No Party may assign any of its rights and benefits or transfer any of its rights, benefits and obligations in respect of any Finance Documents or the Liabilities except as permitted by this clause.

 

Change of Participating Lenders

 

32.2     A Participating Lender may assign any of its rights and benefits or transfer by novation any of its rights, benefits and obligations in respect of any Finance Documents or the Liabilities if:

 

(a)        that assignment or transfer is in accordance with the terms of the Facility Agreement to which it is a party;

 

(b)        any assignee or transferee has (if not already party to this Agreement as a Participating Lender) acceded to this Agreement, as a Participating Lender, pursuant to clause 32.7 (Finance Party Accession Deed); and

 

(c)        any assignee or transferee has (if not already party to this Agreement as a Participating Lender) if not already a party to it as a Participating Lender, acceded to the trust and agency deed relevant to that Facility Agreement.

 

Addition of or Change of Hedge Counterparty

 

32.3     A Hedge Counterparty may (in accordance with the terms of the relevant Hedging Agreement and subject to any consent required under that Hedging Agreement) transfer any of its rights and benefits or obligations in respect of the Hedging Agreements to which it is a party if any transferee has (if not already party to this Agreement as a Hedge Counterparty) acceded to this Agreement as a Hedge Counterparty pursuant to clause 32.7 (Finance Party Accession Deed).

 

32.4     The Company shall ensure that neither it nor any Group Company enters into a Hedging Agreement unless and until the proposed Hedge Counterparty has acceded to this Agreement as a Hedge Counterparty pursuant to clause 32.7 (Finance Party Accession Deed) PROVIDED THAT the Company may enter into a Hedging Agreement subject to the provisions of clause 23.29 (Treasury Transactions) without the hedging counterparty having first acceded to this Agreement but under no circumstance shall such hedging counterparty be entitled to share in or receive any Security in respect of any of the liabilities arising in relation to those hedging arrangements nor shall such liabilities be treated as Hedging Liabilities unless and until the person accedes to this Agreement.

 

Change of Agent or Security Trustee

 

32.5     No person shall become a Relevant Facility Agent, a Relevant Security Trustee or a Further Finance Party unless at the same time, it accedes to this Agreement as a Relevant Facility Agent, a Relevant Security Trustee or a Further Finance Party, as the case may be, pursuant to clause 32.7 (Finance Party Accession Deed).

 

Qualifying Refinancing

 

32.6     If any Qualifying Refinancing Lender provides a Qualifying Refinancing to any Group Company, the Company will procure that the person giving that loan, granting that credit or making that other financial arrangement (if not already party to this Agreement

 

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as a Participating Lender) accedes to this Agreement, as a Participating Lender pursuant to clause 32.7 (Finance Party Accession Deed).

 

Finance Party Accession Deed

 

32.7     With effect from the date of acceptance by the Intercreditor Agent of a duly executed Finance Party Accession Deed delivered to the Intercreditor Agent by the relevant acceding party or, if later, the date specified in that Finance Party Accession Deed:

 

(a)        any Party ceasing entirely to be a Participating Lender, a Hedge Counterparty, a Relevant Facility Agent, a Relevant Security Trustee or a Further Finance Party shall be discharged from further obligations towards the Intercreditor Agent and other Parties under this Agreement and their respective rights against one another shall be cancelled (except in each case for those rights which arose prior to that date); and

 

(b)        as from that date, the replacement or new Participating Lender, a Hedge Counterparty, a Relevant Facility Agent, a Relevant Security Trustee or a Further Finance Party shall assume the same obligations and become entitled to the same rights, as if it had been an original Party to this Agreement in that capacity.

 

Finance Party Accession Deed

 

32.8     The Intercreditor Agent shall, as soon as reasonably practicable after it has accepted a duly executed Finance Party Accession Deed delivered in accordance with clause 32.7 above, send to the Company a copy of that Finance Party Accession Deed.

 

Assignment and transfers by Group Companies

 

32.9     No Group Company may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

 

Additional Group Company

 

32.10   Promptly, and in any event within 10 Business Days of incorporation, establishment or acquisition of a Group Company that is not already a party to this Agreement and is not a Dormant Subsidiary, the Group Companies that are a party to this Agreement will procure that that Group Company accedes to this Agreement as a Group Company in accordance with clause 32.11.

 

32.11   With effect from the date of acceptance by the Intercreditor Agent of a Group Company Accession Deed duly executed and delivered to the Intercreditor Agent by the Additional Group Company and the Intercreditor Agent acting on the instructions of the Majority Participating Lenders notifying the other Finance Parties that it has received all of the documents and evidence as set out in Part 2 of Schedule 5 or, if later, the date specified in the Group Company Accession Deed, the Additional Group Company shall assume the same obligations and become entitled to the same rights as if it had been an original Party to this Agreement as an Original Group Company.

 

Additional Parties

 

32.12   Each of the Parties appoints the Intercreditor Agent to receive on its behalf each Group Company Accession Deed and each Finance Party Accession Deed delivered to the Intercreditor Agent and the Intercreditor Agent shall, as soon as reasonably practicable after receipt by it, sign and accept the same if it appears on its face to have been completed, executed and, where applicable, delivered in the form contemplated by this Agreement.

 

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Security over Participating Lenders’ rights

 

32.13   Each Participating Lender may without consulting with or obtaining consent from any Group Company, at any time charge, assign or otherwise create Security 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 Participating Lender including, without limitation:

 

(a)        any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

 

(b)        in the case of any Participating Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Participating Lender as security for those obligations or securities,

 

except that no such charge, assignment or Security shall:

 

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

 

(ii)        require any payments to be made by a Group Company (including, without limitation, Increased Costs) or grant to any person any more extensive rights than those required to be made or granted to the relevant Participating Lender under the Finance Documents.

 

Costs resulting from change of Lender

 

32.14   If:

 

(a)               a Participating Lender assigns or transfers any of its rights and obligations under the Finance Documents; and

 

(b)               as a result of circumstances existing at the date the assignment or transfer occurs a Group Company would be obliged to pay any Increased Costs,

 

then the Group Company need only pay that Increased Cost to the same extent that it would have been obliged to if no assignment or transfer had occurred.

 

33        Change of Intercreditor Agent and Delegation

 

Resignation of the Intercreditor Agent

 

33.1     The Intercreditor Agent may resign and appoint one of its Affiliates as successor by giving notice to the Company and the Relevant Finance Parties.

 

33.2     Alternatively the Intercreditor Agent may resign by giving notice to the other Parties in which case the Majority Participating Lenders may appoint a successor Intercreditor Agent.

 

33.3     If the Majority Participating Lenders have not appointed a successor Intercreditor Agent in accordance with clause 33.2 above within 30 days after the notice of resignation was given, the Intercreditor Agent (after consultation with the Relevant Finance Parties) may appoint a successor Intercreditor Agent.

 

33.4     The retiring Intercreditor Agent (the Retiring Intercreditor Agent) shall, at the Company’s cost, make available to the successor Intercreditor Agent such documents and records and provide such assistance as the successor Intercreditor Agent may

 

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reasonably request for the purposes of performing its functions as Intercreditor Agent under the Restructuring Documents.

 

33.5     The Intercreditor Agent’s resignation notice shall only take effect upon (i) the appointment of a successor and (ii) the transfer of all of the Security under the Shared Security Documents to that successor.

 

33.6     Upon the appointment of a successor, the Retiring Intercreditor Agent shall be discharged from any further obligation in respect of the Restructuring Documents (other than its obligations under clause 33.4 above) but shall, in respect of any act or omission by it whilst it was the Intercreditor Agent, remain entitled to the benefit of paragraph 2 of Schedule 9 (The Intercreditor Agent), clauses 13.5 to 13.7 (Indemnity to the Intercreditor Agent) and paragraph 1.29 of Schedule 9 (Participating Lenders’ indemnity to the Intercreditor Agent).  Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if that successor had been an original Party.

 

33.7     The Majority Participating Lenders may, by notice to the Intercreditor Agent, require it to resign in accordance with clause 33.2 above.  In this event, the Intercreditor Agent shall resign in accordance with clause 33.2 above but the cost referred to in clause 33.4 above shall be for the account of the Company.

 

Delegation

 

33.8     Without prejudice to the provisions of paragraph 2.15 of Schedule 9 (Intercreditor Agent), each of the Intercreditor Agent, any Receiver and any Delegate may, at any time, delegate by power of attorney or otherwise to any person for any period, all or any of the rights, powers and discretions vested in it by any of the Restructuring Documents.

 

33.9     That delegation may be made upon any terms and conditions (including the power to sub-delegate) and subject to any restrictions that the Intercreditor Agent, that Receiver or that Delegate (as the case may be) may, in its discretion, think fit in the interests of the Finance Parties and it shall not be bound to supervise, or be in any way responsible for any loss incurred by reason of any misconduct or default on the part of any such delegate or sub-delegate.

 

Additional Intercreditor Agents

 

33.10   The Intercreditor Agent may at any time appoint (and subsequently remove) any person to act as a separate trustee or as a co-trustee jointly with it (i) if it considers that appointment to be in the interests of the Finance Parties or (ii) for the purposes of conforming to any legal requirements, restrictions or conditions which the Intercreditor Agent deems to be relevant or (iii) for obtaining or enforcing any judgment in any jurisdiction, and the Intercreditor Agent shall give prior notice to the Company and each of the Relevant Finance Parties of that appointment.

 

33.11   Any person so appointed shall have the rights, powers and discretions (not exceeding those conferred on the Intercreditor Agent by this Agreement) and the duties and obligations that are conferred or imposed by the instrument of appointment.

 

33.12   The remuneration that the Intercreditor Agent may pay to that person, and any costs and expenses (together with any applicable VAT) incurred by that person in performing its functions pursuant to that appointment shall, for the purposes of this Agreement, be treated as costs and expenses incurred by the Intercreditor Agent.

 

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34        Debt Purchase Transactions

 

Prohibition on Debt Purchase Transactions by Group Companies

 

34.1     The Company shall not, and shall procure that each Group Company shall not:

 

(a)        enter into any Debt Purchase Transaction;

 

(b)        beneficially own all or any part of the share capital of a company that is:

 

(i)         a Participating Lender; or

 

(ii)        a party to a Debt Purchase Transaction of the type referred to in paragraphs (b) or (c) of the definition of Debt Purchase Transaction.

 

Disenfranchisement on Debt Purchase Transactions entered into by Company Affiliates

 

34.2     For so long as a Company Affiliate:

 

(a)        directly or indirectly, beneficially owns a Commitment; or

 

(b)        has entered into a sub-participation agreement relating to a Commitment or other agreement or arrangement having a substantially similar economic effect and such agreement or arrangement has not been terminated:

 

(i)         in ascertaining the Majority Participating Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Restructuring Documents such Commitment shall be deemed to be zero; and

 

(ii)        for the purposes of paragraph 2 (Exceptions) of Schedule 8 (Intercreditor Voting Schedule), such Company Affiliate or the person with whom it has entered into such sub-participation, other agreement or arrangement shall be deemed not to be a Participating Lender.

 

34.3     Each Participating Lender shall promptly notify the Intercreditor Agent in writing if it knowingly enters into a Debt Purchase Transaction with a Company Affiliate (a Notifiable Debt Purchase Transaction), such notification to be substantially in the form set out in Part 1 of Schedule 10 (Forms of Notifiable Debt Purchase Transaction Notice).

 

34.4     A Participating Lender shall promptly notify the Intercreditor Agent if a Notifiable Debt Purchase Transaction to which it is a party:

 

(a)        is terminated; or

 

(b)        ceases to be with a Company Affiliate,

 

such notification to be substantially in the form set out in Part 2 of Schedule 10 (Forms of Notifiable Debt Purchase Transaction Notice).

 

34.5     Each Company Affiliate that is a Participating Lender agrees that:

 

(a)        in relation to any meeting or conference call to which all the Participating Lenders are invited to attend or participate, it shall not attend or participate in the same if so requested by the Intercreditor Agent or, unless the Intercreditor Agent 

 

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otherwise agrees, be entitled to receive the agenda or any minutes of the same; and

 

(b)        in its capacity as Participating Lender, unless the Intercreditor Agent otherwise agrees, it shall not be entitled to receive any report or other document prepared at the behest of, or on the instructions of, the Intercreditor Agent or one or more of the Participating Lenders.

 

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SECTION 10 - THE FINANCE PARTIES

 

35        Role of the Intercreditor Agent and others

 

35.1     Each Participating Lender and other Finance Party appoints the Intercreditor Agent to act as its agent under and in connection with this Agreement and the Restructuring Finance Documents in accordance with the provisions of Schedule 9 (Intercreditor Agent).

 

35.2     Each Participating Lender and other Finance Party authorises the Intercreditor Agent to exercise the rights, powers, authorities and discretions specifically given to the Intercreditor Agent under or in connection with the Restructuring Documents together with any other incidental rights, powers, authorities and discretions in accordance with the provisions of Schedule 9 (Intercreditor Agent).

 

36        Role of the Account Bank

 

36.1     The Account Bank is not under any obligation to enquire as to the purpose of any withdrawal from a Common Account it holds.

 

36.2     The Company must pay to the Account Bank (without duplication) such transaction charges and other fees as the Company and Account Bank, both acting reasonably, may from time to time agree.

 

36.3     The Account Bank may be changed to another bank or financial institution (the New Account Bank):

 

(a)        If the Account Bank is no longer an Acceptable Bank within the meaning of paragraph (a) of the definition of Acceptable Bank or the Majority Participating Lenders so require; or

 

(b)        subject to clause 36.4, if the Account Bank resigns after giving written notice to the Intercreditor Agent and the Company.

 

36.4     A change (including a resignation) only becomes effective when the proposed new Account Bank agrees with the Intercreditor Agent and the Company, in a manner satisfactory to the Intercreditor Agent, to fulfil the role of the Account Bank under this Agreement.  The New Account Bank must be an institution authorised to accept deposits in the country in which the Common Accounts are at that time maintained and be an Acceptable Bank within the meaning of paragraph (a) of the definition of Acceptable Bank.

 

36.5     If there is a change of Account Bank, the amount (if any) standing to the credit of each Common Account maintained with the old Account Bank will be transferred to the corresponding Common Accounts maintained with the New Account Bank immediately upon the appointment taking effect.

 

Application of account

 

36.6     At any time after the occurrence of an Event of Default but subject to the provisions of this Agreement, the Intercreditor Agent may, without notice to the Company, instruct the Account Bank to apply all moneys then standing to the credit of a Common Account (together with interest from time to time accruing or accrued thereon) in or towards satisfaction of any sums due to the Participating Lenders under the Finance Documents and the Existing Finance Documents in the manner specified in the Restructuring Agreement.

 

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Charging of account

 

36.7     Each Common Account and all amounts from time to time standing to the credit thereof shall be subject to the security constituted and the rights conferred by Security in accordance with the Shared Security Documents.

 

Account Bank protection

 

36.8     The exercise of any right, power, authority or discretion vested in the Account Bank, in accordance with clauses 18.19 or 36.6 or otherwise in connection with any Common Account it holds shall be done on terms such that the Account Bank shall benefit mutatis mutandis from the protections, exclusions of liability, rights and indemnities conferred on the Intercreditor Agent by this Agreement including those set out in Schedule 9.

 

37        Conduct of business by the Finance Parties

 

37.1     No provision of this Agreement will:

 

(a)        interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

(b)        oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

 

(c)        oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

 

38        Sharing among the Finance Parties

 

Payments to Finance Parties

 

38.1     If a Finance Party (a Recovering Finance Party) receives or recovers any amount in relation to payments arising hereunder or in accordance with the provisions of the relevant Finance Document or Facility Agreement to which that Finance Document relates from a Group Company (a Recovered Amount) other than in accordance with clause 39 (Payment mechanics) or receives or recovers such amount in breach of a provision of this Agreement and applies that amount to a payment due under the Finance Documents then:

 

(a)        the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery, to the Intercreditor Agent;

 

(b)        the Intercreditor Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Intercreditor Agent and distributed in accordance with clause 39 (Payment mechanics), without taking account of any Tax which would be imposed on the Intercreditor Agent in relation to the receipt, recovery or distribution; and

 

(c)        the Recovering Finance Party shall, within three Business Days of demand by the Intercreditor Agent, pay to the Intercreditor Agent an amount (the Sharing Payment) equal to such receipt or recovery less any amount which the Intercreditor Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made in accordance with this Agreement.

 

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Redistribution of payments

 

38.2     The Intercreditor Agent shall treat the Sharing Payment as if it had been paid by the relevant Group Company and distribute it between the Finance Parties (other than the Recovering Finance Party) (the Sharing Finance Parties) in accordance with this Agreement towards the obligations of that Group Company to the Sharing Finance Parties.

 

Recovering Finance Party’s rights

 

38.3     On a distribution by the Intercreditor Agent under clause 38.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from a Group Company, as between the relevant Group Company and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Group Company.

 

Reversal of redistribution

 

38.4     If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

(a)        each Sharing Finance Party shall, upon request of the Intercreditor Agent, pay to the Intercreditor Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the Redistributed Amount); and

 

(b)        as between the relevant Group Company and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Group Company.

 

Exceptions

 

38.5     This clause 38 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this clause, have a valid and enforceable claim against the relevant Group Company.

 

38.6     A Recovering Finance Party is not obliged to share with any other Finance Party which is a party to, or beneficiary of rights under, the same Finance Documents as that Recovering Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

(a)        it notified the other Finance Party of the legal or arbitration proceedings;

 

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

 

(c)        in the event that such other Finance Party was not entitled to take part in such proceedings, that Finance Party has not provided an indemnity for costs to the Recovering Finance Party in a form reasonably satisfactory to the Recovering Finance Party.

 

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SECTION 11 - ADMINISTRATION

 

39        Payment mechanics

 

Payments

 

39.1     On each date on which a Group Company or a Finance Party is required to make a payment under a Finance Document (other than this Agreement), the payments shall be made in accordance with the provisions of the relevant Finance Document or Facility Agreement to which that Finance Document relates. In the event of any payments to be made under, or contemplated in, unless otherwise set out herein, this Agreement (including clause 15 (Repayment), clause 18 (Mandatory prepayment) and clause 27 (Application of proceeds of Shared Security Document)), on each date on which that Group Company or a Finance Party is required to make a payment under this Agreement, the Group Company or the Finance Party shall make the same available to the Intercreditor Agent (unless a contrary indication appears in this Agreement whereupon such payment shall be made to the relevant Finance Party) for value on the due date at the time and in such funds specified by the Intercreditor Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

39.2     Payment shall be made to such account in New York with such bank as the Intercreditor Agent specifies.

 

Distributions by the Intercreditor Agent

 

39.3     Each payment received by the Intercreditor Agent under the Finance Documents for another Party shall, subject to clauses 39.4 and 39.5 (Clawback) be made available by the Intercreditor Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Finance Party, for the account of its Facility Office), to such account as that Party may notify to the Intercreditor Agent by not less than five Business Days’ notice with a bank in New York.

 

Clawback

 

39.4     Where a sum is to be paid to the Intercreditor Agent under the Finance Documents for another Party, the Intercreditor Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

39.5     If the Intercreditor Agent pays an amount to another Party and it proves to be the case that the Intercreditor Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Intercreditor Agent shall on demand refund the same to the Intercreditor Agent together with interest on that amount from the date of payment to the date of receipt by the Intercreditor Agent, calculated by the Intercreditor Agent to reflect its cost of funds.

 

Impaired Agent

 

39.6     If, at any time, the Intercreditor Agent becomes an Impaired Agent, a Group Company or a Participating Lender which is required to make a payment under the Finance Documents to the Intercreditor Agent in accordance with clauses 39.1 and 39.2 (Payments) may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with an Acceptable Bank within the meaning of paragraph (a) of the definition of Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Group Company or the Participating Lender making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under

 

123

 

the Finance Documents. In each case such payments must be made on the due date for payment under the Finance Documents.

 

39.7     All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements.

 

39.8     A Party which has made a payment in accordance with clauses 39.6 to 39.9 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

 

39.9     Promptly upon the appointment of a successor Intercreditor Agent in accordance with clause 33 (Changes of Intercreditor Agent and Delegation), each Party which has made a payment to a trust account in accordance with clauses 39.6 to 39.9 shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution in accordance with clause 39.3 (Distributions by the Intercreditor Agent).

 

Partial payments

 

39.10   If the Intercreditor Agent receives a payment for application against amounts due in respect of any Restructuring Documents that is insufficient to discharge all the amounts then due and payable by a Group Company under those Restructuring Documents, the Intercreditor Agent shall apply that payment in the manner and in the order contemplated by clause 27.1 (Order of application).

 

Set-off by Group Companies

 

39.11   All payments to be made by a Group Company under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

Business Days

 

39.12   Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

 

39.13   During any extension of the due date for payment by a Group Company of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

 

Currency of account

 

39.14   Subject to clauses 39.15 and 39.16 below, US Dollars is the currency of account and payment for any sum due from a Group Company under any Finance Document.

 

39.15   Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

 

39.16   Any amount expressed to be payable in a currency other than US Dollars shall be paid in that other currency.

 

Change of currency

 

39.17   Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

 

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(a)        any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Intercreditor Agent (after consultation with the Company); and

 

(b)        any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Intercreditor Agent (acting reasonably).

 

39.18   If a change in any currency of a country occurs, this Agreement will, to the extent the Intercreditor Agent (acting reasonably and after consultation with the Company) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the London interbank market and otherwise to reflect the change in currency.

 

40        Set-off

 

40.1     A Finance Party may set off any matured obligation due from a Group Company under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Group Company, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

 

41        Notices

 

Communications in writing

 

41.1     Any communication to be made under or in connection with the Restructuring Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.

 

Addresses

 

41.2     The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Restructuring Documents is:

 

(a)        in the case of the Company or a Group Company, that identified with its name below;

 

(b)        in the case of each Finance Party, that identified with its name below,

 

or any substitute address or fax number or department or officer as the Party may notify to the Intercreditor Agent (or the Intercreditor Agent may notify to the other Parties, if a change is made by the Intercreditor Agent) by not less than five Business Days’ notice.

 

Delivery

 

41.3     Any communication or document made or delivered by one person to another under or in connection with the Restructuring Documents will only be effective:

 

(a)        if by way of fax, when received in legible form; or

 

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(b)        if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

 

and, if a particular department or officer is specified as part of its address details provided under clause 41.2 (Addresses), if addressed to that department or officer.

 

41.4     Any communication or document to be made or delivered to the Intercreditor Agent or a Relevant Finance Party will be effective only when actually received by the Intercreditor Agent or Relevant Finance Party and then only if it is expressly marked for the attention of the department or officer identified with the Intercreditor Agent’s or the Relevant Finance Party’s signature below (or any substitute department or officer as the Intercreditor Agent or a Relevant Finance Party shall specify for this purpose).

 

41.5     All notices from or to a Group Company shall be sent through the Intercreditor Agent or a Relevant Finance Party.

 

41.6     Any communication or document made or delivered to the Company in accordance with clauses 41.3 to 41.5 will be deemed to have been made or delivered to each of the Group Companies.

 

Notification of address and fax number

 

41.7     Promptly upon receipt of notification of an address or fax number or change of address or fax number pursuant to clause 41.2 (Addresses) or changing its own address or fax number, the Intercreditor Agent shall notify the other Parties.

 

Communication when Intercreditor Agent is Impaired Agent

 

41.8     If the Intercreditor Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Intercreditor Agent, communicate with each other directly and (while the Intercreditor Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Intercreditor Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly. This provision shall not operate after a replacement Intercreditor Agent has been appointed.

 

Electronic communication

 

41.9     Any communication to be made between the Intercreditor Agent and a Finance Party under or in connection with the Restructuring Documents may be made by electronic mail or other electronic means, if the Intercreditor Agent and the relevant Finance Party:

 

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

 

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

 

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

 

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

 

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Use of websites

 

41.11   The Company may satisfy its obligation under this Agreement to deliver any information in relation to those Finance Parties (the Website Finance Parties) who accept this method of communication by posting this information onto an electronic website designated by the Company and the Relevant Finance Parties (the Designated Website) if:

 

(a)        the Relevant Finance Parties expressly agree (after consultation with each of the Finance Parties) that they will accept communication of the information by this method;

 

(b)        both the Company and the Relevant Finance Parties are aware of the address of and any relevant password specifications for the Designated Website; and

 

(c)        the information is in a format previously agreed between the Company and the Relevant Finance Parties.

 

If any Finance Party (a Paper Form Finance Party) does not agree to the delivery of information electronically then the Intercreditor Agent shall notify the Company accordingly and the Company shall at its own cost supply the information to the Intercreditor Agent (in sufficient copies for each Paper Form Finance Party) in paper form.  In any event the Company shall at its own cost supply to each Relevant Finance Party with at least one copy in paper form of any information required to be provided by it.

 

41.12   The Intercreditor Agent shall supply each Website Finance Party with the address of and any relevant password specifications for the Designated Website following designation of that website by the Company and the Relevant Finance Parties.

 

41.13   The Company shall promptly upon becoming aware of its occurrence notify the Relevant Finance Parties if:

 

(a)        the Designated Website cannot be accessed due to technical failure;

 

(b)        the password specifications for the Designated Website change;

 

(c)        any new information which is required to be provided under this Agreement is posted onto the Designated Website;

 

(d)        any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

 

(e)        the Company becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

 

If the Company notifies the Relevant Finance Parties under clauses 41.13(a) or 41.13(e) above, all information to be provided by the Company under this Agreement after the date of that notice shall be supplied in paper form unless and until the Relevant Finance Parties and each Website Finance Party is satisfied that the circumstances giving rise to the notification are no longer continuing.

 

41.14   Any Website Finance Party may request, through the Intercreditor Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website.  The Company shall at its own cost comply with any such request within ten Business Days.

 

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English language

 

41.15   Any notice given under or in connection with any Restructuring Document must be in English.

 

41.16   All other documents provided under or in connection with any Restructuring Document must be:

 

(a)        in English; or

 

(b)        if not in English, and if so required by a Relevant Finance Party, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

42        Calculations and certificates

 

Accounts

 

42.1     In any litigation or arbitration proceedings arising out of or in connection with a Restructuring Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

 

Certificates and determinations

 

42.2     Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

 

Day count convention

 

42.3     Any interest, commission or fee accruing under a Restructuring Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the London interbank market differs, in accordance with that market practice.

 

43        Partial invalidity

 

If, at any time, any provision of the Restructuring Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

44        Remedies and waivers

 

44.1     No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Restructuring Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

45        Amendments and waivers

 

Intercreditor Voting Schedule

 

45.1     This clause 45 is subject to the terms of the Intercreditor Voting Schedule.

 

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Required consents

 

45.2     The Restructuring Documents may be amended or waived only with the consent of the Intercreditor Agent (acting in accordance with the instructions of the Participating Lenders in accordance with the Intercreditor Voting Schedule) and the Company and any such amendment or waiver will be binding on all Parties.

 

45.3     The Intercreditor Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this clause 45.

 

45.4     Each Group Company agrees to any such amendment or waiver permitted by this clause 45 which is agreed to by the Company.  This includes any amendment or waiver which would, but for this clause 45.4, require the consent of all Group Companies.

 

Disenfranchisement of Defaulting Participating Lenders

 

45.5     For so long as a Defaulting Participating Lender has any Commitment that is available to be drawn down under a Facility Agreement, in ascertaining the Majority Participating Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Participating Lender’s Commitments will be reduced by the amount of its Commitment that is available to be drawn down under a Facility Agreement.

 

45.6     For the purposes of clauses 45.5 and 45.6, the Intercreditor Agent may assume that the following Participating Lenders are Defaulting Participating Lenders:

 

(a)        any Participating Lender which has notified the Intercreditor Agent that it has become a Defaulting Participating Lender;

 

(b)        any Participating Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of Defaulting Participating Lender has occurred, unless it has received notice to the contrary from the Participating Lender concerned (together with any supporting evidence reasonably requested by the Intercreditor Agent) or the Intercreditor Agent is otherwise aware that the Participating Lender has ceased to be a Defaulting Participating Lender.

 

46        Confidentiality

 

Confidential Information

 

46.1     Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by clause 46.2 (Disclosure of Confidential Information), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

Disclosure of Confidential Information

 

46.2     Any Finance Party may disclose:

 

(a)        to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this clause 46.2(a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to

 

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professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

(b)        to any person:

 

(i)         to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(ii)        with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Group Companies and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(iii)       appointed by any Finance Party or by a person to whom clauses 46.2(b)(i) or 46.2(b)(ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under clause 1.35 of Schedule 9 (Relationship with the Participating Lenders));

 

(iv)      who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to clauses 46.2(b)(i) or 46.2(b)(ii) above;

 

(v)       to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(vi)      to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so);

 

(vii)     to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(viii)    who is a Party; or

 

(ix)       with the consent of the Company;

 

in each case, such Confidential Information as that Finance Party shall consider appropriate if:

 

(A)       in relation to clauses 46.2(b)(i), 46.2(b)(ii) and 46.2(b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

(B)       in relation to clause 46.2(b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

 

130

 

(C)       in relation to clauses 46.2(b)(v), 46.2(b)(vi) and 46.2(b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

 

(c)        to any person appointed by that Finance Party or by a person to whom clauses 46.2(b)(i) or 46.2(b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this clause 46.2(c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/ Settlement Service Providers or such other form of confidentiality undertaking agreed between the Company and the relevant Finance Party;

 

(d)        to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Group Companies.

 

Entire agreement

 

46.3     This clause 46 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

Inside information

 

46.4     Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

Notification of disclosure

 

46.5     Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Company:

 

(a)        of the circumstances of any disclosure of Confidential Information made pursuant to clause 46.2(b)(v) (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that clause during the ordinary course of its supervisory or regulatory function; and

 

(b)        upon becoming aware that Confidential Information has been disclosed in breach of this clause 46 (Confidentiality).

 

Continuing obligations

 

46.6     The obligations in this clause 46 (Confidentiality) are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve months from the earlier of:

 

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(a)        the date on which all amounts payable by the Group Companies under or in connection with the Finance Documents have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

 

(b)        the date on which such Finance Party otherwise ceases to be a Finance Party.

 

47        Counterparts

 

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

 

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SECTION 12 - GOVERNING LAW AND ENFORCEMENT

 

48        Governing law

 

48.1     This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

49        Enforcement

 

Jurisdiction of English courts

 

49.1     The courts of England have exclusive jurisdiction to settle 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 (a Dispute).

 

49.2     The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

 

49.3     Clauses 49.1 to 49.3 are for the benefit of the Finance Parties only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

 

Service of process

 

49.4     Without prejudice to any other mode of service allowed under any relevant law, each Group Company (other than a Group Company incorporated in England and Wales):

 

(a)        irrevocably appoints Danaos Management Consultants (UK) Limited (company number 02680889) as its agent for service of process in relation to any proceedings before the English courts in connection with this Agreement; and

 

(b)        agrees that failure by an agent for service of process to notify the relevant Group Company of the process will not invalidate the proceedings concerned.

 

(c)        If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, the Company (on behalf of all the Group Companies) must immediately (and in any event within five days of such event taking place) appoint another agent on terms acceptable to the Intercreditor Agent.  Failing this, the Intercreditor Agent may appoint another agent for this purpose.

 

Each Group Company expressly agrees and consents to the provisions of this clause 49 and clause 48 (Governing law).

 

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

 

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Schedule 1

The Original Parties

 

Part 1a

 

Original Group Companies

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
Appleton Navigation S.A.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-86284
    	
 
    	
SHENZHEN DRAGON
    	
 
    	
HSH Facility Agreement
    
	
Auckland Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-106911
    	
 
    	
YM COLOMBO
    	
 
    	
ABN AMRO Facility Agreement
    
	
Baker International S.A.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-81691
    	
 
    	
Intermediate holding company of:

 

Seasenator Shipping Limited (Cyprus)

 

Channelview Marine Inc. (Liberia)

 

Seacarriers Services Inc. (Liberia)

 

Boxcarrier (No. 5) Corp. (Liberia)

 

Cellcontainer (No.4) Corp. (Liberia)

 

Speedcarrier (No.4) Corp. (Liberia)

 

Teucarrier (No.5)
    	
 
    	
N/A
    

 

134

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Corp. (Liberia)

 

Speedcarrier (No.6) Corp. (Liberia)

 

Fastcarrier (No.2) Corp. (Liberia)

 

Fastcarrier (No.5) Corp. (Liberia)
    	
 
    	
 
    
	
Balticsea Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108382
    	
 
    	
ZIM KINGSTON
    	
 
    	
Deutsche Bank Facility Agreement
    
	
Bayard Maritime Ltd.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-72158
    	
 
    	
Intermediate holding company of:

 

Appleton Navigation S.A.(Liberia)

 

Oceanprize Navigation Limited (Cyprus)

 

Seacaravel Shipping Limited (Cyprus)

 

Teucarrier (No. 4) Corp. (Liberia)

 

Cellcontainer (No.5) Corp. (Liberia)

 

Speedcarrier (No.5) Corp. (Liberia)

 

Megacarrier (No.5)
    	
 
    	
N/A
    

 

135

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Corp. (Liberia)

 

Cellcontainer (No.7) Corp. (Liberia)

 

Boxcarrier (No. 6) Corp. (Liberia)
    	
 
    	
 
    
	
Bayview Shipping Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108380
    	
 
    	
ZIM RIO GRANDE
    	
 
    	
Deutsche Bank Facility Agreement
    
	
Blacksea Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108561
    	
 
    	
ZIM LUANDA
    	
 
    	
Credit Suisse Facility Agreement
    
	
Bounty Investment Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-84603
    	
 
    	
Intermediate holding company of:

 

Saratoga Trading S.A. (Liberia)

 

Victory Shipholding Inc. (Liberia)

 

Medsea Marine Inc. (Liberia)

 

Boxcarrier (No.2) Corp.(Liberia)

 

Teucarrier (No. 2) Corp. (Liberia)

 

Megacarrier (No.3) Corp. (Liberia)

 

Speedcarrier (No.8) Corp. (Liberia)

 

Fastcarrier (No.1)
    	
 
    	
N/A
    

 

136

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Corp. (Liberia)

 

Fastcarrier (No.4) Corp.(Liberia)
    	
 
    	
 
    
	
Boxcarrier (No.1) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108724
    	
 
    	
CMA CGM MOLIERE
    	
 
    	
Emporiki Facility Agreement
    
	
Boxcarrier (No.2) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108726
    	
 
    	
CMA CGM MUSSET
    	
 
    	
Emporiki Facility Agreement
    
	
Boxcarrier (No.3) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108728
    	
 
    	
CMA CGM NERVAL
    	
 
    	
Credit Suisse Facility Agreement
    
	
Boxcarrier (No.4) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108729
    	
 
    	
CMA CGM RABELAIS
    	
 
    	
New HSH Facility Agreement
    
	
Boxcarrier (No. 5) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108723
    	
 
    	
CMA CGM RACINE
    	
 
    	
RBS Facility Agreement
    
	
Boxcarrier (No. 6) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108725
    	
 
    	
MARATHONAS
    	
 
    	
HSH Facility Agreement
    
	
Boxcarrier (No. 7) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108727
    	
 
    	
MAERSK MESSOLOGI
    	
 
    	
HSH Facility   Agreement
    
	
Boxcarrier (No.8) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109299
    	
 
    	
MAERSK MYTILINI
    	
 
    	
HSH Facility   Agreement
    
	
Cellcontainer (No.1) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109771
    	
 
    	
HANJIN BUENOS AIRES
    	
 
    	
RBS Facility Agreement
    
	
Cellcontainer (No.2) Corp.
    	
 
    	
80 Broad Street, Monrovia,
    	
 
    	
C-109772
    	
 
    	
HANJIN SANTOS
    	
 
    	
DSB Facility Agreement
    

 

137

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
Liberia
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cellcontainer (No.3) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109773
    	
 
    	
MV HANJIN VERSAILLES
    	
 
    	
RBS Facility   Agreement
    
	
Cellcontainer (No.4) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109774
    	
 
    	
Builder’s Hull No. N222
    	
 
    	
RBS Facility   Agreement
    
	
Cellcontainer (No.5) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109775
    	
 
    	
Builder’s Hull No. N223
    	
 
    	
DSB Facility Agreement
    
	
Cellcontainer (No.6) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110807
    	
 
    	
Builder’s Hull No. S461
    	
 
    	
New RBS Facility   Agreement
    
	
Cellcontainer (No.7) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110808
    	
 
    	
Builder’s Hull No. S462
    	
 
    	
New HSH Facility Agreement
    
	
Cellcontainer (No.8) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110809
    	
 
    	
Builder’s Hull No. S463
    	
 
    	
ABN AMRO Club Facility Agreement
    
	
Channelview Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108381
    	
 
    	
ZIM SAO PAOLO
    	
 
    	
Deutsche Bank Facility Agreement
    
	
Commodore Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-104787
    	
 
    	
HYUNDAI COMMODORE
    	
 
    	
HSH Facility Agreement
    
	
Containers Services Inc.

 

 

 

 

(As bareboat charterer from Fastcarrier
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-103775
    	
 
    	
DEVA  (formerly BUNGA RAYA TUJUH)
    	
 
    	
HSH US$60 million Facility Agreement

 

(first)

 

/

 

New HSH Facility 
    

 

138

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
(No.1) Corp.)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Agreement (second)
    
	
Containers Lines Inc.

 

 

 

 

(As bareboat charterer from Fastcarrier   (No.2) Corp.)
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-103776
    	
 
    	
BUNGA RAYA TIGA
    	
 
    	
HSH US$60 million   Facility Agreement

 

(first mortgage)

 

/

 

New RBS Facility   Agreement (second mortgage)
    
	
Continent Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108383
    	
 
    	
ZIM MONACO
    	
 
    	
RBS Facility Agreement
    
	
Deleas Shipping Limited
    	
 
    	
11, Kyriakou Matsi Ave., Nikis Center, 8th   Floor, Nicosia, Cyprus
    	
 
    	
HE 30141  Cyprus
    	
 
    	
HANJIN MONTREAL
    	
 
    	
HSH Facility   Agreement
    
	
Duke Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-104788
    	
 
    	
HYUNDAI DUKE
    	
 
    	
HSH Facility Agreement
    
	
Erato Navigation Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-70127
    	
 
    	
Intermediate holding company of:

 

Oceanew Shipping Limited (Cyprus)

 

Commodore Marine Inc.(Liberia)

 

Duke Marine Inc.(Liberia)

 

Federal Marine Inc. (Liberia)
    	
 
    	
N/A
    
	
Expresscarrier
    	
 
    	
80 Broad
    	
 
    	
C-109642
    	
 
    	
YM MANDATE
    	
 
    	
Credit Suisse
    

 

139

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
(No.1) Corp.
    	
 
    	
Street, Monrovia, Liberia
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Facility Agreement
    
	
Expresscarrier (No.2) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109643
    	
 
    	
YM MATURITY
    	
 
    	
DSB Facility   Agreement
    
	
Fastcarrier (No.1) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-111249
    	
 
    	
DEVA

 

(formerly BUNGA RAYA TUJUH)

 

(Owner)
    	
 
    	
HSH US$60 million Facility Agreement

 

(first)

 

/

 

New HSH Facility Agreement (second)
    
	
Fastcarrier (No.2) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-111251
    	
 
    	
BUNGA RAYA TIGA  

 

(Owner)
    	
 
    	
HSH US$60 million   Facility Agreement

 

(first)

 

/

 

New RBS Facility   Agreement

 

(second)
    
	
Fastcarrier (No.3) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-111250
    	
 
    	
CSCL EUROPE

 

(Owner)
    	
 
    	
HSH Second Lien
    
	
Fastcarrier (No.4) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-111252
    	
 
    	
CSCL AMERICA

 

(Owner)
    	
 
    	
RBS Second Lien
    
	
Fastcarrier (No.5) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-111253
    	
 
    	
CSCL PUSAN

 

(Owner)
    	
 
    	
HSH Second Lien
    
	
Fastcarrier (No.6) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-111254
    	
 
    	
CSCL LE HAVRE

 

(Owner)
    	
 
    	
RBS Second Lien
    

 

140

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
Federal Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-108240
    	
 
    	
HYUNDAI FEDERAL
    	
 
    	
RBS Facility Agreement
    
	
Geoffrey Shipholding Limited
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-84492
    	
 
    	
CALIFORNIA DRAGON
    	
 
    	
HSH Facility Agreement
    
	
Independence Navigation Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-104122
    	
 
    	
INDEPENDENCE
    	
 
    	
HSH Facility   Agreement
    
	
Karlita Shipping Company Ltd.
    	
 
    	
11, Kyriakou Matsi Ave., Nikis Center, 8th   Floor, Nicosia, Cyprus
    	
 
    	
HE 136599

 

Cyprus
    	
 
    	
CSCL PUSAN

 

(Lessee)
    	
 
    	
HSH Second Lien
    
	
Lacey Navigation Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-85772
    	
 
    	
JIANGSU DRAGON
    	
 
    	
HSH Facility   Agreement
    
	
Lito Navigation Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-66954
    	
 
    	
Intermediate holding company of:

 

Lacey Navigation Inc.(Liberia)

 

Boxcarrier (No.4) Corp.(Liberia)

 

Teucarrier (No.3) Corp. (Liberia)

 

Expresscarrier (No.2) Corp. (Liberia)

 

Cellcontainer (No.2) Corp.(Liberia)

 

Speedcarrier (No.2)
    	
 
    	
N/A
    

 

141

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Corp.(Liberia)

 

Boxcarrier (No.8) Corp. (Liberia)

 

Cellcontainer (No.8) Corp. (Liberia)

 

Fastcarrier (No.3) Corp. (Liberia)

 

Fastcarrier (No.6) Corp. (Liberia)
    	
 
    	
 
    
	
Lydia Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-66956
    	
 
    	
Intermediate holding company of:

 

Geoffrey Shipholding Limited (Liberia)

 

Containers Lines Inc. (Liberia)

 

Balticsea Marine Inc. (Liberia)

 

Wellington Marine Inc. (Liberia)

 

Boxcarrier (No.3) Corp. (Liberia)

 

Megacarrier (No.1) Corp. (Liberia)

 

Speedcarrier (No.7) Corp. (Liberia)
    	
 
    	
N/A
    
	
Medsea Marine Inc.
    	
 
    	
80 Broad Street, Monrovia,
    	
 
    	
C-108560
    	
 
    	
ZIM DALIAN
    	
 
    	
DSB Facility   Agreement
    

 

142

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
Liberia
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Megacarrier (No.1) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110526
    	
 
    	
Builder’s Hull No. S456
    	
 
    	
New Club Facility Agreement
    
	
Megacarrier (No.2) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110527
    	
 
    	
Builder’s Hull No. S457
    	
 
    	
New Club Facility Agreement
    
	
Megacarrier (No.3) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110528
    	
 
    	
Builder’s Hull No. S458
    	
 
    	
New RBS Facility Agreement
    
	
Megacarrier (No.4) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110529
    	
 
    	
Builder’s Hull No. S459
    	
 
    	
New HSH Facility Agreement
    
	
Megacarrier (No.5) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110530
    	
 
    	
Builder’s Hull No. S460
    	
 
    	
Citi/Eurobank   Facility Agreement
    
	
Oceanew Shipping Ltd.
    	
 
    	
11, Kyriakou Matsi Ave., Nikis Center, 8th   Floor, Nicosia, Cyprus
    	
 
    	
HE 127025

 

Cyprus
    	
 
    	
CSCL EUROPE

 

(Lessee)
    	
 
    	
HSH Second Lien
    
	
Oceanprize Navigation Limited
    	
 
    	
11, Kyriakou Matsi Ave., Nikis Center, 8th   Floor, Nicosia, Cyprus
    	
 
    	
HE 135751

 

Cyprus
    	
 
    	
CSCL AMERICA

 

(Lessee)
    	
 
    	
RBS Second Lien
    
	
Ramona Marine Company Limited
    	
 
    	
11, Kyriakou Matsi Ave., Nikis Center, 8th   Floor, Nicosia, Cyprus
    	
 
    	
HE 136611

 

Cyprus
    	
 
    	
CSCL LE HAVRE

 

(Lessee)
    	
 
    	
RBS Second Lien
    
	
Sapfo Navigation Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-66955
    	
 
    	
Intermediate holding company of:

 

Independence Navigation Inc.
    	
 
    	
N/A
    

 

143

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(Liberia)

 

Ramona Marine Company Limited (Cyprus)

 

Boxcarrier (No.1) Corp. (Liberia)

 

Teucarrier (No.1) Corp. (Liberia)

 

Expresscarrier (No.1) Corp. (Liberia)

 

Cellcontainer (No.1) Corp. (Liberia)

 

Speedcarrier (No.1) Corp. (Liberia)

 

Megacarrier (No.2) Corp. (Liberia)
    	
 
    	
 
    
	
Saratoga Trading S.A.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-86251
    	
 
    	
SCI PRIDE
    	
 
    	
HSH Facility   Agreement
    
	
Seacaravel Shipping Limited
    	
 
    	
11, Kyriakou Matsi Ave., Nikis Center, 8th   Floor, Nicosia, Cyprus
    	
 
    	
HE 79526

 

Cyprus
    	
 
    	
YM YANTIAN
    	
 
    	
HSH Facility   Agreement
    
	
Seacarriers Lines Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-107444
    	
 
    	
YM VANCOUVER
    	
 
    	
ABN AMRO Facility Agreement
    
	
Seacarriers Services Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-107443
    	
 
    	
YM SEATTLE
    	
 
    	
ABN AMRO Facility   Agreement
    
	
Seasenator
    	
 
    	
11, Kyriakou
    	
 
    	
HE 79527
    	
 
    	
AL RAYYAN
    	
 
    	
HSH Facility
    

 

144

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
Shipping Limited
    	
 
    	
Matsi Ave., Nikis Center, 8th Floor,   Nicosia, Cyprus
    	
 
    	
Cyprus
    	
 
    	
 
    	
 
    	
Agreement
    
	
Speedcarrier (No.1) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110258
    	
 
    	
HYUNDAI VLADIVOSTOK
    	
 
    	
HSH Facility   Agreement
    
	
Speedcarrier (No.2) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110259
    	
 
    	
HYUNDAI ADVANCE
    	
 
    	
HSH Facility   Agreement
    
	
Speedcarrier (No.3) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110260
    	
 
    	
HYUNDAI STRIDE
    	
 
    	
HSH Facility   Agreement
    
	
Speedcarrier (No.4) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110261
    	
 
    	
HYUNDAI SPRINTER
    	
 
    	
HSH Facility   Agreement
    
	
Speedcarrier (No.5) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110262
    	
 
    	
HYUNDAI FUTURE
    	
 
    	
HSH Facility   Agreement
    
	
Speedcarrier (No.6) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110972
    	
 
    	
HYUNDAI PROGRESS
    	
 
    	
RBS Facility   Agreement
    
	
Speedcarrier (No.7) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110973
    	
 
    	
HYUNDAI HIGHWAY
    	
 
    	
RBS Facility   Agreement
    
	
Speedcarrier (No.8) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110974
    	
 
    	
HYUNDAI BRIDGE
    	
 
    	
RBS Facility   Agreement
    
	
Teucarrier (No.1) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109522
    	
 
    	
Builder’s Hull No. Z00001
    	
 
    	
DSB Facility   Agreement
    
	
Teucarrier (No. 2) Corp.
    	
 
    	
80 Broad Street,
    	
 
    	
C-109523
    	
 
    	
Builder’s Hull No. Z00002
    	
 
    	
HSH Facility   Agreement
    

 

145

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
Monrovia, Liberia
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Teucarrier (No.3) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109524
    	
 
    	
Builder’s Hull No. Z00003
    	
 
    	
HSH Facility Agreement
    
	
Teucarrier (No. 4) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-109525
    	
 
    	
Builder’s Hull No. Z00004
    	
 
    	
HSH Facility Agreement
    
	
Teucarrier (No.5) Corp.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-110546
    	
 
    	
Builder’s Hull No. H1022A
    	
 
    	
RBS Facility   Agreement
    
	
Tully Enterprises S.A.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-87503
    	
 
    	
Intermediate holding company of:

 

Tyron Enterprises S.A. (Liberia)

 

Seacaravel Shipping Limited (Cyprus)

 

Seasenator Shipping Limited (Cyprus)

 

Deleas Shipping Limited (Cyprus)

 

Continent Marine Inc. (Liberia)

 

Karlita Shipping Company Limited (Cyprus)

 

Seacarriers Lines Inc. (Liberia)

 

Megacarrier (No.4)
    	
 
    	
N/A
    

 

146

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Corp. (Liberia)
    	
 
    	
 
    
	
Tyron Enterprises S.A.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-87836
    	
 
    	
HENRY
    	
 
    	
HSH Facility   Agreement
    
	
Victory Shipholding Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-104121
    	
 
    	
LOTUS
    	
 
    	
HSH Facility   Agreement
    
	
Wellington Marine Inc.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-106910
    	
 
    	
YM SINGAPORE
    	
 
    	
ABN AMRO Facility   Agreement
    
	
Westwood Marine S.A.
    	
 
    	
80 Broad Street, Monrovia, Liberia
    	
 
    	
C-71875
    	
 
    	
Intermediate holding company of:

 

Deleas Shipping Limited (Cyprus)

 

Containers Services Inc. (Liberia)

 

Bayview Shipping Inc. (Liberia)

 

Blacksea Marine Inc. (Liberia)

 

Auckland Marine Inc. (Liberia)

 

Cellcontainer (No.3) Corp. (Liberia)

 

Speedcarrier (No.3) Corp. (Liberia)

 

Cellcontainer
    	
 
    	
N/A
    

 

147

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction
   of
   Incorporation
   is Liberia
   unless
   indicated
    	
 
    	
Relevant Vessel
    or
    Relevant
   Subsidiaries
    	
 
    	
Facility
   Agreement to
   which it is a
   party (each as
   defined in
   Schedule 3)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(No.6) Corp. (Liberia)

 

Boxcarrier (No. 7) Corp. (Liberia)
    	
 
    	
 
    

 

148

 

Part 1b

Dormant Subsidiaries

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction of
   Incorporation is
   Liberia unless
   indicated
    	
 
    	
Status
    
	
Alexandra Navigation Inc.
    	
 
    	
Liberia
    	
 
    	
Z-12909
    	
 
    	
Dormant
    
	
Asia Express Marine Inc.
    	
 
    	
Liberia
    	
 
    	
C-104962
    	
 
    	
Revoked
    
	
Cobaltium Shipping (Private) Ltd
    	
 
    	
Singapore
    	
 
    	
200010227G
    	
 
    	
Dissolved
    
	
Cobaltium Shipping Inc.
    	
 
    	
Liberia
    	
 
    	
Z-49871
    	
 
    	
Dormant
    
	
Constantia Maritime Inc.
    	
 
    	
Liberia
    	
 
    	
C-104959
    	
 
    	
Dormant
    
	
Ferrous Shipping (Private) Ltd
    	
 
    	
Singapore
    	
 
    	
200010218E
    	
 
    	
Dissolved
    
	
Ferrous Shipping Inc.
    	
 
    	
Liberia
    	
 
    	
Z-49870
    	
 
    	
Dormant
    
	
Lato Shipping
    	
 
    	
Singapore
    	
 
    	
200101020D
    	
 
    	
Dissolved
    
	
Lily Navigation Corporation
    	
 
    	
Liberia
    	
 
    	
Z-20672
    	
 
    	
Annulled
    
	
Lissos   Shipping (Private) Ltd
    	
 
    	
Singapore
    	
 
    	
200101021N
    	
 
    	
Dissolved
    
	
Maedspirit Shipping Limited
    	
 
    	
Cyprus
    	
 
    	
HE 205645
    	
 
    	
Struck Off
    
	
Magellan Marine Inc.
    	
 
    	
Liberia
    	
 
    	
C-105315
    	
 
    	
Annulled
    
	
Maria C Maritime Inc.
    	
 
    	
Liberia
    	
 
    	
Z-12682
    	
 
    	
Dormant
    
	
Marinplus Shipping Limited
    	
 
    	
Cyprus
    	
 
    	
HE 143196
    	
 
    	
Not Yet Struck Off
    
	
Mercator Shipping Inc.
    	
 
    	
Liberia
    	
 
    	
Z-13400
    	
 
    	
Dormant
    
	
Orchid Navigation Corporation
    	
 
    	
Liberia
    	
 
    	
Z-20673
    	
 
    	
Dormant
    
	
Ortelius Maritime Inc.
    	
 
    	
Liberia
    	
 
    	
Z-13401
    	
 
    	
Dormant
    
	
Premium Shipping Limited
    	
 
    	
Cyprus
    	
 
    	
HE 140602
    	
 
    	
Not Yet Struck Off
    
	
Roberto C Maritime Inc.
    	
 
    	
Liberia
    	
 
    	
Z-12681
    	
 
    	
Dormant
    
	
Sedeberg Maritime Inc.
    	
 
    	
Liberia
    	
 
    	
C-104961
    	
 
    	
Dormant
    
	
Strondium Shipping Inc.
    	
 
    	
Liberia
    	
 
    	
Z-49872
    	
 
    	
Dormant
    
	
Titanium Holdings Inc.
    	
 
    	
Liberia
    	
 
    	
Z-49873
    	
 
    	
Dormant
    

 

149

 

	
Name of Group
   Company
    	
 
    	
Address
    	
 
    	
Registration
   number.
   Jurisdiction of
   Incorporation is
   Liberia unless
   indicated
    	
 
    	
Status
    
	
Winterberg Maritime Inc.
    	
 
    	
Liberia
    	
 
    	
C-104960
    	
 
    	
Dormant
    

 

150

 

Part 2

 

Original Participating Lenders

 

	
Participating Lender
    	
 
    	
Aggregate
   Commitment
    US$ (dollars)
    	
 
    	
%
   Commitment
   at date of
   Agreement
    	
 
    	
Utilised
   Commitment
    	
 
    	
Unutilised
   Commitment
    	
 
    	
Facility
   Agreement
    
	
ABN AMRO Bank N.V. (formerly Fortis Bank (Nederland) N.V.)
    	
 
    	
126,600,000
    	
 
    	
0.64
    	
 
    	
126,600,000
    	
 
    	
0
    	
 
    	
ABN AMRO Facility
    
	
 
    	
 
    	
18,550,000

 

Total:

 

145,150,000
    	
 
    	
4.33

 

Total:

 

4.97
    	
 
    	
0
    	
 
    	
18,550,000
    	
 
    	
ABN AMRO Club Facility
    
	
Aegean Baltic Bank SA
    	
 
    	
6,643,250
    	
 
    	
0.22
    	
 
    	
6,643,250
    	
 
    	
0
    	
 
    	
HSH Facility
    
	
 
    	
 
    	
1,250,000

 

Total:

 

7,893,250
    	
 
    	
0.05

 

Total:

 

0.27
    	
 
    	
0
    	
 
    	
1,250,000
    	
 
    	
New HSH Facility
    
	
Citibank, N.A., London Branch
    	
 
    	
65,000,000
    	
 
    	
2.22
    	
 
    	
0
    	
 
    	
65,000,000
    	
 
    	
Citi/Eurobank Facility
    
	
Commerzbank AG, Filiale Luxembourg
    	
 
    	
14,583,333.26
    	
 
    	
0.50

 

0.50
    	
 
    	
14,583,333.26
    	
 
    	
0
    	
 
    	
HSH US$60 million Facility
    
	
Credit Suisse AG
    	
 
    	
124,791,000
    	
 
    	
4.27
    	
 
    	
105,531,772.57
    	
 
    	
19,259,197.32
    	
 
    	
DSB Facility
    
	
 
    	
 
    	
221,100,000

 

33,320,000

 

Total:

 

379,211,000
    	
 
    	
7.57

 

1.14

 

Total:

 

12.98
    	
 
    	
221,100,000

 

0
    	
 
    	
0

 

33,320,000
    	
 
    	
Credit Suisse Facility

 

New Club Facility
    

 

151

 

	
Participating Lender
    	
 
    	
Aggregate
   Commitment
    US$ (dollars)
    	
 
    	
%
   Commitment
   at date of
   Agreement
    	
 
    	
Utilised
   Commitment
    	
 
    	
Unutilised
   Commitment
    	
 
    	
Facility
   Agreement
    
	
Deutsche Bank AG Filiale Deutschlandgeschäft
    	
 
    	
180,000,000
    	
 
    	
6.16
    	
 
    	
180,000,000
    	
 
    	
0
    	
 
    	
Deutsche Bank Facility
    
	
 
    	
 
    	
17,340,000

 

Total:

 

197,340,000
    	
 
    	
0.59

 

Total:

 

6.75
    	
 
    	
0
    	
 
    	
17,340,000
    	
 
    	
New Club Facility
    
	
Deutsche Schiffsbank Aktiengesellschaft
    	
 
    	
124,791,000
    	
 
    	
4.27
    	
 
    	
105,531,772.57
    	
 
    	
19,259,197.32
    	
 
    	
DSB Facility
    
	
 
    	
 
    	
13,425,000

 

Total:

 

138,216,000
    	
 
    	
0.45

 

Total:

 

4.73
    	
 
    	
0
    	
 
    	
13,425,000
    	
 
    	
New Club Facility
    
	
Emporiki Bank of Greece SA
    	
 
    	
48,918,000
    	
 
    	
1.67
    	
 
    	
41,368,454.85
    	
 
    	
7,549,605.35
    	
 
    	
DSB Facility
    
	
 
    	
 
    	
156,800,000

 

19,815,000

 

Total:

 

225,533,000
    	
 
    	
5.37

 

0.68

 

Total:

 

7.72
    	
 
    	
156,800,000

 

0
    	
 
    	
0

 

19,815,000
    	
 
    	
Emporiki Facility

 

New Club Facility
    
	
EFG Eurobank Ergasias S.A.
    	
 
    	
15,000,000
    	
 
    	
0.51
    	
 
    	
0
    	
 
    	
15,000,000
    	
 
    	
Citi/Eurobank Facility
    
	
HSH Nordbank AG
    	
 
    	
591,249,250
    	
 
    	
20.23
    	
 
    	
591,249,250
    	
 
    	
0
    	
 
    	
HSH Facility
    
	
 
    	
 
    	
20,416,666.67

 

111,250,000

 

Total:

 

722,915,916.67
    	
 
    	
0.70

 

3.81

 

Total:

 

24.74
    	
 
    	
20,416,666.67

 

0
    	
 
    	
0

 

111,250,000
    	
 
    	
HSH US$60 million Facility

 

New HSH Facility
    

 

152

 

	
Participating Lender
    	
 
    	
Aggregate
   Commitment
    US$ (dollars)
    	
 
    	
%
   Commitment
   at date of
   Agreement
    	
 
    	
Utilised
   Commitment
    	
 
    	
Unutilised
   Commitment
    	
 
    	
Facility
   Agreement
    
	
Lloyds TSB Bank plc
    	
 
    	
87,161,000
    	
 
    	
3.01
    	
 
    	
87,161,000
    	
 
    	
0
    	
 
    	
ABN AMRO Facility
    
	
 
    	
 
    	
12,780,000

 

Total:

 

99,941,000
    	
 
    	
0.44

 

Total:

 

3.45
    	
 
    	
0
    	
 
    	
12,780,000
    	
 
    	
ABN AMRO Club Facility
    
	
National Bank of Greece S.A.
    	
 
    	
39,439,252.34
    	
 
    	
1.35
    	
 
    	
39,439,252.34
    	
 
    	
0
    	
 
    	
ABN AMRO Facility
    
	
 
    	
 
    	
5,770,000

 

Total:

 

45,209,252.34
    	
 
    	
0.20

 

Total:

 

1.55
    	
 
    	
0
    	
 
    	
5,770,000
    	
 
    	
ABN AMRO Club Facility
    
	
Piraeus Bank A.E.
    	
 
    	
66,432,500
    	
 
    	
2.27
    	
 
    	
66,432,500
    	
 
    	
0
    	
 
    	
HSH Facility
    
	
 
    	
 
    	
12,500,000

 

Total:

 

78,932,500
    	
 
    	
3.43

 

Total:

 

2.70
    	
 
    	
0
    	
 
    	
12,500,000
    	
 
    	
New HSH Facility
    
	
The Royal Bank of Scotland plc
    	
 
    	
686,800,000
    	
 
    	
23.51
    	
 
    	
611,812,200
    	
 
    	
74,987,800
    	
 
    	
RBS Facility
    
	
Total
    	
 
    	
100,000,000

 

Total:

 

786,800,000

 
    	
 
    	
3.42

 

Total:

 

26.93
    	
 
    	
0
    	
 
    	
100,000,000
    	
 
    	
New RBS Facility
    

 

153

 

Part 3

 

Original Relevant Facility Agents

 

each Facility Agreement as defined in Schedule 3 or Schedule 4

 

1                                ABN AMRO Bank N.V. (under the ABN AMRO Facility Agreement)

 

2                                Deutsche Bank AG Filiale Deutschlandgeschäft (under the Deutsche Bank Facility Agreement)

 

3                                Deutsche Schiffsbank Aktiengesellschaft (under the DSB Facility Agreement)

 

4                                Aegean Baltic Bank S.A. (under the HSH Facility Agreement)

 

5                                Aegean Baltic Bank S.A. (under the HSH US$60 million Facility Agreement)

 

6                                The Royal Bank of Scotland plc (under the RBS Facility Agreement)

 

7                                ABN AMRO Bank N.V.  (under the New ABN AMRO Club Facility Agreement)

 

8                                Citibank International plc (under the Citi/Eurobank Facility Agreement)

 

9                                Aegean Baltic Bank S.A. (under the New HSH Facility Agreement)

 

10                          Deutsche Schiffsbank Aktiengesellschaft (under the New Club Facility Agreement)

 

11                          Royal Bank of Scotland plc (under the New RBS Facility Agreement)

 

Part 4

 

Original Relevant Security Trustees

 

each Facility Agreement as defined in Schedule 3 or Schedule 4

 

1                                ABN AMRO Bank N.V. (under the ABN AMRO Facility Agreement)

 

2                                Deutsche Bank AG Filiale Deutschlandgeschäft (under the Deutsche Bank Facility Agreement)

 

3                                Deutsche Schiffsbank Aktiengesellschaft (under the DSB Facility Agreement)

 

4                                Aegean Baltic Bank S.A. (under the HSH Facility Agreement)

 

5                                HSH Nordbank AG (under the HSH US$60 million Facility Agreement)

 

6                                The Royal Bank of Scotland plc (under the RBS Facility Agreement)

 

7                                ABN AMRO Bank N.V. (under the New ABN AMRO Club Facility Agreement)

 

8                                Citibank, N.A., London Branch (under the Citi/Eurobank Facility Agreement)

 

9                                Aegean Baltic Bank S.A. (under the New HSH Facility Agreement)

 

10                          Deutsche Schiffsbank Aktiengesellschaft (under the New Club Facility Agreement)

 

11                          Royal Bank of Scotland plc (under the New RBS Facility Agreement)

 

154

 

Part 5

 

Original Hedge Counterparties

 

each Facility Agreement as defined in Schedule 3 or Schedule 4

 

1                                Citibank, N.A. (under the Citi ISDA Agreement)

 

2                                EFG Eurobank Ergasias S.A. (under the EFG ISDA Agreement)

 

3                                Royal Bank of Scotland plc (in relation to the RBS Facility Agreement)

 

4                                HSH Nordbank AG (in relation to the HSH Facility Agreement)

 

5                                HSH Nordbank AG (in relation to the HSH $60 million Facility Agreement)

 

6                                Credit Suisse AG (in relation to the Credit Suisse Facility Agreement)

 

7                                Credit Suisse AG (in relation to the DSB Facility Agreement)

 

8                                Deutsche Schiffsbank Aktiengesellschaft (in relation to the DSB Facility Agreement)

 

9                                Deutsche Bank AG (in relation to the Deutsche Bank Facility Agreement)

 

10                          Emporiki Bank of Greece S.A. (in relation to the DSB Facility Agreement)

 

11                          Emporiki Bank of Greece S.A. (in relation to the Emporiki Facility Agreement)

 

12                          ABN AMRO Bank N.V. (in relation to the ABN AMRO Facility Agreement)

 

13                          Lloyds TSB Bank Plc (in relation to the ABN AMRO Facility Agreement)

 

14                          National Bank of Greece S.A. (in relation to the ABN AMRO Facility Agreement)

 

15                          ABN AMRO Bank N.V. (in relation to the New ABN AMRO Club Facility Agreement)

 

16                         Lloyds TSB Bank Plc (in relation to the New ABN AMRO Club Facility Agreement)

 

17                          Citibank, N.A. (in relation to the Citi/Eurobank Facility Agreement)

 

18                          EFG Eurobank Ergasias S.A. (in relation to the Citi/Eurobank Facility Agreement)

 

19                          HSH Nordbank AG (in relation to the New HSH Facility Agreement)

 

20                          Aegean Baltic Bank S.A. (in relation to the New HSH Facility Agreement)

 

21                          Piraeus Bank A.E. (in relation to the New HSH Facility Agreement)

 

22                          Deutsche Schiffsbank Aktiengesellschaft (in relation to the New Club Facility Agreement)

 

23                          Credit Suisse AG (in relation to the New Club Facility Agreement)

 

24                          Emporiki Bank of Greece S.A. (in relation to the New Club Facility Agreement)

 

25                          Deutsche Bank AG (in relation to the New Club Facility Agreement)

 

155

 

Part 6

 

Original Further Finance Parties

 

each Facility Agreement as defined in Schedule 3 or Schedule 4

 

1                                ABN AMRO Bank N.V. (as Lead Arranger and Account Bank under the under the ABN AMRO Facility Agreement)

 

2                                Deutsche Bank AG Filiale Deutschlandgeschäft (as Account Bank under the Deutsche Bank Facility Agreement)

 

3                                Credit Suisse AG (as Account Bank in relation to the DSB Facility Agreement)

 

4                                Emporiki Bank of Greece S.A. (as Account Bank under the Emporiki Facility Agreement)

 

5                                Lloyds TSB Bank Plc (as Co-Arranger under the ABN AMRO Facility Agreement)

 

6                                National Bank of Greece S.A. (as Co-Arranger under the ABN AMRO Facility Agreement)

 

7                                Aegean Baltic Bank S.A. (as Arranger under the HSH Facility Agreement)

 

8                                HSH Nordbank AG (as Arranger under the HSH Facility Agreement)

 

9                                Aegean Baltic Bank S.A. and HSH Nordbank AG (as assignees in relation to the earnings account pledge under the HSH Facility Agreement)

 

10                          HSH Nordbank AG (as Paying Agent under the HSH US$60 million Facility Agreement)

 

11                          The Royal Bank of Scotland plc (as Account Bank and Issuing Bank under the RBS Facility Agreement)

 

12                          Deutsche Schiffsbank Aktiengesellschaft (as Account Bank under the New Club Facility Agreement)

 

13                          The Account Bank (as defined in the ABN AMRO Club Facility Agreement)

 

14                          The Account Bank (as defined in the Citi/Eurobank Facility Agreement)

 

15                          The Account Bank (as defined in the New HSH Facility Agreement)

 

16                          The Account Bank (as defined in the New RBS Facility Agreement)

 

156

 

Schedule 2

 

Fixed Amortisation Schedule

 

	
Quarter Date
    	
 
    	
Citi/
   Eurobank
   Facility
   Agreement
    	
 
    	
New Club
   Facility
   Agreement
    	
 
    	
Credit
   Suisse
   Facility
   Agreement
    	
 
    	
Deutsche
   Bank
   Facility
   Agreement
    	
 
    	
DSB Facility
   Agreement
    	
 
    	
Emporiki
   Facility
   Agreement
    	
 
    	
ABN-AMRO
   Facility
   Agreement
    	
 
    	
ABN-AMRO
   Club
   Facility
   Agreement
    	
 
    	
HSH US$60
   million
   Facility
   Agreement
    	
 
    	
RBS Facility
   Agreement
    	
 
    	
New RBS
   Facility
   Agreement
    	
 
    	
HSH Facility
   Agreement
    	
 
    	
New HSH
   Facility
   Agreement
    	
 
    	
Amortization
    Totals
    	
 
    
	
May 15, 2013
    	
 
    	
2.277.881
    	
 
    	
0
    	
 
    	
1.752.335
    	
 
    	
935.820
    	
 
    	
3.214.434
    	
 
    	
1.504.687
    	
 
    	
1.781.049
    	
 
    	
2.511.349
    	
 
    	
251.454
    	
 
    	
202.087
    	
 
    	
1.821.515
    	
 
    	
0
    	
 
    	
3.228.784
    	
 
    	
19.481.395
    	
 
    
	
August 15, 2013
    	
 
    	
0
    	
 
    	
5.898.894
    	
 
    	
1.826.680
    	
 
    	
982.329
    	
 
    	
3.338.709
    	
 
    	
1.564.676
    	
 
    	
1.859.975
    	
 
    	
0
    	
 
    	
262.573
    	
 
    	
464.378
    	
 
    	
1.762.229
    	
 
    	
0
    	
 
    	
3.206.660
    	
 
    	
21.167.103
    	
 
    
	
November 15, 2013
    	
 
    	
2.402.983
    	
 
    	
0
    	
 
    	
1.906.545
    	
 
    	
0
    	
 
    	
3.471.018
    	
 
    	
1.628.985
    	
 
    	
1.944.781
    	
 
    	
2.634.102
    	
 
    	
274.636
    	
 
    	
1.420.886
    	
 
    	
2.151.766
    	
 
    	
0
    	
 
    	
3.646.467
    	
 
    	
21.482.169
    	
 
    
	
February 15, 2014
    	
 
    	
0
    	
 
    	
6.113.632
    	
 
    	
1.962.767
    	
 
    	
0
    	
 
    	
3.561.938
    	
 
    	
1.673.492
    	
 
    	
2.005.172
    	
 
    	
0
    	
 
    	
283.189
    	
 
    	
1.520.787
    	
 
    	
2.036.788
    	
 
    	
0
    	
 
    	
3.565.205
    	
 
    	
22.722.970
    	
 
    
	
May 15, 2014
    	
 
    	
2.459.713
    	
 
    	
0
    	
 
    	
1.934.127
    	
 
    	
1.005.666
    	
 
    	
3.503.985
    	
 
    	
1.642.748
    	
 
    	
1.957.411
    	
 
    	
2.646.762
    	
 
    	
252.671
    	
 
    	
408.850
    	
 
    	
2.295.108
    	
 
    	
0
    	
 
    	
3.835.489
    	
 
    	
21.942.530
    	
 
    
	
August 15, 2014
    	
 
    	
0
    	
 
    	
6.222.914
    	
 
    	
1.974.129
    	
 
    	
1.079.861
    	
 
    	
2.655.832
    	
 
    	
1.726.812
    	
 
    	
1.017.232
    	
 
    	
0
    	
 
    	
130.397
    	
 
    	
1.599.688
    	
 
    	
2.251.855
    	
 
    	
0
    	
 
    	
3.831.512
    	
 
    	
22.490.232
    	
 
    
	
November 15,   2014
    	
 
    	
2.588.228
    	
 
    	
206.592
    	
 
    	
1.154.888
    	
 
    	
1.115.206
    	
 
    	
3.767.421
    	
 
    	
1.727.177
    	
 
    	
2.122.787
    	
 
    	
2.768.000
    	
 
    	
1.191.380
    	
 
    	
1.098.367
    	
 
    	
2.642.804
    	
 
    	
0
    	
 
    	
4.271.190
    	
 
    	
24.654.040
    	
 
    
	
February 15,   2015
    	
 
    	
0
    	
 
    	
6.433.528
    	
 
    	
2.163.372
    	
 
    	
1.166.894
    	
 
    	
3.881.310
    	
 
    	
736.764
    	
 
    	
2.203.362
    	
 
    	
0
    	
 
    	
1.217.343
    	
 
    	
2.200.848
    	
 
    	
2.535.595
    	
 
    	
0
    	
 
    	
4.197.631
    	
 
    	
26.736.647
    	
 
    
	
May 15, 2015
    	
 
    	
2.635.364
    	
 
    	
436.598
    	
 
    	
2.121.152
    	
 
    	
1.125.534
    	
 
    	
3.803.566
    	
 
    	
627.217
    	
 
    	
2.140.047
    	
 
    	
2.767.882
    	
 
    	
2.074.934
    	
 
    	
2.065.351
    	
 
    	
2.780.954
    	
 
    	
0
    	
 
    	
4.443.151
    	
 
    	
27.021.750
    	
 
    
	
August 15, 2015
    	
 
    	
0
    	
 
    	
6.526.737
    	
 
    	
1.133.116
    	
 
    	
1.245.113
    	
 
    	
3.039.990
    	
 
    	
1.880.229
    	
 
    	
2.318.947
    	
 
    	
44.101
    	
 
    	
2.144.479
    	
 
    	
1.150.012
    	
 
    	
2.754.782
    	
 
    	
0
    	
 
    	
3.303.674
    	
 
    	
25.541.180
    	
 
    
	
November 15,   2015
    	
 
    	
2.764.606
    	
 
    	
932.566
    	
 
    	
2.290.479
    	
 
    	
1.248.117
    	
 
    	
4.086.797
    	
 
    	
1.905.310
    	
 
    	
2.339.250
    	
 
    	
2.886.096
    	
 
    	
2.196.255
    	
 
    	
0
    	
 
    	
5.841.106
    	
 
    	
0
    	
 
    	
7.568.520
    	
 
    	
34.059.102
    	
 
    
	
February 15,   2016
    	
 
    	
3.807
    	
 
    	
6.760.656
    	
 
    	
2.316.715
    	
 
    	
1.259.682
    	
 
    	
3.136.637
    	
 
    	
1.928.339
    	
 
    	
2.364.872
    	
 
    	
2.950.852
    	
 
    	
2.228.804
    	
 
    	
0
    	
 
    	
3.131.331
    	
 
    	
0
    	
 
    	
4.891.276
    	
 
    	
30.972.971
    	
 
    
	
May 15, 2016
    	
 
    	
2.837.312
    	
 
    	
1.217.042
    	
 
    	
2.311.093
    	
 
    	
1.241.754
    	
 
    	
3.908.756
    	
 
    	
1.915.740
    	
 
    	
2.340.234
    	
 
    	
2.328.178
    	
 
    	
2.216.935
    	
 
    	
2.257.871
    	
 
    	
5.968.038
    	
 
    	
0
    	
 
    	
7.735.129
    	
 
    	
36.278.082
    	
 
    
	
August 15, 2016
    	
 
    	
117.046
    	
 
    	
6.781.480
    	
 
    	
2.363.005
    	
 
    	
1.275.490
    	
 
    	
3.130.620
    	
 
    	
1.956.307
    	
 
    	
1.336.190
    	
 
    	
2.269.397
    	
 
    	
2.251.304
    	
 
    	
2.354.111
    	
 
    	
3.330.061
    	
 
    	
0
    	
 
    	
5.110.587
    	
 
    	
32.275.598
    	
 
    
	
November 15,   2016
    	
 
    	
2.915.450
    	
 
    	
6.957.119
    	
 
    	
2.501.102
    	
 
    	
1.560.666
    	
 
    	
4.351.101
    	
 
    	
2.000.241
    	
 
    	
2.429.681
    	
 
    	
3.051.335
    	
 
    	
2.309.237
    	
 
    	
1.607.407
    	
 
    	
6.171.021
    	
 
    	
0
    	
 
    	
7.998.153
    	
 
    	
43.852.513
    	
 
    
	
February 15,   2017
    	
 
    	
2.949.831
    	
 
    	
7.059.478
    	
 
    	
2.506.824
    	
 
    	
1.558.878
    	
 
    	
4.375.985
    	
 
    	
2.007.583
    	
 
    	
2.427.351
    	
 
    	
883.056
    	
 
    	
2.341.971
    	
 
    	
3.747.720
    	
 
    	
6.174.407
    	
 
    	
875.651
    	
 
    	
8.029.857
    	
 
    	
44.938.592
    	
 
    
	
May 15, 2017
    	
 
    	
2.903.578
    	
 
    	
0
    	
 
    	
2.426.834
    	
 
    	
1.486.743
    	
 
    	
4.248.812
    	
 
    	
1.939.504
    	
 
    	
4.640.760
    	
 
    	
0
    	
 
    	
2.301.575
    	
 
    	
2.464.448
    	
 
    	
6.217.359
    	
 
    	
0
    	
 
    	
8.061.178
    	
 
    	
36.690.791
    	
 
    
	
August 15, 2017
    	
 
    	
2.850.551
    	
 
    	
0
    	
 
    	
3.362.623
    	
 
    	
2.234.843
    	
 
    	
5.590.448
    	
 
    	
2.608.829
    	
 
    	
5.612.147
    	
 
    	
0
    	
 
    	
2.363.784
    	
 
    	
3.684.247
    	
 
    	
4.923.636
    	
 
    	
842.527
    	
 
    	
1.264.669
    	
 
    	
35.338.304
    	
 
    
	
November 15,   2017
    	
 
    	
1.587.057
    	
 
    	
0
    	
 
    	
4.360.354
    	
 
    	
3.034.030
    	
 
    	
7.026.905
    	
 
    	
3.322.438
    	
 
    	
5.599.248
    	
 
    	
0
    	
 
    	
2.426.015
    	
 
    	
3.765.512
    	
 
    	
750.550
    	
 
    	
0
    	
 
    	
0
    	
 
    	
31.872.109
    	
 
    
	
February 15,   2018
    	
 
    	
0
    	
 
    	
0
    	
 
    	
4.405.765
    	
 
    	
3.063.339
    	
 
    	
7.108.066
    	
 
    	
3.358.201
    	
 
    	
3.698.803
    	
 
    	
0
    	
 
    	
1.570.181
    	
 
    	
4.458.377
    	
 
    	
0
    	
 
    	
6.489.279
    	
 
    	
0
    	
 
    	
34.152.011
    	
 
    
	
May 15, 2018
    	
 
    	
0
    	
 
    	
0
    	
 
    	
4.307.337
    	
 
    	
2.975.581
    	
 
    	
6.955.535
    	
 
    	
3.277.066
    	
 
    	
5.643.993
    	
 
    	
0
    	
 
    	
0
    	
 
    	
5.159.159
    	
 
    	
0
    	
 
    	
9.266.635
    	
 
    	
0
    	
 
    	
37.585.306
    	
 
    

 

157

 

	
Quarter Date
    	
 
    	
Citi/
   Eurobank
   Facility
   Agreement
    	
 
    	
New Club
   Facility
   Agreement
    	
 
    	
Credit
   Suisse
   Facility
   Agreement
    	
 
    	
Deutsche
   Bank
   Facility
   Agreement
    	
 
    	
DSB Facility
   Agreement
    	
 
    	
Emporiki
   Facility
   Agreement
    	
 
    	
ABN-AMRO
   Facility
   Agreement
    	
 
    	
ABN-AMRO
   Club
   Facility
   Agreement
    	
 
    	
HSH US$60
   million
   Facility
   Agreement
    	
 
    	
RBS Facility
   Agreement
    	
 
    	
New RBS
   Facility
   Agreement
    	
 
    	
HSH Facility
   Agreement
    	
 
    	
New HSH
   Facility
   Agreement
    	
 
    	
Amortization
    Totals
    	
 
    
	
August 15, 2018
    	
 
    	
0
    	
 
    	
0
    	
 
    	
4.454.943
    	
 
    	
3.081.398
    	
 
    	
7.180.386
    	
 
    	
3.387.329
    	
 
    	
5.833.503
    	
 
    	
0
    	
 
    	
0
    	
 
    	
9.811.071
    	
 
    	
0
    	
 
    	
10.650.028
    	
 
    	
0
    	
 
    	
44.398.658
    	
 
    
	
November 15,   2018
    	
 
    	
0
    	
 
    	
0
    	
 
    	
4.578.207
    	
 
    	
2.147.676
    	
 
    	
7.376.901
    	
 
    	
3.480.878
    	
 
    	
5.952.416
    	
 
    	
0
    	
 
    	
0
    	
 
    	
11.966.272
    	
 
    	
0
    	
 
    	
9.831.268
    	
 
    	
0
    	
 
    	
45.333.618
    	
 
    
	
December 31,   2018 
    	
 
    	
0
    	
 
    	
0
    	
 
    	
6.371.131
    	
 
    	
2.627.018
    	
 
    	
9.499.165
    	
 
    	
4.735.698
    	
 
    	
8.014.701
    	
 
    	
0
    	
 
    	
0
    	
 
    	
19.559.474
    	
 
    	
0
    	
 
    	
15.162.087
    	
 
    	
0
    	
 
    	
65.969.274
    	
 
    
	
Totals   per Facility
    	
 
    	
31.293.407
    	
 
    	
61.547.236
    	
 
    	
66.485.523
    	
 
    	
37.451.638
    	
 
    	
112.214.317
    	
 
    	
52.536.250
    	
 
    	
77.583.912
    	
 
    	
27.741.110
    	
 
    	
30.289.117
    	
 
    	
82.966.923
    	
 
    	
65.540.905
    	
 
    	
53.117.475
    	
 
    	
88.189.132
    	
 
    	
786.956.945
    	
 
    

 

Schedule 1

 

158

 

Schedule 3

 

Existing Facility Agreements and Existing Hedging Agreements

 

Part 1

 

	
Existing
   Facility
   Agreement
    	
 
    	
Current
    Commitment
    US$
   (dollars)
    	
 
    	
Vessel(s)
    	
 
    	
Lenders
    	
 
    	
Other Parties
    
	
US$253,200,000 Loan Agreement dated 29 July 2008 (the ABN AMRO Facility Agreement)
    	
 
    	
253,200,000
    	
 
    	
YM Seattle

 

YM Vancouver

 

YM Colombo

 

YM Singapore
    	
 
    	
ABN AMRO Bank N.V.

 

Lloyds TSB Bank Plc

 

National Bank of Greece S.A.
    	
 
    	
ABN AMRO Bank N.V. as Lead Arranger, Agent, Security Trustee and Swap   Bank

 

Lloyds TSB Bank Plc as Co-Arranger and Swap Bank

 

National Bank of Greece S.A. as Co-Arranger and Swap Bank
    
	
US$221,600,000 Secured Term Loan Facility dated 9 May 2008 (the Credit Suisse Facility Agreement)
    	
 
    	
221,100,000
    	
 
    	
Zim Luanda

 

CMA CGM Nerval

 

YM Mandate
    	
 
    	
Credit Suisse AG
    	
 
    	
N/A
    
	
US$180,000,000 Senior Secured Term Loan Facility dated 30   May 2008 (the Deutsche Bank Facility   Agreement)
    	
 
    	
180,000,000
    	
 
    	
Zim Rio Grande

 

Zim Sao Paolo

 

Zim Kingston
    	
 
    	
Deutsche Bank AG Filiale Deutschlandgeschäft
    	
 
    	
Deutsche Bank AG Filiale Deutschlandgeschäft as Agent and Security   Trustee

 

Deutsche Bank AG as Swap Bank
    
	
US$299,000,000 Secured Term Loan Facility dated 2 February 2009   (the DSB Facility
    	
 
    	
298,500,000
    	
 
    	
Zim Dalian

 

Hanjin Santos

 

Builder’s Hull
    	
 
    	
Deutsche Schiffsbank Aktiengesellschaft

 

Credit Suisse AG

 

Emporiki Bank of
    	
 
    	
Deutsche Schiffsbank Aktiengesellschaft as Agent, Security Trustee and   Swap Bank
    

 

159

 

	
Existing
   Facility
   Agreement
    	
 
    	
Current
    Commitment
    US$
   (dollars)
    	
 
    	
Vessel(s)
    	
 
    	
Lenders
    	
 
    	
Other Parties
    
	
Agreement)
    	
 
    	
 
    	
 
    	
No. N-223

 

Builder’s Hull No. Z00001

 

YM Maturity
    	
 
    	
Greece S.A.
    	
 
    	
Credit Suisse AG and

 

Emporiki Bank of Greece S.A as Swap Banks
    
	
US$156,800,000 Loan Facility Dated 15 February 2008 (the Emporiki Facility Agreement)
    	
 
    	
156,800,000
    	
 
    	
CMA CGM Moliere

 

CMA CGM Musset
    	
 
    	
Emporiki Bank of Greece S.A.
    	
 
    	
N/A
    
	
Revolving Credit and Term Loan Facility of up to US$700,000,000 dated   14 November 2006 (the HSH Facility Agreement)
    	
 
    	
664,325,000
    	
 
    	
Shenzhen Dragon

 

Hyundai Duke

 

California Dragon

 

Independence

 

Jiangsu Dragon

 

Marathonas

 

Maersk Messologi

 

Maersk Mytilini

 

SCI Pride

 

YM Yantian
    	
 
    	
HSH Nordbank AG

 

Aegean Baltic Bank S.A.

 

Piraeus Bank A.E.
    	
 
    	
Aegean Baltic Bank S.A. as Arranger, Agent and Security Trustee

 

HSH Nordbank AG as Arranger and Swap Bank
    

 

160

 

	
Existing
   Facility
   Agreement
    	
 
    	
Current
    Commitment
    US$
   (dollars)
    	
 
    	
Vessel(s)
    	
 
    	
Lenders
    	
 
    	
Other Parties
    
	
 
    	
 
    	
 
    	
 
    	
Hyundai Vladivostock

 

Hyundai Advance

 

Hyundai Stride

 

Hyundai Sprinter

 

Hyundai Future

 

Lotus

 

Builder’s Hull No. Z00002

 

Builder’s Hull No. Z00003

 

Builder’s Hull No. Z00004

 

Henry

 

Hyundai Commodore

 

Hanjin Montreal

 

Al Rayyan
    	
 
    	
 
    	
 
    	
 
    

 

161

 

	
Existing
   Facility
   Agreement
    	
 
    	
Current
    Commitment
    US$
   (dollars)
    	
 
    	
Vessel(s)
    	
 
    	
Lenders
    	
 
    	
Other Parties
    
	
The Short and Long Term Loan Facilities of up to US$60,000,000 dated   17 December 2002 (the HSH US$60 million   Facility Agreement)
    	
 
    	
35,000,000
    	
 
    	
Deva (formerly Bunga Raya Tujuh)

 

Bunga Raya Tiga
    	
 
    	
HSH Nordbank AG

 

Commerzbank AG, Filiale Luxembourg
    	
 
    	
Aegean Baltic Bank S.A. as Agent

 

HSH Nordbank AG as Paying Agent, Security Trustee and Swap Agent
    
	
The Revolving Credit Facility of up to US$700 million dated 20   February 2007 (the RBS Facility  Agreement)
    	
 
    	
686,800,000
    	
 
    	
CMA CGA RACINE (formerly Builder’s Hull No. S4005)

 

Hanjin Buenos Aires

 

Builder’s Hull No. N-221

 

Builder’s Hull No. N-222

 

Hyundai Progress

 

Hyundai Highway

 

Hyundai Bridge

 

Builder’s Hull No. H1022A

 

ZIM Monaco  

 

Hyundai Federal
    	
 
    	
The Royal Bank of Scotland plc
    	
 
    	
The Royal Bank of Scotland plc as Issuing Bank, Swap Bank, Agent and   Security Trustee
    

 

162

 

Part 2

 

Existing Hedging Agreements

 

1                                2002 ISDA Master Agreement dated 5 December 2007 as amended on 21 January 2008 between Citibank, N.A. and Danaos Corporation (the Citi ISDA Agreement).

 

2                                1992 ISDA Master Agreement dated 5 December 2007 between EFG Eurobank Ergasias S.A. and Danaos Corporation (the EFG ISDA Agreement).

 

3                                1992 ISDA Master Agreement dated 15 July 2008 between HSH Nordbank AG and Danaos Corporation (the HSH ISDA Agreement).

 

4                                1992 ISDA Master Agreement dated 20 February 2007 between Royal Bank of Scotland plc and Danaos Corporation.  ISDA Novation Agreement dated 29 June 2007 and effective from 15 June 2007, relating to ISDA Master Agreement dated 9 October 2003 between Royal Bank of Scotland plc, Danaos Shipping Company Limited and Danaos Corporation. ISDA Novation Agreement dated 29 June 2007 and effective from 15 June 2007 relating to ISDA Master Agreement dated 9 October 2003 between Royal Bank of Scotland plc, Danaos Shipping Company Limited and Danaos Corporation, as amended and novated from time to time (the RBS ISDA Agreements).

 

5                               1992 ISDA Master Agreement dated 15 June 2007 between Royal Bank of Scotland plc and Danaos Corporation

 

6                                1992 ISDA Master Agreement dated 14 November 2006 between HSH Nordbank AG and Danaos Corporation

 

7                                2002 ISDA Master Agreement dated 26 March 2009 between Credit Suisse AG and Danaos Corporation (in relation to the DSB Facility Agreement)

 

8                                2002 ISDA Master Agreement dated 9 May 2008 between Credit Suisse AG and Danaos Corporation (in relation to the Credit Suisse Facility Agreement)

 

9                                2002 ISDA Master Agreement dated 26 March 2009 between Deutsche Schiffsbank Aktiengesellschaft and Danaos Corporation (in relation to the DSB Facility Agreement)

 

10                          2002 Master Agreement dated 2 July 2008 between Deutsche Bank AG and Danaos Corporation (in relation to the Deutsche Bank AG Facility Agreement)

 

11                          2002 ISDA Master Agreement dated 26 March 2009 between Emporiki Bank of Greece S.A. and Danaos Corporation (in relation to the DSB Facility Agreement)

 

12                          1992 ISDA Master Agreement dated 15 February 2008 between Emporiki Bank of Greece S.A. and Danaos Corporation (in relation to the Emporiki Facility Agreement)

 

13                          2002 ISDA Master Agreement dated 29 July 2008 between ABN AMRO Bank N.V. and Danaos Corporation (in relation to the ABN AMRO Facility Agreement)

 

14                          2002 ISDA Master Agreement dated 29 July 2008 between Lloyds TSB Bank Plc and Danaos Corporation (in relation to the ABN AMRO Facility Agreement)

 

15                          2002 ISDA Master Agreement dated 29 July 2008 between National Bank of Greece S.A. and Danaos (in relation to the ABN AMRO Facility Agreement)

 

163

 

Part 3   Existing Hedging Transactions

 

Interest rate swap agreements converting floating interest rate exposure into fixed are as follows (in thousands):

 

	
Counter-party
    	
 
    	
Contract
   Trade Date
    	
 
    	
Effective Date
    	
 
    	
Termination
   Date
    	
 
    	
Notional
   Amount on
   Effective Date
    	
 
    	
Fixed Rate
   (Danaos pays)
    	
 
    	
Floating Rate
   (Danaos
   receives)
    	
 
    	
Fair Value
    September 30,
    2010
    	
 
    	
Fair Value
    December 31,
    2009
    	
 
    
	
RBS
    	
 
    	
03/09/2007
    	
 
    	
3/15/2010
    	
 
    	
3/15/2015
    	
 
    	
$
    	
200,000
    	
 
    	
5.07% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(33,277
    	
)
    	
$
    	
(19,100
    	
)
    
	
RBS
    	
 
    	
03/16/2007
    	
 
    	
3/20/2009
    	
 
    	
3/20/2014
    	
 
    	
$
    	
200,000
    	
 
    	
4.922% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(27,270
    	
)
    	
$
    	
(19,264
    	
)
    
	
RBS
    	
 
    	
11/28/2006
    	
 
    	
11/28/2008
    	
 
    	
11/28/2013
    	
 
    	
$
    	
100,000
    	
 
    	
4.855% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(12,545
    	
)
    	
$
    	
(9,234
    	
)
    
	
RBS
    	
 
    	
11/28/2006
    	
 
    	
11/28/2008
    	
 
    	
11/28/2013
    	
 
    	
$
    	
100,000
    	
 
    	
4.875% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(12,608
    	
)
    	
$
    	
(9,310
    	
)
    
	
RBS
    	
 
    	
12/01/2006
    	
 
    	
11/28/2008
    	
 
    	
11/28/2013
    	
 
    	
$
    	
100,000
    	
 
    	
4.78% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(12,307
    	
)
    	
$
    	
(8,947
    	
)
    
	
HSH Nordbank
    	
 
    	
12/06/2006
    	
 
    	
12/8/2009
    	
 
    	
12/8/2014
    	
 
    	
$
    	
400,000
    	
 
    	
4.855% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(60,570
    	
)
    	
$
    	
(37,850
    	
)
    
	
CITI
    	
 
    	
04/17/2007
    	
 
    	
4/17/2008
    	
 
    	
4/17/2015
    	
 
    	
$
    	
200,000
    	
 
    	
5.124% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(34,113
    	
)
    	
$
    	
(21,650
    	
)
    
	
CITI
    	
 
    	
04/20/2007
    	
 
    	
4/20/2010
    	
 
    	
4/20/2015
    	
 
    	
$
    	
200,000
    	
 
    	
5.1775%p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(34,629
    	
)
    	
$
    	
(19,210
    	
)
    

 

164

 

	
Counter-party
    	
 
    	
Contract
   Trade Date
    	
 
    	
Effective Date
    	
 
    	
Termination
   Date
    	
 
    	
Notional
   Amount on
   Effective Date
    	
 
    	
Fixed Rate
   (Danaos pays)
    	
 
    	
Floating Rate
   (Danaos
   receives)
    	
 
    	
Fair Value
    September 30,
    2010
    	
 
    	
Fair Value
    December 31,
    2009
    	
 
    
	
RBS
    	
 
    	
09/13/2007
    	
 
    	
10/31/2007
    	
 
    	
10/31/2012
    	
 
    	
$
    	
500,000
    	
 
    	
4.745% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(43,445
    	
)
    	
$
    	
(40,333
    	
)
    
	
RBS
    	
 
    	
09/13/2007
    	
 
    	
9/15/2009
    	
 
    	
9/15/2014
    	
 
    	
$
    	
200,000
    	
 
    	
4.9775%p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(30,230
    	
)
    	
$
    	
(20,011
    	
)
    
	
RBS
    	
 
    	
11/16/2007
    	
 
    	
11/22/2010
    	
 
    	
11/22/2015
    	
 
    	
$
    	
100,000
    	
 
    	
5.07% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(17,261
    	
)
    	
$
    	
(6,561
    	
)
    
	
RBS
    	
 
    	
11/15/2007
    	
 
    	
11/19/2010
    	
 
    	
11/19/2015
    	
 
    	
$
    	
100,000
    	
 
    	
5.12% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(17,529
    	
)
    	
$
    	
(6,828
    	
)
    
	
Eurobank
    	
 
    	
12/06/2007
    	
 
    	
12/10/2010
    	
 
    	
12/10/2015
    	
 
    	
$
    	
200,000
    	
 
    	
4.8125%p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(31,683
    	
)
    	
$
    	
(10,348
    	
)
    
	
Eurobank
    	
 
    	
12/06/2007
    	
 
    	
12/10/2007
    	
 
    	
12/10/2010
    	
 
    	
$
    	
200,000
    	
 
    	
3.8925% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(1,419
    	
)
    	
$
    	
(6,306
    	
)
    
	
CITI
    	
 
    	
10/23/2007
    	
 
    	
10/25/2009
    	
 
    	
10/27/2014
    	
 
    	
$
    	
250,000
    	
 
    	
4.9975% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(38,639
    	
)
    	
$
    	
(25,290
    	
)
    
	
CITI
    	
 
    	
11/02/2007
    	
 
    	
11/6/2010
    	
 
    	
11/6/2015
    	
 
    	
$
    	
250,000
    	
 
    	
5.1% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(43,778
    	
)
    	
$
    	
(17,128
    	
)
    
	
CITI
    	
 
    	
11/26/2007
    	
 
    	
11/29/2010
    	
 
    	
11/30/2015
    	
 
    	
$
    	
100,000
    	
 
    	
4.98% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(16,764
    	
)
    	
$
    	
(6,070
    	
)
    
	
CITI
    	
 
    	
01/8/2008
    	
 
    	
1/10/2008
    	
 
    	
1/10/2011
    	
 
    	
$
    	
300,000
    	
 
    	
3.57% p.a.
    	
 
    	
USD LIBOR 3M
    	
 
    	
$
    	
(2,757
    	
)
    	
$
    	
(9,090
    	
)
    

 

165

 

	
Counter-party
    	
 
    	
Contract
   Trade Date
    	
 
    	
Effective Date
    	
 
    	
Termination
   Date
    	
 
    	
Notional
   Amount on
   Effective Date
    	
 
    	
Fixed Rate
   (Danaos pays)
    	
 
    	
Floating Rate
   (Danaos
   receives)
    	
 
    	
Fair Value
    September 30,
    2010
    	
 
    	
Fair Value
    December 31,
    2009
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
BBA
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CITI
    	
 
    	
02/07/2008
    	
 
    	
2/11/2011
    	
 
    	
2/11/2016
    	
 
    	
$
    	
200,000
    	
 
    	
4.695% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(29,479
    	
)
    	
$
    	
(8,035
    	
)
    
	
Eurobank
    	
 
    	
02/11/2008
    	
 
    	
5/31/2011
    	
 
    	
5/31/2015
    	
 
    	
$
    	
200,000
    	
 
    	
4.755% p.a.
    	
 
    	
USD LIBOR 3M BBA
    	
 
    	
$
    	
(25,277
    	
)
    	
$
    	
(6,993
    	
)
    
	
Total fair value
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
(452,499
    	
)
    	
$
    	
(307,558
    	
)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

166

 

The interest rate swap agreements converting fixed interest rate exposure into floating are as follows (in thousands):

 

	
Counter
   party
    	
 
    	
Contract
   trade Date
    	
 
    	
Effective
   Date
    	
 
    	
Termination
   Date
    	
 
    	
Notional
   Amount on
   Effective
   Date
    	
 
    	
Fixed Rate
    (Danaos
   receives)
    	
 
    	
Floating Rate
    (Danaos pays)
    	
 
    	
Fair Value
    September 30,
   2010
    	
 
    	
Fair Value
    December 31 2009
    	
 
    
	
RBS
    	
 
    	
11/15/2004
    	
 
    	
12/15/2004
    	
 
    	
8/27/2016
    	
 
    	
$
    	
60,528
    	
 
    	
5.0125% p.a.
    	
 
    	
USD LIBOR 3M BBA +   0.835% p.a.
    	
 
    	
$
    	
2,803
    	
 
    	
$
    	
1,865
    	
 
    
	
RBS
    	
 
    	
11/15/2004
    	
 
    	
11/17/2004
    	
 
    	
11/2/2016
    	
 
    	
$
    	
62,342
    	
 
    	
5.0125% p.a.
    	
 
    	
USD LIBOR 3M BBA +   0.855% p.a.
    	
 
    	
$
    	
2,930
    	
 
    	
$
    	
1,897
    	
 
    
	
Total fair value
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5,733
    	
 
    	
$
    	
3,762
    	
 
    

 

167

 

Schedule 4

 

New Money Facility Agreements

 

	
Facility
   Agreement
    	
 
    	
Current
   Commitment
    US$
   (dollars)
    	
 
    	
Vessel(s)
    	
 
    	
Lenders
    	
 
    	
Borrowers/
   Guarantors
    	
 
    	
Other Parties
    
	
US$37,100,000 Facility (the ABN AMRO Club Facility   Agreement)
    	
 
    	
37,100,000
    	
 
    	
Vessel   No. S463
    	
 
    	
ABN AMRO Bank N.V.

 

Lloyds TSB Bank Plc

 

National Bank of Greece S.A.
    	
 
    	
Borrower:

 

Danaos Corporation

 

Guarantor:

 

The wholly owned subsidiaries of    Danaos Corporation which at any time have the full ownership of S463
    	
 
    	
ABN AMRO Bank N.V.  as Agent and   Security Trustee

 

Each Lender (other than National Bank of Greece S.A.) as Swap Banks
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
US$80,000,000 Facility (the Citi/Eurobank Facility   Agreement)
    	
 
    	
80,000,000
    	
 
    	
Vessel No. S460
    	
 
    	
Citibank, N.A., London Branch

 

EFG Eurobank Ergasias S.A. 
    	
 
    	
Borrower:

 

Danaos Corporation

 

Guarantor:

 

The wholly owned subsidiaries of    Danaos Corporation which at any time have the full ownership of S460
    	
 
    	
Citibank International plc as Agent and Citibank N.A. London Branch as   Security Trustee

 

Citibank, N.A. and EFG Eurobank Ergasias S.A. as Swap Banks
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
US$125,000,000 Facility (the New HSH Facility   Agreement) 
    	
 
    	
125,000,000
    	
 
    	
Vessel No. S459

 

Vessel No. S462

 

 
    	
 
    	
HSH Nordbank AG

 

Piraeus Bank A.E.

 
    	
 
    	
Borrower:

 

Danaos Corporation

 
    	
 
    	
Aegean Baltic Bank S.A. as Agent and Security Trustee

 

Each Lender as 
    

 

168

 

	
Facility
   Agreement
    	
 
    	
Current
   Commitment
    US$
   (dollars)
    	
 
    	
Vessel(s)
    	
 
    	
Lenders
    	
 
    	
Borrowers/
   Guarantors
    	
 
    	
Other Parties
    
	
 
    	
 
    	
 
    	
 
    	
CMA CGM RABELAIS (formerly Vessel No. S4004)
    	
 
    	
Aegean Baltic Bank S.A.
    	
 
    	
Guarantors:

 

The wholly owned subsidiaries of    Danaos Corporation which at any time have the full ownership of CMA   CGM RABELAIS (formerly Vessel No. S4004), S462 and S459
    	
 
    	
Swap Bank
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
US$83,900,000 Facility (the New Club Facility   Agreement)
    	
 
    	
83,900,000
    	
 
    	
Vessel No. S456

 

Vessel No. S457
    	
 
    	
Deutsche Schiffsbank Aktiengesellschaft

 

Credit Suisse AG

 

Emporiki Bank of Greece S.A.

 

Deutsche Bank AG Filiale Deutschlandgeschäft
    	
 
    	
Borrower:

 

Danaos Corporation

 

Guarantors:

 

The wholly owned subsidiaries of    Danaos Corporation which at any time have the full ownership of S456   and S457
    	
 
    	
Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee

 

Each Lender as Swap Bank, other than Deutsche Bank AG Filiale   Deutschlandgeschäft, where it shall be Deutsche Bank AG
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
US$100,000,000 Facility (the New RBS Facility Agreement)
    	
 
    	
100,000,000
    	
 
    	
Vessel No. S458

 

Vessel No. S461
    	
 
    	
The Royal Bank of Scotland plc
    	
 
    	
Borrower:

 

Danaos Corporation

 

Guarantors:

 

The wholly owned subsidiaries of    Danaos Corporation which at any
    	
 
    	
The Royal Bank of Scotland plc as Agent and Security Trustee

 

Each Lender as Swap Bank
    

 

169

 

	
Facility
   Agreement
    	
 
    	
Current
   Commitment
    US$
   (dollars)
    	
 
    	
Vessel(s)
    	
 
    	
Lenders
    	
 
    	
Borrowers/
   Guarantors
    	
 
    	
Other Parties
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
time have the full ownership of S458 and S461
    	
 
    	
 
    

 

170

 

Schedule 5

 

Conditions Precedent

 

Part I

 

1                               Group Companies

 

(a)                        A copy of the constitutional documents of each Group Company.

 

(b)                       A copy of a resolution of the board of directors of each Group Company:

 

(i)                          approving the terms of, and the transactions contemplated by, the Restructuring Documents to which it is a party and resolving that it execute the Restructuring Documents to which it is a party;

 

(ii)                       authorising a specified person or persons to execute the Restructuring Documents to which it is a party on its behalf; and

 

(iii)                    authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with the Restructuring Documents to which it is a party.

 

(c)                        A specimen of the signature of each person authorised by the resolution referred to in paragraph (ii) above.

 

(d)                       A certificate of the Company confirming that guaranteeing or securing, as appropriate, the amounts under the Restructuring Documents would not cause any guarantee, security or similar limit binding on any Group Company to be exceeded.

 

(e)                        A certificate of an authorised signatory of the Company certifying that each copy document relating to it and each Group Company specified in this Schedule is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

2                               Transaction Documents

 

(a)                        This Agreement executed by the Group Companies party to this Agreement.

 

(b)                       The Restructuring Documents, other than this Agreement, executed by the Group Companies parties to those Restructuring Documents.

 

(c)                        The Security Documents set out in Schedule 14 and the Shared Security Documents, in each case executed by the Group Companies party to those Security Documents and Shared Security Documents, or, if a document is not capable of execution until the delivery of the relevant Vessel, such document is otherwise in an agreed form and a certificate of an authorised signatory of the Company has been provided to the Participating Lenders that the Company will, or will procure that the relevant Group Company will, enter into such form of document upon delivery, and, in the case of any document that amends an existing mortgage, evidence that such document has been registered against the relevant mortgage over the relevant Vessel through the relevant Registry under the laws and flag of the relevant state in which the Vessel is registered.

 

(d)                       Each New Money Facility Agreement duly executed by the parties thereto.

 

(e)                        Each Vendor Finance Facility Agreement duly executed by the parties thereto, any Security required to be entered into thereunder and the Vendor Finance Intercreditor Agreement duly executed by the parties thereto, or, if not capable of execution until the delivery of the relevant Vessel, is otherwise in an agreed form and a certificate of an

 

171

 

authorised signatory of the Company has been provided to the Participating Lenders that the Company will, or will procure that the relevant Group Company will, enter into upon delivery.

 

(f)                          Evidence of the conditional release of any pre-delivery security over the Sinosure Vessels and the Vendor Finance Vessels, and the related owners (if any), securing either the RBS Facility Agreement or the HSH Facility Agreements over hull numbers S456, 457, 459, 460 or Z00002-4.

 

3                               Legal Opinions

 

The following legal opinions, each addressed to the Intercreditor Agent, the Participating Lenders and the other Finance Parties in form and substance satisfactory to all of the Participating Lenders:

 

(a)                        A legal opinion of Norton Rose LLP in England.

 

(b)                       Legal opinions from lawyers on such matters concerning the laws of the Marshall Islands, Liberia, Panama, Greece, the US, Cyprus and such other relevant jurisdictions as the Participating Lenders may require.

 

4                               Other documents and evidence

 

(a)                        Evidence that any process agent referred to in clause 49.4 (Service of process) has accepted its appointment.

 

(b)                       Evidence that the fees, costs and expenses due from the Group Companies pursuant to the Restructuring Documents have been paid before the Closing Date.

 

(c)                        Evidence that the Company has received the proceeds of the Required Equity Issue.

 

(d)                       Evidence that the Coustas Family has contributed (directly or through any company or legal entity) at least 50% to the Required Equity Issue.

 

(e)        Settlement agreement duly executed by the parties thereto in respect of the cancellation of the 3 vessels “HN N-216”, “HN N-217” and “HN N-218” which were scheduled to be built at Hanjin Heavy shipyard

 

(f)                          An up-to-date structure chart of the Group.

 

(g)                       Waiver and margin adjustment fees equal to 1.55 per cent. calculated for the period from 1 July 2009 to the Closing Date have been paid to the Participating Lenders who are party to the HSH Facility Agreement to share amongst themselves.

 

(h)                       The Company provides evidence that it is able to comply with the provisions of clause 20 as at the date of the Agreement (by reference to the most recent Financial Statements) together with a certificate of an authorised signatory of the Company certifying that the Company will be able to comply with such provisions immediately following the execution of this Agreement.

 

(i)                           Updated financial projections incorporating latest re-charterings and changes to the fleet (if any).

 

(j)                           Evidence that the sale of the Sinosure Vessels or entry into the Sinosure Vessels Alternative Financing would not result in a breach of this Agreement, including, without limitation, the financial covenants and fixed amortisation schedule;

 

(k)                        Evidence satisfactory to the Relevant Finance Parties of the release of any corporate guarantee or similar assurance against loss granted by the Company to the Jiangnan

 

172

 

Changxing Heavy Industry Company Limited yard (the Yard) in respect of the Sinosure Vessels;

 

(l)                           Evidence of the deferment of instalments due to the Yard in respect of the Sinosure Vessels has been completed such that there is no obligation to pay any further instalments due to the Yard in respect of the Sinosure Vessels prior to delivery;

 

(m)                     The budget for the period until 31 December 2011.

 

(n)                       List of all Existing Finance Document Defaults.

 

(o)                       A copy of the Employee Share Plan.

 

(p)                       The Additional Second Lien Intercreditor Agreements duly executed by the parties thereto.

 

(q)                       Copies of Zim Addenda.

 

(r)                          Each amendment and restatement of the Existing Hedging Agreements (as set out in Schedule 16) has been duly executed by each of the parties to such agreement and the amendments and restatements have become effective or will become effective on the Closing Date.

 

(s)                        The Sinosure Intercreditor Agreement as defined in clause 23.10(c) (viii).

 

173

 

Part II

 

1                               An accession of a Group Company

 

(a)                        A Group Company Accession Deed, duly executed by the additional Group Company and the Company.

 

(b)                       A copy of the constitutional documents of the additional Group Company.

 

(c)                        A copy of a resolution of the board of directors of the additional Group Company:

 

(i)                          approving the terms of, and the transactions contemplated by, the Group Company Accession Deed and resolving that it execute the Group Company Accession Deed;

 

(ii)                       authorising a specified person or persons to execute the Accession Letter on its behalf; and

 

(iii)                    authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with this Agreement

 

(d)                       A specimen of the signature of each person authorised by the resolution referred to in paragraph (ii) above

 

(e)                        A certificate of an authorised signatory of the Group Company certifying that each copy document relating to it specified in this Schedule, Part II is correct, complete and in full force and effect as at a date no earlier than the date of the Group Company Accession Deed.

 

2                               Legal Opinions

 

The following legal opinions, each addressed to the Intercreditor Agent, the Participating Lenders and the other Finance Parties each substantially in the form distributed to the Intercreditor Agent:

 

(a)                        A legal opinion of Norton Rose LLP, legal advisers to the Intercreditor Agent in England; and

 

(b)                       If the Group Company is incorporated in a jurisdiction other than England and Wales, a legal opinion of the legal advisers to the Intercreditor Agent in the jurisdiction in which the Group Company is incorporated.

 

3                               Other Documents

 

(a)                        If the proposed Group Company is incorporated in a jurisdiction other then England and Wales, evidence that the process agent referred to in clause 49.4 (Service of process) has accepted its appointment in relation to the proposed additional Group Company.

 

(b)                       A copy of any other authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration or other document, opinion or assurance which the Intercreditor Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Group Company Accession Deed or for the validity and enforceability of any Finance Document.

 

174

 

Schedule 6

 

Form of Group Company Accession Deed

 

THIS AGREEMENT is made on [    ] and made between:

 

(1)                        [Insert Full Name of New Group Company] (the Acceding Group Company); and

 

(2)                        [Insert Full Name of Current Intercreditor Agent] (the Intercreditor Agent), for itself and each of the other parties to the restructuring agreement referred to below.

 

This agreement is made on [date] by the Acceding Group Company in relation to a restructuring agreement (the Restructuring Agreement) dated [    ] between, amongst others Danaos Corporation as Company, [    ] as intercreditor agent and the other Group Companies (each as defined in the Restructuring Agreement).

 

The Acceding Group Company intends to [incur Liabilities under the following documents]/[give a guarantee, indemnity or other assurance against loss in respect of Liabilities under the following documents]:

 

[Insert details (date, parties and description) of relevant documents]

 

the Relevant Documents.

 

IT IS AGREED as follows:

 

1                                Terms defined in the Restructuring Agreement shall, unless otherwise defined in this Agreement, bear the same meaning when used in this Agreement.

 

2                                The Acceding Group Company and the Intercreditor Agent agree that the Intercreditor Agent shall hold:

 

(a)                        [any Security in respect of Liabilities created or expressed to be created pursuant to the Relevant Documents;

 

(b)                       all proceeds of that Security; and]*

 

(c)                        all obligations expressed to be undertaken by the Acceding Group Company to pay amounts in respect of the Liabilities to the Intercreditor Agent as trustee for the Secured Parties (in the Relevant Documents or otherwise) and secured by the Security under the Shared Security Documents together with all representations and warranties expressed to be given by the Acceding Group Company (in the Relevant Documents or otherwise) in favour of the Intercreditor Agent as trustee for the Secured Parties,

 

on trust for the Secured Parties on the terms and conditions contained in the Restructuring Agreement.

 

3                                The Acceding Group Company confirms that it intends to be party to the Restructuring Agreement as a Group Company, undertakes to perform all the obligations expressed to be assumed by a Group Company under the Restructuring Agreement and agrees that it shall be bound by all the provisions of the Restructuring Agreement as if it had been an original party to the Restructuring Agreement.

 

4                                This Agreement and any non-contractual obligations arising out of or in connection with it are governed by, English law.

 

*                               Include to the extent that the Security created in the Relevant Documents is expressed to be granted to the Security Agent as trustee for the Secured Parties.

 

175

 

THIS AGREEMENT has been signed on behalf of the Intercreditor Agent and executed as a deed by the Acceding Group Company and is delivered on the date stated above.

 

	
The Acceding Group Company
    	
 
    
	
 
    	
 
    
	
[EXECUTED AS A DEED
    	
 
    
	
 
    	
 
    
	
 
    	
)
    
	
 
    	
 
    
	
By: [Full Name of Acceding Group Company]
    	
)
    
	
 
    	
 
    
	
 
    	
Director
    
	
 
    	
 
    
	
 
    	
Director/Secretary
    
	
 
    	
 
    
	
OR
    	
 
    
	
 
    	
 
    
	
[EXECUTED AS A DEED
    	
 
    
	
 
    	
 
    
	
By: [Full name of Acceding Group   Company]
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of Director
    
	
 
    	
 
    
	
 
    	
Name of Director
    
	
 
    	
 
    
	
in the presence of
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of witness
    
	
 
    	
 
    
	
 
    	
Name of witness
    
	
 
    	
 
    
	
 
    	
Address of witness
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Occupation of witness]
    
	
 
    	
 
    
	
Address for notices:
    	
 
    
	
 
    	
 
    
	
Address:
    	
 
    
	
 
    	
 
    
	
Fax:
    	
 
    
	
 
    	
 
    
	
The Intercreditor Agent
    	
 
    
	
 
    	
 
    
	
[Full Name of Current Intercreditor Agent]
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    

 

176

 

Schedule 7

 

Form of Creditor/Agent Accession Undertaking

 

To:                  [Insert full name of current Intercreditor Agent] for itself and each of the other parties to the Restructuring Agreement referred to below.

 

From:              [Acceding Participating Lender/Intercreditor Agent/Relevant Facility Agent/Relevant Security Trustee/Relevant Finance Party]

 

THIS UNDERTAKING is made on [date] by [insert full name of new Participating Lender/Relevant Facility Agent/  Relevant Security Trustee/Relevant Finance Party] (the Acceding Party) in relation to the restructuring agreement (the Restructuring Agreement) dated [    ] between, among others, Danaos Corporation as company, [ ] as intercreditor agent, and the other Group Companies (each as defined in the Restructuring Agreement).  Terms defined in the Restructuring Agreement shall, unless otherwise defined in this Undertaking, bear the same meanings when used in this Undertaking.

 

In consideration of the Acceding Party being accepted as a [Participating Lender/Facility Agent/Relevant Security Trustee/Relevant Finance Party] for the purposes of the Restructuring Agreement, the Acceding Party confirms that, as from [date], it intends to be party to the Restructuring Agreement as a [Participating Lender/Facility Agent/Relevant Security Trustee/Relevant Finance Party] and undertakes to perform all the obligations expressed in the Restructuring Agreement to be assumed by a [Participating Lender/Facility Agent/Relevant Security Trustee/Relevant Finance Party] and agrees that it shall be bound by all the provisions of the Restructuring Agreement, as if it had been an original party to the Restructuring Agreement.

 

This Undertaking and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

THIS UNDERTAKING has been entered into on the date stated above [and is executed as a deed by the Acceding Party, if it is acceding as [Participating Lender/Facility Agent/Relevant Security Trustee/Relevant Finance Party] and is delivered on the date stated above].

 

Acceding Party

 

[EXECUTED as a DEED]

 

[insert full name of Acceding Party]

 

By:

 

Address:

 

Fax:

 

	
Accepted by the Intercreditor Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
for and on behalf of
    	
 
    
	
 
    	
 
    
	
[Insert full name of current Intercreditor Agent]
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    

 

177

 

Schedule 8

 

Intercreditor Voting Schedule

 

In this Agreement:

 

Majority Participating Lenders means a Participating Lender or Participating Lenders whose Commitments aggregate more than 662/3per cent. of the Total Commitments.

 

Required consents

 

1           Subject to paragraph 2 to paragraph 5 (Exceptions) of this Schedule, any term of the Restructuring Documents may be amended or waived only with the consent of the Majority Participating Lenders and the Company and any such amendment or waiver will be binding on all Parties.

 

Exceptions

 

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

 

(a)        the definitions of “Majority Participating Lenders”, “Restructuring Termination Date” in clause 1 (Definitions) and the definition of “Majority Participating Lenders” in this Schedule;

 

(b)        subject to paragraph 3 below, the definition of Enforcement Standstill Period in clause 1 (Definitions) and the provisions of clauses 26.3, 26.5 and 26.6;

 

(c)        any matter relating to the effectiveness of the Restructuring Documents;

 

(d)        clauses 3 (Restructuring), 4 (Termination), 5 (Variation of Finance Documents), 6 (Amendments and Most Favoured Lender), 7 (New Money Facilities and Existing Hedging Agreements), 15 (Repayment), 17 (Illegality, voluntary prepayment and cancellation), 18 (Mandatory prepayment), 27 (Application of proceeds of Shared Security Document), 32 (Changes to the Parties), 45 (Amendments and waivers) and this Schedule 8 (Intercreditor Voting Schedule);

 

(e)        a reduction in the Margin or any other amounts payable under a Restructuring Document;

 

(f)         any provision which expressly requires the consent of all Participating Lenders;

 

(g)        any amendment to the order of priority or subordination under the Agreement;

 

(h)        subject to paragraph 3 below, any amendment to the terms of the standstill provisions set out in clause 26 (Consequences of an Event of Default); or

 

(i)         the release of any Security under a Shared Security Document unless permitted under, or contemplated by, this Agreement,

 

shall not be made without the prior consent of all the Participating Lenders.

 

3           The first extension to the period in relation to which the Enforcement Standstill Period applies will, provided that such extension is for a period of no more than 15 days, only require the consent of a Participating Lender or Participating Lenders whose Commitments aggregate more than 75 per cent. of the Total Commitments.

 

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

 

(a)        other than as expressly permitted by the provisions of any Restructuring Document, the nature or scope of:

 

178

 

(i)         the assets and property secured or purported to be secured under the Shared Security Documents; or

 

(ii)        the manner in which the proceeds of enforcement of the Security under the Shared Security Documents are distributed,

 

(except in the case of paragraph (i) and paragraph (ii) above, insofar as it relates to a sale or disposal of an asset which is the subject of the Security under a Shared Security Document where such sale or disposal is expressly permitted under this Agreement or any other Restructuring Document);

 

(b)        any amendment to the order of priority or subordination under this Agreement or a Restructuring Document; or

 

(c)        changes to the pro rata sharing arrangements between the Finance Parties under the Restructuring Documents,

 

(d)        any changes to voting under this Schedule;

 

(e)        any amendment to any payment waterfalls;

 

(f)         any amendment to enforcement rights

 

shall not be effected without the prior written consent of all Finance Parties affected by such amendments or waivers.

 

5           An amendment or waiver that has the effect of changing or which relates to additional Security over assets already secured in favour of a Finance Party which is not granted for the benefit of all Participating Lenders shall not be effected without the prior written consent of all Finance Parties who already benefit from Security over that asset.

 

6           An amendment or waiver that has the effect of changing any of the rights, duties and exclusions of liability of the Intercreditor Agent shall not be effected without the prior written consent of the Intercreditor Agent.

 

7           Any amendment or waiver that has the effect of changing any of the provisions relating to Cash Cover shall not be effected without the prior written consent of the Hedge Counterparties affected by such amendments or waivers.

 

8           For the avoidance of doubt, unless specified in this Schedule, decisions relating to provisions of a Finance Document (other than a Restructuring Document) which do not have a similar or equivalent provision in this Agreement shall be governed by the relevant Finance Documents.

 

179

 

Schedule 9

 

Intercreditor Agent

 

1          The Intercreditor Agent

 

Appointment of the Intercreditor Agent

 

1.1       Each Participating Lender and other Finance Party appoints the Intercreditor Agent to act as its intercreditor agent and security trustee under and in connection with the Restructuring Documents.

 

1.2       Each Participating Lender and other Finance Party authorises the Intercreditor Agent to exercise the rights, powers, authorities and discretions specifically given to the Intercreditor Agent under or in connection with the Restructuring Documents together with any other incidental rights, powers, authorities and discretions and to execute each of the Shared Security Documents and all other documents that may be approved by the Intercreditor Agent for execution by it.

 

Duties of the Intercreditor Agent

 

1.3       The Intercreditor Agent shall promptly forward to a Party the original or a copy of any document or notice which is delivered to the Intercreditor Agent for that Party by any other Party or any other document received by it from a Group Company.

 

1.4       The Intercreditor Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

1.5       If the Intercreditor Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

 

1.6       If the Intercreditor Agent is aware of the non-payment of any principal, interest or fee payable to a Finance Party (other than the Intercreditor Agent) under this Agreement it shall promptly notify the other Finance Parties.

 

1.7       The Intercreditor Agent’s duties under the Restructuring Documents are solely mechanical and administrative in nature.

 

No fiduciary duties

 

1.8       Except as provided in paragraph 2 of this Schedule 9, nothing in this Agreement constitutes the Intercreditor Agent as a trustee or fiduciary of any other person.

 

1.9       The Intercreditor Agent shall not be bound to account to any Finance Party for any sum or the profit element of any sum received by it for its own account.

 

Business with the Group

 

1.10     The Intercreditor Agent may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

 

Rights and discretions of the Intercreditor Agent

 

1.11     The Intercreditor Agent may rely on:

 

(a)        any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and

 

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(b)        any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

 

1.12     The Intercreditor Agent may assume (unless it has received notice to the contrary in its capacity as security trustee or intercreditor agent) that:

 

(a)        no default, event of default or potential event of default, howsoever described, has occurred under a Restructuring Document or a Finance Document;

 

(b)        any right, power, authority or discretion vested in any Party has not been exercised;

 

(c)        any notice or request made by the Company is made on behalf of and with the consent and knowledge of all the Group Companies; and

 

(d)        no Notifiable Debt Purchase Transaction:

 

(i)         has been entered into;

 

(ii)        has been terminated; or

 

(iii)       has ceased to be with a Company Affiliate.

 

1.13     The Intercreditor Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

 

1.14     The Intercreditor Agent may act in relation to the Restructuring Documents through its personnel and agents.

 

1.15     The Intercreditor Agent may disclose to any other Party any information it reasonably believes it has received as security trustee or intercreditor agent under this Agreement.

 

1.16     Without prejudice to the generality of paragraph 1.15 of this Schedule, the Intercreditor Agent may disclose the identity of a Defaulting Participating Lender to the other Finance Parties and the Company and shall disclose the same upon the written request of the Company or the Majority Participating Lenders.

 

1.17     Notwithstanding any other provision of any Restructuring Document to the contrary, the Intercreditor Agent is not obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

1.18     The Intercreditor Agent shall be at liberty to disclose to any Finance Party the details provided by a Participating Lender pursuant to clause 11.5(b)(ii)(B) (Market Disruption).

 

1.19     The Intercreditor Agent has all the rights, privileges and immunities which gratuitous trustees have or may have in England, even though it is entitled to remuneration.

 

Majority Participating Lenders’ instructions

 

1.20     Unless a contrary indication appears in a Restructuring Document, the Intercreditor Agent shall (i) exercise any right, power, authority or discretion vested in it as Intercreditor Agent in accordance with any instructions given to it by the Majority Participating Lenders (or, if so instructed by the Majority Participating Lenders, refrain from exercising any right, power, authority or discretion vested in it as Intercreditor Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Participating Lenders.

 

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1.21     Unless a contrary indication appears in a Restructuring Document, any instructions given by the Majority Participating Lenders will be binding on all the Finance Parties other than the Intercreditor Agent in its capacity as security trustee.

 

1.22     The Intercreditor Agent may refrain from acting in accordance with the instructions of the Majority Participating Lenders (or, if appropriate, the Participating Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

 

1.23     In the absence of instructions from the Majority Participating Lenders, (or, if appropriate, the Participating Lenders) the Intercreditor Agent may act (or refrain from taking action) as it considers to be in the best interest of the Participating Lenders.

 

Responsibility for documentation

 

1.24     The Intercreditor Agent is not responsible for:

 

(a)        the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Intercreditor Agent, a Group Company or any other person given in or in connection with any Restructuring Document or the transactions contemplated in the Restructuring Documents;

 

(b)        the legality, validity, effectiveness, adequacy or enforceability of any Restructuring Document or the Security or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Restructuring Document or the Security;

 

(c)        (without prejudice to the following provisions) any failure or omission to perfect, or defect in perfecting, the Security, including:

 

(i)         failure to obtain any Authorisation for the execution, validity, enforceability or admissibility in evidence of any Shared Security Document; or

 

(ii)        failure to effect or procure registration of or otherwise protect or perfect any of the Security under any laws in any territory;

 

(d)        ascertaining whether all deeds and documents that should have been deposited with it (or the relevant Agents) under or in connection with the Shared Security Documents have been so deposited;

 

(e)        investigating or making any enquiry into the title of any Group Company to any of the Security;

 

(f)         the failure to register any of the Shared Security Documents with the Registrar of Companies, any relevant ship registry or any other public office;

 

(g)        the failure to register any of the Shared Security Documents in accordance with the documents of title of any Group Company to any of the Security;

 

(h)        the failure to take or require the Company or any other Group Company to take any steps to render any of the Shared Security Documents effective as regards property or assets outside England or Wales or to secure the creation of any ancillary charge under the laws of the jurisdiction concerned; or

 

(i)         (save as otherwise provided in this paragraph 1.24) taking or omitting to take any other action under or in relation to the Shared Security Documents.

 

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Exclusion of liability

 

1.25     Without limiting paragraph 1.26 of this Schedule, the Intercreditor Agent will not be liable for any action taken by it under or in connection with any Restructuring Document or the Security, unless directly caused by its gross negligence or wilful misconduct.

 

1.26     No Party (other than the Intercreditor Agent) may take any proceedings against any officer, employee or agent of the Intercreditor Agent in respect of any claim it might have against the Intercreditor Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Restructuring Document or any Transaction Document and any officer, employee or agent of the Intercreditor Agent may rely on this paragraph subject to clauses 1.5 and 1.6 (Third party rights) and the provisions of the Third Parties Act.

 

1.27     The Intercreditor Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Restructuring Documents to be paid by the Intercreditor Agent if the Intercreditor Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Intercreditor Agent for that purpose.

 

1.28     Nothing in this Agreement shall oblige the Intercreditor Agent to carry out any “know your customer” or other checks in relation to any person on behalf of any Participating Lender and each Participating Lender confirms to the Intercreditor Agent that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Intercreditor Agent.

 

Participating Lenders’ indemnity to the Intercreditor Agent

 

1.29     Each Participating Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Intercreditor Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Intercreditor Agent (otherwise than by reason of the Intercreditor Agent’s gross negligence or wilful misconduct) in acting as Intercreditor Agent under the Restructuring Documents (unless the Intercreditor Agent has been reimbursed by a Group Company pursuant to a Restructuring Document).

 

Confidentiality

 

1.30     The Intercreditor Agent in acting as such shall be regarded as acting through its security trustee, security agency or agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

1.31     If information is received by another division or department of the Intercreditor Agent, it may be treated as confidential to that division or department and the Intercreditor Agent shall not be deemed to have notice of it.

 

1.32     Notwithstanding any other provision of any Restructuring Document to the contrary, the Intercreditor Agent is not obliged to disclose to any other person (i) any confidential information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty.

 

Relationship with the Participating Lenders

 

1.33     The Intercreditor Agent may treat the person shown in its records as Participating Lender at the opening of business (in the place of the Intercreditor Agent’s principal office as notified to the Finance Parties from time to time) as the Participating Lender acting through its Facility Office:

 

(a)        entitled to or liable for any payment due under any Restructuring Document on that day; and

 

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(b)        entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Restructuring Document made or delivered on that day,

 

unless it has received not less than five Business Days’ prior notice from that Participating Lender to the contrary in accordance with the terms of this Agreement.

 

1.34     Each Participating Lender shall supply the Intercreditor Agent with any information that the Intercreditor Agent may reasonably specify as being necessary or desirable to enable it to perform its functions as security trustee.

 

1.35     Any Participating Lender may by notice to the Intercreditor Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Participating Lender under the Finance Documents. Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under clause 41.9 and 41.10 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Participating Lender for the purposes of clause 41.2 (Addresses) and clause 41.9(c) (Electronic communication) and the Intercreditor Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Participating Lender.

 

Credit appraisal by the Participating Lenders

 

1.36     Without affecting the responsibility of any Group Company for information supplied by it or on its behalf in connection with any Transaction Document, each Participating Lender confirms to the Intercreditor Agent that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Transaction Document including but not limited to:

 

(a)        the financial condition, status and nature of each Group Company;

 

(b)        the legality, validity, effectiveness, adequacy or enforceability of any Transaction Document and the Security and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document or the Security;

 

(c)        whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Transaction Document, the Security, the transactions contemplated by the Transaction Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document;

 

(d)        the adequacy, accuracy and/or completeness of any information provided by the Intercreditor Agent, any Party or by any other person under or in connection with any Transaction Document, the transactions contemplated by the Transaction Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document; and

 

(e)        the right or title of any person in or to, or the value or sufficiency of any part of the assets secured under the Shared Security Documents, the priority of any of the or the existence of any Security affecting those assets.

 

Deduction from amounts payable by the Intercreditor Agent

 

1.37     If any Party owes an amount to the Intercreditor Agent under the Finance Documents the Intercreditor Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Intercreditor Agent would otherwise be

 

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obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

Intercreditor Agent’s management time

 

1.38     Any amount payable to the Intercreditor Agent under clauses 13.5 to 13.7 (Indemnity to the Intercreditor Agent), clause 14 (Costs and expenses) and paragraph 1.29 of this Schedule (Participating Lenders’ indemnity to the Intercreditor Agent) shall include the cost of utilising the Intercreditor Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Intercreditor Agent may notify to the Company and the Participating Lenders, and is in addition to any fee paid or payable to the Intercreditor Agent under, or in relation to, the Restructuring Documents.

 

1.39     Any cost of utilising the Intercreditor Agent’s management time or other resources shall include, without limitation, any such costs in connection with clauses 34.2 to 34.5 (Disenfranchisement on Debt Purchase Transactions entered into by Company Affiliates).

 

2          Security trust

 

Definitions

 

2.1       In this paragraph 2 Security Property means all right, title and interest in, to and under any Shared Security Document, including:

 

(a)        the assets over which Security is expressed to be created pursuant to any Shared Security Document (the Charged Assets);

 

(b)        the benefit of the undertakings in any Shared Security Document; and

 

(c)        all sums received or recovered by the Intercreditor Agent under or in connection with any Shared Security Document and any assets representing the same.

 

Declaration of trust

 

2.2       The Intercreditor Agent and each other Finance Party agree that the Intercreditor Agent shall hold the Security Property on trust for the benefit of the Finance Parties on the terms of this Agreement. This paragraph binds each Party.

 

2.3       Subject to paragraph 2.4, paragraph 2.2 shall not apply to any Shared Security Document that is expressed to be or is construed to be governed by any law other than English law or any other law from time to time designated by the Intercreditor Agent and the Company or any Security Property arising under any such Shared Security Document.

 

2.4       Paragraph 2.3 shall not affect or limit the applicability of the other provisions of this paragraph 2 with respect to any Shared Security Document that is expressed to be or is construed to be governed by any law other than English law or any other law from time to time designated by the Intercreditor Agent and the Company or any Security Property arising under any such Shared Security Document.

 

Retention of documents

 

2.5       The Intercreditor Agent may hold title deeds and other documents relating to any of the Charged Assets in such manner as it sees fit (including allowing any Group Company to retain them), having regard, to the extent it is aware, as to the provisions of the relevant Security relating to the holding of such deeds and other documents.

 

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Indemnity out of Security Property

 

2.6       The Intercreditor Agent and every receiver, delegate, attorney, agent or other similar person appointed under any Shared Security Document may indemnify itself out of the proceeds of realisation of the Security Property against any cost, loss or liability incurred by it in that capacity (otherwise than by reason of its own gross negligence, wilful misconduct or fraud).

 

Basis of distribution

 

2.7       To enable it to make a distribution, the Intercreditor Agent may fix a date as at which the amount of the Liabilities is to be calculated and may require, and rely on, a certificate from any Party giving details of:

 

(a)        any sums due or owing to any Party as at that date; and

 

(b)        such other matters as it thinks fit,

 

PROVIDED THAT if a certificate relating to the same Liabilities is provided by a Finance Party and a Group Company, the certificate provided by the Finance Party shall be binding in the absence of manifest error.

 

2.8       The Finance Parties shall provide the Intercreditor Agent with such written information as it may reasonably require for the purposes of carrying out its duties and obligations under the Shared Security Documents and, in particular, with such necessary directions in writing so as to enable the Intercreditor Agent to make the calculations and applications contemplated by clause 27 (Application of proceeds of Shared Security Document) and to apply amounts received under, and the proceeds of realisation of, the Shared Security Documents as contemplated by the Shared Security Documents and clause 27 (Application of proceeds of Shared Security Document).

 

No duty to collect payments

 

2.9       Except as otherwise stated in this Agreement, the Intercreditor Agent has no duty:

 

(a)        to ensure that any payment or other financial benefit in respect of any of the Charged Assets or any Liabilities is duly and punctually paid, received or collected; or

 

(b)        to ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other property accruing or offered at any time by way of interest, dividend, redemption, bonus, rights, preference, option, warrant or otherwise in respect of any of the Charged Assets or any Liabilities.

 

Appropriation

 

2.10     Each Party irrevocably waives any right to appropriate any payment to, or other sum received, recovered or held by, the Intercreditor Agent in or towards payment of any particular part of the Liabilities and agrees that the Intercreditor Agent has the exclusive right to do so.

 

2.11     Paragraph 2.10 will override any application made or purported to be made by any other person.

 

Investments

 

2.12     All money received or held by the Intercreditor Agent under the trusts in this Agreement in the name of, or under the control of, the Intercreditor Agent shall be deposited with the Account Bank.

 

186

 

Suspense account

 

2.13     Subject to Paragraph 2.14 (Timing of distributions), the Intercreditor Agent may (but without obligation to do so) hold in an interest bearing suspense account any moneys received by it from any Party.

 

Timing of distributions

 

2.14     Distributions by the Intercreditor Agent shall be made as and when determined by it.

 

Delegation

 

2.15     The Intercreditor Agent may:

 

(a)        employ and pay an agent selected by it to transact or conduct any business and to do all acts required to be done by it (including the receipt and payment of money);

 

(b)        delegate to any person on any terms (including power to sub-delegate) all or any of its functions; and

 

(c)        with the prior consent of Majority Participating Lenders, appoint, on such terms as it may determine, or remove, any person to act either as separate or joint security trustee or agent with those rights and obligations vested in the Intercreditor Agent by this Agreement or any Shared Security Document.

 

2.16     The Intercreditor Agent will not be:

 

(a)        responsible to anyone for any misconduct or omission by any agent, delegate or security trustee or security agent appointed by it under paragraph 2.15; or

 

(b)        bound to supervise the proceedings or acts of any such agent, delegate or security trustee or security agent,

 

provided that it exercises reasonable care in selecting that agent, delegate or security trustee or security agent.

 

Intercreditor Agent expenses

 

2.17     The Company shall promptly on demand pay the Intercreditor Agent the amount of all reasonable costs and expenses (including legal fees) incurred by it in connection with the administration or release of any Security created pursuant to any Shared Security Document.

 

Winding up of trust

 

2.18     If the Intercreditor Agent, with the approval of each of the Relevant Facility Agents determines that (a) all of the obligations secured by the Shared Security Documents have been fully and finally discharged and (b) none of the Finance Parties is under any commitment, obligation or liability (actual or contingent) to make advances or provide other financial accommodation to any Group Company pursuant to the Finance Documents:

 

(a)        the trusts set out in this Agreement shall be wound up and the Intercreditor Agent shall release, without recourse or warranty, all of the Security and the rights of the Intercreditor Agent under each of the Shared Security Documents; and

 

(b)        any retiring Intercreditor Agent shall release, without recourse or warranty, all of its rights under each of the Shared Security Documents.

 

187

 

Powers supplemental

 

2.19     The rights, powers and discretions conferred upon the Intercreditor Agent by this Agreement shall be supplemental to the Trustee Act 1925 and the Trustee Act 2000 and in addition to any which may be vested in the Intercreditor Agent by general law or otherwise.

 

Disapplication

 

2.20     Section 1 of the Trustee Act 2000 shall not apply to the duties of the Intercreditor Agent in relation to the trusts constituted by this Agreement.  Where there are any inconsistencies between the Trustee Act 1925 or the Trustee Act 2000 and the provisions of this Agreement, the provisions of this Agreement shall, to the extent allowed by law, prevail and, in the case of any inconsistency with the Trustee Act 2000, the provisions of this Agreement shall constitute a restriction or exclusion for the purposes of that Act.

 

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Schedule 10

 

Forms of Notifiable Debt Purchase Transaction Notice

 

Part 1

 

Form of Notice on Entering into Notifiable Debt Purchase Transaction

 

	
To:
    	
[  ] as Intercreditor Agent
    
	
 
    	
 
    
	
From:
    	
[The Participating Lender]
    

 

Dated:

 

Danaos Corporation — Restructuring Agreement

 

dated [      ] (the Restructuring Agreement)

 

1           We refer to clause 34.2 (Disenfranchisement on Debt Purchase Transactions entered into by Company Affiliates) of the Restructuring Agreement. Terms defined in the Restructuring Agreement have the same meaning in this notice unless given a different meaning in this notice.

 

2           We have entered into a Notifiable Debt Purchase Transaction.

 

3           The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

 

	
Commitment/ Facility Agreement
    	
 
    	
Amount of our Commitment to which Notifiable   Debt Purchase Transaction relates
    
	
 
    	
 
    	
 
    
	
[·]
    	
 
    	
[insert amount (of that Commitment) to which the   relevant Debt Purchase Transaction applies]
    

 

[Participating Lender]

 

By:

 

189

 

Part 2

 

Form of Notice on Termination of Notifiable Debt Purchase Transaction / Notifiable Debt Purchase Transaction ceasing to be with Company Affiliate

 

	
To:
    	
[   ] as Intercreditor Agent
    
	
 
    	
 
    
	
From:
    	
[The Lender]
    
	
 
    	
 
    
	
Dated:
    	
 
    

 

Danaos Corporation — Restructuring Agreement

 

dated [     ] (the Restructuring Agreement)

 

1           We refer to clause 34.2 (Disenfranchisement on Debt Purchase Transactions entered into by Company Affiliates) of the Restructuring Agreement. Terms defined in the Restructuring Agreement have the same meaning in this notice unless given a different meaning in this notice.

 

2           A Notifiable Debt Purchase Transaction which we entered into and which we notified you of in a notice dated [ ] has [terminated]/[ceased to be with a Company Affiliate].*

 

3          The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

 

	
Commitment/Facility Agreement
    	
 
    	
Amount of our Commitment to which Notifiable   Debt Purchase Transaction relates)
    
	
 
    	
 
    	
 
    
	
[·]
    	
 
    	
[insert amount (of that Commitment) to which the   relevant Debt Purchase Transaction applies]
    

 

[Lender] By:

 

190

 

Schedule 11

 

Timetables

 

	
 
    	
Loans
    
	
 
    	
 
    
	
LIBOR is fixed
    	
Quotation Day as of 11:00 a.m. in respect of LIBOR
    

 

	
“U” =
    	
date of utilisation or, if applicable, in the case of a Loan that has   already been borrowed, the first day of the relevant Interest Period for that   Loan.
    
	
 
    	
 
    
	
“U - X” =
    	
X Business Days prior to date of utilisation
    

 

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Schedule 12

 

Form of Compliance Certificate

 

	
To:
    	
[The Relevant Finance Parties]
    
	
 
    	
 
    
	
From:
    	
[Parent]
    
	
 
    	
 
    
	
Dated:
    	
 
    
	
 
    	
 
    
	
Dear Sirs
    	
 
    

 

Danaos Corporation - Restructuring Agreement

 

dated [             ] (the Restructuring Agreement)

 

	
1
    	
We refer to the Restructuring Agreement. This is a Compliance   Certificate. Terms defined in the Restructuring Agreement have the same   meaning when used in this Compliance Certificate unless given a different   meaning in this Compliance Certificate.
    
	
 
    	
 
    
	
2
    	
We confirm that:
    
	
 
    	
 
    
	
 
    	
[Insert details of covenants to be   certified. Quantum of Actual Free Cash Flow to be included.]
    
	
 
    	
 
    
	
3
    	
[We confirm that no Default and no Finance Document Default is   continuing.]
    

 

 

	
Signed
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Director
    	
 
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Of
    	
 
    	
Of
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
[Parent]
    	
 
    	
[Parent]
    

 

[insert applicable certification language]

 

	
 
    	
 
    
	
for and on behalf of
    	
 
    

 

NOTES:

 

*                               If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

 

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Schedule 13

 

Mandatory Cost formula

 

1                                The Mandatory Cost is an addition to the interest rate to compensate Participating Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions), (b) the requirements of the European Central Bank, or (c) if applicable the requirements of the Swiss National Bank.

 

2                                On the first day of each Interest Period (or as soon as possible thereafter) the Relevant Finance Party shall calculate, as a percentage rate, a rate (the Additional Cost Rate) for each Participating Lender, in accordance with the paragraphs set out below.  The Mandatory Cost will be calculated by the Relevant Finance Party as a weighted average of the Participating Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each Participating Lender in the relevant Loan) and will be expressed as a percentage rate per annum.

 

3                                The Additional Cost Rate for any Participating Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Participating Lender to the Relevant Finance Party.  This percentage will be certified by that Participating Lender in its notice to the Relevant Finance Party to be its reasonable determination of the cost (expressed as a percentage of that Participating Lender’s participation in all Loans made from that Facility Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office or, if applicable, the Swiss National Bank.

 

4                                The Additional Cost Rate for any Participating Lender lending from a Facility Office in the United Kingdom will be calculated by the Relevant Finance Party as follows:

 

	

    	
  per cent. per annum.
    

 

Where:

 

E                                         is designed to compensate Participating Lenders for amounts payable under the Fees Rules and is calculated by the Relevant Finance Party as being the average of the most recent rates of charge supplied by the Reference Banks to the Relevant Finance Party pursuant to paragraph 6 below and expressed in pounds per £1,000,000.

 

5                                For the purposes of this Schedule:

 

(a)                        Fees Rules means the rules on periodic fees contained in the Financial Services Authority Fees  Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits;

 

(b)                       Fee Tariffs means the fee tariffs specified in the Fees Rules under Column 1 of the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate);

 

(c)                        Special Deposits have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England; and

 

(d)                       Tariff Base has the meaning given to it in, and will be calculated in accordance with, the Fees Rules.

 

6                                If requested by the Relevant Finance Party, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Relevant Finance Party, the rate of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority 

 

193

 

(calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank.

 

7                                Each Participating Lender shall supply any information required by the Relevant Finance Party for the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each Participating Lender shall supply the following information on or prior to the date on which it becomes a Participating Lender:

 

(a)                        the jurisdiction of its Facility Office; and

 

(b)                       any other information that the Relevant Finance Party may reasonably require for such purpose.

 

Each Participating Lender shall promptly notify the Relevant Finance Party of any change to the information provided by it pursuant to this paragraph.

 

8                                The rates of charge of each Reference Bank for the purpose of E above shall be determined by the Relevant Finance Party based upon the information supplied to it pursuant to paragraphs 6 and 7 above and on the assumption that, unless a Participating Lender notifies the Relevant Finance Party to the contrary, each Participating Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office.

 

9                                The Relevant Finance Party shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Participating Lender and shall be entitled to assume that the information provided by any Participating Lender or Reference Bank pursuant to paragraphs 3, 6 and 7 above is true and correct in all respects.

 

10                          The Relevant Finance Party shall distribute the additional amounts received as a result of the Mandatory Cost to the Participating Lenders on the basis of the Additional Cost Rate for each Participating Lender based on the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 6 and 7 above.

 

11                          Any determination by the Relevant Finance Party pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Participating Lender shall, in the absence of manifest error, be conclusive and binding on all Parties.

 

12                          The Relevant Finance Party may from time to time, after consultation with the Company and the Participating Lenders, determine and notify to all Parties any amendments which are required to be made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions) or if applicable the Swiss National Bank and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties.

 

194

 

Schedule 14

 

Security Documents

 

Part 1

 

Existing Facility Agreement (Restructuring) Security Documents

 

	
Document
    	
 
    	
Parties
    
	
Deutsche Bank Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
Amendment to mortgage over m/v Zim Kingston (Malta)
    	
 
    	
Balticsea Marine Inc. (Liberia)

 

Deutsche Bank AG Filiale Deutschlandgeschäft as Agent and Security   Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
2
    	
Amendment to mortgage over m/v Zim Rio Grande (Malta)
    	
 
    	
Bayview Shipping Inc. (Liberia)

 

Deutsche Bank AG Filiale Deutschlandgeschäft as Agent and Security   Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
3
    	
Amendment to mortgage over m/v Zim Sao Paolo (Malta)
    	
 
    	
Channelview Marine Inc. (Liberia)

 

Deutsche Bank AG Filiale Deutschlandgeschäft as Agent and Security   Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
4
    	
Pledge over shares in Balticsea Marine Inc. (Liberia)
    	
 
    	
Lydia Inc. (Liberia)

 

Deutsche Bank AG Filiale Deutschlandgeschäft as Agent and Security   Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
5
    	
Pledge over shares in Bayview Shipping Inc. (Liberia)
    	
 
    	
Westwood Marine S.A. (Liberia)

 

Deutsche Bank AG Filiale Deutschlandgeschäft as Agent and Security   Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
6
    	
Pledge over shares in Channelview Marine Inc. (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

Deutsche Bank AG Filiale Deutschlandgeschäft as Agent and Security   Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
7
    	
Second German Account Pledge
    	
 
    	
Danaos Corporation

 

Deutsche Bank AG Filiale Deutschlandgeschäft as Security Trustee,   Account Bank and Pledgor

 

Deutsche Bank AG as Swap Bank and Pledgor
    
	
 
    	
 
    	
 
    	
 
    
	
DSB Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
Amendment to mortgage over m/v Zim Dalian (Malta)
    	
 
    	
Medsea Marine Inc.

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    

 

195

 

	
Document
    	
 
    	
Parties
    
	
9
    	
Amendment to mortgage over m/v Hanjin Santos (Malta)
    	
 
    	
Cellcontainer (No.2) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
10
    	
Mortgage amendment amending the mortgage over m/v YM Maturity   (Liberia)
    	
 
    	
Expresscarrier (No.2) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
11
    	
Pledge over shares in Medsea Marine Inc. (Liberia)
    	
 
    	
Bounty Investment Inc. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
12
    	
Pledge over shares in Cellcontainer (No.2) Corp. (Liberia)
    	
 
    	
Lito Navigation Inc. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
13
    	
Pledge over shares in Expresscarrier (No.2) Corp. (Liberia)
    	
 
    	
Lito Navigation Inc. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
14
    	
Pledge over shares in Teucarrier (No.1) Corp. (Liberia)
    	
 
    	
Sapfo Navigation Inc. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
15
    	
Pledge over shares in Cellcontainer (No.5) Corp. (Liberia)
    	
 
    	
Bayard Maritime Limited (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
Credit Suisse Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
16
    	
Amendment to mortgage over m/v Zim Luanda (Malta)
    	
 
    	
Blacksea Marine Inc. (Liberia)

 

Credit Suisse AG
    
	
 
    	
 
    	
 
    	
 
    
	
17
    	
Amendment to mortgage over m/v CMA CGM Nerval (Malta)
    	
 
    	
Boxcarrier (No.3) Corp. (Liberia)

 

Credit Suisse AG
    
	
 
    	
 
    	
 
    	
 
    
	
18
    	
Mortgage amendment amending the mortgage over m/v YM Mandate (Liberia)
    	
 
    	
Expresscarrier (No.1) Corp. (Liberia)

 

Credit Suisse AG
    
	
 
    	
 
    	
 
    	
 
    
	
19
    	
Pledge over shares in Blacksea Marine Inc. (Liberia)
    	
 
    	
Westwood Marine S.A.

 

Credit Suisse AG
    
	
 
    	
 
    	
 
    	
 
    
	
20
    	
Pledge over shares in Boxcarrier (No.3) Corp. (Liberia)
    	
 
    	
Lydia Inc. (Liberia)
    

 

196

 

	
Document
    	
 
    	
Parties
    
	
 
    	
 
    	
 
    	
Credit Suisse AG
    
	
 
    	
 
    	
 
    	
 
    
	
21
    	
Pledge over shares in Expresscarrier (No.1) Corp. (Liberia)
    	
 
    	
Sapfo Navigation Inc. (Liberia)

 

Credit Suisse AG
    
	
 
    	
 
    	
 
    	
 
    
	
Emporiki Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
22
    	
Amendment to mortgage over m/v CMA CGM Moliere (Malta)
    	
 
    	
Boxcarrier (No.1) Corp.

 

Emporiki Bank of Greece S.A.
    
	
 
    	
 
    	
 
    	
 
    
	
23
    	
Amendment to mortgage over m/v CMA CGM Musset (Malta)
    	
 
    	
Boxcarrier (No.2) Corp.

 

Emporiki Bank of Greece S.A.
    
	
 
    	
 
    	
 
    	
 
    
	
24
    	
Pledge over shares in Boxcarrier (No.1) Corp. (Liberia)
    	
 
    	
Sapfo Navigation Inc. (Liberia)

 

Emporiki Bank of Greece S.A.
    
	
 
    	
 
    	
 
    	
 
    
	
25
    	
Pledge over shares in Boxcarrier (No.2) Corp. (Liberia)
    	
 
    	
Bounty Investment Inc. (Liberia)

 

Emporiki Bank of Greece S.A.
    
	
 
    	
 
    	
 
    	
 
    
	
HSH Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
26
    	
Mortgage addenda amending the mortgage over m/v Shenzhen Dragon   (Greece)
    	
 
    	
Appleton Navigation S.A. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
27
    	
Mortgage addenda amending the mortgage over m/v Marathonas (Panama)
    	
 
    	
Boxcarrier (No. 6) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
28
    	
Mortgage addenda amending the mortgage over m/v Maersk Messologi   (Panama)
    	
 
    	
Boxcarrier (No. 7) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
29
    	
Mortgage addenda amending the mortgage over m/v Maersk Mytilini   (Panama)
    	
 
    	
Boxcarrier (No.8) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
30
    	
Mortgage addenda amending the mortgage over m/v California Dragon   (Greece)
    	
 
    	
Geoffrey Shipholding Limited (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
31
    	
Mortgage addenda amending the mortgage over m/v Jiangsu Dragon   (Greece)
    	
 
    	
Lacey Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
32
    	
Mortgage addenda amending the mortgage over m/v SCI Pride (Greece)
    	
 
    	
Saratoga Trading S.A (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
33
    	
Mortgage addenda amending the mortgage over m/v Hyundai Vladivostok 
    	
 
    	
Speedcarrier (No.1) Corp. (Liberia)
    

 

197

 

	
Document
    	
 
    	
Parties
    
	
 
    	
(Panama)
    	
 
    	
Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
34
    	
Mortgage addenda amending the mortgage over m/v Hyundai Advance   (Panama)
    	
 
    	
Speedcarrier (No.2) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
35
    	
Mortgage addenda amending the mortgage over m/v Hyundai Stride   (Panama)
    	
 
    	
Speedcarrier (No.3) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
36
    	
Mortgage addenda amending the mortgage over m/v Hyundai Sprinter   (Panama)
    	
 
    	
Speedcarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
37
    	
Mortgage addenda amending the mortgage over m/v Hyundai Future   (Panama)
    	
 
    	
Speedcarrier (No.5) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
38
    	
Mortgage addenda amending the mortgage over m/v Henry (Malta)
    	
 
    	
Tyron Enterprises S.A. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
39
    	
Mortgage addenda amending the mortgage over m/v Lotus (Malta)
    	
 
    	
Victory Shipholding Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
40
    	
Pledge over shares in Appleton Navigation S.A. (Liberia)
    	
 
    	
Bayard Maritime Limited (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
41
    	
Pledge over shares in Boxcarrier (No. 6) Corp. (Liberia)
    	
 
    	
Bayard Maritime Limited (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
42
    	
Pledge over shares in Boxcarrier (No. 7) Corp. (Liberia)
    	
 
    	
Westwood Marine S.A.

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
43
    	
Pledge over shares in Boxcarrier (No.8) Corp. (Liberia)
    	
 
    	
Lito Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
44
    	
Pledge over shares in Commodore Marine Inc. (Liberia)
    	
 
    	
Erato Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
45
    	
Pledge over shares in Duke Marine Inc. (Liberia)
    	
 
    	
Erato Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
46
    	
Pledge over shares in Geoffrey Shipholding Limited (Liberia)
    	
 
    	
Lydia Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
47
    	
Pledge over shares in Independence
    	
 
    	
Sapfo Navigation Inc. (Liberia)
    

 

198

 

	
Document
    	
 
    	
Parties
    
	
 
    	
Navigation Inc. (Liberia)
    	
 
    	
Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
48
    	
Pledge over shares in Lacey Navigation Inc. (Liberia)
    	
 
    	
Lito Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
49
    	
Pledge over shares in Saratoga Trading S.A. (Liberia)
    	
 
    	
Bounty Investment Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
50
    	
Charge over shares in Seasenator Shipping Limited (Cyprus)
    	
 
    	
Tully Enterprises S.A. (Liberia)

 

Baker International S.A.

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
51
    	
Pledge over shares in Speedcarrier (No.1) Corp. (Liberia)
    	
 
    	
Sapfo Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
52
    	
Pledge over shares in Speedcarrier (No.2) Corp. (Liberia)
    	
 
    	
Lito Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
53
    	
Pledge over shares in Speedcarrier (No.3) Corp. (Liberia)
    	
 
    	
Westwood Marine S.A.

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
54
    	
Pledge over shares in Speedcarrier (No.4) Corp. (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
55
    	
Pledge over shares in Speedcarrier (No.5) Corp. (Liberia)
    	
 
    	
Bayard Maritime Limited (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
56
    	
Pledge over shares in Tyron Enterprises S.A. (Liberia)
    	
 
    	
Tully Enterprises S.A. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
57
    	
Pledge over shares in Victory Shipholding Inc. (Liberia)
    	
 
    	
Bounty Investment Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
58
    	
Charge over shares in Seacaravel Shipping Limited (Cyprus)
    	
 
    	
Bayard Maritime Limited (Liberia)

 

Tully Enterprises S.A. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
59
    	
Charge over shares in Deleas Shipping Limited (Cyprus)
    	
 
    	
Tully Enterprises S.A. (Liberia)

 

Westwood Marine S.A.

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    

 

199

 

	
Document
    	
 
    	
Parties
    
	
RBS Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
60
    	
Mortgage addenda amending the mortgage over m/v Hyundai Progress   (Panama)
    	
 
    	
Speedcarrier (No.6) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
61
    	
Mortgage addenda amending the mortgage over m/v Hyundai Highway   (Panama)
    	
 
    	
Speedcarrier (No.7) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
62
    	
Mortgage addenda amending the mortgage over m/v Hyundai Bridge   (Panama)
    	
 
    	
Speedcarrier (No.8) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
63
    	
Amendment to mortgage over m/v Zim Monaco (Malta)
    	
 
    	
Continent Marine Inc. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
64
    	
Amendment to mortgage over m/v CMA CGM Racine (Malta)
    	
 
    	
Boxcarrier (No. 5) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
65
    	
Amendment to mortgage over m/v Hanjin Buenos Aires (Malta)
    	
 
    	
Cellcontainer (No.1) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
66
    	
Amendment to mortgage over m/v MV Hanjin Versailles (Malta)
    	
 
    	
Cellcontainer (No.3) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
67
    	
Pledge over shares in Speedcarrier (No.6) Corp. (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
68
    	
Pledge over shares in Speedcarrier (No.7) Corp. (Liberia)
    	
 
    	
Lydia Inc. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
69
    	
Pledge over shares in Speedcarrier (No.8) Corp. (Liberia)
    	
 
    	
Bounty Investment Inc. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
70
    	
Pledge over shares in Continent Marine Inc. (Liberia)
    	
 
    	
Tully Enterprises S.A. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    

 

200

 

	
Document
    	
 
    	
Parties
    
	
71
    	
Pledge over shares in Federal Marine Inc. (Liberia)
    	
 
    	
Erato Navigation Inc. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
72
    	
Pledge over shares in Boxcarrier (No. 5) Corp. (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
73
    	
Pledge over shares in Cellcontainer (No.1) Corp. (Liberia)
    	
 
    	
Sapfo Navigation Inc. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
74
    	
Pledge over shares in Cellcontainer (No.3) Corp. (Liberia)
    	
 
    	
Westwood Marine S.A.

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
75
    	
Pledge over shares in Cellcontainer (No.4) Corp. (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
76
    	
Pledge over shares in Teucarrier (No.5) Corp. (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
ABN AMRO Facility   Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
77
    	
Mortgage amendment amending the mortgage over m/v YM Singapore   (Liberia)
    	
 
    	
Wellington Marine Inc. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
78
    	
Mortgage amendment amending the mortgage over m/v YM Colombo (Liberia)
    	
 
    	
Auckland Marine Inc. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
79
    	
Pledge over shares in Seacarriers Services Inc (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
80
    	
Pledge over shares in Wellington Marine Inc (Liberia)
    	
 
    	
Lydia Inc. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
81
    	
Pledge over shares in Seacarriers Lines Inc (Liberia)
    	
 
    	
Tully Enterprises S.A. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
82
    	
Pledge over shares in Auckland Marine Inc (Liberia)
    	
 
    	
Westwood Marine S.A.

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    

 

201

 

	
Document
    	
 
    	
Parties
    
	
83
    	
Dutch account pledge
    	
 
    	
Seacarriers Services Inc.

 

Seacarriers Lines Inc.

 

Auckland Marine Inc.

 

Wellington Marine Inc.

 

ABN AMRO Bank N.V. (as Account Bank and Pledgee)
    
	
 
    	
 
    	
 
    	
 
    
	
HSH US$60 million   Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
84
    	
Mortgage amendment amending the mortgage over m/v Deva (Liberia)
    	
 
    	
Fastcarrier (No. 1) Corp. (Liberia)

 

HSH Nordbank AG as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
85
    	
Mortgage amendment amending the mortgage over m/v Bunga Raya Tiga   (Liberia)
    	
 
    	
Fastcarrier (No. 2) Corp. (Liberia)

 

HSH Nordbank AG as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
86
    	
Pledge over shares in Fastcarrier (No. 1) Corp. (Liberia)
    	
 
    	
Bounty Investment Inc. (Liberia)

 

HSH Nordbank AG as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
87
    	
Pledge over shares in Fastcarrier (No. 2) Corp. (Liberia)
    	
 
    	
Baker International S.A. (Liberia)

 

HSH Nordbank AG as Security Trustee
    

 

202

 

Part 2

 

New Security Documents

 

	
New Club Facility   Agreement (Vessels S456 and S457)
    
	
 
    
	
1
    	
Owners’ Guarantee for vessel S456 and vessel S457
    	
 
    	
Megacarrier (No.1) Corp. (Liberia)

 

Megacarrier (No.2) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
2
    	
Vessel S456 Mortgage (Liberia)
    	
 
    	
Megacarrier (No.1) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
3
    	
Vessel S457 Mortgage (Liberia)
    	
 
    	
Megacarrier (No.2) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
4
    	
Earnings Account Pledge
    	
 
    	
Danaos Corporation

 

Deutsche Schiffsbank Aktiengesellschaft, Credit Suisse AG, Deutsche   Bank AG Filiale Deutschlandgeschäft, Deutsche Bank AG and Emporiki Bank of   Greece S.A. as Pledgees

 

Deutsche Schiffsbank Aktiengesellschaft as Account Bank, Agent and   Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
5
    	
Vessel S456 General Assignment
    	
 
    	
Megacarrier (No.1) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
6
    	
Vessel S457 General Assignment
    	
 
    	
Megacarrier (No.2) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
7
    	
Vessel S456 Charter Assignment
    	
 
    	
Megacarrier (No.1) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
Vessel S457 Charter Assignment
    	
 
    	
Megacarrier (No.2) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
9
    	
Vessel S456 Pre-delivery Security Assignment
    	
 
    	
Megacarrier (No.1) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    

 

203

 

	
10
    	
Vessel S457 Pre-delivery Security Assignment
    	
 
    	
Megacarrier (No.2) Corp. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
11
    	
Vessel S456 Owner Share Pledge (Liberia)
    	
 
    	
Lydia Inc. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
12
    	
Vessel S457 Owner Share Pledge (Liberia)
    	
 
    	
Sapfo Navigation Inc. (Liberia)

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
13
    	
Master Swap Agreements Security Deed
    	
 
    	
Danaos Corporation

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
14
    	
Vessel S456 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
15
    	
Vessel S457 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

Deutsche Schiffsbank Aktiengesellschaft as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
New RBS Facility   Agreement (Vessels S458 and S461)
    
	
 
    	
 
    	
 
    	
 
    
	
16
    	
Owners’ Guarantee for vessel S458 and vessel S461
    	
 
    	
Megacarrier (No.3) Corp. (Liberia)

 

Cellcontainer (No.6) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
17
    	
Vessel S458 Mortgage (Liberia)
    	
 
    	
Megacarrier (No.3) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
18
    	
Vessel S461 Mortgage (Liberia)
    	
 
    	
Cellcontainer (No.6) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
19
    	
Earnings Account Charge
    	
 
    	
Danaos Corporation

 

The Royal Bank of Scotland plc as Account Bank, Pledgee, Agent
    
	
 
    	
 
    	
 
    	
 
    
	
20
    	
Vessel S458 General Assignment

 

 
    	
 
    	
Megacarrier (No.3) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    

 

204

 

	
21
    	
Vessel S461 General Assignment
    	
 
    	
Cellcontainer (No.6) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
22
    	
Charter Assignment vessel S458
    	
 
    	
Megacarrier (No.3) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
23
    	
Charter Assignment vessel S461
    	
 
    	
Cellcontainer (No.6) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
24
    	
Vessel S458 Pre-delivery Security Assignment
    	
 
    	
Megacarrier (No.3) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
25
    	
Vessel S461 Pre-delivery Security Assignment
    	
 
    	
Cellcontainer (No.6) Corp. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
26
    	
Vessel S458 Owner Share Pledge (Liberia)
    	
 
    	
Bounty Investment Inc. (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
27
    	
Vessel S461 Owner Share Pledge (Liberia)
    	
 
    	
Westwood Marine S.A (Liberia)

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
28
    	
Master Swap Agreements Security Deed
    	
 
    	
Danaos Corporation

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
29
    	
Vessel S458 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
30
    	
Vessel S461 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

The Royal Bank of Scotland plc as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
New HSH Facility   Agreement (Vessels S459 and S462 and CMA CGM Rabelais
    
	
 
    	
 
    	
 
    	
 
    
	
31
    	
Owners’ Guarantee
    	
 
    	
Megacarrier (No.4) Corp. (Liberia)

 

Boxcarrier (No.4) Corp. (Liberia)

 

Cellcontainer (No. 7) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security 
    

 

205

 

	
 
    	
 
    	
 
    	
Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
32
    	
Mortgage over vessel S459 (Liberia)
    	
 
    	
Megacarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
33
    	
Mortgage over vessel S462 (Liberia)
    	
 
    	
Cellcontainer (No.7) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
34
    	
Mortgage over CMA CGM Rabelais Malta
    	
 
    	
Boxcarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
35
    	
Earnings Account Pledge
    	
 
    	
Danaos Corporation as Pledgor

 

Aegean Baltic Bank S.A. as Agent

 

Aegean Baltic Bank S.A., HSH Nordbank AG and Piraeus Bank A.E. as Pledgees

 

Aegean Baltic Bank S.A. as the Account Bank
    
	
 
    	
 
    	
 
    	
 
    
	
36
    	
Vessel S459 General Assignment
    	
 
    	
Megacarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
37
    	
Vessel S462 General Assignment
    	
 
    	
Cellcontainer (No.7) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
38
    	
CMA CGM Rabelais General Assignment
    	
 
    	
Boxcarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
39
    	
Vessel S459 Charter Assignment
    	
 
    	
Megacarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
40
    	
Vessel S462 Charter Assignment
    	
 
    	
Cellcontainer (No.7) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
41
    	
CMA CGM Rabelais Charter Assignment
    	
 
    	
Boxcarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
42
    	
Vessel S459 Pre-delivery Security Assignment
    	
 
    	
Megacarrier (No.4) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security 
    

 

206

 

	
 
    	
 
    	
 
    	
Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
43
    	
Vessel S462 Pre-delivery Security Assignment
    	
 
    	
Cellcontainer (No.7) Corp. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
44
    	
Vessel S459 Owner Share Pledge (Liberia)
    	
 
    	
Tully Enterprises S.A. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
45
    	
Vessel S462 Owner Share Pledge (Liberia)
    	
 
    	
Bayard Maritime Limited (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
46
    	
CMA CGM Rabelais Owner Share Pledge (Liberia)
    	
 
    	
Lito Navigation Inc. (Liberia)

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
47
    	
Master Swap Agreements Security Deed
    	
 
    	
Danaos Corporation

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
48
    	
Vessel S459 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
49
    	
Vessel S462 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
50
    	
CMA CGM Rabelais Manager’s Undertaking
    	
 
    	
Danaos Shipping Limited

 

Aegean Baltic Bank S.A. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
ABN AMRO Club Facility   Agreement (Vessel S463)
    
	
 
    	
 
    	
 
    	
 
    
	
51
    	
Owner’s Guarantee
    	
 
    	
Cellcontainer (No.8) Corp. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
52
    	
Vessel S463 Mortgage (Liberia)
    	
 
    	
Cellcontainer (No.8) Corp. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
53
    	
Earnings Account Pledge
    	
 
    	
Danaos Corporation

 

ABN AMRO Bank N.V. as Account Bank and Pledgee
    

 

207

 

	
54
    	
Vessel S463 General Assignment
    	
 
    	
Cellcontainer (No.8) Corp. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
55
    	
Vessel S463 Charter Assignment
    	
 
    	
Cellcontainer (No.8) Corp. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
56
    	
Vessel S463 Pre-delivery Security Assignment
    	
 
    	
Cellcontainer (No.8) Corp. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
57
    	
Vessel S463 Owner Share Pledge (Liberia)
    	
 
    	
Lito Navigation Inc. (Liberia)

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
58
    	
Master Swap Agreements Security Deed
    	
 
    	
Danaos Corporation

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
59
    	
Vessel S463 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

ABN AMRO Bank N.V. as Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
Citi/Eurobank Facility   Agreement (Vessel S460)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
60
    	
Owner’s Guarantee
    	
 
    	
Megacarrier (No.5) Corp. (Liberia)

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
61
    	
Vessel S460 Mortgage (Liberia)
    	
 
    	
Megacarrier (No.5) Corp. (Liberia)

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
62
    	
Earnings Account Pledge
    	
 
    	
Danaos Corporation

 

Citibank International plc as Agent

 

Citibank N.A., London Branch as Account Bank and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
63
    	
General Assignment for vessel S460
    	
 
    	
Megacarrier (No.5) Corp. (Liberia)

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    

 

208

 

	
64
    	
Charter Assignment for vessel S460
    	
 
    	
Megacarrier (No.5) Corp. (Liberia)

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
65
    	
Vessel S460 Pre-delivery Security Assignment
    	
 
    	
Megacarrier (No.5) Corp. (Liberia)

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
66
    	
Vessel S460 Owner’s Share Pledge (Liberia)
    	
 
    	
Bayard Maritime Limited (Liberia)

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
67
    	
Master Swap Agreements Security Deed
    	
 
    	
Danaos Corporation

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
68
    	
Vessel S460 Manager’s Undertaking
    	
 
    	
Danaos Shipping Company Limited

 

Citibank International plc as Agent and Citibank N.A., London Branch   as Security Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
Applicable Second Lien   Vessel Security Documents
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
69
    	
Each “Second Mortgage Document” (as that term is defined in each HSH   Intercreditor Agreement)
    
	
 
    	
 
    
	
70
    	
Each “Second Mortgage Document” (as that term is defined in each RBS   Intercreditor Agreement)
    

 

209

 

Schedule 15

 

Hedging Strategy

 

1                        Introduction

 

1.1                This Schedule constitutes the Hedging Strategy for the purposes of the Agreement.   Under clause 23.30 and clause 23.31 (Compliance with Hedging Strategy) of the Agreement, the Company is obliged to comply with the terms of this Hedging Strategy.

 

1.2                The objective of the hedging strategy is to mitigate the Group’s exposure to interest rate risk.

 

1.3                For the purposes of this Schedule, the following definitions shall apply:

 

(a)                                            Swap Exposure means, as at any relevant date, the amount certified by the Hedge Counterparty to be the aggregate net amount in Dollars, if any, which would be payable by the Company to the Hedge Counterparty under (and calculated in accordance with) Section 6(e) (Payments on Early Termination) of the 1992 ISDA Master Agreement or 2002 ISDA Master Agreement as applicable if an Early Termination Date (as defined in the ISDA Master Agreement) had occurred on the relevant date under the Master Agreement in place between the Company and such Hedge Counterparty.

 

(b)                                           Transaction has the meaning given to it in the applicable 1992 ISDA Master Agreement or 2002 ISDA Master Agreement entered into by the Hedge Counterparty in accordance with this Agreement.

 

1.4                The Company and the Participating Lenders agree that the Hedging Agreements are to be used solely as a risk management tool to protect the Company and the Group from adverse movements in financial markets.  The Company shall not enter into Hedging Agreements or derivative transactions as a means of speculating on movements in the underlying financial markets.

 

1.5                Any Transaction entered into by the Company shall be restricted to financial hedging contracts where the floating rate is determined on the basis of the underlying reference source of USD-LIBOR-BBA (as defined in the 2006 ISDA Definitions as published by the International Swaps and Derivatives Association, Inc.), and such financial hedging contracts shall also comply with the prescribed guidelines for maximum tenor and notional size as set out in paragraph 2 below.  These contracts shall take the form of plain vanilla interest rate swaps, interest rate caps or cash settled interest rate swaptions (an option to enter into a plain vanilla interest rate swap at a later stage).

 

1.6                Specifically with respect to interest rate caps and interest rate swaptions, these contracts must be bought by the Group for an up-front premium (and provided that such premium would not cause the Company to breach clause 20.7 (Mininum Liquidity Covenant) or otherwise result in a Default occurring) and which does not when aggregated with all premia paid for all such interest rate caps and interest rate swaptions after the date of this Agreement exceed US$5 million without the written consent of the Majority Participating Lenders and where to do so does not otherwise result in a breach of clause 20.7, and therefore be classified as ‘bought’ options from the borrower’s accounting point of view.  As such there is a one-way credit obligation under such products whereby at a future point in time, should they be exercised, the party selling the product will always be paying the Company and there will never be contingent future cashflows from the Company to the seller. Deferred premium options or combinations of bought and sold options and swaps with embedded options are not permissible without the express consent of the Majority Participating Lenders.

 

210

 

2                        Hedging Principles

 

2.1                For the period from the date of this Agreement until the date falling four years thereafter, the Company must at all times ensure that it maintains Hedging Agreements that provide for interest rate swaps with an aggregate notional amount equal to at least 80 per cent. of the aggregate principal amount then outstanding under the Facility Agreements.

 

2.2                The Company must on any date falling at least two years after the date of this Agreement ensure that it maintains Hedging Agreements that provide for interest rate swaps with an aggregate notional amount equal to at least 80 per cent. of the aggregate principal amount outstanding under the Facility Agreements at that time for a period ending on the earlier of the date which is two years from such date and the Final Maturity Date.

 

2.3                The Company is the only Group Company that may enter into Hedging Agreements and the Company shall procure that no other Group Company enters into Hedging Agreements or any similar agreements.

 

2.4                The interest rate swaps contemplated by paragraphs 2.1 and 2.2 shall provide for the Company to pay a fixed rate of interest in respect of the relevant notional amount.

 

2.5                The Company shall not enter into any new Hedging Agreements if the aggregate notional amount of the Transactions outstanding is equal to or more than 100% of the aggregate principal amount outstanding under the Facility Agreements.

 

2.6                The Company shall provide quarterly updates to the Participating Lenders of the notional amounts of the Hedging Agreements as a percentage of principal amounts then outstanding under the Facility Agreements, together with details as to the termination dates of such Hedging Agreement.

 

3                        Ranking of Hedging Agreements

 

3.1                The overriding principle is that in the case of Existing Hedging Transactions these will continue to be ranked in accordance with the Existing Finance Documents as will the ranking of any new Transaction save that in the case of any realisation arising from any New Security Documents over Joint Security Vessels, the  Swap Exposure under any Existing Hedging Transactions shall rank in right and priority of payment and security behind any New Money Facility Loan secured on the same Vessel but pari passu with any Existing Facility Loan and any Existing Hedging Transactions secured on the same Vessel if such Existing Hedging Transactions are ranked pari passu in accordance with the Existing Finance Document (Existing Pari Passu Hedging) but otherwise such Existing Hedging Transactions shall rank behind any Existing Facility Loan secured under the same Security Documents.

 

3.2                In the case of any new Transactions entered into under Existing Hedging Agreements these shall benefit from the Security granted under the Existing Finance Documents on the basis and ranking applicable to such hedging Transactions in accordance with the Existing Finance Documents and paragraph 3.1 above, where applicable.

 

3.3                The Swap Exposure under any new Transaction entered into under any new Hedging Agreement which is secured by any New Security Documents over Joint Security Vessels shall rank in right and priority of payment and security behind any New Money Facility Loan secured under the same Security Documents and behind any Existing Facility Loan and any Existing Pari Passu Hedging under the same Security Documents but otherwise shall rank pari passu with other Existing Hedging Transactions secured under the same Security Documents.

 

3.4                No Transaction shall be entered into which grants, or purports to grant, Security over a Vessel without the consent of the relevant Participating Lenders who hold Security over that Vessel.  The Participating Lenders who hold Security over a Vessel may provide for a different ranking from that set out in paragraphs 3.1 or 3.3 above but only with the consent of all those Participating Lenders who hold security over such vessel.

 

211

 

4                        Prepayment of amounts outstanding under the Facility Agreements

 

4.1                In relation to the Hedging Agreements, if the Company:

 

(a)                       makes a prepayment (whether voluntary or mandatory or in whole or in part) of any amounts outstanding under a Facility Agreement as permitted or required by a Facility Agreement and/or Finance Document; or

 

(b)                      cancels all or part of any of the commitments (however described) under a Facility Agreement,

 

then, subject to paragraph 4.3, the Company shall immediately close out and terminate sufficient Hedging Agreements (or part thereof) of its choosing as is necessary to ensure that the aggregate notional amount of the Hedging Agreements is no greater than 100 per cent. of the principal amounts outstanding under the Facility Agreements at any time.

 

4.2                Prior to the Company closing out and terminating Hedging Agreements under paragraph 4.1 the Company must deliver to each Relevant Finance Party information about which Hedging Agreements (or part thereof) it intends to terminate and the commercial rationale justifying such termination and shall in all circumstances be obliged to have regard to prevailing market conditions at the time, including as to whether prevailing sentiment is that its exposure under the Hedging Agreements would increase.

 

4.3                The provisions of paragraph 4.1 shall not apply to the extent that the Company would be required to make a net payment to the relevant Hedge Counterparty provided that:

 

(a)                       this provision is without prejudice to the obligation of the Company to post Cash Cover in accordance with this Agreement;

 

(b)                      in all circumstances the Company shall be obliged to comply with paragraph 4.2 above; and

 

(c)                       the Company shall act in a commercially prudent manner in considering whether to close out and/or terminate the Hedging Agreements.

 

4.4                The provisions of paragraph 4.3 shall override any provisions in an Existing Facility Agreement, which require the unwinding of Transactions on or prior to any repayment or prepayment.

 

5                        Requirements as to Hedging Agreements

 

5.1                The Company shall only enter into a Hedging Agreement which is:

 

(a)                       with a person who is a Participating Lender or an Affiliate of a Participating Lender and who is an Acceptable Bank (within the meaning given to such expression by limb (a) of the definition); or

 

(b)                      subject to clause 32.2 (Addition of or Change of a Hedge Counterparty), with a counterparty who is a party to the Agreement as a Hedge Counterparty or who has executed a Finance Party Accession Deed;

 

and in each case is in the form or substantially the form set out in Schedule 16 (Amended and Restated Existing Hedging Agreements).

 

5.2                The Company shall not amend or waive any provision of any Hedging Agreement where to do so would conflict with the terms of this Agreement and without the prior written consent of the Relevant Finance Parties who hold Security over any Vessel which is also secured in favour of the relevant Hedge Counterparty, where such amendment or waiver is or would be restricted under paragraphs 4 and 5 of Schedule 8 (Intercreditor Voting Schedule).

 

212

 

5.3                Notwithstanding paragraph 6.1(c) above any Hedging Agreements entered into after the date of the Restructuring Agreement must be entered into in accordance with, and having regard to, the provisions set out in clause 6.2 (Most Favoured Lender) of the Agreement.

 

6                        Review of Hedging Policy

 

6.1                At each interval referred to in connection with the presentations and briefings provided by the Company in accordance with clause 22.21 (Presentations and briefings) of the Restructuring Agreement, the Relevant Finance Parties may (but are not obliged to) review the overall hedged position of the Company to determine the impact that it is having on the overall financial position of the Company and the Group. After carrying out such a review, the Relevant Finance Parties may make recommendations for approval by the Majority Participating Lenders and the Company for the hedging strategy to be amended to take into consideration:

 

(a)                       ongoing developments in financial markets;

 

(b)                      changes in the Group’s own cashflows.

 

7                        Miscellaneous

 

7.1                The Company will not enter into any Hedging Arrangements in respect of any shareholder debt.

 

7.2                The Company shall only enter into Hedging Agreements with Participating Lenders or their Affiliates in accordance with paragraph 5.1 above.  In the event that a Hedge Counterparty ceases to be a Participating Lender (or Affiliate of a Participating Lender), any Hedging Agreements between the Company and the Hedge Counterparties shall continue until their designated maturity but the Company will not enter into any further Hedging Agreements or related transactions with such person.

 

7.3                The Company acknowledges that no Participating Lender or its Affiliate is obliged to enter into any new Transaction under the terms of this Hedging Strategy.

 

213

 

Schedule 16

 

Amended and Restated Existing Hedging Agreements

 

ISDA®

 

International Swaps and Derivatives Association, Inc.

 

SCHEDULE

to the

2002 Master Agreement

 

dated as of

 

 

between

 

	
[·]
    	
 
    	
and
    	
 
    	
Danaos   Corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(“Party A”)
    	
 
    	
 
    	
 
    	
(“Party B”)
    

 

This Agreement (the “New Agreement”) amends and restates the Agreement (the “Original Agreement”) between the parties dated as of [·].  Any Transaction entered into pursuant to the terms of the Original Agreement shall be deemed to be a Transaction for the purposes of this New Agreement and shall be governed by the terms herein from the date of the Restructuring Agreement (defined below).  In addition, any Specified Transaction (whether now existing or hereafter entered into) between the parties, the confirmation of which fails by its language to supplement and form part of any master agreement documentation shall, unless such confirmation expressly excludes application of this Agreement, be governed by and be subject to this Agreement provided that for this purpose Specified Transaction shall not include any repurchase transaction, reverse repurchase transaction, buy/sell-back transaction or securities lending transaction.  Any such confirmation shall be a “Confirmation” and any such Specified Transaction shall be a “Transaction” for all purposes of this Agreement.

 

For the purposes of the Restructuring Agreement (the “Restructuring Agreement”) between, inter alios, Party A and Party B dated [·], this Agreement (including any Confirmations) shall constitute a Hedging Agreement (as defined therein) and, consequently, a Finance Document (as defined therein).  In the event of any inconsistency between the terms of this Agreement and the Restructuring Agreement, the terms of the Restructuring Agreement shall take precedence.

 

Part 1.    Termination Provisions.

 

(a)                                 “Specified Entity” means in relation to Party A for the purpose of:—

 

Section 5(a)(v),                             Not Applicable

 

Section 5(a)(vi),                            Not Applicable

 

Section 5(a)(vii),                           Not Applicable

 

Section 5(b)(v),                            Not Applicable

 

and in relation to Party B for the purpose of:—

 

214

 

Section 5(a)(v),                             Not Applicable

 

Section 5(a)(vi),                            Any Affiliate

 

Section 5(a)(vii),                           Not Applicable

 

Section 5(b)(v),                            Not Applicable

 

(b)                                “Specified Transaction” will have the meaning specified in Section 14 of this Agreement.

 

(c)                                 The “Cross-Default” provisions of Section 5(a)(vi) will not apply to Party A and will not apply to Party B, except following the termination of the Restructuring Agreement, when the Cross Default provisions of Section 5(a)(vi) will apply to Party B only and, the following provisions shall apply:

 

“Specified Indebtedness” means any obligation (whether present or future, contingent or otherwise, as principal or surety or otherwise) in respect of money borrowed or money otherwise raised, whether by means of the issue of notes, bonds, commercial paper, certificates of deposit or other debt instruments or under financial leases or deferred purchase schemes and obligations of the parties under or with respect to any one or more transactions of the kind referred to in the definition of “Specified Transaction” between either party to this Agreement and any other party (such other transaction(s), “Derivative Transaction”).

 

For the purposes of Section 5(a)(vi) of this Agreement, any reference in Section 5(a)(vi)(1) to Specified Indebtedness becoming or becoming capable of being declared due and payable before it would otherwise have been due and payable shall, in the case of a Derivative Transaction, be deemed to be a reference to such Derivative Transaction being liquidated or terminated before it otherwise would have been terminated, and any reference in Section 5(a)(vi)(1) to any amount of Specified Indebtedness shall, in the case of a Derivative Transaction, be deemed to mean the amount which becomes, or would become, payable as a result of the liquidation or termination of such Derivative Transaction.

 

“Threshold Amount” means USD 5,000,000 (including the U.S. Dollar equivalent on the date of any default, event of default or other similar condition or event of any obligation stated in any other currency).

 

(d)                                The “Credit Event Upon Merger” provisions of Section 5(b)(v) will not apply to Party A and will not apply to Party B

 

(e)                                 The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A and will not apply to Party B [provided, however, that with respect to a party, where the Event of Default specified in Section 5(a)(vii)(1), (3), (4), (5) or to the extent analogous thereto, (8) is governed by a system of law which does not permit termination to take place after the occurrence of the relevant Event of Default, then the Automatic Early Termination provisions of Section 6(a) will apply to such party [to be included at the option of Party A]. [Drafting note: should apply if the counterparty is Citi, Credit Suisse, Deutsche Schiffsbank or NBG]

 

(f)                                   “Termination Currency” means such currency of any Transaction in respect of which an Early Termination Date has been designated or is deemed to occur as may be selected by the party which is not the Defaulting Party or the Affected Party (as the case may be), or where there are two Affected Parties such currency as may be agreed between them, if such currency is freely available, and otherwise United States Dollars [Euro in the case of HSH].

 

(g)                       Events of Default.  Section 5 shall be amended by inserting the following as paragraphs (ix) to (xi):

 

(ix)                                any Event of Default as defined in the Restructuring Agreement has occurred and is continuing;

 

(x)                                   any Finance Document Event of Default as defined in the Restructuring Agreement has occurred and is continuing and the Enforcement Standstill Period (as defined in 

 

215

 

the Restructuring Agreement) has elapsed or does not apply in accordance with the provisions of clause 26.5 of the Restructuring Agreement;

 

(xi)                                          the Restructuring Termination Date (as defined in the Restructuring Agreement) occurs; or

 

(xii)                                       an Insolvency Event (as defined in the Restructuring Agreement) has occurred and is continuing.

 

(h)                       Additional Termination Event will apply.  The following will constitute an Additional Termination Event with Party B as the sole Affected Party:-

 

(i)                                               Party B notifies Party A that it intends to terminate certain Transactions (or any part thereof) due to the fact that the notional amount of all of its outstanding transactions under the Hedging Agreements (as defined in the Restructuring Agreement) exceeds 100% of the aggregate principal amount outstanding under the Facility Agreements (as defined in the Restructuring Agreement).

 

The Affected Transactions will be the Transactions (if any) (or any part thereof) which Party B elects shall be Affected Transactions.  Party B hereby undertakes to deliver a notice to Party A in advance of the Early Termination Date in respect of the transactions (or any part thereof) to be terminated, providing information of which transactions (or any part thereof) are to be terminated (whether such transactions are Transactions under this Agreement or not), and setting out the commercial rationale of Party B in electing to terminate such Transactions (or any part thereof).

 

216

 

Part 2.    Tax Representations

 

(a)           Payer Representations.  For the purpose of Section 3(e) of this Agreement,:—

 

(i)                                  Party A and Party B each make the following representation:—

 

It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 9(h) of this Agreement) to be made by it to the other party under this Agreement.  In making this representation, it may rely on (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, except that it will not be a breach of this representation where reliance is placed on clause (ii) above and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position.

 

(b)           Payee Representations.  For the purpose of Section 3(f) of this Agreement,:—

 

[For all parties other than Citi and Deutsche Bank AG: [For the purpose of Section 3(f) of this Agreement, Party A and Party B make no representations.]

 

[For Citi: [The following representation will apply to Party A:

 

It is a national banking association organised under the laws of the United States and its U.S. taxpayer identification number is 13-5266470.  It is “exempt” within the meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from information reporting on Form 1099 and backup withholding.

 

The following representation will apply to Party B:

 

Each payment received or to be received by it in connection with this Agreement will not be effectively connected with the conduct of a trade or business in the United States ]

 

[For Deutsche Bank AG: It is (A) a “foreign person” within the meaning of the applicable U.S. Treasury Regulations concerning information reporting and backup withholding tax (as in effect on 1 January 2001), unless Party B provides written notice to Party A that it is no longer a foreign person,  (B) organised under the laws of the Marshall Islands and (C) treated as a corporation for U.S. federal income tax purposes.  In respect of all Transactions, no payment received or to be received by it in connection with this Agreement is effectively connected with the conduct of a trade or business conducted in the United States.]

 

217

 

Part 3.    Agreement to Deliver Documents.

 

For the purpose of Sections 4(a)(i) and 4(a)(ii) of this Agreement, each party agrees to deliver the following documents, as applicable:—

 

(a)           Tax forms, documents or certificates to be delivered are: [For all parties except Citi and Deutsche: [none]

 

[For Citi and Deutsche:

 

	
Party required to deliver
   document
    	
 
    	
Form / Document / Certificate
    	
 
    	
Date by which to be delivered
    
	
Party B
    	
 
    	
As required under Section 4(a)(i) of the Agreement, IRS   Form W-9, IRS Form W-8BEN, IRS Form W-8ECI, IRS   Form W-8EXP and/or IRS Form W-8IMY, whichever is relevant
    	
 
    	
Promptly upon execution of this Agreement; and promptly upon learning   that any form previously provided by Party B has become obsolete or   incorrect.
    

 

(b)           Other documents to be delivered are:-

 

	
Party required
   to deliver
   document
    	
 
    	
Form/Document/
    Certificate
    	
 
    	
Date by which to
   be delivered
    	
 
    	
Covered by
   Section 3(d)
   Representation
    
	
Party A and Party B
    	
 
    	
Appropriate evidence, to the satisfaction of the other party, of its   legal capacity (in the case of Party B only), and the authority of its   signatory or signatories to enter into this Agreement and/or each Transaction   on its behalf.
    	
 
    	
On execution of this Agreement, and in relation to each Transaction,   promptly upon request of the other party.
    	
 
    	
Yes
    
	
Party B
    	
 
    	
A copy of the most recent Annual Report containing consolidated   financial statements of Party B
    	
 
    	
On demand unless publicly available
    	
 
    	
Yes, subject to Part 5(i)
    
	
Party B
    	
 
    	
A copy of Party B’s constitutional documents
    	
 
    	
On execution of this Agreement
    	
 
    	
Yes
    
	
Party B
    	
 
    	
The Credit Support Documents referred to in Part 4(f) of   this Agreement duly executed by the parties thereto
    	
 
    	
On execution of this Agreement
    	
 
    	
Yes
    

 

218

 

	
Party required
   to deliver
   document
    	
 
    	
Form/Document/
    Certificate
    	
 
    	
Date by which to
   be delivered
    	
 
    	
Covered by
   Section 3(d)
   Representation
    
	
Party B
    	
 
    	
A legal opinion with respect to Party B and any Credit Support   Providers of Party B in a form satisfactory to Party A
    	
 
    	
On execution of this Agreement
    	
 
    	
Yes
    
	
Party B
    	
 
    	
A copy of the written acceptance by Party B’s process agent of its   appointment to receive for Party B and on its behalf service of process in   any Proceedings under this Agreement
    	
 
    	
On execution of this Agreement
    	
 
    	
Yes
    
	
Party B
    	
 
    	
Such information in relation to Party B’s condition, financial or   otherwise, as Party A may reasonably request from time to time
    	
 
    	
On demand
    	
 
    	
Yes
    

 

219

 

Part 4.    Miscellaneous.

 

(a)           Addresses for Notices.  For the purpose of Section 12(a) of this Agreement:-

 

Address for notices or communications to Party A:-

 

Address:

Attention:

	
Telex No.:
    	
Answerback:
    
	
Facsimile No.:
    	
Telephone No.:
    

E-mail:

Electronic Messaging System Details:

Specific Instructions:

 

Address for notices or communications to Party B:-

 

	
Address:
    	
 
    	
Danaos Corporation
    
	
 
    	
 
    	
Akti Kondyli 14
    
	
 
    	
 
    	
185 45 Piraeus
    
	
 
    	
 
    	
Greece
    
	
Attention:
    	
 
    	
[·]
    
	
Facsimile No.:
    	
 
    	
+30 210 419 6489
    	
Telephone No.: [·]
    
	
E-mail:  [·]
    	
 
    	
 
    	
 
    

 

(b)          Process Agent.  For the purpose of Section 13(c) of this Agreement:-

 

Party A appoints as its Process Agent: [·]

 

Party B appoints as its Process Agent:

 

Danaos Management Consultants

4 Staple Inn, Holborn

London WC1V 7QU

England

 

(c)           Offices.  The provisions of Section 10(a) will apply to this Agreement.

 

(d)           Multibranch Party.  For the purpose of Section 10(c) of this Agreement:-

 

Party A is [not] a Multibranch Party. [Citi: New York and London][EFG: London and Athens][HSH: Hamburg, Kiel, (Head Offices), London (branch)][Deutsche: London, Tokyo, Paris, Singapore, Brussels, Sydney, Amsterdam, Vienna, Toronto, New Zealand (Auckland), Zurich and Frankfurt]

 

Party B is not a Multibranch Party.

 

(e)           Calculation Agent.  The Calculation Agent is Party A.

 

(f)            Credit Support Document.  Details of any Credit Support Document in respect of Party A:- none. Details of any Credit Support Document in respect of Party B:- the Finance Documents (as defined in the Restructuring Agreement).

 

220

 

(g)           Credit Support Provider.  Credit Support Provider means in relation to Party A: none.  Credit Support Provider means in relation to Party B: any person or company who may be or become liable for, or provide security for, any amount payable by Party B to Party A under the Finance Documents.

 

(h)           Governing Law.  This Agreement, and any non-contractual obligations arising out of it, will be governed by and construed in accordance with English law.

 

(i)            Netting of Payments. “Multiple Transaction Payment Netting” will not apply for the purpose of Section 2(c) of this Agreement.  Nevertheless, to reduce settlement risk and operational costs, the parties agree that they will endeavour to net across as many Transactions as practicable wherever the parties can administratively do so.

 

(j)            “Affiliate” will have the meaning specified in Section 14 of this Agreement

 

(k)           Absence of Litigation.  For the purpose of Section 3(c):-

 

“Specified Entity” means in relation to Party A, None.

 

“Specified Entity” means in relation to Party B, all Affiliates.

 

(l)            No Agency.  The provisions of Section 3(g) will apply to this Agreement.

 

(m)          Additional Representation will apply.  For the purpose of Section 3 of this Agreement, the following will constitute an Additional Representation:-

 

(i)            Relationship between Parties.  Each party will be deemed to represent to the other party on the date on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction):—

 

(1)          Non-Reliance.  It is acting for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary.  It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into that Transaction, it being understood that information and explanations related to the terms and conditions of a Transaction will not be considered investment advice or a recommendation to enter into that Transaction.  No communication (written or oral) received from the other party will be deemed to be an assurance or guarantee as to the expected results of that Transaction.

 

(2)          Assessment and Understanding.  It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction.  It is also capable of assuming, and assumes, the risks of that Transaction.

 

(3)          Status of Parties.  The other party is not acting as a fiduciary for or an adviser to it in respect of that Transaction.

 

(4)          Risk Management. Party B alone will be deemed to represent to the other party on the date on which it enters into a Transaction that this Agreement has been, and each Transaction hereunder has been or will be, as the case may be, entered into for the purpose of managing its borrowing or investments, hedging its underlying assets or liabilities or in connection with its line of business (including financial intermediation services) and not for the purpose of speculation.

 

221

 

[(5)        Eligible Contract Participant. Each party will be deemed to represent to the other party on the date on which it enters into a Transaction that (a) it is an “eligible contract participant” within the meaning of Section 1(a)(12) of the Commodity Exchange Act, as amended (the “CEA”), (b) this Agreement and each Transaction is subject to individual negotiation by each party, and (c) neither this Agreement nor any Transaction will be executed or traded on a “trading facility” within the meaning of Section 1a(33) of the CEA.

 

(6)          ERISA. Each party will be deemed to represent to the other party one the date on which it enters into a Transaction that the assets that are used in connection with the execution, delivery and performance of this Agreement and the Transactions entered into pursuant hereto are not the assets of an employee benefit or other plan subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), a plan described in Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), an entity whose underlying assets include “plan assets” by reason of Department of Labor regulation section 2501.3-101, or a governmental plan that is subject to any federal, state, or local law that is substantially similar to the provisions of Section 406 of ERISA or Section 4975 of the Code.]

 

[Note: (5)-(6) to be included for US hedging banks only]

 

(n)           Recording of Conversations.  Each party (i) consents to the recording of telephone conversations between the trading, marketing and other relevant personnel of the parties in connection with this Agreement or any potential Transaction, (ii) agrees to obtain any necessary consent of, and give any necessary notice of such recording to, its relevant personnel and (iii) agrees, to the extent permitted by applicable law, that recordings may be submitted in evidence in any Proceedings.

 

222

 

Part 5.    Other Provisions.

 

(a)        ISDA Definitions.

 

The definitions and provisions contained in the 2006 ISDA Definitions (the “ISDA Definitions”) as published by the International Swaps and Derivatives Association, Inc. (“ISDA”) and any other relevant definitions booklet published by or in conjunction with ISDA, as may be amended, supplemented or updated from time to time (together, the “Definitions”) are incorporated into this Agreement, each Transaction and each Confirmation. All terms appearing in a Confirmation with initial capital letters shall have the meaning set forth in the Definitions, unless otherwise defined in such Confirmation. Any amendments, supplements or updates to the Definitions shall be deemed to apply to Transactions entered into after the relevant publication date and the prior Definitions will be deemed superseded thereby, unless otherwise stated in the relevant Confirmation.

 

(b)        FX Definitions.

 

The provisions of the 1998 FX and Currency Option Definitions published by ISDA, the Emerging Markets Traders Association and the Foreign Exchange Committee (the “FX Definitions”) are hereby incorporated by reference and shall apply to FX Transactions and Currency Option Transactions entered into by the Offices of the Parties specified in Part 4 (a).  FX Transactions and Currency Option Transactions are each deemed to be Transactions pursuant to the Agreement.  In the event of any inconsistency between the 2006 Definitions and the FX Definitions, the FX Definitions shall prevail with respect to an FX Transaction or a Currency Option Transaction.  In the event of any inconsistency between the provisions of this Agreement and the 2006 Definitions or the FX Definitions, the provisions of this Agreement shall prevail.  All confirmations howsoever described and whether by means of electronic messaging system, letter, telex, facsimile or otherwise in respect of FX Transactions and Currency Option Transactions shall constitute “Confirmations” as referred to in this Agreement even where not so specified in such confirmation.

 

(c)        Third Party Rights

 

A person who is not a party to this Agreement has no right under the Contracts (Third Party Rights) Act 1999 to enforce any term of this Agreement.

 

(d)        Disapplication of Events of Default and Termination Event

 

With respect to Party B, the following Events of Default and Termination Event shall not apply whilst the Restructuring Agreement is in full force and effect:

 

Section 5(a)(iii) (Credit Support Default)

Section 5(a)(iv) (Misrepresentation)

Section 5(a)(v) (Default under Specified Transaction)

Section 5(a)(vi) (Cross Default) (subject to Part 1(c) above)

Section 5(a)(viii) (Merger Without Assumption)

Section 5(b)(v) (Credit Event Upon Merger)

 

(e)        Disclosure

 

Each party consents to the communication or disclosure by the other party of information in respect of or relating to this Agreement and any Transactions hereunder to such other party’s branches, subsidiaries and Affiliates and, to the extent required by law or regulation, any government or regulatory authority.

 

(f)         2002 Master Agreement Protocol

 

The parties agree that the provisions of the 2002 Master Agreement Protocol including Annexes 1-18 inclusive published by ISDA on 15 July 2003 (the “Protocol”) are incorporated into and apply to this Agreement.  In this respect, references in the Protocol to an “ISDA 2002 Master Agreement” will be 

 

223

 

deemed to be references to this Agreement and the term “the parties”, as used in the Protocol shall be construed as referring to Party A and Party B.

 

(g)        Change of Account

 

Section 2(b) of the Agreement is hereby amended by the addition of the following after the word “delivery” in the first line thereof:

 

“to another account in the same legal and tax jurisdiction as the original account”.

 

(h)        Escrow Payments

 

If (whether by reason of the time difference between the cities in which payments are to be made or otherwise) it is not possible for simultaneous payments to be made on any date on which both parties are required to make payment hereunder, either party may at its option and in its sole discretion notify the other party that payments on that date are to be made in escrow.  In this case deposit of the payment due earlier on the date shall be made by 2:00 pm (local time at the place for the earlier payment) on that date with an escrow agent selected by the notifying party, accompanied by irrevocable payment instructions (i) to release the deposited payment to the intended recipient upon receipt by the escrow agent of the required deposit of the corresponding payment from the other party on the same date accompanied by irrevocable payment instructions to the same effect or (ii) if the required deposit of the corresponding payment is not made on that same date, to return the payment deposited to the party that paid it into escrow.  The party that elects to have payments made in escrow shall pay all costs of the escrow arrangements.

 

(i)         Modified Representation

 

For the purposes of Section 3(d) of this Agreement, the following shall be added to the end thereof:

 

“; provided, however, that in the case of financial statements delivered by either party, the only representation being made by either party is that such financial statements give a fair view of the state of affairs of the relevant entity to which they relate as at the date of such financial statements.”

 

(j)         Amendments

 

Section 9(b) is modified by the deletion of the words “or confirmed by an exchange of telexes or by an exchange of electronic messages on an electronic messaging system”.

 

(k)       Counterparts and Confirmations

 

Section 9(e)(i) is modified by the deletion of the words “and by electronic messaging system”.

 

[(j)       2010 HIRE Act Protocol

 

The parties agree that the definitions and provisions contained in the Attachment to the 2010 HIRE Act Protocol published by the International Swaps and Derivatives Association, Inc. on August 23, 2010 are incorporated into and apply to this Agreement as if set forth in full herein.] [To be included for Citi only]

 

(k)       Limitation of Liability

 

Without prejudice to the definition of “Close-out Amount” and payments calculated by reference to the provisions in Section 6(e), no party shall be required to pay or be liable to the other party for any consequential, indirect or punitive damages, opportunity costs or lost profits (whether arising from its negligence or breach of contract or otherwise), save only that nothing shall exclude liability for fraud.

 

(i)         Further Information

 

Party B agrees that it shall provide Party A with reports on a [monthly][quarterly] basis showing all relevant details of (i) any transactions entered into by Party B under any Hedging Agreement in the 

 

224

 

previous [month][quarter]; and (ii) any transactions terminated under any Hedging Agreement in the previous [month][quarter].  Such reports may be used by Party A to confirm Party A’s compliance or otherwise with the Hedging Strategy.

 

(j)         Severability

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, in relation to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affected the validity or enforceability of such provision in any other jurisdiction.  The parties shall endeavour in good faith negotiations to replace the prohibited or unenforceable provision with a valid provision, the economic effect of which comes as close as possible to that of the prohibited or unenforceable provision.

 

(k)           Original Version of the Master Agreement

 

The parties confirm that the wording set out on pages 1 to 28 of this Agreement (except for the date of the Agreement and the name of the parties to the Agreement) is identical to the original wording set out on pages 1 to 28 of the ISDA 2002 Master Agreement as published by the International Swaps and Derivatives Association, Inc. (the “Original Version”). In the event of any inconsistency between the Original Version and this Agreement, the Original Version shall prevail.

 

225

 

 

	
Signed for and on behalf of
    	
Signed for and on behalf of
    
	
[·]
    	
Danaos Corporation
    
	
 
    	
 
    
	
By:
    	
By:
    
	
 
    	
 
    
	
Name:
    	
Name:
    
	
 
    	
 
    
	
Title:
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
By:
    
	
 
    	
 
    
	
Name:
    	
Name:
    
	
 
    	
 
    
	
Title:
    	
Title:
    

 

226

 

Schedule 17

 

Sinosure

 

227

 

	
EXECUTION
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Original Group Companies
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DANAOS CORPORATION
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Iraklis Prokopakis
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
APPLETON NAVIGATION S.A.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AUCKLAND MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BAKER INTERNATIONAL S.A.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BALTICSEA MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BAYARD MARITIME LTD.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BAYVIEW SHIPPING INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BLACKSEA MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOUNTY INVESTMENT INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO.1) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO.2) CORP
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO.3) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO.4) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO. 5) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO. 6) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO. 7) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
BOXCARRIER (NO.8) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.1) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.2)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.3)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.4)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.5)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.6)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.7)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CELLCONTAINER (NO.8)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CHANNELVIEW MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
COMMODORE MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CONTAINERS SERVICES INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CONTAINERS LINES INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CONTINENT MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DELEAS SHIPPING LIMITED
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DUKE MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ERATO NAVIGATION INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EXPRESSCARRIER (NO.1)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EXPRESSCARRIER (NO.2)   CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
FASTCARRIER (NO.1) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
FASTCARRIER (NO.2) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
FASTCARRIER (NO.3) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
FASTCARRIER (NO.4) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
FASTCARRIER (NO.5) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
FASTCARRIER (NO.6) CORP.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
FEDERAL MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
GEOFFREY SHIPHOLDING   LIMITED
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
INDEPENDENCE NAVIGATION   INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
KARLITA SHIPPING COMPANY   LTD.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LACEY NAVIGATION INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LITO NAVIGATION INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LYDIA INC.
    	
 
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
 
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
MEDSEA MARINE INC.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
MEGACARRIER (NO.1) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
MEGACARRIER (NO.2) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
MEGACARRIER (NO.3) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
MEGACARRIER (NO.4) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
MEGACARRIER (NO.5) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
OCEANEW SHIPPING LTD.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
OCEANPRIZE NAVIGATION   LIMITED
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
RAMONA MARINE COMPANY   LIMITED
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SAPFO NAVIGATION INC.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SARATOGA TRADING S.A.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SEACARAVEL SHIPPING   LIMITED
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SEACARRIERS LINES INC.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SEACARRIERS SERVICES INC.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SEASENATOR SHIPPING   LIMITED
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.1) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.2) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.3) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.4) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.5) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.6) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.7) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
SPEEDCARRIER (NO.8) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
TEUCARRIER (NO.1) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
TEUCARRIER (NO. 2) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
TEUCARRIER (NO.3) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
TEUCARRIER (NO. 4) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
TEUCARRIER (NO.5) CORP.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
TULLY ENTERPRISES S.A.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
TYRON ENTERPRISES S.A.
    	
)
    	
 
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    	
 
    
	
dated
    	
)
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    	
 
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
VICTORY SHIPHOLDING INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
Attorney-in-fact
    
	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
WELLINGTON MARINE INC.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
Attorney-in-fact
    
	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
WESTWOOD MARINE S.A.
    	
)
    	
 
    
	
pursuant to a power of attorney
    	
)
    	
 
    
	
dated
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney-in-fact
    
	
 
    	
 
    
	
Address:
    	
Akti Kondyli 14
    	
 
    
	
 
    	
185 45 Piraeus
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 419 6489
    	
 
    
				

 

 

	
Intercreditor Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
The Royal Bank of Scotland plc
    	
 
    
	
 
    	
135 Bishopsgate, London, EC2M 3UR
    	
 
    
	
 
    	
United Kingdom
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+44 20 7085 4564
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Account Bank
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
 
    	
 
    
				

 

 

	
Existing Facility Agreements
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ABN AMRO Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lenders
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Coolsingel 93
    	
 
    
	
 
    	
P.O. Box 749
    	
 
    
	
 
    	
3000 AS Rotterdam
    	
 
    
	
 
    	
The Netherlands
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LLOYDS TSB BANK plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
33 Old Broad Street
    	
 
    
	
 
    	
London, EC2N 1HZ
    	
 
    
	
 
    	
United Kingdom
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+44 20 7158 3271
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
NATIONAL BANK OF GREECE S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
2 Bouboulinas Street & Akti Miaouli
    	
 
    
	
 
    	
185 38 Piraeus
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 41 44120
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lead Arranger
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Coolsingel 93
    	
 
    
	
 
    	
P.O. Box 749
    	
 
    
	
 
    	
3000 AS Rotterdam
    	
 
    
	
 
    	
The Netherlands
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    	
 
    
				

 

 

	
Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Coolsingel 93
    	
 
    
	
 
    	
P.O. Box 749
    	
 
    
	
 
    	
3000 AS Rotterdam
    	
 
    
	
 
    	
The Netherlands
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+312 10 401 5937
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Security Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Coolsingel 93
    	
 
    
	
 
    	
P.O. Box 749
    	
 
    
	
 
    	
3000 AS Rotterdam
    	
 
    
	
 
    	
The Netherlands
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+312 10 401 5937
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Swap Banks
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Coolsingel 93
    	
 
    
	
 
    	
P.O. Box 749
    	
 
    
	
 
    	
3000 AS Rotterdam
    	
 
    
	
 
    	
The Netherlands
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
NATIONAL BANK OF GREECE S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
2 Bouboulinas Street & Akti Miaouli
    	
 
    
	
 
    	
185 38 Piraeus
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 41 44120
    	
 
    
				

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LLOYDS TSB BANK plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
33 Old Broad Street
    	
 
    
	
 
    	
London, EC2N 1HZ
    	
 
    
	
 
    	
United Kingdom
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+44 20 7158 3271
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Co-Arrangers
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LLOYDS TSB BANK plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
33 Old Broad Street
    	
 
    
	
 
    	
London, EC2N 1HZ
    	
 
    
	
 
    	
United Kingdom
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+44 20 7158 3271
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
NATIONAL BANK OF GREECE S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
2 Bouboulinas Street & Akti Miaouli
    	
 
    
	
 
    	
185 38 Piraeus
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 41 44120
    	
 
    
				

 

 

	
Credit Suisse Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lender
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CREDIT SUISSE AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Henric-Petri-Strasse 15
    	
 
    
	
 
    	
Postfach 2560
    	
 
    
	
 
    	
CH-4002 Basel
    	
 
    
	
 
    	
Switzerland
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+41 61 266 7939
    	
 
    
				

 

 

	
Deutsche Bank Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lender
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE BANK AG FILIALE
    	
)
    	
 
    
	
DEUTSCHLANDGESCHÄFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Ludwig-Erhard-Strasse 1
    	
 
    
	
 
    	
D-20459 Hamburg
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 40 3701 4649
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE BANK AG
    	
)
    	
 
    
	
FILIALE DEUTSCHLANDGESCHÄFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Ludwig-Erhard-Strasse 1
    	
 
    
	
 
    	
D-20459 Hamburg
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 40 3701 4649
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Security Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE BANK AG
    	
)
    	
 
    
	
FILIALE DEUTSCHLANDGESCHÄFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Ludwig-Erhard-Strasse 1
    	
 
    
	
 
    	
D-20459 Hamburg
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 40 3701 4649
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Swap Bank
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE BANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Theodor-Heuss-Allee 70,
    	
 
    
	
 
    	
60486 Frankfurt am Main
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 69 910 36097
    	
 
    
				

 

 

	
DSB Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lenders
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CREDIT SUISSE AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Henric-Petri-Strasse 15
    	
 
    
	
 
    	
Postfach 2560
    	
 
    
	
 
    	
CH-4002 Basel
    	
 
    
	
 
    	
Switzerland
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+41 61 266 7939
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EMPORIKI BANK OF GREECE S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
1 Korai Street
    	
 
    
	
 
    	
105 64 Athens
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 328 2307
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    
	
Address:
    	
Domshof 17
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    
				

 

 

	
Security Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Swap Banks
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    
	
 
    	
Germany
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CREDIT SUISSE AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Henric-Petri-Strasse 15
    	
 
    
	
 
    	
Postfach 2560
    	
 
    
	
 
    	
CH-4002 Basel
    	
 
    
	
 
    	
Switzerland
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+41 61 266 7939
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EMPORIKI BANK OF GREECE S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory/signatories
    
	
Address:
    	
1 Korai Street
    	
 
    
	
 
    	
105 64 Athens
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 328 2307
    	
 
    
				

 

 

	
Emporiki Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lender
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EMPORIKI BANK OF GREECE S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
1 Korai Street
    	
 
    
	
 
    	
105 64 Athens
    	
 
    
	
 
    	
Greece
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 328 2307
    	
 
    
				

 

 

HSH Facility Agreement

 

 

Lenders

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Gerhart-Hauptmann-Platz 50
    
	
 
    	
20095 Hamburg
    
	
 
    	
Germany
    
	
 
    	
 
    
	
Fax:
    	
+49 40 3333 34118
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
217A Kifissias Ave
    
	
 
    	
151 24 Maroussi
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
PIRAEUS BANK A.E.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
47-49 Akti Miaouli
    
	
 
    	
185 36 Piraeus
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 4292601
    

 

 

Arrangers

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
217A Kifissias Ave
    
	
 
    	
151 24 Maroussi
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Gerhart-Hauptmann-Platz 50
    
	
 
    	
20095 Hamburg
    
	
 
    	
Germany
    
	
 
    	
 
    
	
Fax:
    	
+49 40 3333 34118
    

 

 

Agent

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
217A Kifissias Ave
    
	
 
    	
151 24 Maroussi
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    

 

 

Security Trustee

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
217A Kifissias Ave
    
	
 
    	
151 24 Maroussi
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    

 

 

Swap Bank

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Marternsdamm 6
    
	
 
    	
D-24103 Kiel
    
	
 
    	
Germany
    
	
 
    	
 
    
	
Fax:
    	
+49 431 900 61 40 15
    

 

 

HSH $60 million Facility Agreement

 

 

Lenders

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Gerhart-Hauptmann-Platz 50
    
	
 
    	
20095 Hamburg
    
	
 
    	
Germany
    
	
 
    	
 
    
	
Fax:
    	
+49 40 3333 34118
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
COMMERZBANK AG, FILIALE LUXEMBOURG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
25, Rue Edward Steichen
    
	
 
    	
2540 Luxembourg
    
	
 
    	
Luxembourg
    
	
 
    	
 
    
	
Fax:
    	
+49 40 3683 4068
    

 

 

Agent

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
217A Kifissias Ave
    
	
 
    	
151 24 Maroussi
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    

 

 

Paying Agent

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Gerhart-Hauptmann-Platz 50
    
	
 
    	
20095 Hamburg
    
	
 
    	
Germany
    
	
 
    	
 
    
	
Fax:
    	
+49 40 3333 34118
    

 

 

Security Trustee

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Gerhart-Hauptmann-Platz 50
    
	
 
    	
20095 Hamburg
    
	
 
    	
Germany
    
	
 
    	
 
    
	
Fax:
    	
+49 40 3333 34118
    

 

 

Swap Agent

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Gerhart-Hauptmann-Platz 50
    
	
 
    	
20095 Hamburg
    
	
 
    	
Germany
    
	
 
    	
 
    
	
Fax:
    	
+49 40 3333 34118
    

 

 

RBS Facility Agreement

 

 

	
Lender
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Akti Miaouli 45
    
	
 
    	
185 36 Piraeus
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    

 

 

Issuing Bank

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Akti Miaouli 45
    
	
 
    	
185 36 Piraeus
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    

 

 

Swap Bank

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Akti Miaouli 45
    
	
 
    	
185 36 Piraeus
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    

 

 

Agent

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Akti Miaouli 45
    
	
 
    	
185 36 Piraeus
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    

 

 

Security Trustee

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Akti Miaouli 45
    
	
 
    	
185 36 Piraeus
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    

 

 

New Money Facility Agreements

 

ABN AMRO Club Facility Agreement

 

Lenders

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Coolsingel 93
    
	
 
    	
P.O. Box 749
    
	
 
    	
3000 AS Rotterdam
    
	
 
    	
The Netherlands
    
	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LLOYDS TSB BANK plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
33 Old Broad Street
    
	
 
    	
London, EC2N 1HZ
    
	
 
    	
United Kingdom
    
	
 
    	
 
    
	
Fax:
    	
+44 20 7158 3271
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
NATIONAL BANK OF GREECE S.A.
    	
)
    	
 
    
	
 
    	
 
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
2 Bouboulinas Street & Akti Miaouli
    
	
 
    	
185 38 Piraeus
    
	
 
    	
Greece
    
	
 
    	
 
    
	
Fax:
    	
+30 210 41 44120
    

 

 

Hedge Counterparties

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Coolsingel 93
    
	
 
    	
P.O. Box 749
    
	
 
    	
3000 AS Rotterdam
    
	
 
    	
The Netherlands
    
	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
LLOYDS TSB BANK plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
33 Old Broad Street
    
	
 
    	
London, EC2N 1HZ
    
	
 
    	
United Kingdom
    
	
 
    	
 
    
	
Fax:
    	
+44 20 7158 3271
    

 

 

Account Bank

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Coolsingel 93
    
	
 
    	
P.O. Box 749
    
	
 
    	
3000 AS Rotterdam
    
	
 
    	
The Netherlands
    
	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    

 

 

Facility Agent

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Coolsingel 93
    
	
 
    	
P.O. Box 749
    
	
 
    	
3000 AS Rotterdam
    
	
 
    	
The Netherlands
    
	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    

 

 

Security Trustee

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
ABN AMRO BANK N.V.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    

 

	
Address:
    	
Coolsingel 93
    
	
 
    	
P.O. Box 749
    
	
 
    	
3000 AS Rotterdam
    
	
 
    	
The Netherlands
    
	
 
    	
 
    
	
Fax:
    	
+31 210 401 5937
    

 

 

	
New RBS Facility   Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Lender
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Akti Miaouli 45
    	
 
    	
 
    
	
 
    	
185 36 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Hedge Counterparties
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Akti Miaouli 45
    	
 
    	
 
    
	
 
    	
185 36 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Account Bank
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Akti Miaouli 45
    	
 
    	
 
    
	
 
    	
185 36 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    	
 
    	
 
    

 

 

	
Facility Agent
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Akti Miaouli 45
    	
 
    	
 
    
	
 
    	
185 36 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Security Trustee
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Akti Miaouli 45
    	
 
    	
 
    
	
 
    	
185 36 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 459 6600
    	
 
    	
 
    

 

 

	
New Club Facility   Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Lenders
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CREDIT SUISSE AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Henric-Petri-Strasse 15
    	
 
    	
 
    
	
 
    	
Postfach 2560
    	
 
    	
 
    
	
 
    	
CH-4002 Basel
    	
 
    	
 
    
	
 
    	
Switzerland
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+41 61 266 7939
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE BANK AG
    	
)
    	
 
    
	
FILIALE   DEUTSCHLANDGESCHÄFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Ludwig-Erhard-Strasse 1
    	
 
    	
 
    
	
 
    	
D-20459 Hamburg
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 40 3701 4649
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK   AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EMPORIKI BANK OF GREECE   S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
1 Korai Street
    	
 
    	
 
    
	
 
    	
105 64 Athens
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 328 2307
    	
 
    	
 
    

 

 

	
Hedge Counterparties
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CREDIT SUISSE AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Henric-Petri-Strasse 15
    	
 
    	
 
    
	
 
    	
Postfach 2560
    	
 
    	
 
    
	
 
    	
CH-4002 Basel
    	
 
    	
 
    
	
 
    	
Switzerland
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+41 61 266 7939
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE BANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Theodor-Heuss-Allee 70,
    	
 
    	
 
    
	
 
    	
60486 Frankfurt am Main
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 69 910 36097
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK   AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EMPORIKI BANK OF GREECE   S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
1 Korai Street
    	
 
    	
 
    
	
 
    	
105 64 Athens
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 328 2307
    	
 
    	
 
    

 

 

	
Account Bank
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK   AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Facility Agent
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK   AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Security Trustee
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
DEUTSCHE SCHIFFSBANK   AKTIENGESELLSCHAFT
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Domshof 17
    	
 
    	
 
    
	
 
    	
D-28195 Bremen
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 421 360 9329
    	
 
    	
 
    

 

 

	
New HSH Facility   Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Lenders
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
217A Kifissias Ave
    	
 
    	
 
    
	
 
    	
151 24 Maroussi
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Gerhart-Hauptmann-Platz 50
    	
 
    	
 
    
	
 
    	
20095 Hamburg
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 40 3333 34118
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
PIRAEUS BANK A.E.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
47-49 Akti Miaouli
    	
 
    	
 
    
	
 
    	
185 36 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 4292601
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Hedge Counterparties
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
217A Kifissias Ave
    	
 
    	
 
    
	
 
    	
151 24 Maroussi
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    	
 
    	
 
    

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
HSH NORDBANK AG
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Marternsdamm 6
    	
 
    	
 
    
	
 
    	
D-24103 Kiel
    	
 
    	
 
    
	
 
    	
Germany
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+49 431 900 61 40 15
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
PIRAEUS BANK A.E.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
47-49 Akti Miaouli
    	
 
    	
 
    
	
 
    	
185 36 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 4292601
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Account Bank
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
217A Kifissias Ave
    	
 
    	
 
    
	
 
    	
151 24 Maroussi
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facility Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
217A Kifissias Ave
    	
 
    	
 
    
	
 
    	
151 24 Maroussi
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    	
 
    	
 
    

 

 

	
Security Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
AEGEAN BALTIC BANK S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
217A Kifissias Ave
    	
 
    	
 
    
	
 
    	
151 24 Maroussi
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+30 210 6234 192 / 193
    	
 
    	
 
    

 

 

	
Citi/Eurobank Facility Agreement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lenders
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CITIBANK, N.A., LONDON BRANCH
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
33 Canada Square
    	
 
    	
 
    
	
 
    	
Canary Wharf
    	
 
    	
 
    
	
 
    	
London E14 5LB
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+44 20 7986 5312
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EFG EUROBANK ERGASIAS S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
83 Akti Miaouli Str.
    	
 
    	
 
    
	
 
    	
18538 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
30210 4587877
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Hedge Counterparties
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CITIBANK, N.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Capital Markets Documentation Unit
    	
 
    	
 
    
	
 
    	
388 Greenwich Street
    	
 
    	
 
    
	
 
    	
New York, New York, 10013
    	
 
    	
 
    
	
 
    	
Attn: Director Derivatives Operations
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+1 212 657 3992
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
Legal Department
    	
 
    	
 
    
	
 
    	
388 Greenwich Street
    	
 
    	
 
    
	
 
    	
17th Floor
    	
 
    	
 
    
	
 
    	
New York, New York 10013
    	
 
    	
 
    
	
 
    	
Attn: Senior Deputy General Counsel, Citi Markets and Banking
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+1 212 816 5550
    	
 
    	
 
    
						

 

 

	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
EFG EUROBANK ERGASIAS S.A.
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
83 Akti Miaouli Str.
    	
 
    	
 
    
	
 
    	
18538 Piraeus
    	
 
    	
 
    
	
 
    	
Greece
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
30210 4587877
    	
 
    	
 
    

 

 

	
Account Bank
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CITIBANK, N.A., LONDON BRANCH
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
33 Canada Square
    	
 
    	
 
    
	
 
    	
Canary Wharf
    	
 
    	
 
    
	
 
    	
London E14 5LB
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+44 20 7986 5312
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facility Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CITIBANK INTERNATIONAL plc
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
Citigroup Centre
    	
 
    	
 
    
	
 
    	
5th Floor CGC2
    	
 
    	
 
    
	
 
    	
London E14 5LB
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+44 208 363 3824
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Security Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
CITIBANK N.A., LONDON BRANCH
    	
)
    	
/s/ Authorised Signatory
    
	
 
    	
 
    	
Authorised signatory / signatories
    
	
Address:
    	
14th Floor Citigroup Centre
    	
 
    	
 
    
	
 
    	
Canada Square
    	
 
    	
 
    
	
 
    	
Canary Wharf
    	
 
    	
 
    
	
 
    	
London E14 5LB
    	
 
    	
 
    
	
 
    	
Attn: Agency and Trust
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Fax:
    	
+44 20 7986 4526Exhibit 4.23

 

	
  

  	
  EXECUTION
  VERSION US$203,400,000 FACILITY AGREEMENT dated 21 February 2011 for
  TEUCARRIER (NO.2) CORP. TEUCARRIER (NO.3) CORP. TEUCARRIER (NO.4) CORP. as
  joint and several Borrowers and DANAOS CORPORATION acting as Guarantor
  arranged by THE EXPORT-IMPORT BANK OF CHINA CITIBANK, N.A. with CITIBANK,
  N.A. acting as Global Co-ordinator and CITIBANK, N.A. acting as Sinosure
  Agent Note: This Agreement is entered into on the basis that it will have the
  benefit of and be subject to the terms of the Intercreditor Agreement
  Linklaters Ref: STG/DS/KN Linklaters LLP

  

 

	
  

  	
  CONTENTS CLAUSE
  SECTION 1 INTERPRETATION PAGE 1. Definitions and interpretation 1 SECTION 2
  THE FACILITY 2. The Facility 26 3. Purpose 31 4. Conditions of Utilisation 31
  SECTION 3 UTILISATION 5. Utilisation 35 SECTION 4 REPAYMENT, ILLEGALITY,
  PREPAYMENT AND CANCELLATION 6. Repayment 37 7. Illegality, Prepayment and
  cancellation 37 SECTION 5 COSTS OF UTILISATION 8. Interest 41 9. Interest
  Periods 41 10. Changes to the calculation of interest 42 11. Fees 43 SECTION
  6 ADDITIONAL PAYMENT OBLIGATIONS 12. Tax gross up and indemnities 45 13.
  Increased costs 47 14. Other indemnities 48 15. Mitigation by the Lenders 51
  16. Costs and expenses 51 SECTION 7 GUARANTEE 17. Guarantee and indemnity 53
  SECTION 8 EARNINGS ACCOUNTS 18. Earnings accounts 56 SECTION 9
  REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT 19. Representations 60
  20. Information undertakings 67 21. Financial covenants 71 22. General
  undertakings 75 23. Pre-Delivery undertakings 81 24. Post-Delivery
  undertakings 81 25. Insurance 86 i

  

 

	
  

  	
  26. Events of Default 91 SECTION 9 CHANGES TO PARTIES 27. Changes to
  the Lenders 96 28. Changes to
  the Obligors 102 SECTION 10 THE FINANCE PARTIES 29. Role
  of the Agent, the Security Agent and the Arranger 103 30. Role of the
  Sinosure Agent 111 31. The Account Bank 112 32. Conduct of business by the
  Finance Parties 117 33. Sharing
  among the Secured Parties 117 SECTION 11 ADMINISTRATION 34. Payment
  mechanics 120 35. Set-off 123 36. Notices 124 37. Calculations and
  certificates 125 38. Partial invalidity 126 39. Remedies and waivers 126 40.
  Amendments and waivers 126 41. Counterparts
  128 SECTION 12 GOVERNING LAW AND ENFORCEMENT 42.
  Governing law 129 43. Enforcement
  129 SECTION 13 EXISTING HEDGING DOCUMENTS 44.
  Guarantee and indemnity 131 THE
  SCHEDULES SCHEDULE PAGE
  SCHEDULE 1 The Original Parties 135 SCHEDULE 2 Conditions Precedent to a Loan
  137 SCHEDULE 3 Requests 148 SCHEDULE 4 Mandatory Cost Formula 149 SCHEDULE 5
  Form of Transfer Certificate and Accession Letter 151 SCHEDULE 6
  Facility Loan Repayment 155 SCHEDULE 7 Security Agency provisions 158
  SCHEDULE 8 Form of Compliance Certificate 163 SCHEDULE 9 Timetables 164
  SCHEDULE 10 Part A Authorised Representatives 165 Part B Callback
  Contacts 165 SCHEDULE 11 Form of Loss Payable Clause 167 SCHEDULE 12 169
  Form of Increase Confirmation 169 i:

  

 

	
  

  	
  SCHEDULE 13
  Form of Mortgage 171 SCHEDULE 14 Form of Time Charter Assignment
  172 SCHEDULE 15 Form of Assignment of Earnings and Insurances 173
  SCHEDULE 16 Form of Manager’s Undertaking 174 SCHEDULE 17 Form of
  Account Charge 175 SCHEDULE 18 Form of Share Charge 176 SCHEDULE 19
  Form of Hedging Documents Assignment 177 SCHEDULE 20 Form of
  Management Agreement Assignment 179 ii:

  

 

	
  

  	
  THIS AGREEMENT is dated 21
  February 2011 and made BETWEEN: (1) TEUCARRIER (NO.2) CORP., TEUCARRIER
  (NO.3) CORP. and TEUCARRIER (NO.4) CORP. as joint and several borrowers (each
  a “Borrower” and together the “Borrowers”); (2) DANAOS CORPORATION as guarantor
  (the “Guarantor”); (3) THE EXPORT-IMPORT BANK OF CHINA
  and CITIBANK, N.A. as mandated lead arrangers (the “Original Arrangers” and each an “Original Arranger”); (4) CITIBANK, N.A. as global co-ordinator;
  (5) THE FINANCIAL INSTITUTIONS
  listed in Part II of Schedule 1 as lenders (the “Original Lenders”); (6)
  CITIBANK INTERNATIONAL PLC, LONDON BRANCH as agent of the other
  Finance Parties (the “Agent”); (7) CITIBANK INTERNATIONAL
  PLC, GREECE BRANCH as security agent and security trustee for the Secured
  Parties (the “Security Agent”); (8) CITIBANK, N.A. as the
  insured party under the Sinosure Insurance Policy (the “Sinosure Agent”). (9) CITIBANK
  INTERNATIONAL PLC, GREECE BRANCH as account bank for the Finance Parties (the
  “Account Bank”); and (10) CITIBANK, N.A., NEW YORK BRANCH
  as original hedging bank (the “Original
  Hedging Bank”). IT IS AGREED as follows: SECTION 1 INTERPRETATION
  1. DEFINITIONS AND
  INTERPRETATION 1.1 Definitions
  In this Agreement: “Accession Deed” has
  the meaning given to it in the Intercreditor Agreement. “Accession Letter” means a document
  substantially in the form of Part II of Schedule 5 (Form of Transfer Certificate and
  Accession Letter). “Account
  Charges” means the charges executed or to be executed by each Borrower
  in favour of the Lenders in relation to that Borrower’s Earnings Account in
  the form set out in Schedule 17 (Form of
  Account Charge). “Additional
  Arranger” means any bank, financial institution, trust, fund or other
  entity which has become an Arranger in accordance with Clause 27.10 (Additional Arranger). 1

  

 

	
  

  	
  “Additional Cost Rate” has the meaning
  given to it in Schedule 4 (Mandatory
  Cost formula). “Adjusted Net
  Worth” has the meaning given to it in Clause 21 (Financial Covenants). “Affiliate” means, in relation to
  any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that
  holding company. “Agreed Value” means
  at any time in respect of a Vessel the higher of: (a) an amount equal to the
  current Fair Market value of the relevant Vessel; and (b) one hundred and
  twenty-five per cent. (125%) of the Loans outstanding under the Tranche
  applicable to such Vessel. “Approved
  Valuer” means any of: (a) Howe Robinson & Company Limited;
  (b) H. Clarkson & Company Limited; (c) SSY Consultancy &
  Research Limited; (d) Braemer Seascope Ship Brokers Limited; and (e) Maersk
  Shipbrokers, or such other independent reputable shipbroker nominated by the
  Borrower and approved by the Facility Agent from time to time. “Arranger” means: (a) any Original
  Arranger; and (b) any Additional Arranger, and “Arrangers” means all of them. “Asset Cover Ratio” has the meaning given to it in Clause 24.9 (Asset Cover Ratio). “Assignment of Earnings and Insurances” means
  each assignment of Earnings and Insurances executed or to be executed in
  respect of the Vessels by each Borrower, the Time Charterer and the Security
  Agent in the form set out in Schedule 15 (Form of Assignment of Earnings and Insurances) and
  collectively the “Assignments of Earnings and Insurances”. “Associate” has the meaning given to
  “associate” in section 435 of the Insolvency Act 1986 provided that only
  sub-sections (2) and (5) of such section shall apply insofar as it
  relates to the definition of Coustas Family. “Authorisation” means an authorisation, consent, approval,
  resolution, licence, exemption, filing, notarisation or registration. “Authorised Representatives” shall
  mean the persons set out in Part A of Schedule 10 (Authorised Representatives), as
  amended pursuant to Clause 18.4(e). “Availability
  Period” means: (a) in relation to Tranche A, the period from and
  including the date of this Agreement to the earlier of the Delivery Date and
  the Delivery Date Backstop for Vessel A; 2

  

 

	
  

  	
  (b) in relation
  to Tranche B, the period from and including the date of this Agreement to the
  earlier of the Delivery Date and the Delivery Date Backstop for Vessel B; and
  (c) in relation to Tranche C,
  the period from and including the date of this Agreement to the earlier of
  the Delivery Date and the Delivery Date Backstop for Vessel C; and “Available Commitment” means, in
  relation to each Lender and each Tranche under the Facility, that Lender’s
  Commitment in respect of that Tranche less the aggregate of Loans made by
  such Lender in respect of that Tranche. “Available Facility” means in respect of any Tranche under the
  Facility, the aggregate for the time being of each Lender’s Available
  Commitment in respect of that Tranche. “Borrower A” means Teucarrier (No.2) Corp. of 80 Broad Street,
  Monrovia, Liberia. “Borrower B” means
  Teucarrier (No.3) Corp. of 80 Broad Street, Monrovia, Liberia. “Borrower C” means Teucarrier (No.4)
  Corp. of 80 Broad Street, Monrovia, Liberia “Borrower Parent” means: (c) in relation to Borrower A, Bounty
  Investment Inc; (d) in relation to Borrower B, Lito Navigation Inc; and (e)
  in relation to Borrower C, Bayard Maritime Limited. “Borrower Revenues” means all amounts received (or, as the case
  may be, forecast to be received) by the Borrowers including the following:
  (a) all Earnings; (b) all amounts received pursuant to each of the Time
  Charters; (c) such other amounts as the Agent and the Borrowers may agree to
  include as Borrower Revenues, but excluding: (d) any amount paid or advanced
  to the Borrowers under the Finance Documents; (e) any Requisition
  Compensation (to the extent related to a Total Loss); or (f) any Insurance
  Proceeds (to the extent related to a Total Loss). “Borrowings” has the meaning given to it in Clause 21 (Financial covenants). “Break Costs” means the amount (if
  any) by which: (a) the interest which a Lender should have received for the
  period from the date of receipt of all or any part of its participation in a
  Loan or Unpaid Sum to the last day of the current Interest Period in respect
  of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been
  paid on the last day of that interest Period; exceeds: (b) the amount which
  that Lender would be able to obtain by placing an amount equal to the
  principal amount or Unpaid Sum received by it on deposit with a leading bank
  in the 3

  

 

	
  

  	
  Relevant Interbank
  Market for a period starting on the Business Day following receipt or
  recovery and ending on the last day of the current Interest Period. “Business Day” means a day (other
  than a Saturday or Sunday) on which banks are open for general business in
  London, Athens, Beijing, Rotterdam and New York City. “Callback Contact” means the persons set out in Part B of
  Schedule 11 (Callback Contact), as
  amended pursuant to Clause 18.4(e). “Change
  in Law” means the introduction of, or any change in (or in the interpretation,
  administration or application of), any law or regulation after the date of
  this Agreement. “Change of Control” means
  the occurrence of any of the following: (a) members of the Coustas Family
  ceasing to beneficially own and control (either directly or through companies
  beneficially owned by them or trusts or foundations of which members are
  beneficiaries) at least 33 1/3% plus one share of the issued voting share
  capital of the Guarantor; (b) Dr. John Coustas ceases to be the Chief
  Executive Officer of the Guarantor, unless in the case of his death or
  disability, a replacement is appointed by the Guarantor’s board of directors,
  following consultation with the Lenders, in accordance with the applicable
  corporate policy within 60 days and has given a legally binding acceptance of
  an offer of employment and, if appropriate, resigned from his existing
  employment within that time period. This paragraph shall also apply to any
  replacement person as if references to Dr. John Coustas were references
  to that replacement person; (c) a change in the direct and ultimate ownership
  of any shares of a Borrower or ultimate control of voting rights of those
  shares; (d) the shares of the Guarantor cease to be listed on NYSE or NASDAQ
  or any recognised investment exchange (as that term is used in the Financial
  Services and Markets Act 2000); or (e) the issued voting share capital of the
  Guarantor being held, legally or beneficially, by one or more party being no
  member of the Coustas Family as per (a) above, who when acting in
  concert control more than 20% of the voting rights in the Guarantor. For
  these purposes, “acting in concert” means
  a group of persons who, pursuant to an agreement or understanding (whether
  formal or informal), actively co-operate: (i) in the exercise of voting
  rights attached to shares directly or indirectly controlled by them; or (ii)
  through the acquisition directly or indirectly of such shares by any of them,
  either directly or indirectly, to obtain or consolidate control over such
  shares. “Charged Assets” means
  the assets over which the Security is expressed to be created pursuant to any
  Security Document. “Charterhire” means
  all amounts of charterhire due and payable to each Borrower under its Time
  Charter. 4

  

 

	
  

  	
  “Classification”
  means, in relation to each Vessel, the classification as set out in
  Article I of each Shipbuilding Contract or such other classification as
  the Agent (acting on the approval of the Majority Lenders acting reasonably)
  shall, at the request of the Borrower, have agreed in writing shall be
  treated as the classification. “Classification
  Society” means, in relation to each Vessel, Germanischer Lloyd or such
  other classification society which the Agent shall, at the request of a
  Borrower, have agreed (acting reasonably) in writing shall be treated as the
  Classification Society for that Vessel. “Commitment” means: (a) in relation to an Original Lender in
  respect of any Tranche, the amount in Dollars set opposite its name under the
  heading “Tranche A Commitment” in respect of any Tranche A Loan, “Tranche B
  Commitment” in respect of any Tranche B Loan and “Tranche C Commitment” in
  respect of any Tranche C Loan, respectively as set out in Part II of
  Schedule 1 (The Original Parties) and
  the amount of any other Commitment in relation to that Tranche transferred to
  it under this Agreement or assumed by it in accordance with Clause 2.9 (Increase); and (b) in relation to any other
  Lender, the amount in Dollars of any Commitment transferred to it under this
  Agreement or assumed by it in accordance with Clause 2.9 (Increase), to the extent not
  cancelled, reduced or transferred by it under this Agreement. “Competent Authority” means any
  authority, agency, trust, department, inspectorate, minister, ministry,
  board, division, office, commission or instrumentality, official or public or
  statutory person (whether autonomous or not and/or having a distinct legal
  personality) having jurisdiction over any of the parties to or the subject
  matter of any of the Finance Documents. “Compliance Certificate” means a certificate substantially in
  the form set out in Schedule 8 (Form of
  Compliance Certificate). “Compulsory
  Acquisition” means requisition of title or other compulsory
  acquisition, requisition, appropriation, expropriation, deprivation,
  forfeiture or confiscation for any reason of a Vessel, whether de jure or de facto, but shall exclude requisition for use or hire not
  involving requisition of title. “Confidential
  Information” means all information relating to any Obligor, the Group,
  the Transaction Documents or the Facility of which a Secured Party becomes
  aware in its capacity as, or for the purpose of becoming, a Secured Party or
  which is received by a Secured Party in relation to, or for the purpose of
  becoming a Secured Party under, the Finance Documents or the Facility from
  either: (a) any member of the Group or any of its advisers; or (b) another
  Secured Party, if the information was obtained by that Secured Party directly
  or indirectly from any member of the Group or any of its advisers, in whatever
  form, and includes information given orally and any document, electronic file
  or any other way of representing or recording information which contains or
  is derived or copied from such information but excludes information that: 5

  

 

	
  

  	
  (i) is or becomes public information
  other than as a direct or indirect result of any breach by that Secured Party
  of Clause 27.7 (Disclosure of
  confidential information); (ii) is identified in writing at the time
  of delivery as non-confidential by any member of the Group or any of its
  advisers; or (iii) is known by that Secured Party before the date the
  information is disclosed to it in accordance with paragraphs (a) or
  (b) above or is lawfully obtained by that Secured Party after that date,
  from a source which is, as far as that Secured Party is aware, unconnected
  with the Group and which, in either case, as far as that Secured Party is
  aware, has not been obtained in breach of, and is not otherwise subject to,
  any obligation of confidentiality. “Confidentiality
  Undertaking” means a confidentiality undertaking substantially in a
  recommended form of the LMA or in any other form agreed between the Obligors
  and the Agent (acting on the instructions of the Majority Lenders). “Consolidated Debt” has the meaning
  given to it in Clause 21 (Financial
  Covenants). “Contract Price” means,
  in relation to each Vessel, the price payable by the relevant Borrower to the
  Seller for the purchase of that Vessel in accordance with the Shipbuilding
  Contract for that Vessel (as, subject to Clause 23.1 (Shipbuilding Contract) of this Agreement, amended,
  supplemented and novated from time to time), being US$113,000,000 plus any
  increases or less any decreases due to any adjustment or modifications, if
  any, pursuant to and in accordance with the relevant Shipbuilding Contract. “Coustas Family” means Dr. John
  Coustas, and any Associate of Dr John Coustas. “Current Assets” has the meaning given to it in Clause 21 (Financial covenants). “Current Liabilities” has the
  meaning given to it in Clause 21 (Financial
  covenants). “Debt Purchase
  Transaction” means, in relation to a person, a transaction where such
  person: (a) purchases by way of assignment or transfer; (b) enters into any
  sub-participation in respect of; or (c) enters into any other agreement or arrangement
  having an economic effect substantially similar to a sub-participation in
  respect of, any Commitment or amount outstanding under this Agreement. “Default” means an Event of Default
  or any event or circumstance specified in Clause 26 (Events of Default) which would (with the expiry of a grace
  period, the giving of notice, the making of any determination under the
  Finance Documents or the Sinosure Insurance Policy or any combination of any
  of the foregoing) be an Event of Default. “Defaulting Lender” means any Lender: (a) which has failed to
  make its participation in a Loan available or has notified the Agent that it
  will not make its participation in a Loan available by the Utilisation Date
  of that Loan in accordance with Clause 5.4 (Lenders’ participation); 6

  

 

	
  

  	
  (b) which has
  otherwise rescinded or repudiated a Finance Document; or (c) with respect to
  which an Insolvency Event has occurred and is continuing, unless, in the case
  of paragraph (a) above: (i) its failure to pay is caused by: (A) administrative
  or technical error; or (B) a Disruption Event; and payment is made within 3
  Business Days of its due date; or (ii) the Lender is disputing in good faith
  whether it is contractually obliged to make the payment in question. “Delivery” means, in relation to
  each Vessel, the delivery of that Vessel by the Seller to, and the acceptance
  of the Vessel by, the relevant Borrower pursuant to the relevant Shipbuilding
  Contract. “Delivery Date” means,
  in relation to each Vessel, the date on which Delivery occurs. “Delivery Date Backstop” means 21
  December 2011 for Vessel A, 31 January 2012 for Vessel B and 26
  January 2012 for Vessel C, or such later dates may be permitted under
  the relevant Shipbuilding Contract for each Vessel as previously approved in
  writing by the Agent (acting on the instructions of the Majority Lenders). “Delivery Instalment Fund Transfer Date” means,
  in relation to a Vessel, the date that the Final Instalment of the Contract
  Price is to be deposited with the Seller’s Bank prior to the Delivery Date
  applicable to that Vessel in accordance with the terms of the Shipbuilding
  Contract relating to that Vessel. “Disruption
  Event” means either or both of: (a) a material disruption to those
  payment or communications systems or to those financial markets which are, in
  each case, required to operate in order for payments to be made in connection
  with the Facilities (or otherwise in order for the transactions contemplated
  by the Finance Documents to be carried out) which disruption is not caused by,
  and is beyond the control of, any of the Parties; or (b) the occurrence of
  any other event which results in a disruption (of a technical or
  systems-related nature) to the treasury or payments operations of a Party
  preventing that, or any other Party: (i) from performing its payment
  obligations under the Finance Documents; or (ii) from communicating with
  other Parties in accordance with the terms of the Finance Documents, and
  which (in either such case) is not caused by, and is beyond the control of,
  the Party whose operations are disrupted. 7

  

 

	
  

  	
  “DOC” means a
  document of compliance issued to an Operator in accordance with rule 13
  of the ISM Code. “Earnings” means
  all moneys whatsoever from time to time due or payable to the Borrowers
  arising out of the use or operation of the Vessels including (but without
  limiting the generality of the foregoing) all amounts payable under the Time
  Charters and all freight, hire and passage moneys, income arising out of
  pooling arrangements, compensation payable to the Borrowers in the event of
  requisition of any of the Vessels for hire, remuneration for salvage or
  towage services, demurrage and detention moneys, contributions in general
  average and damages for breach (or payments for variation or termination) of
  any charter party or other contract for the employment of any of the Vessels.
  “Earnings Account” means: (a)
  in relation to Borrower A, the account entitled “EARNINGS A/C” with account
  number 0444663968, opened by Borrower A as beneficiary with the Account Bank
  as beneficiary bank (CITIGRAA) and Citibank N.A. New York as correspondent
  bank (CITIUS33) or such other account as is designated by the Agent and the
  Borrower to be such Borrower’s Earnings Account for the purpose of this
  Agreement; (b) in relation to Borrower B, the account entitled “EARNINGS A/C”
  with account number 0444664961, opened by Borrower B as beneficiary with the
  Account Bank as beneficiary bank (CITIGRAA) and Citibank N.A. New York as
  correspondent bank (CITIUS33) or such other account as is designated by the
  Agent and the Borrower to be such Borrower’s Earnings Account for the purpose
  of this Agreement; and (c) in relation to Borrower C, the account entitled
  “EARNINGS A/C” with account number 0444665965, opened by Borrower C as
  beneficiary with the Account Bank as beneficiary bank (CITIGRAA) and Citibank
  N.A. New York as correspondent bank (CITIUS33) or such other account as is
  designated by the Agent and the Borrower to be such Borrower’s Earnings
  Account for the purpose of this Agreement. “EBITDA” has the meaning given to it in Clause 21 (Financial covenants). “Environment” means living organisms
  including the ecological systems of which they form part and the following
  media: (a) air (including air within natural or man-made structures, whether
  above or below ground); (b) water (including territorial, coastal and inland
  waters, water under or within land and water in drains and sewers); and (c)
  land (including land under water). “Environmental
  Claim” means any litigation, arbitration or administrative proceedings
  and any and all enforcement, clean-up, removal or other governmental or
  regulatory actions or orders instituted or completed pursuant to any
  Environmental Law or any Environmental Licence together with claims made by
  any third party relating to damage, contribution, loss or injury, 8

  

 

	
  

  	
  resulting in
  any such case from any actual or threatened emission, spill, release or
  discharge of a Hazardous Substance from any Vessel or any other breach of
  Environmental Law. “Environmental
  Law” means all laws and regulations of any relevant jurisdiction and
  any IMO Guidelines, international treaties and conventions and international
  maritime regulations concerning or applicable with regard to: (a) the
  pollution or protection of, or compensation of harm or damage to, the
  Environment; (b) occupational or public health and safety; or (c) emissions,
  discharges or releases into, or the presence in, the Environment or the use,
  treatment, storage, disposal, transportation or handling of Hazardous
  Substances (including, without limitation, taxation or any obligation to
  purchase credits or allowances or to provide financial security with regard
  to any such activities). “Environmental
  Licence” means any Authorisation required at any time under
  Environmental Law in respect of any Vessel or its operation or the carriage
  of cargo and/or passengers thereon and/or the provision of goods and/or
  services on or from any Vessel. “Event
  of Default” means any event or circumstance specified as such in
  Clause 26 (Events of Default). “Excess Value” has the meaning
  given to it in Clause 21 (Financial
  Covenants). “Existing Hedging
  Documents” means the 2002 ISDA Master Agreement dated 5
  December 2007 between the Original Hedging Bank and the Guarantor, as
  amended on 21 January 2008 hedging documents including the confirmations
  in respect of the following “Transactions” (as defined therein): Contract Trade Date Effective Date
  Termination Date Notional Amount on Effective Date 04/17/2007
  4/17/2008 4/17/2015 $ 200,000,000 04/20/2007 4/20/2010 4/20/2015 $ 200,000,000 10/23/2007 10/25/2009 10/27/2014 $ 250,000,000 11/02/2007
  11/6/2010 11/6/2015 $ 250,000,000 11/26/2007 11/29/2010 11/30/2015 $ 100,000,000 02/07/2008 2/11/2011 2/11/2016 $ 200,000,000 “Existing Supervisor” means Danaos
  Shipping Co. Ltd, a company incorporated under the laws of Cyprus. “Facility” means the term loan
  facility made available under this Agreement as described in Clause 2.1 (The Facility). “Facility Office” means the office
  or offices notified by a Lender to the Agent in writing on or before the date
  it becomes a Lender (or, following that date, by not less than five Business
  Days’ 9

  

 

	
  

  	
  written notice)
  as the office or offices through which it will perform its obligations under
  this Agreement. “Fee Letter” means:
  (a) any letter or letters dated on or about the date of this Agreement
  between, as the case may be, the Arrangers and a Borrower, the Agent and a
  Borrower or the Sinosure Agent, the Security Agent or the Account Bank and a
  Borrower setting out any of the fees referred to in Clause 11 (Fees); and (b) any agreement setting out fees payable to a Finance Party
  referred to in paragraph (d) of Clause 2.9 (Increase). “Final
  Instalment” means in relation to a Vessel, the instalments of the
  Contract Price payable on the Delivery Instalment Fund Transfer Date relating
  to that Vessel. “Final Maturity Date”
  means: (a) in relation to Tranche A, the date falling ten years after
  the Delivery Date for Vessel A; (b) in relation to Tranche B, the date
  falling ten years after the Delivery Date for Vessel B; and (c) in relation
  to Tranche C, the date falling ten years after the Delivery Date for Vessel
  C. “Finance Document” means
  this Agreement, any Fee Letter, any Hedging Document, the lntercreditor
  Agreement, the Manager’s Undertaking, any Security Document and any other
  document which is from time to time designated as such by the Agent and the
  Obligors in writing and any other agreement or instrument that may be entered
  into in connection with those documents. “Finance Party” means the Agent, the Sinosure Agent, the
  Security Agent, an Arranger, the Account Bank or a Lender. “Financial Indebtedness” means any
  indebtedness for or in respect of: (a) moneys borrowed; (b) any amount raised
  by acceptance under any acceptance credit facility or dematerialised
  equivalent; (c) any amount raised pursuant to any note purchase facility or
  the issue of bonds, notes, debentures, loan stock or any similar instrument;
  (d) the amount of any liability in respect of any lease or hire purchase contract
  which would, in accordance with applicable GAAP, be treated as a finance or
  capital lease; (e) receivables sold or discounted (other than any receivables
  to the extent they are sold on a non-recourse basis); (f) any amount raised
  under any other transaction (including any forward sale or purchase
  agreement) having the commercial effect of a borrowing; 10

  

 

	
  

  	
  (g) any
  derivative transaction entered into in connection with protection against or
  benefit from fluctuation in any rate or price (and, when calculating the
  value of any derivative transaction, only the marked to market value shall be
  taken into account); (h) shares which are expressed to be redeemable; (i) any
  counter-indemnity obligation in respect of a guarantee, indemnity, bond,
  standby or documentary letter of credit or any other instrument issued by a
  bank or financial institution; and (j) the amount of any liability in respect
  of any guarantee or indemnity for any of the items referred to in paragraphs
  (a) to (i) above. “First
  Repayment Date” means: (a) in relation to Tranche A, the date falling
  six months after the Delivery Date for Vessel A; (b) in relation to Tranche
  B, the date falling six months after the Delivery Date for Vessel B; and (c)
  in relation to Tranche C, the date falling six months after the Delivery Date
  for Vessel C. “Flag State” means,
  in relation to each Vessel, Malta or such other state or territory proposed
  in writing by a Borrower and approved by the Agent (acting on the
  instructions of the Majority Lenders acting reasonably) in writing. “GAAP” means generally accepted
  accounting principles, standards and practices in the United States of
  America or, if adopted, IFRS. “Group”
  means the Guarantor and each of its Subsidiaries for the time being. “Hazardous Substance” means any
  waste, pollutant, emission, contaminant, oil (including as defined in the US
  Oil Pollution Act of 1990), hazardous substances (including as defined in the
  US Comprehensive Environmental Response Compensation and Liability Act of
  1980) or other substance (including any liquid, solid, gas, ion, living
  organism or noise) that may be harmful to human health or other life or the
  Environment or that may make the use or ownership of any affected land or
  property more costly. “Hedging Bank” means
  (a) the Original Hedging Bank; and (b) any other Lender or Affiliate of a
  Lender which has become a Hedging Bank in accordance with the terms of the
  lntercreditor Agreement, which in each case has not ceased to be a Hedging
  Bank in accordance with the terms of this Agreement. For the avoidance of
  doubt, a person shall not cease to be a Hedging Bank solely as a result of
  its ceasing to be a Lender or an. Affiliate of a Lender. “Hedging Documents” means
  (i) the Existing Hedging Documents and (ii) any hedging documents
  (including any confirmations in respect of Transactions entered into
  thereunder) executed or (as the case may be) to be executed by any Obligor
  and a Hedging Bank for the purpose of hedging any Obligor’s exposure under or
  in respect of this Agreement to fluctuations in interest rates and any
  replacement thereof entered into in accordance with this Agreement. 11

  

 

	
  

  	
  “Hedging Documents Assignment” means the
  assignment(s) of the Guarantor’s rights under the Existing Hedging
  Documents to which the Guarantor is a party, executed or (as the case may be)
  to be executed by the Guarantor in favour of the Security Agent in the form
  set out in Schedule 19 (Hedging
  Documents Assignment). “Home
  Jurisdiction” means, in relation to any person, the jurisdiction under
  the laws of which that person is constituted. “IFRS” means international accounting standards within the
  meaning of the IAS Regulation 1606/2002 to the extent applicable to the
  relevant financial statements. “Illegality
  Event” means: (a) it being or becoming impossible or unlawful under
  any applicable law of a Lender’s Home Jurisdiction or of any jurisdiction in
  which any action is required to be performed by that Lender for the purposes
  of any Finance Document for that Lender to participate in, or maintain its
  participation in the relevant Loan, to perform any of its material
  obligations or to exercise any of its material rights under any of the
  Finance Documents; (b) any Finance Document becoming invalid, ineffective or
  unenforceable, in whole or in part, or ceasing to constitute the legally
  valid, binding and enforceable obligations of the parties with the result that
  the interests of any Finance Party under any Finance Document are materially
  and adversely affected; or (c) any Security Document ceasing to constitute
  perfected Security in the relevant Security Property, in each case as a
  result of an event which is not caused by, and is beyond the control of, the
  Obligors. “Illegality Repayment Date”
  means, in relation to an Illegality Event, the earliest of: (a) if the
  Illegality Event has occurred, the date notified to the Borrower by the Agent
  to be the Illegality Repayment Date; (b) if the Illegality Event has not
  occurred, the date falling thirty (30) days before the date on which the
  Illegality Event will occur; and (c)
  the date agreed by the Agent and the Borrower which falls before the
  dates referred to in paragraphs (a) and (b) above which would
  enable the Borrower to minimise the amounts that it is required to pay under
  paragraph (b) of Clause 7.9 (Restrictions). “IMO” means the International
  Maritime Organisation. “IMO
  Guidelines” means any guidelines adopted by the IMO from time to time.
  “Increase Confirmation” means
  a confirmation substantially in the form set out in Schedule Schedule 12 (Form of Increase Confirmation). “Increase Lender” has the
  meaning given to that term in Clause 2.9 (Increase). “Increased
  Costs” means: 1

  

 

	
  

  	
  (a) a reduction
  in the rate of return from the Facility or on a Finance Party’s (or its
  Affiliate’s) overall capital; (b) an additional or increased cost; or (c) a
  reduction of any amount due and payable under any Finance Document, which is
  incurred or suffered by a Finance Party or any of its Affiliates to the
  extent that it is attributable to that Finance Party having entered into its
  Commitment or funding or performing its obligations under any Finance
  Document. “Indemnitee” means
  each Secured Party, its successors and assigns, and its shareholders,
  Affiliates, officers, agents and employees. “Insolvency Event” in relation to a Finance Party means the
  appointment of a liquidator, receiver, administrative receiver,
  administrator, compulsory manager or other similar officer in respect of that
  Finance Party or all or substantially all of that Finance Party’s assets or
  any analogous procedure or step is taken in any jurisdiction with respect to
  that Finance Party. “Insurance
  Advisor” means an internationally recognised insurance advisor to be
  appointed by the Agent at its discretion. “Insurance Proceeds” means all proceeds of the Insurances
  payable to or received by or on behalf of any Obligor but excluding any such
  proceeds paid directly to a third party claimant. “Insurances” means all contracts and policies of insurance
  and/or reinsurance and all entries in clubs and/or associations, of any kind
  relating to the Vessels taken out or, as the context requires, to be taken
  out from time to time and maintained in accordance with the Finance
  Documents, as more particularly described in Clause 25 (Insurances). “Insured” has the meaning given to
  it in the Sinosure Insurance Policy. “Insurers”
  means the entities with whom the Insurances are effected and
  maintained. “Intercreditor Agreement”
  means the intercreditor agreement entered into on the date of this
  Agreement between the Original Lenders, the Agent, the Security Agent, the
  Original Hedging Bank and the Obligors. “Interest Expense” has the meaning given to it in Clause 21 (Financial covenants). “Interest Period” means, in relation
  to a Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation
  to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest). “ISM Code” means the International
  Management Code for the Safe Operation of Ships and for Pollution Prevention
  constituted pursuant to Resolution A 741
  (18) and A 788 (19) of the International Maritime Organisation and
  incorporated into the International Convention for the Safety of Life at Sea
  (SOLAS), 1974 (as amended), and includes any amendments or extensions thereto
  and any regulation issued pursuant thereto. “ISPS Code” means the International Ship and Port Facility
  Security Code adopted by the International Maritime Organisation and includes
  any amendments or extensions thereto and any regulation issued pursuant
  thereto. 2

  

 

	
  

  	
  “LCIA” means the LCIA, previously known
  as the London Court of International Arbitration. “LCIA Rules” means the Rules of Arbitration of the LCIA at
  the time a Party files a request for arbitration in accordance with Clause
  43.1(a) of this Agreement. “Lender”
  means: (a) any Original Lender; and (b) any other bank, financial institution, trust, fund or
  other entity which has become a Party in accordance with Clause 2.9 (Increase) or Clause 27 (Changes to the Lenders), which in
  each case has not ceased to be a Party in accordance with the terms of this
  Agreement and “Lenders” means
  all of them. “Liabilities” means
  all present and future moneys, debts and liabilities and obligations due,
  owing or incurred by the Obligors to any Secured Party under or in connection
  with any Finance Document (in each case, whether alone or jointly, or jointly
  and severally, with any other person, whether actually or contingently and
  whether as principal, guarantor, surety or otherwise). “LIBOR” means, in relation to any
  Loan: (a) the applicable Screen Rate; or (b) (if no Screen Rate is available
  for Dollars or the Interest Period of that Loan) the arithmetic mean of the
  rates (rounded upwards to four decimal places) as supplied to the Agent at
  its request quoted by the Reference Banks to leading banks in the London
  interbank market, as of the Specified Time on the Quotation Day for the
  offering of deposits in Dollars for a period comparable to the Interest
  Period for that Loan. “LMA” means the Loan Market Association. “Loan” means a Tranche A Loan, a
  Tranche B Loan or a Tranche C Loan. “Losses”
  includes all losses, payments, damages, liabilities, claims,
  proceedings, actions, penalties, fines, duties, fees, rates, levies, charges,
  demands, royalties or other sanctions of a monetary nature, insurance
  premiums, calls, judgements, costs and expenses and “Loss” shall be construed accordingly. “Loss Payable Clause” means the loss payable clause
  substantially in the form set out in Schedule 11 (Form of Loss Payable Clause). “Majority Hedging Bank” has the meaning given to that term in
  the Intercreditor Agreement. “Majority
  Lenders” means: (a) if there are no Loans then outstanding, at least 2
  Lenders whose Commitments aggregate not less than 71 per cent, of the Total
  Commitments (or, if the Total Commitments have been reduced to zero,
  aggregated not less than 71 per cent, of the Total Commitments immediately
  prior to the reduction); or (b) at any other time, at least 2 Lenders whose
  participations in the Loans then outstanding aggregate not less than 71 per
  cent, of all the Loans then outstanding. 3

  

 

	
  

  	
  “Management Agreement” means: (a) in
  relation to Vessel A, the management agreement to be entered into between
  Borrower A and the Manager; (b) in relation to Vessel B, the management
  agreement to be entered into between Borrower B and the Manager; and (c) in
  relation to Vessel C, the management agreement to be entered into between
  Borrower C and the Manager, and collectively the “Management Agreements”. “Management
  Agreement Assignment” means each assignment of a Borrower’s rights
  under the Management Agreement to which it is a Party, executed or (as the
  case may be) to be executed by the relevant Borrower in favour of the
  Security Agent and collectively the “Management Agreement Assignments”. “Manager” means, in relation to each
  Vessel, Danaos Shipping Company Limited or any replacement thereof as manager
  of the relevant Vessel appointed by the Borrower with the prior written
  consent of the Agent (acting on the instructions of the Majority Lenders). “Manager’s Undertaking” means, in
  relation to each Vessel, an undertaking executed or to be executed by the
  Manager in favour of the Security Agent in the form set out in Schedule 16 (Form of Manager’s Undertaking). “Mandatory Cost” means the
  percentage rate per annum calculated by the Agent in accordance with Schedule
  4 (Mandatory Cost formula). “Margin” means 2.85 per cent. per
  annum. “Material Adverse Effect” means
  a material adverse effect on or material adverse change in: (a) the business,
  condition (financial or otherwise) or operations, performances, properties or
  prospects of the Group or the Obligors taken as a whole; (b) the ability of
  any Obligor to perform and comply with its obligations under any Finance
  Document or the ability of Sinosure to perform and comply with its
  obligations under the Sinosure Insurance Policy; (c) the validity, legality
  or enforceability of any Finance Document or the Sinosure Insurance Policy or
  the rights or remedies of any Secured Party thereunder; or (d) the validity,
  legality or enforceability of any Security expressed to be created pursuant
  to any Security Document or on the priority and ranking of any of that
  Security. “Mil Policy” means a
  mortgagees’ interest policy on terms and conditions provided by an
  independent insurance broker as approved by the Security Agent and maintained
  by the Security Agent in accordance with Clause 25 (Insurance). 4

  

 

	
  

  	
  “Minimum Liquidity” has the meaning
  given to it in Clause 21 (Financial
  covenants). “Month” means
  a period starting on one day in a calendar month and ending on the
  numerically corresponding day in the next calendar month, except that: (a) if
  the numerically corresponding day is not a Business Day, that period shall
  end on the next Business Day in that calendar month in which that period is
  to end if there is one, or if there is not, on the immediately preceding Business
  Day; and (b) if there is no numerically corresponding day in the calendar
  month in which that period is to end, that period shall end on the last
  Business Day in that calendar month. The above rules will only apply to
  the last Month of any period. “Mortgage”
  means each first priority mortgage in the form approved by the Flag
  State and any deed of covenant collateral thereto, respectively executed or
  to be executed in respect of the Vessels by the relevant Borrower in favour
  of the Security Agent in the form set out in Schedule 13 (Form of Mortgage) and
  collectively the “Mortgages”. “New Lender” has the meaning given
  to it in Clause 27.1 (Assignments
  and transfers by the Lenders). “Obligor”
  means a Borrower or the Guarantor. “Operative Documents” means: (a) the Management Agreements; (b)
  the Shipbuilding Contracts; (c) the Sinosure Insurance Policy; (d) the Time
  Charters; and (e) any other document which the Borrowers and the Agent agree
  in writing to be material to the financing hereunder and designate as an
  Operative Document, in each case until such document has lapsed, been fully
  performed or expired in accordance with its terms. “Operator” means any person who is from time to time concerned
  in the operation of a Vessel and falls within the definition of “Company” set
  out in rule 1.1.2 of the ISM Code. “Original Financial Statements” means in relation to the
  Guarantor, the audited consolidated financial statements of the Group for the
  financial year ended 31 December 2009. “Participating Member State” means any member state of the
  European Communities that adopts or has adopted the euro as its Lawful
  currency in accordance with legislation of the European Community relating to
  Economic and Monetary Union. “Party” means
  a party to this Agreement including any New Lender who has become a party to
  this Agreement pursuant to Clause 27.5 (Procedure
  for transfer) and, for the purposes of Clause 29 (Role of the Security Agent, the Agent and
  the Arranger) and Schedule 7
  (Security Agency provisions), includes any Secured Party. 5

  

 

	
  

  	
  “Permitted
  Liens” means: (a) any Security in favour of a Secured Party created pursuant
  to the Security Documents; (b) any lien for master’s, officer’s, crew’s or
  stevedores’ wages outstanding in the ordinary course of trading; (c) any lien
  for salvage or collision; (d) any ship repairer’s or outfitter’s possessory
  lien for a sum not (except with the prior written consent of the Agent)
  exceeding $750,000 but only to the extent such lien does not, when aggregated
  with any other such lien existing in respect of the Group, exceed $2,000,000;
  (e) liens arising in the ordinary course of trading by statute or by
  operation of law in respect of obligations which are not overdue; (f) any
  Security over goods supplied to a Borrower in the ordinary course of business
  arising out of the retention of title or similar provision in the supplier’s
  standard conditions of supply when the amount secured by such Security does
  not exceed $500,000; and (g) liens for Taxes which are either not yet
  assessed or, if assessed, not yet due, or which are being contested in good
  faith by appropriate proceedings (and for the payment of which adequate
  reserves have been provided) so long as any such proceedings or the continued
  existence of such lien do not involve any reasonable likelihood of the sale,
  forfeiture or loss of, or of any interest in, a Vessel, provided that in the
  case of paragraph (b) to (f), the amounts which give rise to such
  Security are not overdue or which are being contested in good faith by appropriate
  proceedings (and for the payment of which adequate reserves have been
  provided) so long as any such proceedings or the continued existence of such
  lien do not involve any reasonable likelihood of the sale, forfeiture or loss
  of, or of any interest in, a Vessel. “Pollutant”
  means and includes pollutants, contaminants, toxic substances, oil as
  defined in the United States Oil Pollution Act of 1990 and all hazardous
  substances as defined in the United States Comprehensive Environmental
  Response, Compensation and Liability Act 1980; “PRC” means the People’s Republic of China. “Preplacement Date” for a Vessel,
  has the meaning given to it in Clause 4.2(b). “Quotation Day” means, in relation to an interest rate to be
  determined for a daily period, that day, and in relation to any other period
  for which an interest rate is to be determined, two Business Days before the
  first day of that period unless market practice differs in the Relevant
  Interbank Market, in which case the Quotation Day will be determined by the
  Agent in accordance with market practice in the Relevant Interbank Market
  (and if quotations for that currency and period would normally be given by
  leading banks in the Relevant interbank Market on more than one day, the Quotation Day will be
  the last of those days). 17

  

 

	
  

  	
  “Reference Banks” means, in
  relation to LIBOR and Mandatory Cost, the principal London offices of
  Citibank N.A., HSBC Bank PLC and Barclays Bank PLC or such other banks as may
  be appointed by the Agent in consultation with the Obligors. “Registry” means the offices of the
  Malta International Ship Register or such other registry of such other state
  or territory proposed in writing by a Borrower and approved by the Agent in
  writing. “Regulatory Agency” means
  any Competent Authority or other organisation in the Flag State which has
  been designated by the government of the Flag State to implement and/or
  administer the provisions of the ISM Code. “Related Fund” in relation to a fund (the “first fund”), means a fund which is
  managed or advised by the same investment manager or investment adviser as
  the first fund, or if it is managed by a different investment manager or
  investment adviser, a fund whose investment manager or investment adviser is
  an Affiliate of the investment manager or investment adviser of the first
  fund. “Related Indemnitee” means,
  in relation to any Party, any shareholder, Affiliate, officer, agent or
  employee of that Party who is an Indemnitee.
  “Relevant Interbank Market” means
  the London interbank market. “Relevant
  Period” has the meaning given to it in Clause 21 (Financial covenants). “Repayment Date” means in relation
  to each Tranche, the First Repayment Date relating to that Tranche and each
  date falling at six-Monthly intervals thereafter up to and including the
  Final Maturity Date relating to that Tranche. “Repeating Representations” means each of the representations
  set out in Clauses 19.1(a) (Status)
  to 19.1(d) (Power and
  authority), 19.1(f) (Governing
  law and enforcement), 19.1(i) (No default), 19.1(k) (Financial statements) to 19.1(y) (Solvency) and, following a Delivery Date, Clauses
  19.2(a) (Vessels) to
  19.2(h) (ISM Code and ISPS Code
  compliance). “Representative” means
  any delegate, agent, manager, administrator, nominee, attorney, trustee or
  custodian. “Requisition Compensation”
  means all sums of money or other compensation from time to time
  payable by reason of the Compulsory Acquisition of a Vessel. “Scheduled Delivery Date” for a
  Vessel, has the meaning given to it in Clause 4.2(b). “Screen Rate” means the British Bankers Association Interest
  Settlement Rate for Dollars for the relevant period displayed on the
  appropriate page of the Reuters screen. If the agreed page is
  replaced or service ceases to be available, the Agent may specify another
  page or service displaying the appropriate rate after consultation with
  the Obligors and the Lenders. “Secured
  Party” means a Finance Party and/or a Hedging Bank. “Security” means a mortgage, charge,
  pledge, lien, hypothecation, assignment, trust arrangement, or other security
  interest securing any obligation of any person or any other agreement or
  arrangement having a similar effect. 18

  

 

	
  

  	
  “Security Document” means: (a) the
  Accounts Charges; (b) the Assignments of Earnings and Insurances; (c) the
  Hedging Documents Assignment; (d) the Manager’s Undertaking; (e) the
  Mortgages; (f) the Management Agreement Assignments; (g) the Share Charges;
  (h) the Time Charter Assignments; and (i) all other agreements and documents
  executed from time to time pursuant to any of the foregoing including, to the
  extent not listed above, all notices of assignment given pursuant to, and as
  contemplated by, any of the documents in paragraphs (a) to
  (h) above and the acknowledgements to the notices of assignment (in a
  form acceptable to the Agent) and any present or future document confirming
  or evidencing any Security or guarantee for, or in relation to, any amount
  owed to the Secured Parties; and (j) any other agreement or document which
  the Security Agent may from time to time designate in writing as a Security
  Document with the consent of the Borrowers (such consent not to be
  unreasonably withheld or delayed). “Security
  Property” has the meaning given to it in Schedule 7 (Security agency provisions). “Seller” means, together, the
  Shipbuilder and China Shipbuilding Trading Company Limited, a company
  organised and existing under the laws of the People’s Republic of China,
  having its registered office at Marine Tower, No.1 Pudong Da Dao, Shanghai
  200120, the People’s Republic of China. “Seller’s Account” means the account of the Seller held with the
  Seller’s Bank at Bank of China, New York Branch, 410 Madison Avenue, New
  York, N.Y. 10017, USA, for credit to the account of the Shipbuilder with Bank
  of China, Head Office, Banking Department, Beijing, the People’s Republic of
  China with account number 00070318094014. “Seller’s Bank” means a bank of the Seller previously approved
  in writing by the Agent. “Senior
  Discharge Date” has the meaning given to that term in the
  intercreditor Agreement. “Share Charge”
  means each share charge executed or (as the case may be) to be
  executed by the legal and beneficial owners of the issued share capital in
  each Borrower in favour of the Security Agent in the form set out in Schedule
  18 (Form of Share Charge) and
  collectively the “Share Charges”. “Shipbuilder”
  means Shanghai Jiangnan Changxing Heavy Industry Company Limited, a
  company organised and existing under the laws of the People’s Republic of
  China, having its registered office at Fangyuan Mansion, 56(Yi), Zhongguancun
  Nan Da „Jie, Beijing 100044, The People’s Republic of China. 19

  

 

	
  

  	
  “Shipbuilding
  Contract” means: (a) in relation to Vessel A, the shipbuilding contract
  entered into in respect of Vessel A between Borrower A and the Seller dated 2
  March 2007; (b) in relation to Vessel B, the shipbuilding contract
  entered into in respect of Vessel B between Borrower B and the Seller dated 2
  March 2007; and (c) in relation to Vessel C, the shipbuilding contract
  entered into in respect of Vessel C between Borrower C and the Seller dated 2
  March 2007, and collectively the “Shipbuilding Contracts”. “Sinosure” means China
  Export & Credit Insurance Corporation, a company incorporated under
  the laws of PRC, having its head office at Fortune Times Building, 11
  Fenghuiyuan, Xicheng District, Beijing, China. “Sinosure Insurance Policy” means the policy of medium and long
  term export insurance issued by Sinosure to the Insured in respect of the
  risks arising under this Agreement, providing a compensation covering no less
  than 95% of the aggregate of the principal and accrued interest under the
  Facility commercial and political cover in a form and substance acceptable to
  the Lenders. “Sinosure Premium” means
  the insurance premium of US$8,798148.66 payable in Dollars to Sinosure
  under the Sinosure insurance Policy in respect of the cover provided by
  Sinosure under the Sinosure Insurance Policy. “SMC” means a safety management
  certificate to be issued in respect of each of the Vessels in accordance with
  rule 13 of the ISM Code. “Specified
  Amount” has the meaning given to it in Clause 20.6(e). “Specified Time” means a time
  determined in accordance with Schedule 9 (Timetables). “Subsidiary”
  means in relation to any company, corporation or other legal entity,
  (a “holding company”), a company,
  corporation or other legal entity: (a) which is controlled, directly or
  indirectly, by the holding company; (b) more than half the issued share
  capital of which is beneficially owned, directly or indirectly, by the
  holding company; or (c) which is a subsidiary of another subsidiary of the
  holding company, and, for this purpose, a company or corporation shall be
  treated as being controlled by another if that other company or corporation
  is able to determine the composition of the majority of its board of
  directors or equivalent body. “Swap
  Rate” means for any applicable period: (a) the rate per annum equal to
  the quotation for US Dollars for a period equal to, or as near as possible
  equal to, the relevant applicable period which appears on page ISDAFIXI (or
  other replacement or appropriate page) of the Reuters Monitor Money Rates
  Service 20

  

 

	
  

  	
  on the Second
  Business Day prior to the commencement of the applicable period as of 11.00
  am New York time; and (b) if the Majority Lenders do not consider the rate
  quoted by Reuters Monitor Money Rates Service to accurately reflect the
  interest swap rate or if no rate is quoted on the appropriate page of
  the Reuters Monitor Money Rates Service, the rate per annum determined by the
  Majority Lenders to be the Interest Rate Swap Rate for a period equal to, or
  as near as possible equal, to the relevant applicable period. “Tax” means any tax, levy, impost,
  duty or other charge or withholding of a similar nature (including any
  penalty or interest payable in connection with any failure to pay or any
  delay in paying any of the same). “Taxes
  Act” means the Income and Corporation Taxes Act 1988. “Time Charter” means: (a) in
  relation to Vessel A, the time charter entered into in respect of Vessel A
  between Borrower A and the Time Charterer dated 17 September 2007; (b)
  in relation to Vessel B, the time charter entered into in respect of Vessel B
  between Borrower B and the Time Charterer dated 17 September 2007; and
  (c) in relation to Vessel C, the time charter entered into in respect of
  Vessel C between Borrower C and the Time Charterer dated 17
  September 2007, and collectively the “Time Charters”. “Time
  Charter Assignment” means each assignment of the Time Charter relating
  to a Vessel, executed or to be executed by the relevant Borrower relating to
  that vessel in favour of the Security Agent in the form set out in Schedule
  14 (Form of Time Charter
  Assignment) and collectively the “Time Charter Assignments”. “Time Charterer” means CMA CGM S.A.,
  or any other entity approved by the Agent (acting on the instructions of the
  Majority Lenders) as a time charterer. “Total Adjusted Assets” has the meaning given to it in Clause 21
  (Financial covenants). “Total Commitments” means the
  aggregate of the Commitments being US$203,400,000 at the date of this
  Agreement. “Total Loss” means,
  in relation to each Vessel: (a) the actual, constructive, compromised, agreed
  or arranged total loss of that Vessel; or (b) the Compulsory Acquisition of
  that Vessel; or (c) the hijacking, theft, condemnation, capture, seizure,
  arrest, detention or confiscation of that Vessel (other than where the same
  amounts to Compulsory Acquisition of that Vessel) which deprives the relevant
  Borrower of the use of such Vessel for 30 consecutive days; “Total Loss Date” means, in relation
  to each Vessel: 21

  

 

	
  

  	
  (a) in the case
  of an actual total loss of a Vessel, on the actual date and at the time such
  Vessel was lost or, if such date is not known, on the date on which such
  Vessel was last reported; (b) in the case of a constructive total loss of a
  Vessel, upon the date and at the time notice of abandonment of that Vessel is
  given to the insurers of such Vessel for the time being (provided a claim for
  total loss is admitted by such insurers) or, if such insurers do not
  forthwith admit such a claim, at the date and at the time at which either a
  total loss is subsequently admitted by the insurers or a total loss is
  subsequently adjudged by a competent court of law or arbitration tribunal to
  have occurred and, in any event, no later than one hundred and twenty (120)
  days after the date on which the Vessel was lost, or if such date is not
  known, after the date on which such Vessel, was last reported; (c) in the
  case of a compromised, agreed or arranged total loss of a Vessel, on the date
  upon which a binding agreement as to such compromised, agreed or arranged
  total loss has been entered into by the insurers of such Vessel; (d) in the
  case of Compulsory Acquisition of a Vessel, on the date upon which the
  relevant requisition of title or other compulsory acquisition occurs; and (e)
  in the case of hijacking, theft, condemnation, capture, seizure, arrest,
  detention or confiscation of a Vessel (other than where the same amounts to
  Compulsory Acquisition of such Vessel) which deprives the relevant Borrower
  of the use of such Vessel for 30 consecutive days, upon the expiry of the
  period of 30 days after the date upon which the relevant hijacking, theft,
  condemnation, capture, seizure, arrest, detention or confiscation occurred. “Total Loss Proceeds” means, in
  relation to each Vessel, the insurance proceeds, Requisition Compensation, or
  refund from the Seller in accordance with Article XII 2(b) of the
  relevant Shipbuilding Contract upon a Total Loss of that Vessel prior to its
  Delivery or any other amount by way of compensation, damages or similar
  payment for the loss of or damage to the Vessel arising in each case in
  respect of a Total Loss of that Vessel. “Total Loss Repayment Date” means, in relation to each Vessel,
  the earlier of: (a) the next Repayment Date following receipt of any Total
  Loss Proceeds for that Vessel; and (b) the date falling one hundred and
  twenty (120) days after the Total Loss Date for that Vessel; or such other
  date as the Agent (acting on the instructions of the Majority Lenders) may
  direct. “Total MtM Exposure” means
  the total mark to market exposure of all transactions under the Hedging
  Documents. “Tranche” means
  Tranche A, Tranche B or Tranche C, as appropriate. “Tranche A” means Tranche A of the Facility made available under
  this Agreement as described in Clause 2.2(a) (Tranche A) 22

  

 

	
  

  	
  “Tranche A Loan” means a loan
  made or to be made under Tranche A of the Facility or the principal amount
  outstanding for the time being of that loan. “Tranche B” means Tranche B of the Facility made available under
  this Agreement as described in Clause 2.3(a) (Tranche B). “Tranche
  B Loan” means a loan made or to be made under Tranche B of the
  Facility or the principal amount outstanding for the time being of that loan.
  “Tranche C” means Tranche C of
  the Facility made available under this Agreement as described in Clause
  2.4(a) (Tranche C). “Tranche C Loan” means a loan made
  or to be made under Tranche C or the principal amount outstanding for the
  time being of that loan. “Transaction”
  means a Transaction as defined in and entered into pursuant to any of
  the Hedging Documents. “Transaction
  Document” means each Operative Document and each Finance Document and
  collectively the “Transaction
  Documents”. “Transfer
  Certificate” means a certificate substantially in the form set out in
  Part I of Schedule 5 (Form of Transfer Certificate and
  Accession Letter) or any other form agreed between the Agent and the
  Obligors. “Transfer Date” means,
  in relation to a transfer, the later of: (a) the proposed Transfer Date
  specified in the Transfer Certificate; and (b) the date on which the Agent
  executes the Transfer Certificate. “Unpaid
  Sum” means any sum due and payable but unpaid by an Obligor under the
  Finance Documents. “US Operations” means
  any operations, loading or discharging of cargo in the United States of
  America or transit through the “exclusive economic zone” as defined in the US
  Oil Pollution Act of 1990 (or any part thereof). “US$” and “$” and “Dollars”
  means the lawful currency for the time being of the United States of
  America. “Utilisation” means a
  utilisation of the Facility. “Utilisation
  Date” means the date of a Utilisation, being the date on which the
  relevant Loan is to be made. “Utilisation
  Request” means a notice substantially in the form set out in Schedule
  3 (Requests). “Valuation” means in relation to a
  Vessel, a valuation performed pursuant to Clause 24.8 (Valuations). “VAT” means
  value added tax as provided for in the Value Added Tax Act 1994 and any other
  tax of a similar nature. “Vessel” means
  Vessel A, Vessel B or Vessel C, as appropriate. 23

  

 

	
  

  	
  “Vessel A” means a 8,530
  teu container ship of approximately 101,000 dwt to be built by the
  Shipbuilder pursuant to the Shipbuilding Contract for Vessel A, which is to
  be identified during construction as Hull No. Z00002 and which is to be
  registered in the name of Borrower A through the Registry upon its Delivery
  Date. “Vessel B” means a 8,530
  teu container ship of approximately 101,000 dwt to be built by the
  Shipbuilder pursuant to the Shipbuilding Contract for Vessel B, which is to
  be identified during construction as Hull No. Z00003 and which is to be
  registered in the name of Borrower B through the Registry upon its Delivery
  Date. “Vessel C” means a 8,530
  teu container ship of approximately 101,000 dwt to be built by the
  Shipbuilder pursuant to the Shipbuilding Contract for Vessel C, which is to
  be identified during construction as Hull No. Z00004 and which is to be
  registered in the name of Borrower C through the Registry upon its Delivery
  Date. “Vote Disclosure Termination
  Date” means the date on which the Agent issues a notice pursuant to
  Clause 29.2(h)(ii) of this Agreement. 1.2 Construction (a) Unless a contrary indication appears, any
  reference in this Agreement to: (i) the “Agent”, the “Sinosure
  Agent”, any “Arranger”, any
  “Finance Party”, any “Hedging Bank”, “Sinosure”, any “Lender”,
  any “Obligor”, any “Party”, any “Secured Party” or the “Security
  Agent” shall be construed so as to include its successors in title,
  permitted assigns and permitted transferees; (ii) “assets” includes present and future properties, revenues
  and rights of every description; (iii) a “Finance Document”, an “Operative Document”, a “Transaction Document” or any other
  agreement or instrument is a reference to that Finance Document, Operative
  Document, Transaction Document or other agreement or instrument as amended,
  novated, supplemented, extended, restated (however fundamentally and whether
  or not more onerously) or replaced and includes any change in the purpose of,
  any extension of or any increase in any facility or the addition of any new
  facility under that Finance Document or other agreement or instrument; (iv) “indebtedness” includes any
  obligation (whether incurred as principal or as surety) for the payment or
  repayment of money, whether present or future, actual or contingent; (v) a “person” includes any individual,
  firm, company, corporation, government, state or agency of a state or any
  association, trust, joint venture, consortium or partnership (whether or not
  having separate legal personality); (vi) a “regulation” includes any regulation, rule, official directive,
  request or guideline (whether or not having the force of law) of any
  governmental, intergovernmental or supranational body, agency, department or
  regulatory, self-regulatory or other authority or organisation; (vii) a
  provision of law is a reference to that provision as amended or re-enacted; 24

  

 

	
  

  	
  (viii) a time
  of day is a reference to London time; (ix)
  “law” includes, common, customary or civil law or any constitution,
  decree, judgment, legislation, order, ordinance, treaty or other legislative,
  judicial or administrative measure, requirement or decision (or its
  interpretation or application) whether or not having the force of law but if
  not having the force of law only if the persons to whom it is intended to
  apply generally comply with it; and (x) a “party” to any agreement or instrument includes a reference to
  that person’s successors, permitted assigns and permitted transferees. (b) Section,
  Clause and Schedule headings are for ease of reference only. (c) Unless a
  contrary indication appears, a term used in any other Finance Document or in
  any notice given under or in connection with any Finance Document has the
  same meaning in that Finance Document or notice as in this Agreement. (d) A
  Default (other than an Event of Default) is “continuing” if it has not been
  remedied or waived and an Event of Default is “continuing” if it has not been
  waived. 1.3 Third Party rights
  (a) A Party may enforce the provisions of any indemnity set out in this
  Agreement on behalf of any Related Indemnitee. (b) Subject to paragraph
  (a) above, the terms of this Agreement may be enforced only by a Party
  to it and the operation of the Contracts (Rights of Third Parties) Act 1999
  is excluded. (c) Notwithstanding any provision of this Agreement, the Parties
  do not require the consent of any third party to rescind or vary this
  Agreement at any time. 25

  

 

	
  

  	
  SECTION 2 THE FACILITY 2. THE FACILITY 2.1 The Facility Subject to the terms of
  this Agreement, the Lenders make available to the Borrowers a term loan
  facility in Dollars in an aggregate amount equal to the Total Commitments.
  2.2 Tranche A (a) Subject to
  the terms of this Agreement, the Lenders make available Tranche A of the
  Facility to Borrower A in respect of Vessel A, in an amount not exceeding the
  aggregate of the Commitments applicable to Tranche A. (b) Two (2) Loans
  only may be requested under Tranche A of the Facility in respect of Vessel A:
  (i) the first such Loan shall be in an amount which is the lower of
  US$67,800,000 and such part (if any) of the Final Instalment of the Contract
  Price due by Borrower A to the Seller under Shipbuilding Contract for Vessel
  A and shall be used in or towards payment of such part (if any) of the Final
  Instalment on the Delivery Instalment Fund Transfer Date; and (ii) the second such Loan shall be
  in an amount equal to the Available Commitment in respect of Tranche A which
  remains after deducting the amount in paragraph (i) above and shall, on
  the Delivery Date for Vessel A, be used for the purposes set out in Clause 3.1
  (Purpose). 2.3 Tranche B (a) Subject to the terms
  of this Agreement, the Lenders make available Tranche B of the Facility to
  Borrower B in respect of Vessel B in an amount not exceeding the aggregate of
  the Commitments applicable to Tranche B. (b) Two (2) Loans only may be
  requested under Tranche B of the Facility in respect of Vessel B: (i) the
  first such Loan shall be in an amount which is the lower of US$67,800,000 and
  such part (if any) of the Final Instalment of the Contract Price due by
  Borrower B to the Seller under Shipbuilding Contract for Vessel B and shall
  be used in or towards payment of such part (if any) of the Final Instalment
  on the Delivery Instalment Fund Transfer Date; and (ii) the second such Loan
  shall be in an amount equal to the Available Commitment in respect of Tranche
  B which remains after deducting the amount in paragraph (i) above and
  shall, on the Delivery Date for Vessel B, be used for the purposes set out in
  Clause 3.1 (Purpose). 2.4 Tranche C (a) Subject to the terms
  of this Agreement, the Lenders make available Tranche C of the Facility to
  Borrower C in respect of Vessel C in an amount not exceeding the aggregate of
  the Commitments applicable to Tranche C. 26

  

 

	
  

  	
  (b) Two
  (2) Loans only may be requested under Tranche C of the Facility in
  respect of Vessel C: (i) the first such Loan shall be in an amount which is
  the lower of US$67,800,000 and such part (if any) of the Final Instalment of
  the Contract Price due by Borrower C to the Seller under Shipbuilding
  Contract for Vessel C and shall be used in or towards payment of such part
  (if any) of the Final Instalment on the Delivery Instalment Fund Transfer
  Date; and (ii) the second
  such Loan shall be in an amount equal to the Available Commitment in respect
  of Tranche C which remains after deducting the amount in paragraph
  (i) above and shall, on the Delivery Date for Vessel C, be used for the
  purposes set out in Clause 3.1 (Purpose).
  2.5 Sinosure override (a)
  Notwithstanding anything to the contrary in this Agreement, nothing in this
  Agreement shall oblige any Secured Party to act (or omit to act) in a manner
  that is inconsistent with any requirement of Sinosure under or in connection
  with the Sinosure Insurance Policy and, in particular: (i) the Agent shall be
  authorised to take all such actions as it may deem necessary to ensure that
  all requirements of Sinosure under or in connection with the Sinosure
  Insurance Policy are complied with; and (ii) the Agent shall not be obliged
  to do anything if, in its opinion, to do so could result in a breach of any
  requirements of Sinosure under or in connection with the Sinosure Insurance
  Policy or affect the validity of the Sinosure Insurance Policy. (b) Nothing
  in this Clause 2.5 (Sinosure
  override) shall affect the rights or obligations of the Obligors. 2.6 Secured Parties’ rights and obligations
  (a) The obligations of each Secured Party under the Finance Documents are
  several. Failure by a Secured Party to perform its obligations under the
  Finance Documents does not affect the obligations of any other Party under
  the Finance Documents. No Secured Party is responsible for the obligations of
  any other Secured Party under the Finance Documents. (b) The rights of each
  Secured Party under or in connection with the Finance Documents are separate
  and independent rights and any debt arising under the Finance Documents to a
  Secured Party from an Obligor shall be a separate and independent debt. (c) A
  Secured Party may, except as otherwise stated in the Finance Documents,
  separately enforce its rights under the Finance Documents. 2.7 Termination of Commitments The
  Lenders’ Commitment under the Facility in respect of a Tranche will terminate
  on the expiry of the Availability Period relating to that Tranche or, if
  earlier, upon the relevant Vessel the subject of that Tranche being sold or
  becoming a Total Loss. Any part of a Commitment undrawn at the end of the
  Availability Period or upon the relevant Vessel being sold or becoming a
  Total Loss will be immediately cancelled. 1

  

 

	
  

  	
  2.8 Obligor& rights and obligations (a) The obligations of each of the
  Obligors under this Agreement and the Finance Documents, including the
  obligations to repay Loans and make payments under Hedging Documents, shall be
  joint and several, and absolute and unconditional. The failure by an Obligor
  to perform its obligations under the Finance Documents shall constitute a
  failure by each other Obligor in the performance of its obligations under the
  Finance Documents. Each Obligor shall be responsible for the performance of
  the obligations of the other Obligors under the Finance Documents. (b) The
  Secured Parties or any of them may take action against any of the Obligors
  and/or may release or compromise in whole or in part the liability of any of
  the Obligors under this Agreement or any other Finance Document or grant any
  time or other indulgence to any of the Obligors in each case without
  affecting the liability of each other Obligor. (c) Each Obligor may
  separately enforce its rights under the Finance Documents and such rights may
  not be enforced by any other Obligor. (d) Each Obligor agrees to be bound by
  the Finance Documents to which it is, or is to be, a party notwithstanding
  that each other Obligor which is intended to sign or to be bound may not do
  so or be effectually bound and notwithstanding that any of the Finance
  Documents may be invalid or unenforceable against any other Obligor, whether
  or not the deficiency is known to any Finance Party. (e) None of the obligations
  or liabilities of the Obligors under this Agreement or any other Finance
  Document shall be discharged or reduced by reason of (i) the insolvency,
  liquidation, dissolution, winding-up, administration, receivership,
  amalgamation, reconstruction or other incapacity of any person whatsoever or
  any change of name or style or constitution of an Obligor or any other person
  liable; (ii) any Finance Party granting any time, indulgence or concession
  to, or compounding with, discharging, releasing or varying the liability of,
  an Obligor or any other person liable or renewing, determining, varying or
  increasing, any accommodation, facility or transaction or otherwise dealing
  with the same in any manner whatsoever, or concurring in, accepting, varying
  any compromise, arrangement or settlement or omitting to claim or enforce
  payment from an Obligor or any other person liable; or (iii) anything done or
  omitted which but for this provision might operate to exonerate the Obligors
  or any of them. (f) None of the Finance Parties shall be obliged to make any
  claim or demand or to resort to any Finance Document or other means of
  payment now or hereafter held by or available to it for enforcing this
  Agreement or any of the Finance Documents against an Obligor or any other
  person liable and no action taken or omitted by the Finance Parties in
  connection with any such Finance Document or other means of payment will
  discharge, reduce, prejudice or affect the liability of the Obligors under
  this Agreement and the Finance Documents to which they are, or are to be, a
  party. (g) Each Obligor agrees that, while any part of the Total Commitment
  remains outstanding, and until the Agent is satisfied that all the
  Liabilities have been irrevocably paid in full and that all facilities 2

  

 

	
  

  	
  which might
  give rise to the Liabilities have terminated, it will not, without the prior written consent of the
  Agent: (i) exercise any right of subrogation, reimbursement, contribution and
  indemnity against any other Obligor or any other person liable; (ii) demand
  or accept repayment in whole or in part of any Financial Indebtedness now or
  hereafter due to such Obligor from any other Obligor or from any other person
  liable or demand or accept any guarantee, indemnity or other assurance
  against financial loss or any document or instrument creating or evidencing
  any Security in respect of the same or dispose of the same; (iii) take any
  steps to enforce any right against any other Obligor or any other person
  liable in respect of any such moneys; or (iv) claim any set-off or
  counterclaim against any other Obligor or any other person liable or claiming
  or proving in competition with any Finance Party in the liquidation of any
  other Obligor or any other person liable or have the benefit of, or share in,
  any payment from or composition with, any other Obligor or any other person
  liable or any other Finance Document now or hereafter held by any Finance
  Party for any moneys owing under this Agreement or for the obligations or
  liabilities of any other person liable but so that, if so directed by the
  Agent it will prove for the whole or any part of its claim in the liquidation
  of any other Obligor or other person liable on terms that the benefit of such
  proof and all moneys received by it in respect thereof shall be held on trust
  for the Finance Parties and applied in or towards discharge of any moneys
  owing under the Finance Documents in such manner as the Agent shall deem
  appropriate. 2.9 increase (a) The Guarantor may by giving prior notice to the
  Agent by no later than the date falling 5 Business Days after the effective
  date of a cancellation of the Available Commitments of a Defaulting Lender in
  accordance with Clause 7.8 (Right of
  cancellation in relation to a Defaulting Lender, request that the
  Total Commitments be increased
  (and the Total Commitments under that Facility shall be so increased) in an
  aggregate amount in Dollars of up to the amount of the Available Commitments
  or Commitments so cancelled as follows: (A) the increased Commitments will be
  assumed by one or more Lenders or other banks, financial institutions,
  trusts, funds, Sinosure or other entities (each an “Increase Lender”) selected by the Guarantor (each of which
  shall not be a member of the Group and which is further acceptable to the
  Agent (acting on the instructions of all of the Lenders)) and each of which
  confirms its willingness to assume and does assume all the obligations of a
  Lender corresponding to that part of the increased Commitments which it is to
  assume, as if it had been an Original Lender; (B) each of the Obligors and
  any increase Lender shall assume obligations towards one another and/or
  acquire rights against one another as the Obligors and the Increase Lender
  would have assumed and/or acquired had the increase Lender been an Original Lender; 3

  

 

	
  

  	
  (C) each
  Increase Lender shall become a Party as a “Lender” and any Increase Lender
  and each of the other Finance Parties shall assume obligations towards one
  another and acquire rights against one another as that Increase Lender and
  those Finance Parties would have assumed and/or acquired had the Increase
  Lender been an Original Lender; (D) the Commitments of the other Lenders
  shall continue in full force and effect; and (E) any increase in the Total
  Commitments shall take effect on the date specified by the Company in the
  notice referred to above or any later date on which the conditions set out in
  paragraph (b) below are satisfied. (b) An increase in the Total
  Commitments will only be effective on: (i) the execution by the Agent of an
  Increase Confirmation from the relevant Increase Lender; and (ii) in relation
  to an Increase Lender which is not a Lender immediately prior to the relevant
  increase: (A) the Increase Lender entering into the documentation required
  for it to accede as a party to the Intercreditor Agreement and each Account
  Charge; and (B) the performance by the Agent of all necessary “know your
  customer” or other similar checks under all applicable laws and regulations
  in relation to the assumption of the increased Commitments by that Increase
  Lender, the completion of which the Agent shall promptly notify to the
  Company and the Increase Lender. (c) Each Increase Lender, by executing the
  Increase Confirmation, confirms (for the avoidance of doubt) that the Agent
  has authority to execute on its behalf any amendment or waiver that has been
  approved by or on behalf of the requisite Lender or Lenders in accordance
  with this Agreement on or prior to the date on which the increase becomes
  effective. (d) The Company may pay to the Increase Lender a fee in the amount
  and at the times agreed between the Company and the Increase Lender in a Fee
  Letter. (e) Clause 27.4 (Limitation
  of responsibility of Existing Lenders) shall apply mutatis mutandis in this Clause 2.2
  in relation to an Increase Lender as if references in that Clause to: (i) an “Existing Lender” were references to
  all the Lenders immediately prior to the relevant increase; (ii) the “New Lender” were references to that
  “Increase Lender”; and (iii) a
  “re-transfer” and “re-assignment” were
  references to respectively a
  “transfer” and “assignment”.”
  4

  

 

	
  

  	
  3. PURPOSE 3.1 Purpose Each Borrower shall apply all amounts borrowed by it
  under any Tranche of the Facility towards (i) such part (if any) of the Final
  Instalment of the relevant Vessel the subject of that Tranche and (ii)
  refinancing such part of the Contract Price paid by the relevant Borrower in
  respect of that Vessel, respectively as referred to in Clause 2 (The Facility). The Facility
  consists of Tranche A (applicable to Vessel A), Tranche B (applicable to
  Vessel B) and Tranche C (applicable to Vessel C). 3.2 Monitoring No Finance Party is bound to monitor or verify the
  application of any amount borrowed pursuant to this Agreement. 4. CONDITIONS OF UTILISATION 4.1 Initial Conditions precedent (a)
  A Borrower may deliver a Utilisation Request if the Agent has received all of
  the documents and other evidence listed in Part I of Schedule 2 (Initial Conditions Precedent) in
  form and substance satisfactory to the Agent. The Agent shall notify the
  relevant Borrower and the Lenders promptly upon being so satisfied. (b) The
  Agent shall not: (i) confirm that the Sinosure Insurance Policy is in a form
  and substance satisfactory to it; or (ii)
  waive delivery of the Sinosure Insurance Policy as a condition
  precedent under paragraph 1 (f) of Part I of Schedule 2 (Initial Conditions Precedent),
  unless instructed to do so by all of the Lenders. 4.2 Conditions precedent to a Loan (a) The obligation of the Lenders
  to make a Loan shall be subject to the condition that the Agent has received,
  not later than three (3) Business Days before the day on which such Loan
  is to be made, all of the documents and other evidence listed in Part 11
  of Schedule 2 (Conditions precedent
  to a Loan) in form and substance satisfactory to the Agent. The Agent
  shall notify the relevant Borrower and the other Secured Parties promptly
  upon being so satisfied. (b) The Lenders and the Agent acknowledge that,
  pursuant to Article II 4(f) of any Shipbuilding Contract, such part
  (if any) of the Final Instalment required to be deposited into the Seller’s
  Account with the Seller’s Bank on a date (the “Preplacement Date”) which is at least four (4) Business
  Days prior to the proposed Delivery Date of a Vessel (the “Scheduled Delivery Date”) and that,
  as a result, paragraphs 1(c), 4, 6, 7, 8, 10, 11, 13, 16 and 18 of the
  conditions precedent specified in Part II of Schedule 2 (Conditions precedent to a Loan)
  set out in Clause 4.4 (Further
  Conditions Precedent) may not be satisfied by the date such deposit
  (and the associated Loan) is made. (c) Notwithstanding Clause 4.2(b), each
  Loan under a Tranche shall be made by the Lenders on the relevant
  Preplacement Date as follows: 5

  

 

	
  

  	
  (i) the first
  Loan to be made under a Tranche in respect of the Final Instalment of any
  Vessel shall be remitted by the Agent on behalf of the Lenders to the
  Seller’s Bank in the manner set out in paragraph (d) below. The Agent
  will instruct the Seller’s Bank to release such Loan to the Seller’s Account
  on the Delivery Date relating to that Vessel upon satisfaction of all of the
  conditions precedent set out in Part II of Schedule 2 (Conditions precedent to a Loan) and
  set out in Clause 4.4 (Further
  conditions precedent). Such release of funds shall be deemed to satisfy
  the relevant Borrower’s obligation to pay the instalments due on the Delivery
  Date for a Vessel under the relevant Shipbuilding Contract. (ii) any second Loan that is made
  under a Tranche which does not form part of the Final Instalment of any
  Vessel shall be remitted by the Agent on behalf of the Lenders to the
  Security Agent, to be conditional credited to a non-interest bearing suspense
  account of the Security Agent. The Security Agent shall release such Loan to
  the Borrower on the Delivery Date relating to that Vessel upon satisfaction
  of all of the conditions precedent set out in Pad ll of Schedule 2 (Conditions precedent to a Loan) and
  set out in Clause 4.4 (Further
  conditions precedent). (d) The Final Instalment to be remitted by the
  Agent in accordance with paragraph (c)(i) above shall be deposited
  subject to irrevocable instructions delivered by authenticated Swift MT 199
  substantially in the following form: “We have today remitted to [insert name of the Shipbuilder’s Bank]
  (insert international recognition codes)) the amount of [ ] (the “Deposit”), to be held in the name
  of Citibank International Plc, London Branch. This payment is made in
  connection with the instalments which will become payable by [insert name of the Borrower] (the “Buyer”) to [insert name of the Shipbuilder] (the “Shipbuilder”) under the terms of the shipbuilding contract
  dated [ ] [as amended on [ ] ] relating to hull no. [ ] (the “Vessel”). You are irrevocably
  instructed to hold the Deposit in escrow and to release the Deposit to the
  Shipbuilder only upon your receipt of a copy of the Protocol of Delivery and
  Acceptance relating to the Vessel signed by the Shipbuilder and the Buyer and
  acknowledged as to the release of funds by Citibank International Plc, London
  Branch. If at any time you receive instructions from us to release the
  Deposit to us you shall return the Deposit, together with any accrued
  interest, to us (for credit to Citibank N.A., New York, Swift address:
  CITIUS33, FW02000089, favour Citibank International Plc, London Branch, Swift
  code: CITTGB2LELA, account number 10963054, Attention: Loans Agency, Ref: ([insert Borrower’s name])) upon
  your receipt of written instructions from us to do so. If, by [ ] ( [ ] time)
  on the date which falls fourteen (14) days after the [here insert the scheduled delivery date] or such longer
  period as we may agree, we have not ordered the release of the Deposit to the
  Shipbuilder in accordance with the above instructions you shall (unless
  otherwise instructed by us) return the Deposit, together with any accrued
  interest, to us (for credit to the account referred to above) on and for
  value on the date which falls fourteen (14) days after the scheduled delivery
  date or such longer period as we may agree.” (e) The Borrowers undertake with
  the Finance Parties: 6

  

 

	
  

  	
  (i) not to sign
  a Protocol of Delivery and Acceptance in respect of a Vessel unless
  (A) the Agent has confirmed that the conditions precedent relating to
  that Vessel specified in Part II of Schedule 2 (Conditions precedent to a Loan) have been or will,
  simultaneously with such signing, be satisfied and that each of the other
  conditions precedent remains satisfied and (B) the Agent has
  countersigned such Protocol of Delivery and Acceptance; and (ii) to
  immediately repay each Loan, together with interest thereon (calculated in
  accordance with Clause 8.2 (Payment
  of interest)), on the date which Seller’s Bank is required to return
  any Loan to the Agent in accordance with the irrevocable instructions in
  paragraph (d) above (regardless of whether the Seller’s Bank has then
  carried out such instructions), provided that any money returned to the Agent
  pursuant to paragraph (g) below shall be applied by it in satisfaction
  of such obligation. (f) The Borrowers irrevocably and unconditionally
  undertake that they shall not give any instructions to the Seller or the
  Seller’s Bank which are inconsistent with the instructions given by the Agent
  under Clause 4.2(c). (g) If the Delivery of a Vessel has not occurred within
  fourteen (14) days after the proposed Delivery Date of such Vessel: (i) the
  Seller’s Bank shall immediately return any Loan relating to a Vessel which
  has been remitted to the Seller’s Bank, together with interest thereon (if
  any), to the Agent; and (ii) the Security Agent shall immediately return any
  Loan relating to a Vessel which has been remitted to it, together with
  interest thereon (if any), to the Agent. Moneys returned to the Agent shall,
  subject to Clause 4.2(h), be applied by the Agent in satisfaction of such
  obligation of the Borrowers in paragraph (e)(ii) above and in payment of
  any amounts payable by the Borrowers under this Agreement (h) Any return of a
  Loan in accordance with Clause 4.2(g) shall not, unless the Borrower so
  requests, be regarded as a prepayment of such Loan and the amount returned
  shall, subject to the terms of this Agreement, remain available to be
  utilised by the relevant Borrower. 4.3 Conditions subsequent to a Loan The Borrowers undertake that
  they will provide the documents and evidence set out in Part Ill of
  Schedule 2 (Conditions Subsequent) to
  the Agent and to each Hedging Bank on the Delivery Date of each Vessel. 4.4 Further conditions precedent The
  Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) or
  paragraph (c) of Clause 4.2 (Conditions
  precedent to a Loan) if
  on the date of the Utilisation Request and on the proposed Utilisation Date
  or, in respect of paragraph (c) of Clause 4.2 (Conditions precedent to a Loan), on the date of release of
  the deposit referred to therein: (a) no Default is continuing or would result
  from the proposed Loan; (b) the Repeating Representations to be made by each
  Obligor are true in all material respects; 7

  

 

	
  

  	
  (c) the
  relevant Vessel has not been sold or no agreement or understanding with
  respect to the sale of the Vessel has been entered into; (d) no event which
  constitutes, or may in the reasonable opinion of the Agent constitute, a
  Total Loss has occurred with respect to a Vessel (either before or after
  Delivery); (e) no Change of Control has occurred; and (f) Sinosure has not
  advised any of the Lenders that the making of Loans should be suspended. 8

  

 

	
  

  	
  SECTION 3 UTILISATION 5. UTILISATION 5.1 Delivery of a Utilisation Request (a) Subject to the terms
  of this Agreement, a Borrower may utilise a Tranche by delivery to the Agent
  of a duly completed Utilisation Request not later than the Specified Time.
  (b) Borrower A may only issue a Utilisation Request in relation to Tranche A,
  Borrower B may only issue a Utilisation Request in relation to Tranche B and
  Borrower C may only issue a Utilisation Request in relation to Tranche C. 5.2
  Completion of a Utilisation Request
  (a) Each Utilisation Request is irrevocable and will not be regarded as
  having been duly completed unless: (I) it identifies the Facility and Tranche
  to be utilised; (ii) the proposed Utilisation Date is a Business Day within
  the Availability Period; (iii) the
  currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); (iv) the proposed Interest Period
  complies with Clause 9 (Interest
  Periods); (v) it specifies the account and bank to which the proceeds
  of the Utilisation are to be credited; and (vi) it confirms that the relevant
  Loan is to be applied towards payment for one of the relevant purposes set
  out in Clause 3 (Purpose), as
  appropriate, and it specifies the purpose to which the relevant Loan is to be
  applied. (b) Only one Loan may be requested in each Utilisation Request. 5.3 Currency and amount (a) The currency
  specified in a Utilisation Request must be Dollars. (b) The amount of the
  proposed Loan must be in an amount equal to the lower of (i) the
  required amount set out in Clause 2.2(b) (Tranche A) in respect of a Tranche A Loan, Clause
  2.3(b) (Tranche B) in
  respect of a Tranche B Loan or Clause 2.4(b) (Tranche C) in respect of a Tranche C Loan as the case may be,
  (ii) such amount which when aggregated with each other Loan made or to
  be made under that same Tranche does not exceed sixty (60) per cent of the
  lower of (x) the Contract Price as at the date of this Agreement and
  (y) the Contract Price as at the Delivery Date respectively for the
  Vessel relating to that Tranche and (iii) the Available Facility for the
  relevant Tranche to which such Loan relates. 5.4 Lenders’ participation (a) If the conditions set out in this
  Agreement have been met, each Lender shall make its participation in each
  Loan available by the Utilisation Date through its Facility Office. 9

  

 

	
  

  	
  (b) The amount
  of each Lender’s participation in a Tranche A Loan will be equal to the
  proportion borne by its Available Commitment in respect of Tranche A in
  respect of that Facility to the aggregate of all Lenders’ Available
  Commitments in respect of Tranche A under that Facility immediately prior to
  making the Tranche A Loan, (C) The amount of each Lender’s participation in a
  Tranche B Loan will be equal to the proportion borne by its Available
  Commitment in respect of Tranche B in respect of that Facility to the
  aggregate of all Lenders’ Available Commitments in respect of Tranche B under
  that Facility immediately prior to making the Tranche B Loan. (d) The amount
  of each Lender’s participation in a Tranche C Loan will be equal to the
  proportion borne by its Available Commitment in respect of Tranche C in
  respect of that Facility to the aggregate of all Lenders’ Available
  Commitments in respect of Tranche C under that Facility immediately prior to
  making the Tranche C Loan. (e) The Agent shall notify each Lender of the
  amount of each Loan and the amount of its participation in that Loan by the
  Specified Time (and with respect to the Export-Import Bank of China the Agent
  shall notify via SWIFT). 5.5 Cancellation
  of Commitment The Total Commitments shall be immediately cancelled at
  the end of the Availability Period. 10

  

 

	
  

  	
  SECTION 4 REPAYMENT, ILLEGALITY, PREPAYMENT AND
  CANCELLATION 6. REPAYMENT
  6.1 Repayment of Tranche A Loans (a) The Borrowers shall repay
  the Tranche A Loan made to Borrower A in twenty (20) equal instalments by
  repaying on each Repayment Date the Tranche A Loan in an amount equal to that
  set out opposite such Repayment Date in Part I of Schedule 6 (Loan repayment). (b) Borrower A
  may not re-borrow any part of Tranche A of the Facility which is repaid. 6.2 Repayment of Tranche B Loans (a) The Borrowers shall repay the Tranche
  B Loan made to Borrower B in twenty (20) equal instalments by repaying on
  each Repayment Date the Tranche B Loan in an amount equal to that set out
  opposite such Repayment Date in Part II of Schedule 6 (Loan repayment). (b) Borrower B
  may not re-borrow any part of Tranche B of the Facility which is repaid. 6.3 Repayment of Tranche C Loans (a) The Borrowers shall repay the
  Tranche C Loan made to Borrower C in twenty (20) equal instalments by
  repaying on each Repayment Date the Tranche C Loan in an amount equal to that
  set out opposite such Repayment Date in Part III of Schedule 6 (Loan repayment). (b) Borrower C
  may not re-borrow any part of Tranche C of the Facility which is repaid. 6.4 Adjustment to Loan repayment schedule
  The Repayment Dates set out in the first column of each of Part 1,
  Part II and Part III of Schedule 6 (Loan repayment) have been calculated on the assumption that
  the Delivery Date for Vessel A will be 24 June 2011, the Delivery Date
  for Vessel B will be 4 August 2011 and the Delivery Date for Vessel C
  will be 30 July 2011. If the Delivery Date assumed in each of
  Part I, Part II and Part III of Schedule 6 (Loan repayment) differs from the
  date assumed in such Loan repayment schedule, the Agent will provide to the
  Lenders and to each Obligor a substitute schedule for each Loan reflecting
  the actual Delivery Date and the substitute schedule will then replace each
  of Part I, Part II
  and Part III of Schedule 6 (Loan
  repayment)), unless it is manifestly incorrect. 7. ILLEGALITY, PREPAYMENT AND CANCELLATION
  7.1 Illegality (a) If an
  Illegality Event occurs or a Lender reasonably considers that an illegality
  Event is likely to occur in relation to its participation in a Loan (an
  “Affected Lender”), the
  Affected Lender will promptly notify the Agent which will promptly notify the
  other Parties. (b) If, upon receiving notice of the Illegality Event from the
  Agent, any Party requests the other Parties to do so, the Parties will
  consult with each other in accordance with Clause 15 (Mitigation) to try to find a means of avoiding or mitigating
  the effect of the Illegality Event. 37

  

 

	
  

  	
  (c) If the
  Parties are not able to agree on a means of avoiding or mitigating the effect
  of the Illegality Event within the Consultation Period, the Affected Lender
  may notify the Agent, which will promptly notify the other Parties and: (i)
  if the Affected Lender has not yet funded its participation in the relevant
  Loan, the Commitment of that Affected Lender will be immediately cancelled;
  or (ii) if the Affected Lender has funded its participation in the relevant
  Loan, the Borrower will, on the Illegality Repayment Date, repay that
  Affected Lender’s participation in that Loan. 7.2 Voluntary cancellation Each of the Borrowers may, if it gives
  the Agent not less than 30 Business Days’ (or such shorter period as the
  Majority Lenders may agree, which shall never be shorter than 3 Business
  Days) prior notice, cancel the whole or any part (being a minimum amount of
  US$5,000,000 and integral multiples of US$1,000,000) of Available Commitments
  under a Tranche. Any cancellation under this Clause 7.2 shall reduce the
  Commitments of the Lenders rateably. 7.3 Voluntary prepayment of Loans (a) The Borrower to which a Loan
  has been made may, if it gives the Agent not less than 30 Business Days’ (or
  such shorter period as the Majority Lenders may agree, which shall never be
  shorter than 3 Business Days) prior notice, prepay the whole or any part of
  any Loan (but, if in part, being an amount that reduces the Loan by a minimum
  amount of US$5,000,000 and in increments equal to 2 or more instalments). (b)
  A Loan may only be prepaid after the last day of the Availability Period (or,
  if earlier, the day on which the Available Facility for each Tranche is
  zero). (c) Following prepayment in accordance with this Clause 7.3, the Agent
  and the Borrower(s) shall, if required by the Agent (acting on the
  instructions of the Majority Lenders), co-operate in good faith to determine
  the process for obtaining the reimbursement by Sinosure of any portion of the
  Sinosure Insurance Premium which is reimbursable under the Sinosure Insurance
  Policy in relation to the prepaid amounts. 7.4 Mandatory prepayment: Total Loss If a Total Loss occurs in respect of a Vessel, the Commitments
  under the Tranche under each Facility relating to the relevant Vessel shall be automatically cancelled and all
  outstanding Loans under the Tranche under each Facility relating to the
  relevant Vessel shall become automatically due and payable on the Total Loss
  Repayment Date relating to that Vessel. 7.5 Mandatory prepayment: Sale (a) If a Vessel is sold in accordance
  with paragraph (b)(iii) of Clause 22.5 (Disposals), the Commitments with respect to the Tranche
  relating to that Vessel shall be automatically cancelled and: (i) all
  outstanding Loans under the Tranche relating to that Vessel under each
  Facility; and (ii) such additional amount of the Facility as is required to
  ensure compliance with the provisions of Clause 24.9 (Asset Cover Ratio) immediately after such prepayment has been
  made, 38

  

 

	
  

  	
  shall become
  automatically due and payable on or before the date on which title to that
  Vessel is to transfer to the purchaser of that Vessel. (b) If any of the
  following occurs: (i) any Shipbuilding Contract is frustrated, cancelled or
  otherwise terminated, or is transferred or novated, except where the Agent
  (with the approval of the Majority Lenders) shall have given its express
  consent in writing to any such transfer or novation without requiring such
  mandatory prepayment to be made; or (ii) any Vessel has not for any reason
  been delivered to, and accepted by, the relevant Borrower under the
  applicable Shipbuilding Contract by the end of the Availability Period
  applicable to the Tranche relating to such Vessel; then the undrawn portion
  of the Commitments of the relevant Tranche relating to that Vessel under the
  Facility shall be automatically cancelled and the Loan(s) already made
  under any Tranche under the Facility relating to that Vessel shall become
  immediately due and payable in full. (c) Any prepayment under this Clause 7.5
  shall be applied in inverse order of maturity starting from the Final
  Maturity Date. 7.6 Mandatory
  prepayment on a breach of the Asset Cover Ratio If at any time the
  Asset Cover Ratio is not complied with, the Borrowers shall be required to
  prepay the outstanding Loans in accordance with Clause 24.9 (Asset Cover Ratio) (subject always to paragraph
  (ii) of Clause 24.9(c)). 7.7 Adjustment
  to the repayment profile on prepayment of a Loan Where either Tranche
  A, Tranche B or Tranche C of the Facility is prepaid in part pursuant to
  Clause 7.3 (Voluntary prepayment of
  Loans) the amount of such prepayment shall be applied so as to reduce
  the amount of outstanding Loans under that Tranche to be repaid on each
  Repayment Date as set out in Schedule 6 (Loan repayment) in inverse order of maturity starting from
  the Final Maturity Date. 7.8 Right of
  cancellation in relation to a Defaulting Lender (a) If any Lender
  becomes a Defaulting Lender, the Guarantor may, at any time whilst the Lender
  continues to be a Defaulting Lender, give the Agent 15 Business Days’ notice
  of cancellation of each Available Commitment of that Lender. (b) On the
  notice referred to in paragraph (a) above
  becoming effective, each Available Commitment of the Defaulting Lender shall
  immediately be reduced to zero. The Agent shall as soon as practicable after
  receipt of a notice referred to in paragraph (a) above, notify all the
  Lenders. 7.9 Restrictions (a)
  Any notice of cancellation or prepayment given by any Party under this Clause
  7 shall be irrevocable and, unless a contrary indication appears in this
  Agreement, shall specify the date or dates upon which the relevant
  cancellation or prepayment is to be made and the amount of that cancellation
  or prepayment. 39

  

 

	
  

  	
  (b) Any
  prepayment under this Agreement shall be made together with accrued interest
  on the amount prepaid, all amounts then due to the relevant Finance Parties
  under the Finance Documents as a consequence of that prepayment and, subject
  to any Break Costs, without premium or penalty. (c) No Borrower may reborrow
  any part of the Facility which is prepaid. (d) The Borrowers shall not repay
  or prepay all or any part of the Loans or cancel all or any part of the
  Commitments except at the times and in the manner expressly provided for in
  this Agreement. (e) Subject to Clause 2.9 (Increase), no amount of the Total Commitments cancelled under
  this Agreement may be subsequently reinstated. (f) If the Agent receives a
  notice under this Clause 7 it shall promptly forward a copy of that notice to
  either the Borrowers or the affected Lender, as appropriate. (g) Each
  Borrower, and/or the Agent on behalf of the Borrower, shall: (i) notify each
  Hedging Bank of any cancellation, prepayment or repayment under this Clause 7
  promptly upon becoming aware of any such event; and (ii) deliver to each
  Hedging Bank a true copy of each notice of cancellation or prepayment given
  by a Party under this Clause 7 as soon as practicable following its delivery
  and/or receipt of such notice. 40

  

 

	
  

  	
  SECTION 5 COSTS OF UTILISATION 8. INTEREST 8.1 Calculation of interest The rate of interest on each Loan for
  each Interest Period is the percentage rate per annum which is the aggregate
  of the applicable: (a) Margin; (b) LIBOR; and (c) Mandatory Cost, if any. 8.2
  Payment of interest The
  Borrowers shall pay accrued interest on each Loan on the last day of each interest
  Period. 8.3 Default interest
  (a) If an Obligor fails to pay any amount payable by it under a Finance
  Document on its due date, interest shall accrue on the overdue amount from
  the due date up to the date of actual payment (both before and after
  judgment) at a rate which, subject to paragraph (b) below, is the sum of
  two (2) per cent. and the rate which would have been payable if the
  overdue amount had, during the period of non-payment, constituted a Loan in
  the currency of the overdue amount for successive Interest Periods, each of a
  duration selected by the Agent (acting reasonably). Any interest accruing
  under this Clause 8.3 shall be immediately payable by the Obligor on demand
  by the Agent. (b) If any overdue amount consists of all or part of a Loan
  which became due on a day which was not the last day of an Interest Period
  relating to that Loan: (i) the first Interest Period for that overdue amount
  shall have a duration equal to the unexpired portion of the current interest
  Period relating to that Loan; and (ii) the rate of interest applying to the
  overdue amount during that first Interest Period shall be the sum of two
  (2) per cent. and the rate which would have applied if the overdue
  amount had not become due. (c) Default interest (if unpaid) arising on an
  overdue amount will be compounded with the overdue amount at the end of each
  Interest Period applicable to that overdue amount but will remain immediately
  due and payable. 8.4 Notification of
  rates of interest The Agent shall promptly notify the Lenders and the
  relevant Borrower of the determination of a rate of interest under this
  Agreement. 9. INTEREST PERIODS
  9.1 Interest Periods (a) The
  first Interest Period for any Loan will commence on its Utilisation Date and
  end of the Scheduled Delivery Date for the Vessel to which such Loan relates.
  41

  

 

	
  

  	
  (b) If Delivery
  of the applicable Vessel does not occur on the Scheduled Delivery Date for
  that Vessel, subsequent interest Periods for the Loan made in respect of a
  Vessel shall be daily until the earlier of the Delivery Date of the Vessel to
  which such Loan relates and the date of return of such Loan pursuant to
  Clause 4.2(g). (c) Subject to the remaining provisions of this Clause 9, with
  effect from the Delivery Date of a Vessel, each interest Period for the
  applicable Loan shall be of six Months’ duration and shall commence on the
  Delivery Date of the Vessel to which such Loan relates and thereafter, shall
  commence on the last day of the preceding Interest Period. (d) An Interest
  Period for a Loan shall not extend beyond the relevant Final Maturity Date
  for the Vessel to which such Loan relates. 9.2 Non-Business Days If an
  Interest Period would otherwise end on a day which is not a Business Day,
  that interest Period will instead end on the next Business Day in that
  calendar month (if there is one) or the preceding Business Day (if there is
  not). 9.3 Consolidation of Loans
  If interest Periods for two (2) or more any Loans in the same Tranche
  end on the same date, those Loans will be consolidated into, and treated as,
  a single Loan on the last day of the interest Period. 10. CHANGES TO THE CALCULATION OF INTEREST 10.1 Absence of quotations Subject
  to Clause 10.2 (Market disruption), If
  LIBOR is to be determined by reference to the Reference Banks but a Reference
  Bank does not supply a quotation by the Specified Time on the Quotation Day,
  the applicable LIBOR shall be determined on the basis of the quotations of
  the remaining Reference Banks. 10.2 Market
  disruption (a) If a Market Disruption Event occurs in relation to a
  Loan for any interest Period, then the rate of interest on each Lender’s
  share of that Loan for the interest Period shall be the percentage rate per
  annum which is the sum of: (i)
  the Margin; (ii) the rate notified to the Agent by that Lender as soon as
  practicable and in any event before interest is due to be paid in respect of
  that interest Period, to be that which expresses as a percentage rate per
  annum the cost to that Lender of funding its participation in that Loan from
  whatever source it may reasonably select; and (iii) the Mandatory Cost, if
  any, applicable to that Lender’s participation in the Loan. (b) In this
  Agreement “Market Disruption Event” means:
  (i) at or about noon on the Quotation Day for the relevant Interest Period
  the Screen Rate is not available and none or only one of the Reference Banks
  supplies a rate to the Agent to determine LIBOR for Dollars for the relevant
  currency and interest Period; or 1

  

 

	
  

  	
  (ii) before
  close of business in London on the Quotation Day for the relevant interest
  Period, the Agent receives notifications from at least two (2) Lenders
  (whose aggregate participations in a Loan exceed 35 per cent. of that Loan)
  that the cost to it of obtaining matching deposits in the Relevant Interbank
  Market would be in excess of LIBOR. 10.3 Alternative basis of interest or funding (a) If a Market
  Disruption Event occurs and the Agent or an Obligor so requires, the Agent
  and that Obligor shall enter into negotiations (for a period of not more than
  30 days) with a view to agreeing a substitute basis for determining the rate
  of interest. (b) Any alternative basis agreed pursuant to paragraph
  (a) above shall, with the prior consent of all the Lenders and the
  Obligors, be binding on all Parties. 10.4 Break Costs (a) Each Borrower shall, within three Business Days
  of demand by a Finance Party, pay to that Finance Party its Break Costs
  attributable to all or any part of a Loan or Unpaid Sum being paid by that
  Borrower on a day other than the last day of an interest Period for that Loan
  or Unpaid Sum. (b) Each Lender shall, as soon as reasonably practicable after
  a demand by the Agent, provide a certificate confirming the amount of its
  Break Costs for any interest Period in which they accrue. 11. FEES 11.1 Commitment fee (a) The Obligors
  shall pay to the Agent (for the account of each Lender) a commitment fee in
  the amount and at the times agreed in a Fee Letter. (b) No commitment fee is
  payable to the Agent (for the account of a Lender) on any Available
  Commitment of that Lender for any day on which that Lender is a Defaulting Lender.
  11.2 Arrangement fee The
  Obligors shall pay to the Arrangers an arrangement fee in the amount and at
  the times agreed in a Fee Letter. 11.3
  Agency fee The Obligors shall pay to the Agent (for its own account)
  an agency fee in the amount and at the times agreed in a Fee Letter. 11.4 Security Agency fee (a) The
  Obligors shall pay to the Security Agent (for its own account) a security
  agency fee in the amount and at the times agreed in a Fee Letter. (b) If a
  Default shall have occurred or if the Security Agent finds it expedient or
  necessary or is requested by any Obligor to undertake duties which such
  Obligor agrees to be of an exceptional nature or otherwise outside the scope
  of the Security Agent’s normal duties, the Obligors will pay such additional
  remuneration as the Security Agent and the Obligors may agree, or failing
  agreement as determined by an investment bank (acting as an expert) selected
  by the Security Agent and approved by the Obligors or failing such approval,
  nominated by the president for the time being of the Law Society of England
  and Wales. The expense involved in such nomination 2

  

 

	
  

  	
  and such
  investment banks fees will be borne by the Obligors. The determination of
  such investment bank will be conclusive and binding on the Security Agent and
  the Obligors. 3

  

 

	
  

  	
  SECTION 6 ADDITIONAL PAYMENT OBLIGATIONS 12. TAX GROSS UP AND INDEMNITIES 12.1 Definitions (a) In this Agreement: “Protected Party” means a Finance
  Party which is or will be subject to any liability, or required to make any
  payment, for or on account of Tax in relation to a sum received or receivable
  (or any sum deemed for the purposes of Tax to be received or receivable)
  under a Finance Document. “Tax
  Credit” means a credit against, relief or remission for, or repayment
  of any Tax. “Tax Deduction” means
  a deduction or withholding for or on account of Tax from a payment under a
  Finance Document. “Tax Payment” means
  either the increase in a payment made by an Obligor to a Finance Party under
  Clause 12.2 (Tax gross-up) or
  a payment under Clause 12.3 (Tax indemnity).
  (b) Unless a contrary indication appears, in this Clause 12 a reference to
  “determines” or “determined” means a determination made in the absolute
  discretion of the person making the determination. 12.2 Tax gross-up (a) Each Obligor shall
  make all payments to be made by it without any Tax Deduction, unless a Tax
  Deduction is required by law. (b) Each Obligor shall promptly upon becoming
  aware that an Obligor must make a Tax Deduction (or that there is any change
  in the rate or the basis of a Tax Deduction) notify the Agent accordingly.
  Similarly, a Lender shall notify the Agent on becoming so aware in respect of
  a payment payable to that Lender. If the Agent receives such notification
  from a Lender it shall notify the Obligors. (c) If a Tax Deduction is
  required by law to be made by an Obligor or, if as a result of a Change in
  Law, the Agent is required to make a Tax Deduction from any amount that the
  Agent is required to pay any Lender, the amount of the payment due from that
  Obligor shall be increased to an amount which (after making any Tax
  Deduction) leaves an amount equal to the payment which would have been due if
  no Tax Deduction had been required. (d) If an Obligor is required to make a
  Tax Deduction, that Obligor shall make that Tax Deduction and any payment
  required in connection with that Tax Deduction within the time allowed and in
  the minimum amount required by law. (e) Within thirty days of making either a
  Tax Deduction or any payment required in connection with that Tax Deduction,
  the Obligor making that Tax Deduction shall deliver to the Agent for the
  Finance Party entitled to the payment an original receipt (or certified copy
  thereof) or if unavailable, evidence reasonably satisfactory to that Finance
  Party that the Tax Deduction has been made or (as applicable) any appropriate
  payment paid to the relevant taxing authority. 4

  

 

	
  

  	
  12.3 Tax
  indemnity (a) The Obligors shall (within five (5) Business Days of
  demand by the Agent) pay to a Protected Party an amount equal to the loss,
  liability or cost which that Protected Party determines will be or has been
  (directly or indirectly) suffered for or on account of Tax by that Protected
  Party in respect of a Finance Document. (b) Paragraph (a) above shall not apply: (i) with respect
  to any Tax assessed on a Finance Party: (A) under the law of the jurisdiction
  in which that Finance Party is incorporated or, if different, the
  jurisdiction (or jurisdictions) in which that Finance Party is treated as
  resident for tax purposes; or (B) under the law of the jurisdiction in which
  that Finance Party’s Facility Office is located in respect of amounts
  received or receivable in that jurisdiction, if that Tax is imposed on or
  calculated by reference to the net income received or receivable (but not any
  sum deemed to be received or receivable) by that Finance Party; or (ii) to
  the extent a loss, liability or cost is compensated for by an increased
  payment under Clause 12.2 (Tax
  gross-up) (c) A Protected Party making, or intending to make, a claim
  under paragraph (a) above shall promptly notify the Agent of the event
  which will give, or has given, rise to the claim, following which the Agent
  shall notify the Obligors. (d) A Protected Party shall, on receiving a
  payment from an Obligor under this Clause 12.3, notify the Agent. 12.4 Tax Credit If an Obligor makes a Tax
  Payment and the relevant Finance Party determines that: (a) a Tax Credit is
  attributable either to an increased payment of which that Tax Payment forms
  part, or to that Tax Payment; and (b) that Finance Party has obtained,
  utilised and fully retained that Tax Credit on an affiliated group basis, the
  Finance Party shall pay an amount to the Obligor which that Finance Party
  determines will leave it (after that payment) in the same after-Tax position
  as it would have been in had the Tax Payment not been required to be made by
  the Obligor. 12.5 Stamp taxes
  The Obligors shall pay and, within three Business Days of demand, indemnify
  each Finance Party against any cost, loss or liability that Finance Party
  incurs in relation to all stamp duty, registration and other similar Taxes
  payable in respect of any Finance Document 12.6 Value added tax (a) All amounts set out, or expressed to be
  payable under a Finance Document by any Party to a Finance Party which (in
  whole or in part) constitute the consideration for VAT purposes shall be 5

  

 

	
  

  	
  deemed to be
  exclusive of any VAT which is chargeable on such supply, and accordingly,
  subject to paragraph (c) below, if VAT is chargeable on any supply made
  by any Finance Party to any Party under a Finance Document, that Party shall
  pay to the Finance Party (in addition to and at the same time as paying the
  consideration) an amount equal to the amount of the VAT (and such Finance
  Party shall promptly provide an appropriate VAT invoice to such Party). (b)
  If VAT is chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance
  Party (the “Recipient”) under
  a Finance Document, and any Party (the “Relevant Party”) is required by the terms of any Finance
  Document to pay an amount equal to the consideration for such supply to the
  Supplier (rather than being required to reimburse the Recipient in respect of
  that consideration), such Party shall also pay to the Supplier (in addition
  to and at the same time as paying such amount) an amount equal to the amount
  of such VAT. The Recipient (unless it is the Security Agent) will promptly
  pay to the Relevant Party an amount equal to any credit or repayment from the
  relevant tax authority which it reasonably determines relates to the VAT
  chargeable on that supply. (e) Where a Finance Document requires any Party to
  reimburse a Finance Party for any costs or expenses, that Party shall also at
  the same time pay and indemnify the Finance Party against all VAT incurred by
  the Finance Party in respect of the costs or expenses. 13. INCREASED COSTS 13.1 Increased costs Subject to
  Clause 13.3 (Exceptions) the
  Borrowers shall, within three Business Days of a demand by the Agent, pay for
  the account of a Finance Party the amount of any Increased Costs incurred by
  that Finance Party or any of its Affiliates as a result of (i) any
  Change in Law or (ii) compliance with any law or regulation made after
  the date of this Agreement or (iii) any adverse change in the treatment
  of the Vessel as Security for the purposes of determining a Finance Party’s
  anticipated loss or default when calculating the regulatory capital treatment
  of the Loans. 13.2 Increased cost
  claims (a) A Finance Party intending to make a claim pursuant to
  Clause 13.1 (Increased costs) shall
  notify the Agent of the event giving rise to the claim, following which the
  Agent shall promptly notify the Obligors. (b) Each Finance Party shall, as
  soon as practicable after a demand by the Agent, provide a certificate
  confirming the amount of its Increased Costs. 13.3 Exceptions (a) Clause 13.1 (Increased costs) does not apply to the extent any Increased
  Cost is: (i) attributable to a Tax Deduction required by law to be made by an
  Obligor; (ii) compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause
  12.3 (Tax indemnity) but was
  not so compensated solely because any of the exclusions in paragraph
  (b) of Clause 12.3 (Tax
  indemnity) applied); or (iii) compensated for by the payment of the
  Mandatory Cost; or 6

  

 

	
  

  	
  (iv)
  attributable to the wilful breach by the relevant Finance Party or its
  Affiliates of any law or regulation. (b) In this Clause 13.3, a reference to
  a “Tax Deduction” has the same meaning given to the term in Clause 12.1 (Definitions). 14. OTHER INDEMNITIES 14.1 Currency indemnity (a) If any sum
  due from an Obligor under the Finance Documents (a “Sum”), or any order,
  judgment or award given or made in relation to a Sum, has to be converted
  from the currency (the “First
  Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose
  of: (i) making or filing a claim or proof against that Obligor; (ii)
  obtaining or enforcing an order, judgment or award in relation to any litigation
  or arbitration proceedings, that Obligor shall as an independent obligation,
  within three Business Days of demand, indemnify each Finance Party to whom
  that Sum is due against any Losses arising out of or as a result of the
  conversion including any discrepancy between (A) the rate of exchange
  used to convert that Sum from the First Currency into the Second Currency and
  (B) the rate or rates of exchange available to that person at the time
  of its receipt of that Sum. (b) Each Obligor waives any right it may have in
  any jurisdiction to pay any amount under the Finance Documents in a currency
  or currency unit other than that in which it is expressed to be payable. 14.2
  Other indemnities The Obligors
  shall (or shall procure that an Obligor will), within three Business Days of
  demand, indemnify each Secured Party against any cost, loss or liability
  incurred by that Secured Party as a result of: (a) the occurrence of any
  Event of Default; (b) any obligation guaranteed by an Obligor is or becomes
  unenforceable, invalid or illegal; (c) the operation of law; (d) a failure by an Obligor to pay
  any amount due under a Finance Document on its due date, including without
  limitation, any cost, loss or liability arising as a result of Clause 33 (Sharing among the Secured Parties);
  (e) funding, or making arrangements to fund, its participation in a Loan
  requested by a Borrower in a Utilisation Request but not made by reason of
  the operation of any one or more of the provisions of this Agreement (other
  than by reason of default or negligence by that Finance Party alone); (f) a
  Loan (or part of a Loan) not being prepaid in accordance with a notice of
  prepayment given by a Borrower; 7

  

 

	
  

  	
  (g) the
  Sinosure Insurance Policy being or becoming unenforceable, invalid or illegal;
  or (h) any indemnity payment made by any Lender to the Sinosure Agent acting
  as the insured party under the Sinosure Insurance Policy pursuant to Clause
  30.3 (Lenders’ indemnity to the
  Sinosure Agent). 14.3 Indemnity
  to the Agent, the Sinosure Agent and the Security Agent The Obligors
  shall promptly indemnify each of the Agent, the Sinosure Agent and the
  Security Agent against any cost, loss or liability properly incurred by the
  Agent, the Sinosure Agent or the Security Agent as a result of: (a) investigating
  any event which it reasonably believes is a Default; (b) acting or relying on
  any notice, request or instruction which it reasonably believes to be
  genuine, correct and appropriately authorised; (c) taking, holding,
  protecting or enforcing any Security created pursuant to any Finance
  Documents; or (d) exercising any of the rights, powers, discretions or
  remedies vested in it under any Finance Document or by law. 14.4 General indemnity (a) The Obligors
  shall indemnify and keep indemnified each Indemnitee against all Losses which
  may at any time be incurred by that Indemnitee: (i) relating to, or arising
  directly or indirectly in any manner whatsoever out of, the condition,
  testing, design, manufacture, purchase, importation to or exportation from
  any country, registration, possession, control, chartering, sub-chartering,
  use, operation, storage, maintenance, repair, service, modification,
  overhaul, replacement, insurance, removal, repossession, re-delivery,
  disposal or Total Loss of any Vessel; (ii)
  on the grounds that any Vessel or any design, article or material in
  or forming part of any Vessel or the operation or use thereof constitutes or
  is alleged to constitute an infringement of any patent or other intellectual
  property right or any other right whatsoever;
  (iii) in preventing or attempting to prevent the arrest, confiscation,
  seizure, taking in execution, impounding, forfeiture or detention of any
  Vessel at any time, or in securing the release of any Vessel; (iv) in
  retaking possession of any Vessel or detaining any Vessel or any other vessel
  in connection with the enforcement of rights of that lndemnitee under the
  Finance Documents; (v) as a consequence of a Vessel becoming a wreck or
  obstruction to navigation (including, without limitation, in respect of the
  removal or destruction of the wreck or obstruction under statutory powers but
  only to the extent that the relevant Loss has not been recovered from the
  Vessel’s Insurers); (vi) resulting from the Operator parting with possession
  of a Vessel at any time; 8

  

 

	
  

  	
  (vii) arising
  out of an Environmental Claim made or asserted against any Finance Party if
  such Environmental Claim would not have been made, or been capable of being
  made or asserted against that Finance Party if it has not entered into any of
  the Finance Documents and/or exercised any of its rights, powers and
  discretions thereby conferred and/or performed any of its obligations
  thereunder and/or been involved in the transactions contemplated by the
  Finance Documents; or (viii) any claim, investigation, litigation or
  proceeding (or the preparation of any defence with respect thereto) commenced
  or threatened in relation to the Finance Documents (or the transactions
  contemplated thereby and, in the case of the Agent and the Security Agent, the
  exercise and performance of their obligations thereunder) or any use made or
  proposed to be made with the proceeds of the Facility. This indemnity shall
  apply whether or not such claims, investigation, litigation or proceeding is
  brought by any Obligor, any of the Obligors’ shareholders or creditors, an
  Indemnified Party or any other person, or an Indemnified Party is otherwise a
  party thereto. (b) The Obligors need not indemnify an Indemnitee under
  paragraph (a) above in respect of Losses which: (i) are the result of
  the fraud, gross negligence or wilful default of that Indemnitee; (ii) are
  compensated for by the indemnity in Clause 12.3 (Tax indemnity) (or would be compensated for by Clause 12.3 (Tax indemnity) but are not so
  compensated solely because an exclusion in paragraph (b) of Clause 12.3 (Tax indemnity) applies); (iii) are
  the result of the breach by that Indemnitee of any of its express obligations
  under any of the Finance Documents (other than a breach attributable to the
  breach by any other party to any Transaction Document of its obligations
  under the Transaction Documents); (iv) are the result of any
  misrepresentation by that Indemnitee set out in a Finance Document to which
  it is a party (other than a misrepresentation attributable to the misrepresentation
  of or breach by any other party to any Transaction Document); or (v)
  constitute an ordinary and usual operating or overhead expense of that
  Indemnitee. (c) The indemnity in paragraph (a) above will remain in full
  force and effect following the termination of this Agreement. 14.5 Tax on indemnity payments If, as a
  result of its Tax treatment, any Finance Party would be in a worse position
  after receiving an indemnity payment under any of the Finance Documents than
  it would have been if the Loss giving rise to the right to be indemnified had
  not occurred, the Obligors will pay to that Finance Party such additional sum
  as may be necessary to leave that Finance Party in the same position after
  Tax than it would have been in had the Loss not occurred. 9

  

 

	
  

  	
  15. MITIGATION BY THE LENDERS 15.1
  Mitigation (a) If any Party requests the other Party to consult pursuant to
  paragraph (b) of Clause 7.1 (Illegality)
  or if any circumstances arise which would result in any amount
  becoming payable under or pursuant to, or cancelled pursuant to, Clause 12
  (Tax gross-up and indemnities) or
  Clause 13 (Increased Costs), the
  Parties will consult with each other for a period (the “Consultation Period”) of up to
  thirty (30) days to try to find a means of avoiding or mitigating the effect
  of the Illegality Event, restructuring the transaction or of avoiding or
  reducing the need for any amount to become payable or cancelled, including
  (but not limited to) transferring the rights and obligations of a Finance
  Party under the Finance Documents to another Affiliate or Facility Office.
  (b) No Party will be obliged to implement any arrangement proposed during the
  Consultation Period. (c) This Clause 15 does not in any way limit the
  obligations of the Obligors under the Transaction Documents. (d) Any Lender
  may, by written notice to the Agent, the Security Agent and the Obligors,
  terminate the consultations at any time if: (i) an Event of Default has
  occurred and is continuing; or (ii) that Lender considers, acting reasonably,
  that its rights under any Finance Document are or are likely to be prejudiced
  if the consultations continue; or (iii) the continuation of the consultations
  would cause that Lender to breach any applicable law. 15.2 Limitation of liability (a) The Borrowers shall indemnify
  each Finance Party for all costs and expenses properly incurred by that
  Finance Party as a result of steps taken by it under Clause 15.1 (Mitigation). (b) A Finance Party
  is not obliged to take any steps under Clause 15.1 (Mitigation) if, in the opinion of that Finance Party (acting
  reasonably), to do so might be prejudicial to it. 16. COSTS AND EXPENSES 16.1
  Transaction expenses The Borrowers shall promptly on demand pay the
  Agent, the Security Agent, the Sinosure Agent, the Arranger and Sinosure the
  amount of all costs and expenses (including legal fees and out-of-pocket
  expenses) reasonably incurred by any of them in connection with the
  negotiation, preparation, printing, execution and syndication of: (a) this
  Agreement and any other documents referred to in this Agreement; (b) any
  other Finance Documents executed after the date of this Agreement. 16.2 Amendment costs If (a) an Obligor requests an
  amendment, waiver or consent or (b) an amendment is required pursuant to
  Clause 34.9 (Change of currency), the
  Obligors shall, within three Business Days of demand, reimburse the Agent and
  the Security Agent for the amount of all costs and expenses 10

  

 

	
  

  	
  (including
  legal fees) reasonably incurred by the Agent or the Security Agent in
  responding to, evaluating, negotiating or complying with that request or
  requirement. 16.3 Enforcement costs
  The Borrowers shall, within three Business Days of demand, pay to each
  Secured Party the amount of all costs and expenses (including legal fees)
  incurred by that Secured Party in connection with the enforcement of, or the
  preservation of any rights under, any Finance Document or the Sinosure
  Insurance Policy. 16.4 Security Agent
  expenses The Borrowers shall promptly on demand pay the Security Agent
  the amount of all costs and expenses (including legal fees) reasonably
  incurred by it in connection with holding or administering or the release of
  any Security created pursuant to any Security Document. 16.5 Account Bank fees and expenses (a) The Borrowers shall pay to the
  Account Bank all out-of pocket expenses reasonably incurred by the Account
  Bank in performance of its role under this Agreement (including, but not
  limited to, all legal fees, stamp and other documentary duties or taxes and
  expenses incurred in connection with the preparation and negotiation of this
  Agreement or under Clause 31.7(f)(i) (Further Account Bank provisions)). (b) All amounts of whatever nature payable to, and recoverable
  by, the Account Bank pursuant to the terms of this Agreement shall be payable,
  without set-off or counterclaim, by the Borrowers within 3 clear Business
  Days of receipt of any invoice of the Account Bank. 11

  

 

	
  

  	
  SECTION 7 GUARANTEE 17. GUARANTEE AND INDEMNITY 17.1 Guarantee and indemnity The
  Guarantor absolutely, irrevocably and unconditionally: (a) guarantees to each
  Secured Party punctual performance by each Borrower of all that Borrower’s
  obligations under the Finance Documents; (b) undertakes with each Secured
  Party that whenever a Borrower does not pay any amount when due under or in
  connection with any Finance Document, the Guarantor shall immediately on
  demand pay that amount as if it was the principal obligor; and (c) agrees
  with each Secured Party that if any obligation guaranteed by it is or becomes
  unenforceable, invalid or illegal, it will, as an independent and primary
  obligation, indemnify that Secured Party immediately on demand against any
  Loss it incurs as a result of an Obligor not paying any amount which would,
  but for such unenforceability, invalidity or illegality, or any operation of
  law have been payable by it under any Finance Document on the date when it
  would have been due. The amount payable by the Guarantor under this indemnity
  will not exceed the amount it would have had to pay under this Clause 17 if
  the amount claimed had been recoverable on the basis of a guarantee. 17.2 Continuing guarantee This guarantee
  is a continuing guarantee and will extend to the ultimate balance of sums
  payable by any Obligor under the Finance Documents, regardless of any intermediate
  payment or discharge in whole or in part. 17.3 Reinstatement If any discharge, release or arrangement (whether
  in respect of the obligations of any Obligor or any security for those
  obligations or otherwise) is made by a Secured Party in whole or in part on
  the basis of any payment, security or other disposition which is avoided or
  must be restored in insolvency, liquidation or otherwise, without limitation,
  then the liability of the Guarantor under this Clause 17 will continue or be
  reinstated as if the discharge, release or arrangement had not occurred. 17.4
  Waiver of defences The
  obligations of the Guarantor under this Clause 17 will not be affected by an
  act, omission, matter or thing which, but for this Clause, would reduce,
  release or prejudice any of its obligations under this Clause 17 (without
  limitation and whether or not known to it or any Secured Party) including:
  (a) any time, waiver or consent granted to, or composition with, any Obligor
  or other person; (b) the release of any other Obligor or any other person
  under the terms of any composition or arrangement with any creditor of any
  member of the Group; 12

  

 

	
  

  	
  (c) the taking,
  variation, compromise, exchange, renewal or release of, or refusal or neglect
  to perfect, take up or enforce, any rights against, or security over assets
  of, any Obligor or other person or any non-presentation or non-observance of
  any formality or other requirement in respect of any instrument or any
  failure to realise the full value of any security; (d) any incapacity or lack
  of power, authority or legal personality of or dissolution or change in the
  members or status of an Obligor or any other person; (e) any amendment,
  novation, supplement, extension, restatement (however fundamental and whether
  or not more onerous) or replacement of any Finance Document or any other
  document or security, including any change in the purpose of, any extension
  of or any increase in any facility or the addition of any new facility under
  any Finance Document or other document or security; (f) any unenforceability,
  illegality or invalidity of any obligation of any person under any Finance
  Document or any other document or security; or (g) any insolvency or similar
  proceedings. 17.5 Immediate recourse The Guarantor waives any right
  it may have of first requiring any Secured Party (or any trustee or agent on
  its behalf) to proceed against or enforce any other rights or security or
  claim payment from any person before claiming from the Guarantor under this
  Clause 17, This waiver applies irrespective of any law or any provision of a
  Finance Document to the contrary. 17.6 Appropriations Until all amounts which may be or become payable
  by the Obligors under or in connection with the Finance Documents have been
  irrevocably paid in full, each Secured Party (or any trustee or agent on its
  behalf) may: (a) refrain from applying or enforcing any other moneys,
  security or rights held or received by that Secured Party (or any trustee or
  agent on its behalf) in respect of those amounts, or apply and enforce the
  same in such manner and order as it sees fit (whether against those amounts
  or otherwise) and the Guarantor shall not be entitled to the benefit of the
  same; and (b) hold in an interest-bearing suspense account any moneys
  received from the Guarantor or on account of the Guarantor’s liability under
  this Clause 17, 17.7 Deferral of
  Guarantor’s rights Until all amounts which may be or become payable by
  the Obligors under or in connection with the Finance Documents have been
  irrevocably paid in full and unless the Agent or, as the case may be, the
  Security Agent otherwise directs, the Guarantor will not exercise any rights
  which it may have by reason of performance by it of its obligations under the
  Finance Documents or by reason of any amount being payable or liability
  arising under this Clause 17: (a) to be indemnified by an Obligor; 13

  

 

	
  

  	
  (b) to claim or
  exercise any rights of contribution from any Obligor or any other guarantor
  of any Obligor’s obligations under the Finance Documents; (c) to exercise its
  rights of subrogation and reimbursement against any Obligor; (d) to claim or
  exercise any set-off or counterclaim against any Obligor or claim or prove in
  competition with the Agent or the Security Agent or any of the other Secured
  Parties in the liquidation of a Borrower or any other Obligor or have the
  benefit of, or share in, any payment from or composition with, a Borrower or
  any other Obligor or any other Finance Document now or hereafter held by any
  of the Secured Parties in respect of the obligations under the Finance
  Documents; (e) to bring legal or other proceedings for an order requiring any
  Obligor to make any payment, or perform any obligation, in respect of which
  the Guarantor has given a guarantee, undertaking or indemnity under Clause
  17.1 (Guarantee and indemnity); and/or
  (f) to take the benefit (in whole or in part and whether by way of
  subrogation or otherwise) of any rights of the Secured Parties under the
  Finance Documents or of any other guarantee or security taken pursuant to, or
  in connection with, the Finance Documents by any Secured Party. If the
  Guarantor receives any benefit, payment or distribution in relation to such
  rights it shall hold that benefit, payment or distribution to the extent
  necessary to enable all amounts which may be or become payable to the Secured
  Parties by the Obligors under or in connection with the Finance Documents to
  be repaid in full on trust for the Secured Parties and shall promptly pay or
  transfer the same to the Agent or as the Agent may direct for application in
  accordance with Clause 34 (Payment
  mechanics) of this Agreement. 17.8
  Additional security This guarantee is in addition to and is not in any
  way prejudiced by any other guarantee or security now or subsequently held by
  any Secured Party. 14

  

 

	
  

  	
  SECTION 8 EARNINGS ACCOUNTS 18. EARNINGS ACCOUNTS 18.1 Account Bank The Earnings Accounts
  referred to in this Clause 18 shall be held at such branch of the Account
  Bank in London as the Account Bank may reasonably require. 18.2 Earnings Accounts (a) Subject to the
  provisions of this Clause 18.2 each Borrower shall open and thereafter
  maintain its Earnings Account at the relevant branch of the Account Bank,
  denominated in Dollars (b) Neither the existence of Earnings Accounts, nor
  the insufficiency of funds in any of them, nor any inability to apply any
  funds in any of them towards the relevant payment, shall affect the
  obligation of the Borrowers to make all payments required to be made to the
  Finance Parties or any of them on the due date for payment in accordance with
  the Finance Documents. (c) The Account Bank acknowledges that each Borrower
  has, pursuant to the Account Charge to which it is a party, granted a first
  fixed charge over its Earnings Account, in favour of the Security Agent (d)
  No sum may be credited to or withdrawn from any Earnings Account except as
  expressly permitted or required by this Agreement. (e) Each Borrower shall
  ensure the payment into its Earnings Account of: (i) all Borrower Revenues
  (other than sums which in accordance with this Clause 18.2 are otherwise
  applied) received by it; (ii) any amounts paid to it pursuant to the Hedging
  Documents; (iii) any other amounts (including any other amounts paid or
  advanced to it under the Finance Documents) received by it for any reason
  whatsoever except for amounts which, in accordance with this Clause 18.2, are
  otherwise applied. (f) Subject to Clause 18.5 (No withdrawals in certain circumstances), each Borrower may
  withdraw any sum from its Earnings Account. 18,3 Receipts into Earnings Accounts (a) The Account Bank shall not
  be obliged to make available to the Borrowers any sum which it is expecting
  to receive for the account of the Borrowers until it has received it. (b) The
  Borrowers shall promptly convert, or instruct the Account Bank to convert,
  into Dollars any funds received by them in a currency other than Dollars for
  crediting to the Earnings Account on the day of conversion into Dollars. (c)
  The Borrowers agree that the Account Bank has no responsibility whatsoever to
  ensure that amounts are deposited into the Earnings Accounts. 15

  

 

	
  

  	
  18.4 Withdrawals Requests from Earnings Accounts
  (a) All requests for withdrawals from an Earnings Account shall be made in
  accordance with a payment instruction provided to the Account Bank at least 3
  clear Business Days before the date on which the payment is to be made (“Payment Instruction”) provided
  that the relevant Earnings Account contains sufficient cleared funds to make
  such payment. (b) If there are insufficient cleared funds in the relevant
  Earnings Account to make a payment in accordance with a Payment Instruction
  then the Account Bank will inform the relevant Borrower of the shortfall as
  soon as practicable. Until the Account Bank is able to contact that Borrower
  and receive instructions, the Account Bank will be under no obligation to
  make a payment in accordance with a Payment instruction. The Account Bank is
  under no obligation to inform any other person (including, but not limited
  to, any person that is to receive the payment) if there are insufficient
  cleared funds credited to the relevant Earnings Account to make a payment in
  accordance with a Payment Instruction. (c) Each Borrower confirms that the
  Account Bank shall be entitled to treat each Payment Instruction as
  conclusive evidence of the same without any further investigation or enquiry.
  Each Borrower shall hold the Account Bank harmless and no claim or dispute
  shall be raised by any party or entity for lack of conformity of the
  respective Payment Instruction. If any dispute or claim is raised, each
  Borrower shall indemnify and keep indemnified the Account Bank for any loss,
  liability or claim, action, damages and expenses other than to the extent
  arising from its wilful misconduct and gross negligence. (d) The Account Bank
  shall release the amounts standing to the credit of the Earnings Accounts or
  any portion thereof to any designated payee in accordance with: (i) Clause
  18.4(a) or (ii) the terms of an order, judgment or decree ordering the
  release of amounts standing to the credit of the Earnings Accounts or any
  portion thereof, accompanied by a legal opinion satisfactory to the Account
  Bank given by counsel for the party requesting such release to the effect
  that such order, judgment or decree represents a final adjudication of the
  rights of the parties by a court of competent jurisdiction, and that the time
  for appeal from such order, judgment or decree has expired without an appeal
  having been made. (e) Each of the Borrowers and the Security Agent undertakes
  to give the Account Bank five clear Business Days’ notice in writing of any
  amendment to its Authorised Representatives or Callback Contacts giving the
  details specified in Schedule 10. Any amendment of Authorised Representatives
  or Callback Contacts of each Borrower or of Authorised Representatives of the
  Security Agent shall take effect upon the expiry of such five clear Business
  Days’ notice. (f) Promptly upon receipt of a Payment Instruction or the
  receipt of an order, judgment or decree and opinion of counsel referred to in
  Clause 18.4(d)(ii) above (and in no event later than three
  (3) clear Business Days following any such receipt at), the Account Bank
  shall release the amounts standing to the credit of the Earnings Accounts, or
  any portion thereof, as relevant. 57

  

 

	
  

  	
  (g) Any payment
  by the Account Bank under this Agreement will be made without any deduction or withholding for or on account
  of any tax unless such deduction or withholding is required by applicable
  law. (h) If the Account Bank is required by law to make a deduction or
  withholding, it will not pay an additional amount in respect of that
  deduction or withholding to the relevant Party. (i) Each Borrower has,
  pursuant to the relevant Accounts Charge, granted a right of pledge in rem
  over the relevant Earnings Accounts in favour of each Lender of which the
  Account Bank has been notified by the Borrowers. (j) On the date of each
  withdrawal made by a Borrower from an Earnings Account, the Borrowers shall
  be deemed to represent and warrant that: (i) no Default would occur as a
  result of the withdrawal (other than any Default (not being an Event of
  Default) which will be cured as a result of making any such withdrawal); and
  (ii) each withdrawal is permitted pursuant to the terms of this Agreement. 18.5
  No withdrawals in certain
  circumstances Notwithstanding anything else in this Clause 18, no
  withdrawal shall be made by the Borrowers from its Earnings Account: (a) if a
  Default is continuing or an Event of Default has occurred (provided that
  (notwithstanding the provisions of this sub-paragraph (a)), to the extent
  none of the circumstances in sub-paragraphs (b), (c) or (d) below
  have or would arise, a Borrower may make a withdrawal from its Earnings
  Account solely in respect of any operating expenses and general
  administrative expenses relating to any Vessel which are reasonable and which
  need to be discharged in order to enable the continued operation of such
  Vessel and in circumstances where the relevant Borrower has provided to the
  Agent reasonable evidence of the payments that need to be made); (b)
  following receipt by the Account Bank of a notice from the Agent or the
  Security Agent stating that the Agent has made a declaration under Clause 26 (Events of Default) (except as the
  Agent or, as the case may be, the Security Agent shall otherwise agree); (c)
  if, prior to the date of the relevant proposed withdrawal, the Agent or the
  Security Agent notifies the Borrowers and the Account Bank that the
  withdrawal is not or would not be permitted under this Agreement and such
  notice shall specify (for the benefit of the Borrowers) the provision of this
  Agreement which prohibits such withdrawal; or (d) to the extent that such
  Earnings Account would become overdrawn as a result. 18.6 Access to books and records/audit rights (a) Without
  prejudice to Clause 29.13 (Confidentiality)
  and to Clause 24.7 (Inspection),
  the Borrowers irrevocably grant the Agent and any of its appointed
  representatives unrestricted access to review the books and records of the
  Earnings Accounts whether or not such books and records are confidential and
  instruct the Account Bank to deliver to the Agent copies of all bank statements in respect of
  the Earnings Accounts at the same time as sent to the Borrowers. 58

  

 

	
  

  	
  The Borrowers
  authorise the Account Bank to give each Finance Party unrestricted access, on
  reasonable prior notice, to review such books and records held by the Account
  Bank. (b) Nothing in this Clause 18.6 shall require the Account Bank to
  disclose to any person any books, records or other information which the
  Account Bank would not be required to disclose to the Borrowers. 59

  

 

	
  

  	
  SECTION 9 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF
  DEFAULT 19. REPRESENTATIONS 19.1 Continuing representations
  Each Obligor jointly and severally makes the representations and warranties
  set out in Clauses 19.1(a) to 19.1(z) (inclusive) to each Secured
  Party on the date of this Agreement. (a) Status (i) it (and so far as it is aware, the other parties to
  the Finance Documents (other than the Finance Parties) and the Operative
  Documents) is a corporation, duly incorporated and validly existing under the
  law of its Home Jurisdiction. (ii) each of its Subsidiaries (and so far as it
  is aware, the other parties to the Finance Documents (other than the Finance
  Parties) and the Operative Documents) has the power to own its assets and
  carry on its business as it is being conducted. (b) Binding obligations The obligations expressed to be assumed by
  it in each Finance Document and Operative Document (and so far as it is
  aware, the other parties to the Finance Documents (other than the Finance
  Parties) and the Operative Documents) are legal, valid, binding and
  enforceable, subject to: (i) any general principles of law limiting its
  obligations which are specifically referred to in any legal opinion delivered
  pursuant to Clause 4 (Conditions of
  Utilisation) or Clause 28 (Changes
  to the Obligors); or (ii) in
  the case of any Security Document, the requirements specified at the end of
  Clause (e) (Validity and
  admissibility in evidence). (c) Non-conflict with other obligations The entry into and
  performance by it of, and the transactions contemplated by, the Finance
  Documents and Operative Documents (and so far as it is aware, the other
  parties to the Finance Documents (other than the Finance Parties) and the
  Operative Documents) do not and will not conflict with: (i) any law or
  regulation applicable to it; (ii) its or any of its Subsidiaries’
  constitutional documents; or (iii) any agreement, or instrument binding upon
  it or any of its Subsidiaries or any of its Subsidiaries’ assets, nor (except
  as provided in any Security Document) result in the existence of, or oblige
  it to create, any Security over any of its assets. 60

  

 

	
  

  	
  (d) Power and authority It (and so far
  as it is aware, the other parties to the Finance Documents (other than the
  Finance Parties) and the Operative Documents) has the power to enter into,
  perform and deliver, and has taken all necessary action to authorise its
  entry into, performance and delivery of, the Finance Documents and Operative
  Documents to which it is a party and the transactions contemplated by those
  Finance Documents and Operative Documents. (a) Validity and admissibility in evidence All Authorisations
  required or desirable: (i) to enable each Borrower lawfully to own the
  relevant Vessel; (ii) to enable it lawfully to enter into, exercise its
  rights and comply with its obligations in the Finance Documents and Operative
  Documents to which it is a party; (iii) to make the Finance Documents and
  Operative Documents to which it is a party admissible in evidence in its
  jurisdiction of incorporation; and (iv) to enable it to create the Security
  to be created by it pursuant to any Security Document and to ensure that such
  Security has the priority and ranking it is expressed to have, have been
  obtained or effected and are in full force and effect save for the making of
  the appropriate registrations of the Mortgages with the Registry. (f) Governing law and enforcement (i)
  The choice of governing law stated to govern any Finance Document and any
  Operative Document will be recognised and enforced in its Home Jurisdiction
  and in the Flag State. (ii) Any judgment obtained in England in relation to a
  Finance Document or an Operative Document will be recognised and enforced in
  its Home Jurisdiction, the Flag State and, in relation to any Finance
  Document or Operative Document governed by the law other than English law,
  the jurisdiction of the governing law of that document. (g) Deduction of Tax It is not
  required to make any deduction for or on account of Tax from any payment it may
  make under any Finance Document. (h)
  No filing or stamp taxes Except for the registration of the Mortgages
  under the laws of the Flag State through the Registry, under the law of its
  Home Jurisdiction it is not necessary that the Finance Documents or the
  Sinosure Insurance Policy be filed, recorded or enrolled with any court or
  other authority in that jurisdiction or that any stamp, registration or
  similar tax be paid on or in relation to the Finance Documents or the
  Sinosure Insurance Policy or the transactions contemplated by the Finance
  Documents or the Sinosure Insurance Policy. 61

  

 

	
  

  	
  (i) No default (i) No Default is
  continuing or might reasonably be expected to result from the making of any
  Utilisation. (ii) No other event or circumstance is outstanding which
  constitutes a default under any other agreement or instrument which is
  binding on it or any of its Subsidiaries or to which its (or any of its
  Subsidiaries’) assets are subject which might have a Material Adverse Effect.
  (j) No misleading information
  Any written or factual information provided by or on behalf of any member of
  any Obligor was true and accurate in all material respects as at the date it
  was provided or as at the date (if any) at which it is stated. (k) Financial statements (i) In the case
  of the Guarantor, its Original Financial Statements, and in the case of the
  Borrowers, its most recent profit and loss statement (up to the EBITBA level), were prepared in
  accordance with GAAP consistently applied. (ii) In the case of the Guarantor,
  its Original Financial Statements fairly represent its financial condition
  and operations (consolidated in the case of the Guarantor), and in the case
  of the Borrowers, its most recent profit & loss statement (up to the
  EBITDA level) fairly represents its financial condition, as at the end of and
  for the relevant financial year. (iii) There has been no material adverse
  change in its business or financial condition (or the business or operations,
  consolidated financial condition or operations of the Group taken as a whole,
  in the case of the Guarantor) since the date of its most recent financial
  statements. (l) Pari passu ranking
  (i) Subject to the requirements specified at the end of Clause 19.1(e) (Validity and admissibility in evidence), each
  Security Document creates (or, once entered into, will create) in favour of
  the Security Agent for the benefit of the Secured Parties the Security which
  it is expressed to create with the ranking and priority it is expressed to
  have. (ii) Without limiting paragraph (i) above, its payment obligations
  under the Finance Documents rank at least pari passu with the claims of all its other unsecured and
  unsubordinated creditors, except for obligations mandatorily preferred by law
  applying to companies generally. (m) No
  proceedings pending or threatened No litigation, arbitration or
  administrative proceedings of or before any court, arbitral body or agency
  (including but not limited to investigative proceedings) which, if adversely
  determined, might reasonably be expected to have a Material Adverse Effect 62

  

 

	
  

  	
  have (to the
  best of its knowledge and belief) been started or threatened against it or
  any of its Subsidiaries. (n) Immunity
  It will not be entitled to claim immunity from suit, execution, attachment or
  other legal process in any proceedings taken in respect of itself or any of
  its assets in the People’s Republic of China or in any other jurisdiction in
  relation to any Finance Document. (o) Environmental
  laws and licences It and each of its Subsidiaries and the Manager has:
  (i) complied with all Environmental Laws to which it may be subject and
  procured that the Vessel relating to it meets any standards or requirements
  applicable to it under Environmental Laws; (ii) obtained all Environmental
  Licences required or desirable in connection with its business and the Vessel
  relating to it; (iii) complied with the terms of those Environmental
  Licences; and (iv) disclosed all environmental reports and other assessments
  commissioned from external consultants which relate to the Vessel or its
  business. (p) Environmental releases
  No: (i) property (including any Vessel) currently or previously owned,
  leased, occupied or controlled by it (including any offsite waste management
  or disposal location utilised by it or any of its Subsidiaries) is
  contaminated with any Hazardous Substance; (ii) discharge, release, leaching,
  migration or escape of any Hazardous Substance into the Environment has
  occurred or is occurring on, under or from that property (including any
  Vessel); and (iii) Environmental Claim is pending or threatened or likely to
  be made against it. (q) Operative
  Documents (i) The copies of the Operative Documents delivered to the
  Agent prior to the date of the Agreement are true, correct and up-to-date;
  (ii) Each Operative Document constitutes valid, binding and enforceable
  obligations of each party to it in accordance with its terms; and (iii) There
  have been no amendments of, or variations to, termination of, or waiver of
  any right of obligation under, any Operative Documents which has not been
  approved by the Agent and no action has been taken by any party to those
  documents which in any way renders any Operative Document inoperative or
  unenforceable, in whole or in part. 63

  

 

	
  

  	
  (r) Ownership of the Obligors (i)
  members of the Coustas Family are the ultimate legal and beneficial owners of
  not less than thirty-three and one third per cent. (33 1/3%) of the issued
  share capital plus one share of the Guarantor; and (ii) The Guarantor is the
  legal and beneficial owner of not less than 100 per cent. of the issued share
  capital of each Borrower. (s) No
  Default under the Shipbuilding Contracts No Borrower is in default of
  any of its obligations under the Shipbuilding Contracts. (t) No Security (i) No Obligor has
  previously charged, encumbered or assigned the benefit of any of their
  rights, title and interest in or to the Shipbuilding Contracts and such
  benefit and all such rights, title and interest are freely assignable and
  chargeable in the manner contemplated by the Security Documents; (ii) No
  property or rights of the Borrowers or any part thereof is subject to any
  Security, other than Permitted Lien. (u) No other business No Borrower has prior to the date of this
  Agreement entered into any agreement or incurred any liability other than
  pursuant to or as contemplated by the Finance Documents and the Operative
  Documents or any matter ancillary thereto. (v) Money Laundering Any termination contemplated by each
  Obligor under the Finance Documents and the performance of such Obligor’s obligations
  under the Finance Documents to which it is a party will be for its own
  account and will not involve any breach by it of any law or regulatory
  measure relating to money laundering as defined in Article 1 of the
  Directive (91/308/ELC) of the Council of the European Communities or any
  equivalent law or regulatory measure in any other jurisdiction. (w) No rebate There is no agreement
  or understanding to allow or pay any rebate, premium, commission, discount or
  other benefit or payment (howsoever described) to any Obligor, the Seller or
  any third party in connection with the purchase by the Borrowers of the
  Vessels, other than as disclosed to the Agent in writing on or prior to the
  date of this Agreement. (x) Taxes It
  has paid all Taxes applicable to, or imposed on or in relation to it and its
  business. 64

  

 

	
  

  	
  (y) Solvency (i) No member of the Group
  is unable, or admits or has admitted its inability to pay its debts or has
  suspended or is about to suspend making payment on any of its debts or has
  ceased to meet its liabilities generally as they become due. (ii) No member
  of the Group has made or intends to make any formal declaration of bankruptcy
  or any formal statement to the effect that it is insolvent or likely to
  become insolvent. (iii) The value of the assets of the Group as a whole is
  not less than its liabilities (taking into account contingent and prospective
  liabilities). (iv) No moratorium is being, or may, in the reasonably
  foreseeable future be, declared in respect of any indebtedness of any member
  of the Group. (v) No corporate action, legal proceedings or other procedure
  or step described in paragraph (i) of Clause 26.8 (Insolvency proceedings) in Clause
  26.9 (Creditors’ process) has
  commenced. (z) The Borrowers have not entered into any Hedging Documents
  other than the Existing Hedging Documents. 19.2 Delivery Date representations Each Obligor jointly and severally
  makes the Repeating Representations and the representations and warranties
  set out in this Clause 19.2 to each Secured Party on the Delivery Date for
  each Vessel: (a) Vessel The
  relevant Vessel is: (i) in the absolute ownership of the applicable Borrower
  who is the sole, legal and beneficial owner of such Vessel, subject to the
  Security created pursuant to the Security Documents; (ii) registered in the
  name of the applicable Borrower through the Registry as a ship operating
  under the laws and flag of the Flag State; (iii) operationally seaworthy and
  in every way fit for service; and (iv) classed with the Classification free
  of all outstanding and overdue requirements and recommendations of the
  Classification Society which could affect the class of such Vessel. (b) Consents obtained Every consent,
  authorisation, licence or approval of, or registration with or declaration
  to, governmental or public bodies or authorities or courts required by each
  Borrower (and considered by the Agent, in its absolute discretion, to be
  material) to authorise, or required by the applicable Borrower in connection
  with, the execution, delivery, validity, enforceability or admissibility in
  evidence of the relevant Mortgage or the relevant Management Agreement or the
  performance by each Borrower of its obligations under 65

  

 

	
  

  	
  the Security
  Documents relating to the relevant Vessel, has been obtained or made and is
  in full force and effect and there has been no default in the observance of
  any condition or restriction (if any) imposed in, or in connection with, any
  of the same. (c) Vessel Insurances
  All Insurances in respect of the relevant Vessel are in full force and effect.
  (d) Title Each Borrower has
  good and marketable title to the assets subject to the Security created by it
  pursuant to any Security Document, free from all Security except the Security
  created pursuant to, or permitted by, the Finance Documents. (e) Environmental Releases No
  Environmental Claim is pending or threatened or likely to be made against the
  relevant Vessel. (f) Vessel’s
  employment (i) The relevant Vessel will not be subject to any charter
  other than the Time Charters and there will not be any agreement or
  arrangement whereby the Earnings may be shared with any other person other
  than as contemplated by the Security Documents. (ii) The relevant Time
  Charter for that Vessel has not been amended, varied or supplemented save as
  approved in writing by all the Lenders. (iii) Each Borrower is, to the best
  of its knowledge after due enquiry, not aware of any information, fact,
  circumstance or event relating to the Charterer and/or the relevant Time
  Charter for that Vessel, which would adversely affect the performance,
  legality, validity or binding nature of the obligations of the Charterer
  thereunder. (g) Freedom from Security
  Neither the relevant Vessel (or its Earnings, Insurances or Requisition
  Compensation), the Time Charter relating to that Vessel, the Earnings
  Accounts or any other properties or rights of the Obligors which are, or are
  to be, the subject of any of the Security Documents nor any part thereof is
  subject to any Security other than any Permitted Lien. (h) ISM Code and ISPS Code compliance
  All requirements of the ISM Code and the ISPS Code as they relate to the
  relevant Borrower, the Manager and the relevant Vessel have been complied
  with. 19.3 Repetition The
  Repeating Representations are deemed to be made by each Obligor by reference
  to the facts and circumstances then existing on the date of each Utilisation
  Request and the first day of each Interest Period, and as if reference in
  Clause 19.1(k) (Financial
  statements) to the Original Financial Statements were a reference to
  the then most recent audited consolidated financial statements of that
  Obligor. 66

  

 

	
  

  	
  20. INFORMATION UNDERTAKINGS The
  undertakings in this Clause 20 remain in force from the date of this
  Agreement for so long as any amount is outstanding under the Finance
  Documents or any Commitment is in force. 20.1 Financial statements Each Obligor shall supply to the Agent in
  sufficient copies for all the Lenders: (a) as soon as the same become
  available, but in any event within 150 days after the end of each of its financial
  years, the audited consolidated financial statements of the Guarantor for
  that financial year; and (b) as soon as the same become available, but in any
  event within 40 days after the end of each half of each of its financial
  years, the consolidated financial statements of the Guarantor for that
  financial half year; and (c) as soon as the same become available, but in any
  event within 40 days after the end of each quarter: (i) the consolidated
  financial statements of the Guarantor for that quarter; and (ii) profit and
  loss statements up to the EBITDA level of each Borrower for that quarter.
  20.2 Compliance Certificate
  (a) Each Obligor shall supply to the Agent, with each set of financial
  statements delivered pursuant to paragraph (a)(a) or (b)(b) or
  (c) of Clause 20.1 (Financial
  statements), a Compliance Certificate setting out (in reasonable
  detail) computations as to compliance with Clause 21 (Financial covenants) as at the date as at which those
  financial statements were drawn up. (b)
  Each Compliance Certificate shall be signed by the Chief Financial
  Officer or two directors of the relevant Obligor and, if required to be
  delivered with the financial statements delivered pursuant to paragraph
  (a)(i) of Clause 20.1 (Financial
  statements). 20.3 Requirements
  as to financial statements (a) Each set of financial statements
  delivered by an Obligor pursuant to Clause 20.1 (Financial statements) shall be certified by a director of the
  relevant company as fairly representing its (or, as the case may be, its consolidated)
  financial condition and operations as at the end of and for the period in
  relation to which those financial statements were drawn up. (b) Each Obligor
  shall procure that each set of its financial statements delivered pursuant to
  Clause 20.1 Financial Statements) is
  prepared using GAAP, accounting practices and financial reference periods
  consistent with those applied in the preparation of the Original Financial
  Statements for that Obligor unless, in relation to any set of financial
  statements, it notifies the Agent that there has been a change in GAAP, the
  accounting practices or reference periods and its auditors (or, if
  appropriate, the auditors of the Obligor) deliver to the Agent: (i) a
  description of any change necessary for those financial statements to reflect
  the GAAP, accounting practices and reference periods upon which that
  Obligor’s Original Financial Statements were prepared; and 67

  

 

	
  

  	
  (ii) sufficient
  information, in form and substance as may be reasonably required by the
  Agent, to enable the Lenders to determine whether Clause 21 (Financial covenants) has been
  complied with and make an accurate comparison between the financial position
  indicated in those financial statements and that Obligor’s Original Financial
  Statements. Any reference in this Agreement to those financial statements
  shall be construed as a reference to those financial statements as adjusted
  to reflect the basis upon which the Original Financial Statements were
  prepared. 20.4 Information: miscellaneous Each Obligor shall supply to the
  Agent (in sufficient copies for all the Lenders, if the Agent so requests,
  and each Hedging Bank): (a) all documents dispatched by it to its creditors
  generally at the same time as they are dispatched; (b) all documents required
  by any applicable law to be dispatched by it to its shareholders (or any
  class of them)), generally at the same time as they are dispatched; (c) at
  any time following a Default, all documents dispatched by it to its
  shareholders (or any class of them) generally
  at the same time as they are dispatched; (d) promptly, such further
  information regarding the financial condition, business and operations of any
  member of the Group as any Finance Party (through the Agent) or Hedging Bank
  may reasonably request; (e) upon reasonable request by the Agent, any
  information regarding: (i) any Vessel, her employment, position, arrangements
  and Insurance; (ii) the Earnings and payments and amounts due to the master
  and crew of any Vessel; (iii) any expense incurred, or likely to be incurred,
  in connection with the operation, maintenance or repair of a Vessel and any
  payment made in respect of a Vessel; (iv) any damages and salvages; (v) its
  compliance, the Manger’s compliance or the compliance of any Vessel with the
  ISM Code and the ISPS Code, and upon the Agent’s request, provide copies of
  any current charter relating to a Vessel and of any current charter guarantee
  relating to a Vessel, and of the ISM Code and ISPS Code documentation; and
  (f) all documents or information as required by Sinosure, the Sinosure Agent
  or the Agent in relation to the Sinosure Insurance Policy. 20.5 Information: Shipbuilding Contract
  (a) Each Obligor shall, upon the request of the Agent, advise the Agent on
  the progress of construction of any Vessel and supply the Agent with such
  other information as the Agent and/or the other Secured Parties may
  reasonably request regarding such Vessel, the materials 68

  

 

	
  

  	
  allocated to
  such Vessel, the Shipbuilding Contract relating to that Vessel, or otherwise
  in relation to the construction of such Vessel. (b) Each Obligor shall
  promptly notify the Agent in writing (and in sufficient copies for all the
  Lenders if the Agent so requests) of: (i) receipt by an Obligor of a notice
  of delay and extension of time from the Seller under any Shipbuilding
  Contract; (ii) any amendment, waiver, variation or termination of a
  Shipbuilding Contract or a decision to re-negotiate a Shipbuilding Contract
  after having invoked rights thereunder; (iii) a breach under any Shipbuilding
  Contract; (iv) the termination (howsoever it occurs) of any Shipbuilding
  Contract if either party purports to do so; (v) the rejection of a Vessel by
  a Borrower; (vi) the Total Loss of a Vessel prior to its Delivery or any
  damage affecting the Classification or proposed Delivery Date of a Vessel;
  and (vii) receipt by an Obligor of notification of a proposed Delivery Date
  from the Shipbuilder 20.6 Notification
  of Default, litigation and adverse events Each Obligor shall notify
  the Agent and each Hedging Bank of (and if any such event is continuing, the
  steps, if any, being taken to remedy it): (a) any Default (and the steps, if
  any, being taken to remedy it) promptly upon becoming aware of its
  occurrence; (b) promptly upon becoming aware of them, the details of any
  litigation, arbitration or administrative proceedings which are current,
  threatened or pending against any member of the Group and which might, if
  adversely determined, result in a liability of US$500,000 or more or have a
  Material Adverse Effect; (c) in the event that the Seller and/or either
  Borrower resorts to arbitration as provided in Article XIII of the
  Shipbuilding Contract relating to that Vessel immediately notify the Agent in
  writing that such arbitration has been initiated, advise the Agent in writing
  of the identity of the appointed arbitrators and upon termination of the
  arbitration notify the Agent in writing to that effect and supply the Agent
  with a copy of the arbitration award and a certified English translation
  thereof (to the extent that the award is not delivered in English). (d) any
  Total Loss of a Vessel or the occurrence of or any event which, by the
  passing of time or otherwise, will likely constitute a Total Loss of a
  Vessel, or any damage to a Vessel affecting the Classification or proposed
  Delivery Date of that Vessel; (e) any
  damage, accident or casualty in respect of a Vessel where the cost would be
  likely to exceed US$750,000 (the “Specified
  Amount”); (f) any actual or likely claim by any third party relating
  to a Vessel for an amount in excess of the Specified Amount; 69

  

 

	
  

  	
  (g) any
  requirement of an Insurer, the Classification Society, the Registry or other
  Competent Authority which has been made in respect of a Vessel which is not,
  or cannot be, complied with in accordance with the terms of this Agreement or
  of the Mortgage relevant to that Vessel (including without limitation any
  time limit specified by any Insurer, the Classification Society, the Registry
  or any other Competent Authority; (h) any assistance given to a Vessel which
  is likely to result in a lien for salvage over a Vessel; (i) any material
  failure to comply with the requirements of the ISM Code or ISPS Code
  applicable to a Vessel; (j) any formally threatened or actual withdrawal of
  any document or certificate (including any Environmental Licence) generally
  applicable to a Vessel which is required or desirable in connection with any
  maritime regulations or Environmental Law; (k) any other matter, event or
  incident, actual or threatened, the effect of which will or could lead to the
  ISM Code or the ISPS Code not being complied with; (l) any Security other
  than a Permitted Lien arising over a Vessel; (m) any event of default,
  potential event of default (however described) or the termination (by
  effluxion of time or otherwise) under a Time Charter; (n) the attachment,
  arrest, seizure, requisition for use or hire or detention of the Vessel (if
  the arrest or detention has not been released within 5 Business Days of its
  imposition or the relevant Borrower considers that the arrest or detention
  will not be released within 5 Business Days of its imposition); and (o) any
  intended dry docking of a Vessel which the relevant Borrower knows, or
  reasonably determines, will or may exceed (or has exceeded) 30 days in total.
  20.7 Notification of Environmental
  Claim Each Obligor shall, and shall procure that each Manager shall,
  notify the Agent and each Hedging Bank of: (a) any Environmental Claim
  promptly upon becoming aware of its occurrence; (b) any Environmental Claim
  which is pending; (c) any investigation into any matter which is reasonably
  likely to result in an Environmental Claim which may reasonably be expected
  to have a Material Adverse Effect; (d) any Environmental Licence which has
  been revoked, suspended, amended, varied, withdrawn or refused, the
  revocation, suspension, amendment, variation, withdrawal or refusal of which
  may reasonably be expected to have a Material Adverse Effect. 20.8 “Know your customer” checks (a) If:
  (i) the introduction of or any change in (or in the interpretation,
  administration or application of) any law or regulation made after the date
  of this Agreement; (ii) any change in the status of an Obligor after the date
  of this Agreement; or 70

  

 

	
  

  	
  (iii) a
  proposed assignment or transfer by a Lender of any of its rights and
  obligations under this Agreement to a party that is not a Lender prior to
  such assignment or transfer, obliges the Agent, the Security Agent or any
  Lender (or, in the case of paragraph (iii) above, 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, each Obligor shall promptly upon the request of the Agent,
  the Security Agent or any Lender supply, or procure the supply of, such
  documentation and other evidence as is reasonably requested by the Security
  Agent, the Agent (for itself or on behalf of any Lender) or any Lender (for
  itself or, in the case of the event described in paragraph (iii) above,
  on behalf of any prospective new Lender) in order for the Agent, the Security
  Agent, such Lender or, in the case of the event described in paragraph
  (iii) above, 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. (b) Each Lender shall promptly upon
  the request of the Agent supply, or procure the supply of, such documentation
  and other evidence as is reasonably requested by the Agent (for itself) in
  order for the Agent 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. 20.9 Information: Time
  Charter Each Obligor shall promptly notify the Agent in writing (and
  in sufficient copies for all the Lenders if the Agent so requests) of: (a)
  any amendment, waiver, variation or termination of a Time Charter or a
  decision to renegotiate a Time Charter; (b) a breach under any Time Charter;
  (c) the termination (howsoever it occurs) of any Time Charter if either party
  purports to do so. 20.10 Sinosure
  requested documents Each Obligor shall supply to the Agent (in
  sufficient copies for all the Lenders, if the Agent so requests) with such
  additional financial and other information concerning any Obligor as the
  Agent or any Secured Party (acting through the Agent) may from time to time
  reasonably request in order to satisfy the requests of Sinosure pursuant to
  the Sinosure Insurance Policy. 21. FINANCIAL
  COVENANTS 21.1 Financial
  condition The Guarantor shall ensure that: (a) the value of Minimum
  Liquidity is not less than: (i) at any time during the period beginning on
  the date of this Agreement and ending on (and including) the third
  anniversary of the date of this Agreement, US$30,000,000; and 71

  

 

	
  

  	
  (ii) at any
  time after the period referred to in (i) above, an amount equal to the
  higher of US$30,000,000 and 2% of Consolidated Debt; (b) Total Net Debt for
  any Relevant Period will not at any time exceed 70% of Adjusted Total
  Consolidated Assets for that Relevant Period; (c) the ratio of EBITDA to
  Interest Expense for a twelve (12) month period ending on the last day of any
  Relevant Period is not less than 2.5:1; and (d) the Adjusted Net Worth for
  any Relevant Period is not less than US$400,000,000. 21.2 Financial covenant calculations
  Adjusted Net Worth, Adjusted Total Consolidated Assets, EBITDA, Interest
  Expense, Minimum Liquidity and Total Net Debt, shall be calculated and
  interpreted on a consolidated basis in accordance with the GAAP applicable to
  the Original Financial Statements of the Guarantor and shall be expressed in
  Dollars. 21.3 Definitions In this Clause 21 (Financial Covenants): “Adjusted
  Net Worth” means, in relation to any Relevant Period, the Adjusted
  Total Consolidated Assets for that Relevant Period (after adding back in the
  Cash and Cash Equivalent Investments available to the Group on the last day
  of the Relevant Period) less Total Liabilities on the last day of that Relevant Period. “Adjusted Total Consolidated Assets” means in relation to any
  Relevant Period, the value on the last day of such period of total
  consolidated assets of the Group resulting after the replacement of the
  aggregate net book value of all the vessels (whether on-the-water or under
  construction), owned by any member of the Group (as reflected in the
  Guarantor’s consolidated financial statements) with an amount equal to the
  aggregate of each Market Value of each such vessel, less Cash and Cash
  Equivalent Investments available to the Group on the last day of that Relevant
  Period. “Borrowings” means, as
  at any time, the aggregate outstanding principal, capital or nominal amount
  (and any fixed or minimum premium payable on prepayment or redemption) of the
  Financial Indebtedness of members of the Group. For this purpose, any amount
  outstanding or repayable in a currency other than Dollars shall on that day
  be taken into account in its Dollar equivalent at the rate of exchange that
  would have been used had an audited consolidated balance sheet of the Group
  been prepared as at that day in accordance with the GAAP applicable to the
  Original Financial Statements of the Guarantor. “Cash” means any credit balance on any deposit, savings, current
  or other account, and any cash in hand, which is: (a) freely withdrawable on
  demand; (b) not subject to any Security; (c) denominated and payable in
  freely transferable and freely convertible currency; and 1

  

 

	
  

  	
  (d) capable of
  being remitted to an Obligor in its Home Jurisdiction. “Cash Equivalent Investments” means:
  (a) certificates of deposit maturing within one year after the relevant date
  of calculation (b) any investment in marketable debt obligations issued or
  guaranteed by the government of the United States of America, the United
  Kingdom, any member state of the European Economic Area or any Participating
  Member State (provided always that any such government has a rating for its
  long-term unsecured and non credit-enhanced debt obligations of A or higher
  by Standard & Poor’s Rating Services or Fitch Ratings Ltd or A2 or
  higher by Moody’s Investor Services Limited or a comparable rating from an
  internationally recognised credit rating agency) or by an instrumentality or
  agency of any of them having an equivalent credit rating, maturing within one
  year after the relevant date of calculation and not convertible or
  exchangeable to any other security; (c) commercial paper not convertible or
  exchangeable to any other security: (i) for which a recognised trading market
  exists; (ii) issued by an issuer incorporated in the United States of
  America, the United Kingdom, any member state of the European Economic Area
  or any Participating Member State; (iii) which matures within one year after
  the relevant date of calculation; and (iv) which has a credit rating of
  either A-1 or higher by Standard & Poor’s Rating Services or Fl or
  higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor Services
  Limited, or, if no rating is available in respect of the commercial paper,
  the issuer of which has, in respect of its long-term unsecured and noncredit
  enhanced debt obligations, an equivalent rating; (d) any investment in money
  market funds which (i) have a credit rating of either A-1 or higher by
  Standard & Poor’s Rating Services or Fl or higher by Fitch Ratings
  Ltd or P-1 or higher by Moody’s Investor Services Limited, (ii) which
  invest substantially all their assets in securities of the types described in
  paragraphs (a) to (c) above and (iii) can be turned into cash
  on not more than 30 days’ notice; or (e) any other debt security approved by
  the Majority Lenders, in each case not subject to any Security, denominated
  and payable in freely transferable and freely convertible currency and the
  proceeds of which are capable of being remitted to an Obligor in its Home
  Jurisdiction. “Consolidated Debt” means,
  at any time, the aggregate amount of Borrowings of the Group (excluding
  (i) any Borrowings owed by one member of the Group to another member of
  the Group and (ii) any indebtedness referred to in paragraph (g) of
  the definition of Financial Indebtedness and any guarantee or indemnity in
  respect of that indebtedness). “EBITDA”
  means, in relation to any period, the consolidated net income of the
  Group during that period before taking into account: 2

  

 

	
  

  	
  (a)
  consolidated interest; (b) gains or losses under any hedging arrangements;
  (c) tax; (d) depreciation; (e) amortisation; (f) any other non cash item; (g)
  capital gains or losses realised from the sale of any vessel; (h) financing
  payments, fees and commissions; (i) capital losses on vessel cancellations;
  and (j) any other Non-Recurring Items, as determined (except as needed to
  reflect the terms of this Clause 21) from the financial statements of the
  Group and Compliance Certificate delivered under Clause 20.1 (Financial statements) and Clause
  21.2 (Compliance Certificate). “Interest Expense” means, in
  relation to any period, the aggregate amount of interest, commission, fees
  and any other finance charges (whether or not paid or payable but excluding
  capitalised interest) accrued by the Group in that period in respect of
  Borrowings including: (a) the interest element of leasing and hire purchase
  payments; (b) commitment fees, commissions, arrangement fees, prepayment fees
  and guarantee fees; and (c) amounts in the nature of interest payable in
  respect of any shares other than equity share capital. “Market Value” means in respect of
  any vessel for any Relevant Period, the most recent valuation of such vessel
  performed prior to the last day of such Relevant Period and determined on the
  same methodology and basis, as to the Valuation of any Vessel pursuant to
  Clause 24.8 (Valuation) provided
  that: (a) the Guarantor shall commission the valuations of all relevant
  vessels for the purposes of this definition of Market Value on a semi-annual
  basis (to be dated as at 30 June and 31 December in each year) and,
  to the extent the Majority Lenders reasonably require having regard to the
  financial condition of the Group at the time, additionally on 31
  March and 30 September in each year; and (b) the valuations for 30
  June and 31 December in any year and to the extent that additional
  valuations are commissioned in accordance with this definition, 31
  March and 30 September in each year, shall not have a date which is
  more than 1 week prior the relevant quarter date on which a financial
  covenant in clause 21 (Financial
  Covenants) or 22.14 (Dividends
  and share redemption) is tested; and 3

  

 

	
  

  	
  (c) in the
  event that no valuation has been commissioned for 31 March or 30
  September in any year, Market Value for the relevant quarter date shall
  be calculated by reference to the most recent valuation delivered in
  accordance with this definition. “Minimum
  Liquidity” means the aggregate of Cash and Cash Equivalent Investments
  available to the Group. “Non-Recurring
  Items” means (i) in relation to any period until the financial
  year ending 31 December 2011, any exceptional, one off non-recurring
  items, or (ii) in relation to any period until the financial year ending
  31 December 2012 and for any period thereafter, any exceptional, one off
  non-recurring items up to a maximum of 5% of EBITDA during that period. “Relevant Period” means: (a) each
  period beginning on (and including) the first day of each financial year of
  the Guarantor and ending on (and including) the last day of the first quarter
  of such financial year; (b) each period beginning on (and including) the
  first day of the second quarter of a financial year of the Guarantor and
  ending on (and including) the last day of such quarter; (c) each period
  beginning on (and including) the first day of the third quarter of a
  financial year of the Guarantor and ending on (and including) the last day of
  such quarter; and (d) each period beginning on (and including) the first day
  of the fourth quarter of a financial year of the Guarantor and ending on (and
  including) the last day of such quarter. “Total Liabilities” means, in relation to any Relevant Period,
  the aggregate of (i) all Borrowings on the last day of that Relevant
  Period and (ii) all other liabilities of the Group existing or outstanding
  on the last day of that Relevant Period. “Total Net Debt” means, in relation to any Relevant Period,
  Total Liabilities for that Relevant Period less Cash and Cash Equivalent
  Investments available to the Group on the last day of that Relevant Period.
  22. GENERAL UNDERTAKINGS The
  undertakings in this Clause 22 remain in force from the date of this
  Agreement for so long as any amount is outstanding under the Finance
  Documents or any Commitment is in force. 22.1 Authorisations (a) Each Obligor shall promptly: (i) obtain,
  comply with and do all that is necessary to maintain in full force and
  effect; and (ii) supply certified copies to the Agent of, any Authorisation
  required under any law or regulation of its Home Jurisdiction to enable it to
  perform its obligations under the Transaction Documents and to ensure the
  legality, validity, enforceability or admissibility in evidence in its Home
  Jurisdiction of any Transaction Document. (b) The relevant Obligor shall
  promptly make the registrations specified at the end of Clause 19.1(e) (Validity and admissibility in evidence).
  4

  

 

	
  

  	
  22.2 Compliance
  with laws Each Obligor shall comply, and shall procure that the Manager
  complies, in all respects with all laws to which it may be subject, if
  failure so to comply would materially impair its ability to perform its
  obligations under the Transaction Documents. 22.3 Financial Indebtedness No
  Borrower shall create, assume, guarantee, permit to subsist or otherwise be
  liable in respect of any Financial Indebtedness, except for: (a) Financial
  Indebtedness under the Finance Documents; (b) Financial Indebtedness incurred
  in the ordinary course of business for working capital purposes or to fund
  the operation of the Vessels by the Manager provided that such indebtedness
  does not and shall not result in a Material Adverse Effect. 22.4 Negative
  pledge (a) No Obligor shall (and the Guarantor shall procure that no other
  member of the Group will) create or permit to subsist any Security over the
  Charged Assets. (b) No Borrower shall, and shall procure that the Manager
  shall not, create or permit to subsist any Security over any of the assets of
  that Borrower. (c) No Borrower shall, and shall procure that the Manager
  shall not: (i) sell, transfer or otherwise dispose of any of the assets of
  that Borrower on terms whereby they are or may be leased to or re-acquired by
  an Obligor or any other member of the Group; (ii) sell, transfer or otherwise
  dispose of any of the receivables of that Borrower on recourse terms; (iii)
  enter into any arrangement under which money or the benefit of a bank or
  other account may be applied, set-off or made subject to a combination of
  accounts; or (iv) enter into any other preferential arrangement having a
  similar effect, in circumstances where the arrangement or transaction is
  entered into primarily as a method of raising Financial Indebtedness or of
  financing the acquisition of an asset. (d) Paragraphs (a) to (c) above do not
  apply to Permitted Liens. 22.5 Disposals (a) No Obligor shall enter into a
  single transaction or a series of transactions (whether related or not and
  whether voluntary or involuntary) to sell, lease, transfer or otherwise
  dispose of its material assets, including the Charged Assets. (b) Paragraph
  (a) above does not apply to: (i) any sale, lease, transfer or other disposal
  of an asset (other than a Charged Asset) made in the ordinary course of
  trading of the disposing entity; (ii) any sale, lease, transfer or other
  disposal of the Charged Assets to which all Lenders have given their prior consent;
  or 76

  

 

	
  

  	
  (iii) a sale of
  a Vessel provided that the proceeds of sale will be sufficient to enable the
  Obligor to comply in full with its obligations under Clause 7.5 (Mandatory prepayment: Sale) and
  that the relevant Borrower provides the Agent with notice of the sale and
  copies of the memorandum of agreement entered into by it with the proposed
  purchaser, (iv) any transfer, lease or disposal of assets (other than a
  Charged Asset) which reduces the Adjusted Total Consolidated Assets by no
  more than forty per cent. (40%) provided that the relevant Obligor gives
  prior written notice to the Agent of its intention to sell, lease, transfer
  or otherwise dispose of such assets. 22.6 Merger (a) No Borrower shall enter
  into any amalgamation, demerger, merger or corporate reconciliation. (b) The
  Guarantor shall not enter into any amalgamation, demerger, merger or
  corporate reconstruction if: (i) a Default is continuing or an Event of
  Default has occurred; or (ii) a Change of Control would occur; or (iii) the Guarantor
  has failed to supply to the Agent a compliance certificate (signed by the
  Chief Financial Officer) showing in reasonable details that such action is
  not forecast on a pro forma basis to cause a breach of Clause 21 during the
  subsequent 6 month period. 22.7 Restriction
  on business No Borrower shall: (a) engage in any business other than
  as contemplated by the Transaction Documents; (b) enter into any agreement
  with any person or incur any liability to any person other than as
  contemplated by the Transaction Documents (other than with respect to Taxes,
  ordinary costs and overhead expenses arising in the ordinary course of
  business referred to in paragraph (a) above); or (c) create or permit to
  subsist any Subsidiary, in each case unless it has first obtained the consent
  of the Agent. 22.8 Change of
  business, corporate existence and Tax residence (a) The Obligors shall
  procure that no substantial change is made to the general nature of the
  business of the Group or the Obligors taken as a whole from that carried on
  at the date of this Agreement. (b) The Guarantor shall maintain its listing
  on the New York Stock Exchange, NASDAQ or any recognised investment exchange
  (as that term is used in the Financial Services Markets Act 2000). (c) Each
  Obligor shall not, without the prior written consent of the Agent, change its
  existence as a company organised under the laws of its Home Jurisdiction. 77

  

 

	
  

  	
  (d) Each
  Obligor shall not, without the written consent of the Agent, become tax
  resident in any jurisdiction other than its Home Jurisdiction. 22.9 Environmental undertakings Each
  Obligor shall (and shall procure that each of its Subsidiaries will): (a)
  comply with all Environmental Laws to which it may be subject or which may
  apply to the Vessel and take all reasonable steps to prepare for known or
  anticipated changes thereto or new obligations thereunder; (b) obtain all
  Environmental Licences required in connection with its business and the
  Vessel; and (C) comply with all Environmental Licences obtained in connection
  with its business and the Vessel, in each case where failure to do so might
  have a Material Adverse Effect. 22.10 Hedging
  (a) Each Obligor shall ensure that the hedging required by Hedging Documents
  is effected in accordance with the terms thereof. (b) Save for the Existing
  Hedging Documents, no Borrower shall enter into any Hedging Document without
  the prior written consent of all the Lenders. (c) At or before the time that
  a Borrower enters into any Hedging Document with a Hedging Bank on or after
  the date of this Agreement, such Borrower shall ensure that the counterparty
  accedes as a Hedging Bank to the Intercreditor Agreement. (d) Each Borrower
  shall grant to the Security Agent for the benefit of the Secured Parties a
  first ranking assignment, in form and substance satisfactory to the Security
  Agent, of all its rights and benefits (including any moneys payable to it)
  under each Hedging Document to which it is a party, as soon as reasonably
  practicable after it enters into the relevant Hedging Document. (e) No
  Borrower shall enter, or agree to enter, into any derivative transaction. (f)
  Paragraph (e) above does not apply to any transaction required by the
  Existing Hedging Documents or any other Hedging Document to which all the
  Lenders have consented in writing. 22.11 Pari passu ranking Each Obligor shall ensure that its payment
  obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and
  unsubordinated creditors, except for obligations mandatorily preferred by law
  applying to companies generally. 22.12 Security (a) Each Borrower will, at its own expense, take all
  such action as the Agent may reasonably require: (i) for the purpose of
  perfecting or protecting the rights of the Secured Parties under, and preserving
  the Security intended to be created or evidenced by any of the, Security
  Documents; and (ii) for the purpose of facilitating the realisation of any of
  that Security, 78

  

 

	
  

  	
  including the
  execution of any transfer, conveyance, assignment or assurance of any
  property and the giving of any notice, order or direction and the making of
  any registration which the Agent may require. (b) Each Borrower will not do,
  or consent to the doing of, anything which might prejudice the validity,
  enforceability or priority of any of the Security created pursuant to the
  Security Documents. (c) Each Borrower shall comply with any internationally
  recognised system of recordation or filing to evidence the Secured Parties’
  interest in such Security. 22.13 Isabella
  Clause Each Obligor shall perform its obligations under each Finance
  Document to which it is a party notwithstanding any failure by the Seller to
  fulfil its obligations under any commercial arrangement entered into with an
  Obligor or otherwise and no Obligor shall use any failure as an excise,
  defence, set-off or counterclaim in respect of its obligations under any
  Finance Document. 22.14 Dividends and
  share redemption (a) Except as permitted under clause
  22.14(b) below, the Guarantor shall not (and will ensure that no Borrower will); (i) declare, make
  or pay any dividend, charge, fee or other distribution (or interest on any
  unpaid dividend, charge, fee or other distribution) (whether in cash or in
  kind) on or in respect of its share capital (or any class of its share
  capital); (ii) repay or distribute any dividend or share premium reserve; or
  (iii) redeem, repurchase, defease, retire or repay any of its share capital
  or resolve to do so, each a “Distribution”. (b) Clause 22.14(a) above
  does not apply to the following Distributions: (i) the payment of a dividend
  to the Guarantor or any of its wholly-owned subsidiaries (provided that such
  Distribution is made when no Default is continuing or would occur immediately
  after the making of such Distribution); or (ii) the payment of a dividend by
  the Guarantor to any shareholder of it provided: (i) that such Distribution
  is made when no Default is continuing or would occur immediately after the
  making of the Distribution; (ii) the Guarantor has supplied the Agent with a compliance
  certificate (signed by the Chief Financial Officer) showing in reasonable
  detail that each financial covenant set out in clause 21 (Financial covenants) is forecast
  on a pro forma basis to be complied with for the subsequent 6 month period;
  (iii) Consolidated Net Leverage for the twelve (12) month period ending on
  the last day of each of the previous four consecutive Relevant Periods (as
  tested by reference to the most recent financial statements and/or each
  Compliance Certificate delivered pursuant to clauses 20.1 to 20.3) has been
  below 6:1; 79

  

 

	
  

  	
  (iv) the
  consolidated Vessel Leverage has been above 125% at all times during the
  previous four consecutive Relevant Periods; and (v) all debt service
  obligations owed to the Lenders have been paid at the date on which such
  Distribution is proposed to be made. (c) For the purposes of clause
  22.14(b)(ii), “Cash”, “Cash
  Equivalent”, “Consolidated Debt”, “EBITDA” and “Relevant Period” each have the meaning given to them in Clause
  21.3 (Definitions). “Consolidated Net Leverage” means,
  in respect of any period, the ratio of (a) Consolidated Debt (less Cash
  and Cash Equivalents) on the last day of such period to (b) EBITDA in
  respect of that period. “Fleet
  Vessels” means at any time all of the vessels (including vessels under
  construction at book values) from time to time owned or leased by any member
  of the Group which, at the relevant time, are included within the total
  consolidated assets in the financial statements of the Group or which would
  be included with in the total consolidated assets in such financial
  statements if such financial statements were required to be prepared at that
  time and “Fleet Vessel” shall
  be construed accordingly. “Market
  Value” means in respect of any Fleet Vessel, the most recent valuation
  of such Fleet Vessel determined on the same methodology and basis, as to the
  Valuation of any Vessel pursuant to Clause 24.8 (Valuation) provided that: (a) the Guarantor shall commission
  the valuations of all relevant vessels for the purposes of this definition of
  Market Value on a semi-annual basis (to be dated as at 30 June and 31
  December in each year) and, to the extent the Majority Lenders
  reasonably require having regard to the financial condition of the Group at
  the time, additionally on 31 March and 30 September in each year;
  and (b) the valuations for 30 June and 31 December in any year and
  to the extent that additional valuations are commissioned in accordance with
  this definition, 31 March and 30 September in each year, shall not
  have a date which is more than 1 week prior the relevant quarter date on
  which a financial covenant in clause 21 (Financial Covenants) or 22.14 (Dividends and share redemption) is tested; and (c) in the
  event that no valuation has been commissioned for 31 March or 30
  September in any year, Market Value for the relevant quarter date shall
  be calculated by reference to the most recent valuation delivered in
  accordance with this definition. “Vessel
  Leverage” means at any time the aggregate Market Value of all Fleet Vessels
  divided by the Consolidated Debt when expressed as a percentage. 22.15 Isabella Clause Each Borrower shall
  perform its obligations under each Finance Document to which it is a party
  notwithstanding any failure by the Seller to fulfil its obligations under the
  relevant Shipbuilding Contract or otherwise and each Borrower shall not use
  any such failure as an excuse, defence, set-off or counterclaim in respect of
  the Borrower’s obligations under any Finance Document. 80

  

 

	
  

  	
  23.
  PRE-DELIVERY UNDERTAKINGS 23.1 Shipbuilding Contract (a) Each Borrower shall:
  (i) comply with its obligations under the Shipbuilding Contract; (ii) at any
  time on or after the termination or expiry of the appointment of the Existing
  Supervisor, appoint a supervisor approved by the Agent to supervise the
  construction and Delivery of the relevant Vessel in accordance with the terms
  of the relevant Shipbuilding Contract; (iii) exercise all due diligence and
  despatch to ensure that the Seller observes and performs all conditions and obligations
  imposed on it by the Shipbuilding Contract relating to that Vessel and take
  all steps within its power to ensure that the Shipbuilder proceeds with the
  construction of the relevant Vessel with due diligence; and (iv) ensure that
  the Lenders’ surveyor is permitted to survey the relevant Vessel during the
  construction period and participate in its Delivery, together with any other
  representatives of the Finance Parties, upon the request of the Agent and at
  the Borrower’s cost. (b) No Borrower shall: (i) waive any material breach by
  the Seller of the relevant Shipbuilding Contract; or (ii) agree to any
  material variation or termination of, or material amendment to, the relevant
  Shipbuilding Contract or the Specification, in each case without the prior
  written consent of the Agent. 23.2 Time
  Charters The Obligors shall not agree to any amendment to, variation
  or termination of any Time Charter without the prior written consent of the
  Agent (acting on instructions of the Lenders) and Sinosure. 24. POST-DELIVERY UNDERTAKINGS The
  undertakings in this Clause 24 shall remain in force with respect to each
  Vessel, from the Delivery Date for such Vessel so long as any amount is
  outstanding under any Finance Documents or any Commitment is in force. 24.1 Registration Each Borrower shall
  ensure that the relevant Vessel is validly registered at all times with the
  Registry under the laws and flag of the Flag State. 24.2 Mortgage Upon Delivery of a Vessel,
  the relevant Borrower shall: (a) execute the relevant Mortgage and procure
  that it is registered under the laws and flag of the Flag State; and 81

  

 

	
  

  	
  (b) carry
  onboard a certified copy of the relevant Mortgage and affix in a prominent
  position in the navigation room and the master’s cabin a framed notice
  stating that the Vessel is mortgaged by the Owner to the Security Agent. 24.3
  Classification Each Borrower
  shall: (a) ensure that the relevant Vessel is classed with the Classification
  by the Classification Society free from recommendations and notations; (b) if required by the Agent,
  provide the Agent with copies of: (i) certificates evidencing compliance as
  soon as the same become available; and (ii) all survey reports and other
  documents relating to the classification of the relevant Vessel; and (c)
  submit the relevant Vessel regularly to such periodical or other surveys as
  may be required by the Classification Society. 24.4 Maintenance and operation Each Borrower shall procure that the
  relevant Vessel: (a) is seaworthy and maintained, crewed and managed in
  accordance with first class shipping industry practice and Classification
  Society requirements; (b) is not operated in breach of any applicable law,
  regulation, international convention, Flag State or Classification Society
  requirements; (c) is not operated for any purpose or in any manner
  inconsistent with or not fully covered by the Insurances; and (d) is not
  operated in a manner which could conflict with any prohibition, sanction or
  restriction issued or imposed by the United Nations Security Council, the People’s
  Republic of China, the Council of the European Union, the United States of
  America, or the United Kingdom. 24.5 Chartering
  (a) The Obligors shall ensure that on Delivery of a Vessel: (i) such Vessel
  will be chartered to the Time Charterer under the relevant Time Charter; and
  (ii) notice of the relevant
  Time Charterer Assignment is served on the Time Charterer and the Obligors
  shall use their best endeavours to obtain a signed acknowledgement of the
  same from the Time Charterer. (b) The Obligors shall not enter into, or
  permit the entry into, of any sub-charter of a Vessel unless such sub-charter
  is a time charter in Iine with customary practice in the shipping industry.
  The Obligors should promptly notify the Agent and Sinosure in writing of any
  actual or proposed sub-charter of a vessel and the identity of the relevant
  sub-charterer as soon as it becomes aware of the same. The Obligors shall not
  enter into, or permit the entry into, of any bareboat charter of a Vessel
  without the prior written consent of the Agent (acting on the instruction of
  the Majority Lenders) and Sinosure. 82

  

 

	
  

  	
  (c) The
  Obligors shall not agree to any material amendment to, material variation of
  or termination of a Time Charter without the prior written consent of the
  Agent. (d) The Obligors shall procure that following the expiry or
  termination (howsoever it arises) of a Time Charter: (i) a new charter is
  entered into on terms and with a charterer acceptable to (and in the absolute
  discretion of) all the Lenders and Sinosure within sixty (60) days of the
  expiry or termination of that Time Charter; and (ii) notice of the relevant
  Time Charterer Assignment is served on the new charterer and the Obligors
  shall use their best endeavours to obtain a signed acknowledgement from the
  new charterer. 24.6 Management The
  Obligors shall: (a) procure that each Vessel is managed solely by the Manager
  in accordance with the relevant Management Agreement; (b) procure that each
  Manager in respect of a Vessel complies with ITWF requirements; (c) not terminate,
  vary or amend in any material respect a Management Agreement or enter into
  any other management agreement relating to the Vessel without the prior
  written consent of the Agent; and (d) procure that any replacement Manager
  shall enter into a new manager’s undertaking in favour of the Security Agent
  in relation to the relevant Vessel in substantially the same form as the
  current Manager’s Undertaking on the date on which it enters into a
  replacement management agreement in respect of the Vessel. 24.7 Inspection (a) In addition to the
  rights granted to Agent under Cause 18.6 (Access to books and records/audit rights), the Obligors shall
  allow the Agent (and its agents and representatives) to inspect its books and
  records (including any records maintained with the Classification Society or
  any Insurer or Broker) in relation to each Vessel. (b) The Obligors shall
  allow the Agent (and its agents and representatives) full and complete access
  to each Vessel for the purposes of performing periodic customary inspections
  of such Vessel, its cargo and its related records, contracts, documents and
  log books and otherwise from time to time. (c) Where the Agent (or its agent
  or representative) exercises its right to inspect a Vessel: (i) the costs and
  expenses relating to one inspection per calendar year and any additional
  inspection where the prior inspection showed the Vessel not to be in the
  condition required by the Finance Documents shall be borne by the Borrower
  and shall be repayable to the Agent on demand; and (ii) provided no Event of
  Default is continuing, the Agent shall give reasonable notice and ensure that
  the inspection does not interfere with the Vessel’s employment. 83

  

 

	
  

  	
  24.8 Valuation
  (a) On the Delivery Date for a Vessel, on each last day of a financial half
  year of the Guarantor falling thereafter, on each last day of a financial
  year of the Guarantor falling thereafter and at any other time either at the
  reasonable request of the Agent or following the occurrence of a Default, the
  Obligors shall procure a Valuation of that Vessel. (b) Each Valuation (other
  than Valuations carried out pursuant to Clause 24.9 (Asset Cover Ratio) following a Default) shall be: (i) the
  average of two valuations carried out by two Approved Valuers appointed by
  the Agent, which valuations shall be: (A) delivered in the form of a
  valuation certificate to the Agent; (B) dated as at a date not more than six
  (6) weeks previously; (C) be on the basis of a sale of the relevant
  Vessel for prompt delivery for cash on a without charter (unless the relevant
  Vessel is engaged or employed under a contract with six months or more
  remaining, in which case it shall be a charter-inclusive basis) or security
  basis and at arm’s length on normal commercial terms as between a willing buyer
  and a willing seller; and (ii) at the cost of the Guarantor. (c) If the
  market valuations prepared by the Approved Valuers differ by more than ten
  (10) per cent., a third valuation shall be prepared in accordance with
  paragraphs (b)(i) and (ii) of this Clause 24.8 by a third Approved
  Valuer, whereby the Valuation shall comprise average of the three valuations
  so obtained. (d) For the purposes of obtaining Valuation on a
  charter-inclusive basis, the value of the relevant Vessel shall be calculated
  as the aggregate of: (i) the present value of the “bareboat equivalent” time
  charter income of the relevant Vessel (for the remaining term of such time
  charter period excluding any renewal options); and (ii) the present value of
  the residual value of the relevant Vessel at the end of the time charter
  period which shall be deemed to be equal to the current without charter value
  of a vessel with similar characteristics to the relevant Vessel, save for
  age, which shall be equal to the age of the relevant Vessel at the expiration
  of the time charter (excluding any renewal options). In calculating the
  present value, the applicable discount rate shall be, at the time of the
  valuation, the aggregate of the applicable mid market interest Swap Rate (at
  11:00 a.m. in London on the date of its relevant valuation) for a period
  equal to the remaining term of the Vessel’s time charter (excluding any
  renewal options). (e) The Valuation of any Vessel still under construction
  shall be the valuation determined in accordance with paragraphs (b), (c) and (d) above,
  less the aggregate amount of the Pre- Delivery Instalments outstanding and
  the Final Instalment applicable to such Vessel. (f) The Obligors shall
  provide all such information and assistance as an Approved Valuer reasonably
  requires in order to effect a Valuation. 84

  

 

	
  

  	
  24.9 Asset Cover Ratio (a) The Obligors shall ensure that
  the aggregate market value (determined by reference to the most recent
  Valuation) of each Vessel is at all times 125% of the value of the aggregate
  outstanding Loans made to the Borrowers under the Tranche under each Facility
  relating to such Vessel (the “Asset
  Cover Ratio”). (b) If at any time the Asset Cover Ratio is not
  complied with in respect of any Vessel, the Obligors shall immediately notify
  the Agent whereupon the Obligors shall be required, within 30 days of the
  date of non-compliance either (i) to prepay the outstanding Loans
  relating to that Vessel (such prepayment to be applied pro rata against the instalments
  which remain payable on each future Repayment Date) to the value of an amount
  equal to the amount required to remedy the Asset Cover Ratio or (ii) to
  make an interest bearing cash deposit with the Agent or to provide or cause
  to be provided to the Agent additional collateral (such collateral to be from
  a security provider and in all respects satisfactory to the Agent (acting on
  the instructions of all Lenders)), such that the relevant Asset Cover Ratio
  is again met in respect of
  that Vessel. (c) The Agent shall be entitled to require that a Valuation in
  respect of each Vessel shall be carried out following the occurrence of a
  Default. 24.10 Compliance with
  maritime safety regulations Each Obligor shall procure that: (a) the
  Manager and any Operator complies with, and shall ensure that the relevant
  Vessel will at all times comply with, the ISM Code, the ISPS Code and any
  other international maritime regulations relevant to the operation and
  maintenance of the relevant Vessel; (b) copies of valid certificates
  evidencing compliance with the regulations referred to in paragraph
  (a) above are provided to the Agent as soon as the same become
  available; and (c) a copy of the DOC and the original SMC are kept on board
  each Vessel at all times. 24.11 US
  Operations The Obligors shall procure that, if a Vessel undertakes a
  US Operation, it shall: (a) obtain and maintain the requisite certification;
  (b) make the applicable declarations; and (c) where requested by the Agent
  and as required by Clause 25.4 (Insurance
  requirements for US Operations), make such additional insurance
  arrangements as the Agent may reasonably specify in accordance with good
  shipping industry practice. 24.12 Modifications
  No Obligor shall remove or permit the removal of any material equipment from
  any Vessel, nor make or permit to be made any material alteration in the
  structure, type or speed of any Vessel without the prior written consent of
  the Agent, which it shall have full power to withhold. 24.13 Arrest The Obligors shall procure
  the release of any Vessel which is arrested confiscated, seized, taken in
  execution, impounded, forfeited, detailed in exercise or purposes of any
  possessory lien or 85

  

 

	
  

  	
  other claim or
  otherwise taken from the possession of the Borrower, within five
  (5) days thereafter. 24.14 Unrest If the Flag State becomes involved in
  hostilities or civil war or there is a seizure of power in the Flag State by
  unconstitutional means, and if, in any such case, such event could in the
  reasonable opinion of the Agent be expected to have a Material Adverse
  Effect, the Obligors shall within ten (10) Business Days procure the
  change of registration of the vessel to a registry of another state or
  territory proposed in writing by the Obligors and approved by the Agent in
  writing. 25. INSURANCE 25.1 General insurances Each Obligor shall maintain,
  or cause to be maintained, insurances on and in relation to its business and
  assets with reputable insurers against those risks and to the extent usually
  insured against by prudent companies located in the same or a similar location
  and carrying on a similar business. 25.2 Vessel-related insurances (a) Each
  Borrower shall at all times from Delivery of a Vessel and whilst any
  Liabilities remain outstanding, at its expense, maintain or procure the
  maintenance of the following insurances in respect of any Vessel: (i) cover
  against fire and usual marine risks (including excess risks) and war risks
  (including, without limitation, terrorist acts, piracy, blocking and
  trapping) on an “agreed value” basis for the Agreed Value, with the Hull and
  Machinery insured value being at least 80% of 125% of the Loan outstanding in
  respect of the Vessel; and (ii) protection and indemnity cover for the full
  tonnage of the Vessel (including, for the avoidance of doubt, pollution cover
  at the maximum level available of $1,000,000,000 or such higher maximum
  amount which may become available from time to time); (iii) such other
  insurances in connection with the Vessel which the Agent may reasonably
  require, each in form and substance acceptable to the Agent. (b) The Security
  Agent may, at the cost of the Borrowers, take out and renew annually an Mil
  Policy for an amount equal to one hundred and ten per cent. (110%) of the
  Loans outstanding in respect of the Vessel. The Obligors shall fully
  indemnify the Security Agent upon demand in respect of all previous and other
  expenses incurred in connection with effecting, maintaining or reviewing such
  insurance or dealing with any matter in connection therewith. 25.3 Insurance
  requirements (a) Each Borrower will effect, or cause to be effected, the
  Insurances: (i) in Dollars or such other currency as the Agent may approve; 86

  

 

	
  

  	
  (ii) through
  the Brokers and/or Insurers with such first class insurance companies and/or
  underwriters as may from time to time be approved in writing by the Agent and
  underwritten one hundred per cent. (100%) by such insurers; (iii) in the case
  of protection and indemnity cover, with a protection and indemnity
  association which is a member of the International Group of P&I Clubs (or
  its successor); and (iv) in the case of war risks cover, with leading war
  risks associations or through the Brokers and/or Insurers with such first
  class insurance companies and/or underwriters as may from time to time be
  approved in writing by the Agent and underwritten one hundred per cent.
  (100%) by such insurers. (b) Subject to paragraph (c) below, the Agent
  may require the Insurances to be reviewed at any time by its Insurance
  Advisor and, if so required by the Agent, each Borrower will provide any
  information reasonably requested by the Lender’s Insurance Adviser for the
  purposes of the review. (c) Each Borrower will reimburse the Agent for the
  reasonable cost of obtaining a detailed report on the Insurances from the
  Agent’s Insurance Advisor which states the opinion of that firm as to the
  adequacy of those Insurances, provided that the Agent may only require the
  Borrower to reimburse it for the cost of any such report once a year, unless:
  (i) there has been or is proposed to be a material change in the terms of the
  Insurances; (ii) there has been or is proposed to be a change of Insurer;
  and/or (iii) a Default or Event of Default has occurred and is continuing.
  25.4 Insurance requirements for US
  Operations Before any Vessel undertakes a US Operation, the relevant
  Borrower shall: (a) ensure that the certificate of entry for the relevant
  Vessel issued by the protection and indemnity association with which that
  Vessel is entered is endorsed, if applicable, with the US Oil Pollution
  Clause 20/2/91 (as amended or replaced from time to time) and, if applicable,
  written confirmation is given to the Agent that the relevant Borrower has
  provided all declarations and satisfied all other requirements of such
  association and that the US Trading Exclusion Clause has been deleted from
  the terms upon which such association covers the relevant Vessel against
  protection and indemnity risks (including oil pollution risks); (b) ensure
  that the relevant Vessel has a valid COFR (if required); (c) if required by
  the terms of the Insurances, promptly (and within any applicable time limits)
  complete and submit to the protection and indemnity association with which
  the relevant Vessel shall be entered: (i) a declaration made by or on behalf
  of the Agent, the relevant Borrower and any Operator or any other person who
  is named as an assured or co-assured in the relevant Vessel’s entry with that
  association that they will comply with all special 1

  

 

	
  

  	
  terms and
  conditions of the association (including, without limitation, payment of
  additional premia for additional voyages) applying to any US Operations; and
  (ii) any quarterly or other declarations that that association may require to
  be made (including, without limitation, declarations listing all voyages of
  that Vessel) to ensure that the relevant Vessel is covered for protection and
  indemnity risks (including oil pollution risks) on any US Operations, and
  procure that all such declarations are in a form acceptable to, and contain
  all information required by, that association; and (d) make any changes to
  the Insurances (including any increase in the insurance coverage for
  liability for oil pollution) that the Agent, having regard to appropriate
  advice from independent insurance advisers appointed by the Agent at the cost
  of the relevant Borrower, requires (acting on the instructions of any Lender)
  and which are generally available in the insurance market for vessels of the
  nature, usage and age of that Vessel and which (having regard to the
  interests of the Security Agent in the relevant Vessel) it is (or would be)
  the practice of a prudent operator of such a vessel to obtain. 25.5 Changes to the Insurance requirements
  (a) Subject to paragraph (b) below, if the Agent (acting on the
  instructions of any Lender) determines on reasonable grounds that the
  Insurances do not adequately protect the interests of the parties benefitting
  from the Insurances (the “Interested
  Parties”), it will consult with each Borrower and an independent firm
  of insurance brokers jointly selected by the Agent and the Borrowers in order
  to agree any changes to the Insurances that may he appropriate to protect the
  Interested Parties. (b) If the Agent and the Borrowers are unable to agree
  upon which changes may be appropriate, the Borrowers will comply with any
  further requirements relating to the Insurances that the Agent (acting on the
  instructions of any Lender) may stipulate, having regard to the advice of
  that independent firm of insurance brokers. 25.6 Renewal Each Borrower will: (a) notify the Agent of the date on
  which the Insurances will expire at least fourteen (14) days prior to their
  expiry; (b) procure that appropriate instructions for the renewal of the
  relevant Insurances are given to the applicable Brokers, Insurers,
  P&l Club or war risks association at least fourteen (14) days before the
  relevant policies, contracts or entries expire; and (c) procure that
  confirmation in writing of the terms of that renewal is provided to the Agent
  by the applicable Brokers, Insurers, P&I Club and/or war risks
  association as and when each
  renewal is effected. 25.7 Fleet cover
  If any of the Insurances referred to in Clause 25.2 (Vessel-related insurances) form part of a fleet cover, the
  Obligors shall procure that the Brokers or Insurers (as applicable) undertake
  to the Agent and the Security Agent that: 2

  

 

	
  

  	
  (a) they will
  not: (i) set off any claims in respect of the Vessel against any premiums due
  in respect of other vessels under that fleet cover or any premiums due for
  other insurances; or (ii) cancel the Insurances due to non-payment of
  premiums for other vessels under that fleet cover or for non-payment of
  premiums for such other insurances; and (b) if required, they will procure
  that a separate policy is issued in respect of the Vessel. 25.8 Brokers’ Letters of Undertaking Each
  Borrower will procure that each Broker and/or Insurer (as the case may be)
  for the time being and any P&1 Club or war risks association (where
  available in addition to each such association’s standard undertaking)
  insuring the Vessel or third party risks provides to the Agent letters of
  undertaking addressed to the Security Agent in terms reasonably acceptable to
  the Security Agent under which they agree in relation to the Insurances to:
  (a) advise the Security Agent promptly: (i) if any underwriter, Broker or
  Insurer cancels or gives notice of cancellation of any such Insurances; (ii)
  of any material alteration in, or of any termination or expiry of, any such
  Insurances; (iii) of any default in the payment of any premium or call; (iv)
  of the failure to renew any such Insurances fourteen (14) days prior to the
  date of renewal thereof (which for the avoidance of doubt the Agent shall be
  entitled but not obliged to pay for in accordance with paragraph (a) of
  Clause 25.12 (Failure to insure)); and
  (v) of any act or omission or of any event of which they have knowledge and
  which might invalidate or render unenforceable in whole or in part any such
  insurance; (b) hold to the order of the Security Agent any original policies,
  cover notes, placing slips and certificates issued (including any
  endorsements) in respect of the Insurances, all of which the Borrower shall
  deposit or cause to be deposited with such Brokers; (c) supply to the
  Security Agent copies of all cover notes in respect of all such insurances;
  and (d) pay, in accordance with the Loss Payable Clause, any proceeds of such
  Insurances collected by the Brokers from the insurers without any set-off or
  deduction of any kind, (the “Letters
  of Undertaking”). 25.9 Protection
  of the Security Agent Each Borrower will procure that: (a) the
  interests of the Security Agent are endorsed on the relevant instruments of
  insurance in accordance with the terms of the notice of the Assignment of
  Earnings and Insurances; 3

  

 

	
  

  	
  (b) the Loss
  Payable Clause, or the standard loss payable clause of the relevant
  association (as the case may be) is endorsed on the relevant instruments of
  insurance; (c) all original slips, policies or other instruments of insurance
  from time to time issued in connection with the Insurances referred to in
  Clause 25.1 (General insurances) are
  deposited with the Brokers and/or applicable Insurers; and (d) the Security
  Agent is given certified copies of the relevant insurance cover notes and
  certificates of entry. 25.10 Insurance
  undertakings Each Borrower will: (a) comply with the terms and
  conditions of the Insurances and the requirements of the Transaction Documents
  in relation to the Insurances; (b) not do, consent to or permit any act or
  omission which might invalidate or render unenforceable the whole or any part
  of the Insurances; (c) not permit any Vessel to be employed otherwise than in
  conformity with the terms of the Insurances (including any warranties,
  express or implied, therein); (d) not materially amend, vary or substitute
  any Insurance or any element thereof, nor consent to or permit any of the
  same, without the prior written consent of the Agent; (e) not take out, or
  permit the taking out of, any additional insurances with respect to any
  Vessel if those additional insurances would result in the operation of any
  average clause or would otherwise prejudice the Lenders’ interest in the
  Insurances (unless the Insurers have consented to those additional
  insurances); (f) subject to paragraph (e) above, if any additional
  insurances are taken out, ensure that such additional insurances are endorsed
  with a notice of the Assignment of Earnings and Insurances and a Loss Payable
  Clause; (g) take all necessary action and comply with all requirements which
  may from time to time be applicable (including, without limitation, the
  making of all requisite declarations within any prescribed time limits) to
  ensure that the Insurances: (i) are not made subject to any exclusions or
  qualifications to which the Agent has not given its prior written consent;
  and (ii) are otherwise maintained on terms and conditions from time to time
  approved in writing by the Agent, which approval will not be unreasonably
  withheld or delayed; (h) pay, or procure payment of, all premiums, additional
  premiums, calls, contributions or other sums payable in respect of all the
  Insurances punctually and in accordance with the policy terms and conditions
  and shall produce all relevant receipts or other evidence of payment when
  required to do so by the Agent; (i) reimburse the total premium cost in
  respect of any MII Policy upon first written demand by the Agent; 4

  

 

	
  

  	
  (j) promptly
  after receiving them, provide to the Agent copies of any communication
  relating to: (i) the non-payment of premiums and/or cancellation of the
  Insurances; and (ii) the imposition of any exclusion or qualification or
  other material modification of the Insurances; (k) be responsible for any
  deductible under the Insurances; (l) not create or permit to exist any
  Security over its interests in the Insurances, other than Permitted Lien; (m)
  promptly arrange for the execution of such guarantees or indemnities as may
  from time to time be required by an Insurer, P&I Club or war risks
  association; and (n) not take any action that may adversely affect the
  interests and rights of the Agent under the Sinosure insurance Policy. 25.11 Payment and settlement of claims (a)
  Each Borrower will apply all sums receivable under the Insurances which are
  paid to it in accordance with the Loss Payable Clause. (b) No Borrower shall
  abandon or settle by way of compromise any claim arising under any of the
  Insurances in excess of the Specified Amount (or its equivalent in another
  currency) or permit any of the same, without the prior written consent of the
  Security Agent (if so directed by the Agent). (c) Each Borrower will do all
  things necessary and provide all documents, evidence and information within
  its power which may be reasonably requested by the Agent to enable the Agent
  to collect and recover any moneys which may at any time become due in respect
  of the Insurances. 25.12 Failure to
  insure (a) If a Borrower fails to maintain the Insurances as required
  by this Agreement, the Agent may: (i) at any time while that failure is
  continuing, require the applicable Vessel to remain at, or to proceed to and
  remain at, any port designated by the Agent until the failure is remedied to
  its satisfaction; (ii) pay the premiums due or effect and maintain insurances
  satisfactory to it; and/or (iii) otherwise remedy that failure in such manner
  as it considers appropriate without being obliged to do so, in each case
  without prejudice to its right to treat that failure as an Event of Default.
  (b) The Borrower shall immediately reimburse the Agent for any amounts paid
  by the Agent under paragraph (a) above, together with interest from the
  date of payment by the Agent to the date of reimbursement. 26. EVENTS OF DEFAULT Each of the events
  or circumstances set out in Clause 26 is an Event of Default (save for Clause
  26.22 (Acceleration). 5

  

 

	
  

  	
  26.1 Non-payment An Obligor does not pay
  on the due date any amount payable pursuant to a Finance Document at the
  place at and in the currency in which it is expressed to be payable unless:
  (a) its failure to pay is caused by administrative or technical error; and
  (b) payment is made within three Business Days of its due date. 26.2 Breach of Insurances Any Obligor
  fails to obtain and/or maintain the Insurances (in accordance with the
  requirements of the Finance Documents) or if any insurer in respect of such
  Insurances cancels the Insurances or disclaims liability by reason, in either
  case, of mis-statement in any proposal for the said Insurances or for any
  other failure or default on the part of an Obligor or any other person. 26.3 Financial covenants Any requirement
  of Clause 21 (Financial covenants) is
  not satisfied. 26.4 Other obligations
  (a) An Obligor does not comply with any provision of the Finance Documents
  (other than those referred to in Clause 26.1 (Non-payment), Clause 26.2 (Breach of Insurances) and Clause 26.3 (Financial covenants)) or of the Operative Documents. (b) No
  Event of Default under paragraph (a) above in relation to 22.1 (Authorisations) will occur if the
  failure to comply is capable of remedy and is remedied within ten
  (10) Business Days of the Agent (acting on behalf of the Secured
  Parties) giving notice to the relevant Obligor or the relevant Obligor
  becoming aware of the failure to comply. 26.5 Misrepresentation Any representation or statement made or deemed
  to be made by an Obligor in the Finance Documents or any other document
  delivered by or on behalf of any Obligor under or in connection with any
  Finance Document is or proves to have been incorrect or misleading in any
  material respect when made or deemed to be made. 26.6 Cross default (a) Any Financial Indebtedness of any member of
  the Group is not paid when due nor within any originally applicable grace
  period. (b) Any Financial Indebtedness of any member of the Group is declared
  to be or otherwise becomes due and payable prior to its specified maturity as
  a result of an event of default (however described). (c) Any commitment for
  any Financial indebtedness of any member of the Group is cancelled or
  suspended by a creditor of any member of the Group as a result of an event of
  default (however described). (d) Any creditor of any member of the Group
  becomes entitled to declare any Financial Indebtedness of any member of the
  Group due and payable prior to its specified maturity as a result of an event
  of default (however described). 6

  

 

	
  

  	
  (e) No Event of
  default will occur under this Clause 26.6 if the aggregate amount of
  Financial Indebtedness of any member of the Group or Commitment for Financial
  Indebtedness of any member of the Group falling within paragraphs (a) to
  (d) above is less than US$1,000,000 (or its equivalent in any other
  currency or currencies) or, in respect of the Guarantor only, US$5,000,000
  (or its equivalent in any other currency or currencies). 26.7 Insolvency (a) Any Obligor is unable
  or admits inability to pay its debts as they fall due, suspends making
  payments on any of its debts or, by reason of actual or anticipated financial
  difficulties, commences negotiations with one or more of its creditors with a
  view to rescheduling any of its indebtedness. (b) The value of the assets of
  any Obligor is less than its liabilities (taking into account contingent and
  prospective liabilities). (c) A moratorium is declared in respect of any
  indebtedness of any Obligor. 26.8 Insolvency
  proceedings Any corporate action, legal proceedings or other procedure
  or step is taken in relation to: (i) the suspension of payments, a moratorium
  of any indebtedness, winding-up, dissolution, administration or
  reorganisation (by way of voluntary arrangement, scheme of arrangement or
  otherwise) of any Obligor; (ii) a composition, compromise, assignment or
  arrangement with any creditor of any Obligor; (iii) the appointment of a
  liquidator, receiver, administrative receiver, administrator, compulsory
  manager or other similar officer in respect of any Obligor or any of their
  respective assets; or (iv) enforcement of any Security over any assets of any
  Obligor, or any analogous procedure or step is taken in any jurisdiction, but
  excluding any winding-up petition which is frivolous or vexatious and is
  discharged, stayed or dismissed within 14 days of commencement and prior to
  its advertisement. 26.9 Creditor&
  process Any expropriation, attachment, sequestration, distress or
  execution affects (i) any asset of a Borrower or (ii) assets of the
  Guarantor having an aggregate value of US$5,000,000 and which respectively is
  not discharged within 10 Business Days. 26.10 Change of Control A Change of Control occurs. 26.11 Final judgement An Obligor or any
  member of the Group fails to pay any sum due from it under any final
  judgement or final order made or given by any court of competent
  jurisdiction. 26.12 Cessation of
  business Any Obligor suspends or ceases or threatens to suspend or
  cease to carry on its business, other than a sale or total loss of a Vessel
  expressly permitted under the terms of this Agreement. 7

  

 

	
  

  	
  26.13 Unlawfulness It is or becomes
  unlawful for an Obligor or Sinosure to perform any of its obligations under
  the Finance Documents or the Sinosure Insurance Policy. 26.14 Seizure All or
  a material part of the undertaking, assets, rights or revenues of, or shares
  or other ownership interests in, the Obligors are seized, nationalised,
  expropriated or compulsorily acquired by or under the authority of any agency
  or governmental authority. 26.15 Termination
  and material breach of any Time Charter Any Time Charter is cancelled
  or terminated or becomes frustrated for any reason whatsoever (other than
  expiry by effluxion of time or where such termination was notified to the
  Agent and such notification was acknowledged and consented to in writing by
  the Agent and Sinosure, provided always that a new charter is entered into in
  accordance with Clause 24.5(d) and that Security equivalent to the Time
  Charter Assignments will have been granted to the Security Agent in respect
  of any replacement charter) or the Time Charterer fails to pay any
  Charterhire due thereunder for a period exceeding 30 days, or there is any
  other material breach of the Time Charter which has a Material Adverse
  Effect. 26.16 Management Agreement
  Notice of termination under a Management Agreement is served for any reason
  whatsoever, or a Management Agreement varied in any manner not permitted
  pursuant to the Finance Documents, where the relevant Borrower has not
  appointed a substitute manager which is satisfactory to the Agent. 26.17 Repudiation An Obligor or Sinosure
  repudiates a Finance Document or the Sinosure Insurance Policy or evidences
  an intention to repudiate a Finance Document or the Sinosure Insurance
  Policy. 26.18 Security and guarantees
  Any Security Document or any guarantee in any Finance Document is not in full
  force and effect or any Security Document does not create in favour of the
  Security Agent for the benefit of the Secured Parties the Security which it
  is expressed to create with the ranking and priority it is expressed to have.
  26.19 Sinosure Insurance Policy
  (a) The Sinosure Insurance Policy is cancelled, rescinded or otherwise
  terminated or impaired, or is not issued in full force and effect. (b)
  Sinosure ceases to be a policy-oriented statutory financial institution under
  the direct authority of the PRC State Council. (c) Sinosure refuses to accept
  a claim by the Insured or the Sinosure Agent (being duly appointed as agent
  by the Lenders, in other words, the Insured) under the Sinosure Insurance
  Policy or to pay the compensation in a manner as instructed by the Facility
  Agent (except where such refusal is valid under the Sinosure Insurance
  Policy. 8

  

 

	
  

  	
  26.20 Intercreditor
  Agreement Any party (other than a Secured Party) fails to comply with its
  obligations under the Intercreditor Agreement. 26.21 Material adverse change
  The Majority Lenders determine that a Material Adverse Effect exists, has
  occurred or might occur. 26.22 Acceleration (a) On and at any time after the
  occurrence of an Event of Default and subject to the prior consent of
  Sinosure (not to be unreasonably withheld or delayed), the Agent may, and
  shall if so directed by the Majority Lenders, by notice to the Obligors: (i)
  cancel the Total Commitments whereupon they shall immediately be cancelled;
  (ii) declare that all or part of the Loans, together with accrued interest,
  and all other amounts accrued or outstanding under the Finance Documents be
  immediately due and payable, whereupon they shall become immediately due and
  payable; and/or (iii) declare that all or part of the Loans be payable on
  demand, whereupon they shall immediately become payable on demand by the
  Agent on the instructions of the Majority Lenders. (b) On and at any time
  after the occurrence of an Event of Default, any Lender may instruct the
  Sinosure Agent (upon giving 3 Business Days notice the other Lenders) to
  enforce on its behalf its rights and remedies under the Sinosure Insurance
  Policy. (c) The Agent shall notify each Hedging Bank and Sinosure as soon as
  practicable after it exercises any of its rights under this Clause 26.22 (Acceleration). 9

  

 

	
  

  	
  SECTION 9 CHANGES TO PARTIES 27. CHANGES TO THE LENDERS 27.1 Assignments and transfers by the Lenders
  (a) Subject to this Clause 27, a Lender (the “Existing Lender”) may: (i) assign any of its rights; or (ii)
  transfer by novation any of its rights and obligations, under the Finance
  Documents to another bank or financial institution or to a trust, fund,
  Sinosure or other entity which is regularly engaged in or established for the
  purpose of making, purchasing or investing in loans, securities or other
  financial assets (the “New Lender”).
  (b) The consent of Sinosure (not to be unreasonably withheld or delayed) is
  required for an assignment or transfer by a Lender. (c) The consent of the
  Guarantor (not to be unreasonably withheld or delayed) is required for an
  assignment or transfer by a Lender, other than: (i) following the occurrence
  of an Event of Default; or (ii) in respect of an assignment or transfer by a
  Lender or to an Affiliate of a Lender. 27.2 Conditions of assignment or transfer (a) An Existing Lender
  shall notify the Obligors of an assignment or transfer to a New Lender which
  shall in each case be no lower than US$5,000,000. (b) An assignment will only
  be effective on: (i) receipt by the Agent of written confirmation from the
  New Lender (in form and substance satisfactory to the Agent) that the New
  Lender will assume the same obligations to the other Finance Parties as it
  would have been under if it was a Lender; (ii) the New Lender acceding to the
  Intercreditor Agreement in accordance with the terms of the Agreement; and
  (iii) subject to Clause 20.8 (“Know
  your customer checks”) performance by the Agent and the Security Agent
  of all necessary “know your customer” or other similar checks under all
  applicable laws and regulations in relation to such assignment to a New Lender,
  the completion of which the Agent shall promptly notify to the Existing
  Lender and the New Lender. (c) A transfer will only be effective if the New
  Lender accedes to the lntercreditor Agreement in accordance with the terms of
  the Agreement and the procedure set out in Clause 27.5 (Procedure for transfer) is
  complied with. (d) If: 10

  

 

	
  

  	
  (i) a Lender
  assigns or transfers any of its rights or obligations under the Finance
  Documents and its interests in respect of the Sinosure Insurance Policy
  (including rights against Sinosure and/or the Sinosure Agent or Agent) or
  changes its Facility Office; and (ii) as a result of circumstances existing
  at the date the assignment, transfer or change occurs, an Obligor would be
  obliged to make a payment to the New Lender or Lender acting through its new
  Facility Office under Clause 12 (Tax
  gross-up and Indemnities) or Clause 13 (Increased Costs), then the New Lender or Lender acting
  through its new Facility Office is only entitled to receive payment under
  those Clauses to the same extent as the Existing Lender or Lender acting
  through its previous Facility Office would have been if the assignment,
  transfer or change had not occurred, provided that, notwithstanding the
  foregoing, if Sinosure becomes a New Lender as a lender hereunder the
  provision of this paragraph (d) shall not apply but any payments
  required to be made by an Obligor pursuant to Clause 12 (Tax gross-up and indemnities) or
  Clause 13 (Increased Costs) shall
  apply. (e) Any assignment or transfer made by an Existing Lender of any of
  its rights and/or obligations with respect to any Tranche shall only be
  permitted if it is a pro rata assignment
  or transfer of such Existing Lender’s commitments and participations under
  that Tranche and under each other Tranche. (f) Each Borrower or Existing
  Lender shall promptly sign, seal, execute, acknowledge, deliver, file and
  register all such additional documents, instruments, agreements,
  certificates, consents and assurances and do all such other acts and things
  as may be required by law or reasonably requested by the Agent from time to
  time in order to establish, maintain, amend, protect or preserve the rights
  of a New Lender or a Finance Party under any Account Charge or to enable such
  New Lender to obtain the full
  benefits of such Account Charge. 27.3 Assignment
  or transfer fee The New Lender (other than Sinosure) shall, on the
  date upon which an assignment or transfer takes effect, pay to the Agent (for
  its own account) a fee of US$2,000.00. 27.4 Limitation of responsibility of Existing Lenders (a) Unless
  expressly agreed to the contrary, an Existing Lender makes no representation
  or warranty and assumes no responsibility to a New Lender for: (i) the
  legality, validity, effectiveness, adequacy or enforceability of the Finance
  Documents, the Sinosure Insurance Policy or any other documents; (ii) the
  financial condition of any Obligor or Sinosure; (iii) the performance and
  observance by any Obligor of its obligations under the Finance Documents or
  any other documents or by Sinosure of its obligations under the Sinosure
  Insurance Policy; or (iv) the accuracy of any statements (whether written or
  oral) made in or in connection with any Finance Document, the Sinosure
  Insurance Policy or any other document, and any representations or warranties
  implied by law are excluded. 97

  

 

	
  

  	
  (b) Each New
  Lender (other than Sinosure) confirms to the Existing Lender and the other
  Finance Parties that it: (i) has made (and shall continue to make) its own
  independent investigation and assessment of the financial condition and
  affairs of each Obligor and its related entities and Sinosure in connection
  with its participation in this Agreement and has not relied exclusively on
  any information provided to it by the Existing Lender in connection with any
  Finance Document or the Sinosure Insurance Policy; and (ii) will continue to
  make its own independent appraisal of the creditworthiness of each Obligor
  and its related entities and Sinosure whilst any amount is or may be
  outstanding under the Finance Documents or any Commitment is in force. (a)
  Nothing in any Finance Document obliges an Existing Lender to: (i) accept a
  re-transfer from a New Lender of any of the rights and obligations assigned
  or transferred under this Clause 27; or (ii) support any losses directly or
  indirectly incurred by the New Lender by reason of the non-performance by any
  Obligor of its obligations under the Finance Documents, the Sinosure
  Insurance Policy (if any) or by Sinosure of its obligations under the
  Sinosure Insurance Policy, or otherwise. 27.5 Procedure for transfer (a) Subject to the conditions set out in
  Clause 27.2 (Conditions of
  assignment or transfer) a transfer is effected in accordance with
  paragraph (c) below when the Agent as agent for all the Finance Parties
  including the Security Agent and, for this purpose only, for each Obligor,
  executes an otherwise duly completed Transfer Certificate delivered to it by
  the Existing Lender and the New Lender. The Agent shall, subject to paragraph
  (b) below, as soon as reasonably practicable after receipt by it of a
  duly completed Transfer Certificate appearing on its face to comply with the
  terms of this Agreement and delivered in accordance with the terms of this
  Agreement, execute that Transfer Certificate_ (b) The Agent shall only be
  obliged to execute a Transfer Certificate delivered to it by the Existing
  Lender and the New Lender once it is satisfied it and the Security Agent have
  complied with all necessary “know your customer” or other similar checks
  under all applicable laws and regulations in relation to the transfer to such
  New Lender. (c) On the Transfer Date: (i)
  to the extent that in the Transfer Certificate the Existing Lender
  seeks to transfer by novation its rights and obligations under the Finance
  Documents each of the Obligors and the Existing Lender shall be released from
  further obligations towards one another under the Finance Documents and their
  respective rights against one another under the Finance Documents shall be
  cancelled (being the “Discharged Rights
  and Obligations”); (ii) each of the Obligors and the New Lender shall
  assume obligations towards one another and/or acquire rights against one
  another which differ from the Discharged Rights and 98

  

 

	
  

  	
  Obligations
  only insofar as that Obligor and the New Lender have assumed and/or acquired
  the same in place of that Obligor and the Existing Lender; (iii) the Agent,
  the Arranger, the Sinosure Agent, the Security Agent, the New Lender and
  other Lenders shall acquire the same rights and assume the same obligations
  between themselves as they would have acquired and assumed had the New Lender
  been a Lender with the rights and/or obligations acquired or assumed by it as
  a result of the transfer and to that extent the Agent, the Arranger, the
  Sinosure Agent, the Security Agent and the Existing Lender shall each be
  released from further obligations to each other under the Finance Documents
  or in connection with the Sinosure Insurance Policy; and (iv) the New Lender
  shall become a Party as a “Lender”. 27.6 Copy of Transfer Certificate or Increase Confirmation to the Obligors
  The Agent shall, as soon as reasonably practicable after it has executed a
  Transfer Certificate or Increase Confirmation, send to the Obligors and the
  Security Agent a copy of that Transfer Certificate or Increase Confirmation.
  27.7 Disclosure of confidential
  information Any Secured Party may disclose: (a) to any of its
  Affiliates and Related Funds and any of its or their officers, directors,
  employees, professional advisers, auditors, partners and Representatives such
  Confidential Information as that Secured Party shall consider appropriate if
  any person to whom the Confidential Information is to be given pursuant to
  this paragraph (a) is informed in writing of its confidential nature and
  that some or all of such Confidential Information may be price-sensitive
  information except that there shall be no such requirement to so inform if
  the recipient is subject to professional obligations to maintain the
  confidentiality of the information or is otherwise bound by requirements of
  confidentiality in relation to the Confidential Information; (b) to any
  person: (I) to (or through) whom it assigns or transfers (or may potentially
  assign or transfer) all or any of its rights and/or obligations under one or
  more Finance Documents and to any of that person’s Affiliates, Related Funds,
  Representatives and professional advisers; (ii) Sinosure; (iii) with (or
  through) whom it or, where the disclosing party is the Agent , a Lender
  enters into (or may potentially enter into), whether directly or indirectly,
  any sub- participation in relation to, or any other transaction under which
  payments are to be made or may be made by reference to, one or more Finance
  Documents and/or one or more Obligors and to any of that person’s Affiliates,
  Related Funds, Representatives and professional advisers; (iv) appointed by
  any Secured Party or by a person to whom paragraph (b)(i),(ii) or
  (iii) above applies to receive communications, notices, information or
  documents 99

  

 

	
  

  	
  delivered
  pursuant to the Finance Documents on its behalf (including, without
  limitation, any person appointed under paragraph (c) of Clause 29.14 (Relationship with the Lenders));
  (v) who invests in or otherwise finances (or may potentially invest in or
  otherwise finance), directly or indirectly, any transaction referred to in
  paragraph (b)(i) or (b)(iii) above; (vi) to whom information is
  required or requested to be disclosed by any court of competent jurisdiction
  or any governmental, banking, taxation or other regulatory authority or
  similar body, the rules of any relevant stock exchange or pursuant to
  any applicable law or regulation; (vii)
  to whom or for whose benefit that Secured Party charges, assigns or
  otherwise creates Security (or may do so) pursuant to Clause 27.8 (Security over Lenders’ rights);
  (viii) to whom information is required to be disclosed in connection with,
  and for the purposes of, any litigation, arbitration, administrative or other
  investigations, proceedings or disputes; (ix) who is a Party; or (x) with the
  consent of the Borrower; in each case, such Confidential Information as that
  Finance Party shall consider appropriate if: (A) in relation to paragraphs
  (b)(i), (b)(ii), b(iii) and b(iv) above, the person to whom the
  Confidential Information is to be given has entered into a Confidentiality
  Undertaking except that there shall be no requirement for a Confidentiality
  Undertaking if the recipient is a professional adviser and is subject to
  professional obligations to maintain the confidentiality of the Confidential
  Information; (B) in relation to paragraph (b)(v) above, the person to
  whom the Confidential information is to be given has entered into a
  Confidentiality Undertaking or is otherwise bound by requirements of
  confidentiality in relation to the Confidential Information they receive and
  is informed that some or all of such Confidential Information may be
  price-sensitive information; (C) in relation to paragraphs (b)(vi),
  (b)(vii) and (b)(viii) above, the person to whom the Confidential Information
  is to be given is informed of its confidential nature and that some or all of
  such Confidential Information may be price-sensitive information except that
  there shall be no requirement to so inform if, in the opinion of that Secured
  Party, it is not practicable so to do in the circumstances; (C) to any person
  appointed by that Secured Party or by a person to whom paragraph (b)(i) or
  (b)(iii) above applies to provide administration or settlement services
  in respect of one or more of the Finance Documents including without
  limitation, in relation to the trading of participations in respect of the
  Finance Documents, such Confidential Information as 100

  

 

	
  

  	
  may be required
  to be disclosed to enable such service provider to provide any of the
  services referred to in this paragraph (c) if the service provider to
  whom the Confidential Information is to be given has entered into a
  confidentiality agreement substantially in the form of the LMA Master
  Confidentiality Undertaking for Use With Administration/Settlement Service
  Providers or such other form of confidentiality undertaking agreed between
  the Borrower and the relevant Finance Party; (d) to any rating agency
  (including its professional advisers) such Confidential Information as may be
  required to be disclosed to enable such rating agency to carry out its normal
  rating activities in relation to the Finance Documents and/or the Obligors if
  the rating agency to whom the Confidential Information is to be given is
  informed of its confidential nature and that some or all of such Confidential
  Information may be price-sensitive information. This Clause supersedes any
  previous agreement relating to the confidentiality of this information. 27.8 Security over Lenders’ rights In
  addition to the other rights provided to Lenders under this Clause 27, each
  Lender may without consulting with or obtaining consent from any Obligor, at
  any time charge, assign or otherwise create Security 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: (a) any charge,
  assignment or other Security to secure obligations to a federal reserve or
  central bank; and (b) in the case of any Lender which is a fund, any charge,
  assignment or other Security 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 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 for the Lender as a party to any
  of the Finance Documents; or (ii) require any payments to be made by an
  Obligor to be, or grant to any person any rights which are, greater or more
  extensive than those required to be made or granted to the relevant Lender
  under the Finance Documents, and payments shall continue to be made to that
  Lender unless notice to the contrary has been given to the Agent in
  accordance with Clause 29.14(a). 27.9 Prohibition
  on Debt Purchase Transactions by the Group No Obligor shall, and the
  Guarantor shall procure that each other member of the Group shall not: (a)
  enter into any Debt Purchase Transaction; or 101

  

 

	
  

  	
  (b)
  beneficially own all or any part of the share capital of a company that is a
  Lender or a party to a Debt Purchase Transaction of the type referred to in
  paragraphs (b) or (c) of the definition of Debt Purchase
  Transaction. 27.10 Additional
  Arranger A bank, financial institution, trust or fund shall become an
  Arranger if: (a) that bank, financial institution, trust or fund is or has
  become a Lender in accordance with the terms of this Agreement; and (b) that
  bank, financial institution, trust or fund delivers to the Agent a duly
  completed and executed Accession Letter; and (c) each Arranger consents in
  writing to such bank, financial institution, trust or fund becoming an
  Arranger. 28. CHANGES TO THE OBLIGORS
  No Obligor may assign any of its rights or transfer any of its rights or
  obligations under the Finance Documents without the consent of all Lenders. 102

  

 

	
  

  	
  SECTION 10 THE FINANCE PARTIES 29. ROLE OF THE AGENT, THE SECURITY AGENT AND
  THE ARRANGER 29.1 Appointment
  of the Agent and the Security Agent (a) Each other Finance Party,
  other than the Security Agent (save where expressly so specified), and each
  Hedging Bank appoints the Agent to act as its agent under and in connection
  with the Finance Documents. (b) Each other Secured Party appoints the Security
  Agent to act as security trustee under and in connection with the Finance
  Documents in relation to any security interest which is expressed to be or is
  construed to be governed by English or Liberian law, or any other law from
  time to time designated by the Security Agent and an Obligor. (c) Except as
  expressly provided in paragraph (b) and without limiting or affecting
  Clause 34.11 (Parallel Debt), each
  other Secured Party appoints the Security Agent to act as security agent
  under and in connection with the Finance Documents. (d) Each other Finance
  Party and each Hedging Bank authorises the Agent to
  exercise the rights, powers, authorities and discretions specifically given
  to it under or in connection with the Finance Documents together with any
  other incidental rights, powers, authorities and discretions. (e) Each other
  Secured Party authorises the Security Agent to
  exercise its rights, power, authorities and discretions specifically given to
  it under or in connection with the Finance Documents together with any other
  incidental rights, powers, authorities and discretions. (f) Each other
  Finance Party, other than the Security Agent, authorises
  the Agent to sign and execute the Intercreditor
  Agreement on its behalf. 29.2 Duties
  of the Agent and the Security Agent (a) The Agent shall promptly
  forward to a Party the original or a copy of any document which is delivered
  to the Agent for that Party by any other Party. (b) The Agent shall promptly
  forward a copy of any instructions given to it by the Sinosure
  Agent to the Lenders and details of any actions that it has taken or proposes
  to take pursuant to its instructions. (c) Except where a Finance Document
  specifically provides otherwise, neither the Agent nor the Security Agent is
  obliged to review or check the adequacy, accuracy or completeness of any
  document it forwards to another Party. (d) If the Agent receives notice from
  a Party referring to this Agreement, describing a Default and stating that
  the circumstance described is a Default, it shall promptly notify the Secured
  Parties and Sinosure. (e) If the Agent is aware of
  the non-payment of any principal, interest, commitment fee or other fee
  payable to a Finance Party (other than the Agent or the Arranger) under this
  Agreement or receives notice from a Party on the occurrence of any Cause of
  Loss (as provided for under 103

  

 

	
  

  	
  Article 2
  of the Sinosure Insurance Policy) under the Sinosure Insurance Policy, it shall promptly notify the
  other Secured Parties. (f) The
  Agent shall promptly send to the Security Agent such certification as the
  Security Agent may require pursuant to paragraph 7 (Basis of distribution) of Schedule 7 (Security Agency provisions). (g) The duties of the Agent
  and the Security Agent under the Finance Documents are solely mechanical and
  administrative in nature. Neither the Agent nor the Security Agent shall have
  any other duties save as expressly provided in the Finance Documents to which
  it is a party. (h) The parties agree as follows: (i)
  at any time prior to the Vote Disclosure Termination Date, where the Agent
  has requested instructions from the Lenders in relation to the exercise of
  any right, power or discretion vested in the Agent under this Agreement, the
  Agent shall, promptly on receipt of a written request from any Lender,
  disclose in writing to that Lender the instructions it has received to date
  in response to the Agent’s request for instructions and the amount of
  Commitment and/or participations in any Loan(s) hereunder which relates
  to each such instruction (but without having to disclose the name of any
  Lender); and (ii) if at any point in time the Majority Lenders notify the
  Agent in accordance with the provisions of Clause 35 (Notifications) that they wish for the provisions of
  sub-clause (i) above to be disapplied,
  the Agent will promptly confirm by notice to the other Parties that such
  provisions are disapplied as of the date on which
  the Agent issues that notice. 29.3 Role
  of the Arranger Except as specifically provided in the Finance
  Documents, each Arranger has no obligations of any kind to any other Party
  under or in connection with any Finance Document. 29.4 Role of the Security Agent The
  Security Agent shall not be an agent of (except as expressly provided in any
  Finance Document) any Secured Party or Obligor under or in connection with
  any Finance Document. 29.5 No
  fiduciary duties (a) Nothing in this Agreement constitutes
  the Agent, the Security Agent (except as expressly provided in any Finance
  Document) or the Arranger as a trustee or fiduciary of any other person. (b)
  Neither the Agent, the Security Agent (except as expressly provided in any
  Finance Document) nor the Arranger shall be bound to account to any Lender or
  any Hedging Bank for any sum or the profit element of any sum received by it
  or any Affiliate of it for its own account. 29.6 Business with the Group The Agent, the Security Agent and the
  Arranger or any Affiliate of any of them may accept deposits from, lend money
  to and generally engage in any kind of banking or other business with any
  member of the Group. 29.7 Rights and
  discretions of the Agent and the Security Agent (a) The Agent and the
  Security Agent may rely on: 104

  

 

	
  

  	
  (i) any representation, notice or document believed by it
  to be genuine, correct and appropriately authorised
  and shall have no duty to verify any signature on any document; and (ii) any
  statement made by a director, authorised signatory
  or employee of any person regarding any matters which may reasonably be
  assumed to be within his knowledge or within his power to verify. (b) The
  Agent and the Security Agent may assume (unless it has received notice to the
  contrary in its capacity as agent for the Lenders or, as the case may be, as
  security trustee for the Secured Parties) that: (i) no Default has occurred (unless
  it has actual knowledge of a Default arising under Clause 26.1 (Non-payment)); (ii) any
  right, power, authority or discretion vested in any Party, the Majority
  Lenders or the Majority Hedging Banks (as the case may be) has not been
  exercised; and (iii) any notice or request made by an Obligor (other than a Utillsation Request) is made on behalf of and with the
  consent and knowledge of all the Obligors. (c) The Security Agent may assume
  that any direction or instruction given to it by the Agent is duly authorised by the Majority Lenders, the Lenders, the
  Majority Hedging Banks or the Hedging Banks (as the case may be) and shall
  have no obligation to check whether such is the case. (d) Each of the Agent
  and the Security Agent may engage, pay for and rely on the advice or services
  of any lawyers, accountants, surveyors or other experts. (e) Each of the
  Agent and the Security Agent may act in relation to the Finance Documents
  through its personnel and agents. (f) The Agent may disclose to any other
  Party any information it reasonably believes it has received as agent under
  this Agreement and the Security Agent shall be entitled to call for and rely
  on any such information and the Agent shall be obliged to provide the same
  promptly on request. (g) Without prejudice to the generality of paragraph
  (f) above, the Agent may disclose the identity of a Defaulting Lender to
  the other Finance Parties and an Obligor and shall disclose the same upon the
  written request of an Obligor or the Majority Lenders. (h) Notwithstanding any
  other provision of any Finance Document to the contrary, neither the Agent,
  the Security Agent nor the Arranger is obliged to do or omit to do anything
  if it would or might in its reasonable opinion constitute a breach of any law
  or regulation or a breach of a fiduciary duty or duty of confidentiality.
  29.8 Majority Lenders’ instructions (a)
  (i) Unless a contrary indication appears in a
  Finance Document, prior to the Senior Discharge Date the Agent shall
  (A) exercise any right, power, authority or discretion vested in it as
  Agent in accordance with any instructions given to it by the Majority Lenders
  (or, if so instructed by the Majority Lenders, refrain from exercising any
  right, power, authority or discretion vested in it as Agent) and (B) not
  be liable for any act (or 105

  

 

	
  

  	
  omission) if it acts
  (or refrains from taking any action) in accordance with an instruction of the
  Majority Lenders. (ii) Unless a contrary indication appears in a Finance
  Document, after the Senior Discharge Date the Agent shall (A) exercise
  any right, power, authority or discretion vested in it as Agent in accordance
  with any instructions given to it by the Majority Hedging Banks or, if so
  instructed by the Majority Hedging Banks, refrain from exercising any right,
  power, authority or discretion vested in it as Agent and (B) not be
  liable for any act (or omission) if it acts (or refrains from taking any
  action) in accordance with the instructions of the Majority Hedging Banks.
  (iii) The Security Agent shall (A) exercise any right, power, authority
  or discretion vested in it as Security Agent in accordance with any
  instructions given to it by the Agent (or, if so instructed by the Agent,
  refrain from exercising any right, power, authority or discretion vested in
  it as Security Agent) and (B) not be liable for any act (or omission) if
  it acts (or refrains from taking any action) in accordance with the
  instruction of the Agent and (C) have no obligation to act or refrain
  from acting until so instructed. (b) Unless a contrary indication appears in
  a Finance Document, (i) prior to the Senior
  Discharge Date any instructions given by the Majority Lenders and
  (ii) after the Senior Discharge Date any instructions given by the
  Majority Hedging Banks will be binding on all the Secured Parties. (C) The
  Agent may refrain from acting in accordance with the instructions of the
  Majority Lenders (or, if appropriate, the Lenders) or the Majority Hedging
  Banks (or, if appropriate, the Hedging Banks) and the Security Agent may
  refrain from acting in accordance with the instructions of the Agent until
  (in either case, as the case may be) it has received such security as it may
  require for any cost, loss or liability (together with any associated VAT)
  which it may incur in complying with the instructions. (d) In the absence of
  instructions from the Majority Lenders (or, if appropriate, the Lenders), the
  Agent may act (or refrain from taking action) as it considers or, after the
  Senior Discharge Date, the Majority Hedging Banks (or if appropriate, the
  Hedging Banks) to be in the best interest of the Lenders and each Hedging
  Bank but the Security Agent shall have no obligation to act or refrain from
  acting. (e) Neither the Agent nor the Security Agent is authorised
  to act on behalf of a Lender (without first obtaining that Lender’s consent)
  in any legal or arbitration proceedings relating to any Finance Document. (f)
  Neither the Agent nor the Security Agent is authorised
  to act on behalf of a Hedging Bank (without first obtaining that Hedging
  Bank’s consent) in any legal or arbitration proceedings relating to any
  Finance Document. 29.9 Responsibility
  for documentation Neither the Agent, the Security Agent nor the
  Arranger: (a) is responsible for the adequacy, accuracy and/or completeness
  of any information (whether oral or written) supplied by the Agent, the
  Security Agent, the Arranger, an Obligor or any other person given in or in
  connection with any Finance Document; or 106

  

 

	
  

  	
  (b) is
  responsible for the legality, validity, effectiveness, adequacy or
  enforceability of any Finance Document or any other agreement, arrangement or
  document entered into, made or executed in anticipation of or in connection
  with any Finance Document. 29.10 Exclusion
  of liability (a) Without limiting paragraph (b) below, neither
  the Agent nor the Security Agent will be liable for any action taken by it
  under or in connection with any Finance Document, unless directly caused by
  its gross negligence, fraud or wilful misconduct.
  (b) No Party (other than the Agent or the Security Agent) may take any
  proceedings against any officer, employee or agent of the Agent or the
  Security Agent in respect of any claim it might have against the Agent or the
  Security Agent or in respect of any act or omission of any kind by that
  officer, employee or agent in relation to any Finance Document and any
  officer, employee or agent of the Agent or the Security Agent may rely on
  this Clause in accordance with the provisions of the Contracts (Rights of
  Third Parties) Act 1999. (C) Neither the Agent nor the Security Agent will be
  liable for any delay (or any related consequences) in crediting an account
  with an amount required under the Finance Documents to be paid by it if it
  has taken all necessary steps as soon as reasonably practicable to comply
  with the regulations or operating procedures of any recognised
  clearing or settlement system used by it for that purpose. (d) Nothing in
  this Agreement shall oblige the Agent, the Security Agent or the Arranger to
  carry out any “know your customer” or other checks in relation to any person
  on behalf of any Lender and each Lender confirms to the Agent, the Security
  Agent and the Arranger that it is solely responsible for any such checks it
  is required to carry out and that it may not rely on any statement in
  relation to such checks made by the Agent, the Security Agent or the
  Arranger. (e) Nothing in this Agreement shall oblige the Agent, the Security
  Agent or the Arranger to carry out any “know-your-customer” or other checks
  in relation to any person on behalf of any Hedging Bank and each Hedging Bank
  confirms to the Agent, the Security Agent and the Arranger that it is solely
  responsible for any such checks it is required to carry out and that it may
  not rely on any statement in relation to such checks made by the Agent, the Security
  Agent or the Arranger. 29.11 Lenders’
  Indemnity to the Agent and the Security Agent (a) Prior to the Senior Discharge Date each Lender shall (in
  proportion to its share of the Total Commitments or, if the Total Commitments
  are then zero, to its share of the Total Commitments immediately prior to
  their reduction to zero) indemnify the Agent and the Security Agent, within
  three Business Days of demand, against any cost, loss or liability incurred
  by the Agent or the Security Agent (otherwise than by reason of its fraud,
  gross negligence or wilful misconduct) in acting as
  Agent or, as the case may be, Security Agent under the Finance Documents
  (unless it has been reimbursed by an Obligor pursuant to a Finance Document) (“Indemnified Costs”). (b) After the
  Senior Discharge Date: (i) with respect to those
  Indemnified Costs which accrue from prior to the Senior Discharge Date, each
  Lender and each Hedging Bank shall (in the proportions as set out in
  paragraph (i) and (ii) below) indemnify
  the Agent and the Security Agent, within three Business Days of demand,
  against any Indemnified Costs, where 107

  

 

	
  

  	
  (A) the Lenders
  shall in aggregate indemnify half of the amount of any Indemnified Costs and
  each Lender shall bear such amount in proportion to its share of the Total
  Commitments or, if the Total Commitments are then zero, to its share of the
  Total Commitments immediately prior to their reduction to zero; and (B) the
  Hedging Banks shall in aggregate indemnify half of the amount of any
  Indemnified Costs and each Hedging Bank shall bear such amount in proportion
  to its mark to market exposure in respect of its transactions under the
  Hedging Documents to the Total MtM Exposure or, if
  the Total MtM Exposure is then zero, to its share
  of the Total MtM Exposure immediately prior to its
  reduction to zero. (ii) with respect to those Indemnified Costs which accrue
  after the Senior Discharge Date, each Hedging Bank shall (in proportion to
  its mark to market exposure in respect of its transactions under the Hedging
  Documents to the Total MtM Exposure or, if the
  Total MtM Exposure is then zero, to its share of
  the Total MtM Exposure immediately prior to its
  reduction to zero) indemnify the Agent and the Security Agent, within three
  Business Days of demand, against any Indemnified Costs. 29.12 Resignation of the Agent or the Security
  Agent (a) The Agent may resign and appoint one of its Affiliates
  acting through an office in the United Kingdom or elsewhere as successor by
  giving notice to the other Secured Parties and the Obligors. (b)
  Alternatively the Agent may resign by giving notice to the other Secured
  Parties and the Obligors, in which case (x) prior to the Senior
  Discharge Date, the Majority Lenders (after consultation with the Obligors)
  and (y) after the Senior Discharge Date, the Majority Hedging Banks,
  shall appoint a successor Agent. (c) The Security Agent may resign and
  appoint one of its Affiliates acting through an office in the United Kingdom
  or elsewhere as successor by giving notice to the other Secured Parties and
  the Obligors. (d) Alternatively the Security Agent may resign by giving
  notice to the other Secured Parties and the Obligors, in which case
  (x) prior to the Senior Discharge Date, all Lenders (after consultation
  with the Obligors) and (y) after the Senior Discharge Date, the Majority
  Hedging Banks, may appoint a successor Security Agent. (e) If the Majority
  Lenders or the Majority Hedging Banks (as the case may be) have not appointed
  a successor Agent in accordance with paragraph (b) above or, as the case
  may be, Security Agent in accordance with paragraph (d) above, within 30
  days after notice of resignation was given, the Agent or, as the case may be,
  the Security Agent (after consultation with the Obligors and the Hedging
  Banks) may appoint a successor Agent or Security Agent (acting through an
  office in the United Kingdom). (f) The retiring Agent or Security Agent
  shall, at its own cost, make available to its successor such documents and
  records and provide such assistance as its successor may reasonably request
  for the purposes of performing its functions as Agent or Security Agent under
  the Finance Documents. 108

  

 

	
  

  	
  (g) The
  resignation notice of the Agent or Security Agent shall only take effect upon
  the appointment of a successor. (h) Upon the appointment of a successor, the retiring Agent or
  Security Agent shall be discharged from any further obligation in respect of
  the Finance Documents but shall remain entitled to the benefit of this Clause
  29. Its successor and each of the other Parties shall have the same rights
  and obligations amongst themselves as they would have had if such successor
  had been an original Party. (i) Prior to the Senior
  Discharge Date and after consultation with the Obligors, the Majority Lenders
  may, by notice to the Agent or, all Lenders may, by notice to the Security
  Agent, require it to resign in accordance with paragraph (b) or
  (d) above (as the case may be). In this event, the Agent or, as the case
  may be, the Security Agent shall resign in accordance with paragraph
  (b) or (d) above (as the case may be). (j) After the Senior
  Discharge Date and after consultation with the Obligors, the Majority Hedging
  Banks may, by notice to the Agent or, as the case may be, the Security Agent,
  require it to resign in accordance with paragraph (b) or (d) above
  (as the case may be). In this event, the Agent or, as the case may be, the
  Security Agent shall resign in accordance with paragraph (b) or
  (d) above (as the case may be). 29.13 Confidentiality (a) The Agent (in acting as agent for any or all
  of (i) the Finance Parties and (ii) the
  Hedging Banks) and the Security Agent (in acting as security trustee for the
  Secured Parties) shall be regarded as acting through its respective agency or
  security trustee division which in each case shall be treated as a separate
  entity from any other of its divisions or departments. (b) If information is
  received by another division or department of the Agent or, as the case may
  be, the Security Agent, it may be treated as confidential to that division or
  department and the Agent or, as the case may be, the Security Agent shall not
  be deemed to have notice of it. 29.14 Relationship
  with the Lenders (a) The Agent and the Security Agent may treat each
  Lender as a Lender, entitled to payments under this Agreement and acting
  through its Facility Office unless the Agent or the Security Agent (as the
  case may be) has received not less than five Business Days prior notice from
  that Lender to the contrary in accordance with the terms of this Agreement. (b) Each Lender shall supply the
  Agent with any information required by the Agent in order to calculate the
  Mandatory Cost in accordance with Schedule 4 (Mandatory Cost formula). 29.15 Credit appraisal by the Lenders Without affecting the
  responsibility of any Obligor for information supplied by it or on its behalf
  in connection with any Finance Document or the Sinosure
  Insurance Policy, each Lender confirms to the Agent, the Security Agent and
  the Arranger that it has been, and will continue to be, solely responsible for
  making its own independent appraisal and investigation of all risks arising
  under or in connection with any Finance Document and the Sinosure
  Insurance Policy including but not limited to: (a) the financial condition,
  status and nature of each member of the Group or Sinosure;
  109

  

 

	
  

  	
  (b) the
  legality, validity, effectiveness, adequacy or enforceability of any Finance
  Document, the Sinosure Insurance Policy and any
  other agreement, Security, arrangement or document entered into, made or
  executed in anticipation of, under or in connection with any Finance Document
  and the Sinosure Insurance Policy; (c) whether that
  Lender has recourse, and the nature and extent of that recourse, against any
  Party or any of its respective assets under or in connection with any Finance
  Document or the Sinosure Insurance Policy, the
  transactions contemplated by the Finance Documents, the Sinosure
  Insurance Policy or any other agreement, Security, arrangement or document
  entered into, made or executed in anticipation of, under or in connection
  with any Finance Document or the Sinosure Insurance
  Policy; and (d) the adequacy, accuracy and/or completeness of any information
  provided by the Agent, the Security Agent, any Party or by any other person
  under or in connection with any Finance Document, the Sinosure
  Insurance Policy, the transactions contemplated by the Finance Documents, the
  Sinosure Insurance Policy or any other agreement,
  Security, arrangement or document entered into, made or executed in
  anticipation of, under or in connection with any Finance Document or the Sinosure Insurance Policy. 29.16 Credit appraisal by the Hedging Banks Without affecting the
  responsibility of any Obligor for information supplied by it or on its behalf
  in connection with any Finance Document, each Hedging Bank confirms to the
  Agent, the Security Agent and the Arranger that it has been, and will
  continue to be, solely responsible for making its own independent appraisal
  and investigation of all risks arising under or in connection with any Finance
  Document including but not limited to: (a) the financial condition, status
  and nature of each member of the Group; (b) the legality, validity,
  effectiveness, adequacy or enforceability of any Finance Document and any
  other agreement, Security, arrangement or document entered into, made or
  executed in anticipation of, under or in connection with any Finance
  Document; (c) whether that Hedging Bank has recourse, and the nature and
  extent of that recourse, against any Party or any of its respective assets under
  or in connection with any Finance Document, the transactions contemplated by
  the Finance Documents or any other agreement, Security, arrangement or
  document entered into, made or executed in anticipation of, under or in
  connection with any Finance Document; and (d) the adequacy, accuracy and/or
  completeness of any information provided by the Agent, the Security Agent,
  any Party or by any other person under or in connection with any Finance
  Document, the transactions contemplated by the Finance Documents or any other
  agreement, Security, arrangement or document entered into, made or executed
  in anticipation of, under or in connection with any Finance Document. 29.17 Reference Banks If a Reference Bank
  (or, if a Reference Bank is not a Lender, the Lender of which it is an
  Affiliate) ceases to be a Lender, the Agent shall (in consultation with the
  Obligors) appoint another Lender or an Affiliate of a Lender to replace that
  Reference Bank. 110

  

 

	
  

  	
  29.18 Management time of the Agent Any
  amount payable to the Agent under Clause 14.3 (Indemnity to the Agent, the Sinosure Agent
  and the Security Agent), Clause 16 (Costs and expenses) and Clause 29.11 (Lenders’ indemnity to the Agent and the Security Agent) shall
  include the cost of utilising its management time
  or other resources and will be calculated on the basis of such reasonable
  daily or hourly rates as it may notify to the Obligors and the Lenders, and
  is in addition to any fee paid or payable to it under Clause 11 (Fees). 29.19 Security Agency provisions The provisions
  of Schedule 7 (Security Agency
  provisions) shall bind each Party. 29 20 Deduction from amounts payable by the Agent or the Security Agent
  If any Party owes an amount to the Agent or the Security Agent under the
  Finance Documents the Agent or the Security Agent (as the case may be) may,
  after giving notice to that Party, deduct an amount not exceeding that amount
  from any payment to that Party which the Agent or the Security Agent (as the
  case may be) would otherwise be obliged to make under the Finance Documents
  and apply the amount deducted in or towards satisfaction of the amount owed.
  For the purposes of the Finance Documents that Party shall be regarded as
  having received any amount so deducted. 30. ROLE OF THE SINOSURE AGENT 30.1 Appointment and duties of the Sinosure Agent (a) Each Lender irrevocably
  appoints the Sinosure Agent to act as its agent
  under the Finance Documents in relation to matters involving Sinosure, and specifically the Sinosure
  Insurance Policy and payment of the Sinosure premium.
  (b) Each Lender and the Arranger irrevocably authorises
  the Sinosure Agent to: (i)
  perform the duties and to exercise the rights, powers and discretions that
  are specifically given to it under the Finance Documents, together with any
  other incidental rights, powers and discretions; and (ii) execute each
  Finance Document expressed to be executed by the Sinosure
  Agent. (c) The Sinosure Agent has only those duties
  which are expressly specified in the Finance Documents. (d) The Sinosure Agent shall be responsible for monitoring
  whether, in relation to a particular Loan, the further conditions precedent
  set out in Clause 4.4 (Further
  conditions precedent) are satisfied. (e) The Sinosure
  Agent shall promptly, and in any event, one Business Day prior to a proposed Utilisation Date, notify the Facility Agent in the event
  that the further condition precedent set out in Clause 4.4(d) (Further conditions precedent) is
  not satisfied. In the absence of any such notification (from the Sinosure Agent or any other entity), the Agent shall be
  entitled to assume that such further conditions precedent have been satisfied
  with regard to the proposed utilisation. 111

  

 

	
  

  	
  (f) The Sinosure Agent shall be entitled to perform its duties
  under the Finance Documents through its London Branch. 30.2 Resignation of the Sinosure
  Agent (a) The Sinosure Agent may resign and
  appoint one of its Affiliates as successor by giving notice to the other
  Finance Parties and the Borrower. (b) Alternatively the Sinosure
  Agent may resign by giving notice to the other Finance Parties and the
  Borrower, in which case the
  Majority Lenders (after consultation with the Borrower) may appoint a
  successor Sinosure Agent. (c) If the Majority
  Lenders have not appointed a successor Sinosure
  Agent in accordance with paragraph (b) above within 30 calendar days
  after notice of resignation was given, the Sinosure
  Agent (after consultation with the Borrower) may appoint a successor Sinosure Agent. (d) The retiring Sinosure
  Agent shall, at its own cost, make available to the successor Sinosure Agent such documents and records and provide such assistance as the successor Sinosure Agent may reasonably request for the purposes of
  performing its functions as Sinosure Agent under
  the Finance Documents. (e) The Sinosure Agent’s
  resignation notice shall only take effect upon the appointment of a
  successor. (f) Upon the appointment of a successor, the retiring Sinosure Agent shall be discharged from any further
  obligation in respect of the Finance Documents but shall remain entitled to
  the benefit of this Clause 30. Its successor and each of the other Parties
  shall have the same rights and obligations amongst themselves as they would
  have had if such successor had been an original Party. (g) After consultation
  with the Borrower, the Majority Lenders may, by notice to the Sinosure Agent, require it to resign in accordance with
  paragraph (b) above. In this event, the Sinosure
  Agent shall resign in accordance with paragraph (b) above. 30.3 Lenders’ indemnity to the Sinosure Agent Each Lender shall (in proportion to
  its share of the Total Commitments or, if the Total Commitments are then
  zero, to its share of the Total Commitments immediately prior to their
  reduction to zero) indemnify the Sinosure Agent
  within 5 Business Days of demand, against any cost, loss or liability
  incurred by the Sinosure Agent (otherwise than by
  reason of the Sinosure Agent’s gross negligence or wilful misconduct) in acting as Sinosure
  Agent under the Finance Documents or the insured party under the Sinosure Insurance Policy (unless the Sinosure
  Agent has been reimbursed by the Borrower pursuant to a Finance Document).
  31. THE ACCOUNT BANK 31.1 Role of the Account Bank (a) The
  Account Bank shall be responsible for performing the functions of an Account
  Bank expressly mentioned herein. (b) Except as specifically provided in the
  Finance Documents, the Account Bank has no obligations of any kind to any
  other Party under or in connection with any Finance Document. 112

  

 

	
  

  	
  (c) The Account
  Bank (in its capacity as Account Bank) shall not be deemed to be an agent,
  trustee or fiduciary of any Finance Party or an Obligor under or in
  connection with any Finance Document. The Account Bank does not have any
  proprietary interest in the amounts credited to the Earnings Accounts but
  merely holds such amounts as banker subject to the terms of this Agreement.
  (d) The duties of the Account Bank under the Finance Documents are solely
  mechanical and administrative in nature. (e) The Account Bank and the
  Borrowers shall comply with the terms of the provisions relating to it
  hereunder. 31.2 Account Bank’s
  business The Account Bank may accept deposits from, lend money to and
  generally engage in any kind of banking or other business with, a Borrower
  and any other party to any Finance Document or Operative Document. 31.3 Rights and discretions of the Account Bank
  (a) The Account Bank may rely on: (i) any
  representation, notice or document believed by it to be genuine, correct and
  appropriately authorised; and (ii) any statement
  made by a director, authorised signatory or
  employee of any person regarding any matters which may reasonably be assumed
  to be within his knowledge or within his power to verify. (b) The Account
  Bank may assume (unless it has received notice to the contrary in its capacity
  as Account Bank) that: (i) no Default has occurred
  (unless it has actual knowledge of a Default arising under Clause 26.1 (Non-payment)); and (ii) any right,
  power, authority or discretion vested in any Party has not been exercised.
  (c) The Account Bank may engage, pay for and rely on the advice or services
  of any lawyers, accountants, surveyors or other experts and may act in
  relation to the Finance Documents through its personnel and agents. 31.4 Excluded obligations Notwithstanding
  anything to the contrary expressed or implied in this Agreement, the Account
  Bank shall not: (a) be bound to enquire as to the occurrence or otherwise of
  a Default or the performance by any other party to any of the Finance
  Documents of its obligations thereunder; (b) be
  bound to exercise any right, power or discretion vested in such Account Bank
  under any of the Finance Documents; (c) be bound to account to any other
  party hereto for any sum or the profit element of any sum received by it for
  its own account; (d) be bound to disclose to any other person any information
  relating to any other person; or 113

  

 

	
  

  	
  (e) be under any obligation to enquire as to the purpose of
  any withdrawal from an Earnings Account. 31.5 Exclusion of liability The Account Bank does not accept any
  responsibility for the accuracy and/or completeness of any information
  supplied in connection with any Finance Document or for the legality,
  validity, effectiveness, adequacy or enforceability of any Finance Document
  and shall not be under any liability as a result of taking or omitting to
  take any action in relation to the Earnings Accounts or the Finance Documents
  save in the case of gross negligence or wilful
  misconduct. 31.6 No actions
  Each of the other Parties hereto agrees that it will not assert or seek to
  assert against any director, officer or employee of the Account Bank any
  claim it might have against the Account Bank in respect of the matters
  referred to in Clause 31.5 (Exclusion
  of liability). 31.7 Further
  Account Bank provisions (a) The Account Bank shall not be under any
  duty to give the amounts standing to the credit of the Earnings Accounts held
  by it hereunder any greater degree of care than it gives to its own similar
  property. (b) This Agreement expressly sets forth all the duties of the
  Account Bank. The Account Bank shall not be bound by (and shall be deemed not
  to have notice of) the provisions of any other agreement entered into by or
  involving either Borrower except this Agreement and any Payment Instruction
  and no implied duties or obligations of the Account Bank shall be read into
  this Agreement and any Payment Instruction. (c) The Account Bank is under no
  duty to ensure that funds withdrawn from the Earnings Accounts are actually
  applied for the purpose for which they were withdrawn or that any Payment
  Instruction or other instruction or direction by a Borrower or the Borrowers
  is accurate, correct or in accordance with this Agreement. (d) The Account
  Bank shall not be required to make any distribution to the extent that the
  amounts standing to the credit of the Earnings Accounts or the relevant
  Earnings Account is insufficient. (e) Each Borrower unconditionally agrees to
  the use of any form of telephonic or electronic monitoring or recording by
  the Account Bank as the Account Bank deems appropriate for security and
  service purposes. (f) (i) The Account Bank shall
  not be liable to any person or entity including, but not limited to the
  Borrowers for any loss, liability, claim, action, damages or expenses arising
  out of or in connection with its performance of or its failure to perform any
  of its obligations under this Agreement save as are caused by its own gross
  negligence or wilful default; (ii) no Party shall
  be required to perform any of its obligations under this Agreement in the
  event of a force majeure event or if performance would result in such Party
  being in breach of any law or other regulation; 114

  

 

	
  

  	
  (iii) the
  liability of the Account Bank hereunder shall be limited to an amount equal
  to the sum of the amounts standing to the credit of the Earnings Accounts;
  (iv) notwithstanding the foregoing, under no circumstance will the Account
  Bank be liable to any Party for any consequential loss (inter allia, being loss of business, goodwill, opportunity or
  profit) even if advised of the possibility of such loss or damage. (g) Each
  Borrower shall indemnify and keep the Account Bank (and, without limitation,
  its directors, officers, agents and employees) indemnified and hold each of
  them harmless from and against any and all losses, liabilities, claims,
  actions, damages, fees and expenses, (including lawyers’ fees and
  disbursements), arising out of or in connection with this Agreement, save as
  are caused by their own gross negligence or wilful
  default. (h) Without prejudice to Clause 31.7(f)(i),
  the Account Bank shall not be obliged to make any payment or otherwise to act
  on any request or instruction notified to it under this Agreement if it is
  unable: (i) to verify any signature on the notice
  of request or instruction against the specimen signature provided for the
  relevant Authorised Representative hereunder; and
  (ii) to validate the authenticity of a request by a Borrower by telephoning a
  Callback Contact who is not the relevant Authorised
  Representative for the relevant Party. (i) The
  Account Bank shall be entitled to rely upon any order, judgment, decree,
  certification, demand, notice, or other written instrument delivered to it
  hereunder without being required to determine the authenticity or the
  correctness of any fact stated therein or validity or the service thereof.
  The Account Bank may act in reliance upon any instrument or signature
  believed by it to be genuine and may assume that any person purporting to
  give receipt or advice or make any statement or execute any document in
  connection with the provisions hereof has been duly authorised
  to do so. Each Borrower acknowledges that it is fully aware of the risks
  associated with transmitting instructions via facsimile and telephone. (j)
  The Account Bank may consult lawyers or professional advisers over any
  question as to the provisions of this Agreement or its duties. The Account
  Bank may act pursuant to the advice of lawyers or other professional advisers
  with respect to any matter relating to this Agreement and shall not be liable
  for any action taken or omitted in accordance with such advice. (k) The
  Account Bank does not have any interest in the amounts standing to the credit
  of the Earnings Accounts deposited hereunder. (l) This paragraph (l), and
  paragraph (f), paragraph (g), paragraph (i) and
  paragraph (j), above, shall survive notwithstanding any termination of this
  Agreement or the resignation or replacement of the Account Bank. (m) The
  Account Bank shall have no responsibility for the contents of any ruling of
  the arbitrators or any third party contemplated in any other document, to
  which a Borrower is privy, as a means to resolve disputes and may rely
  without any liability upon the contents thereof. (n) In the event of any
  disagreement between the Borrowers and any other person resulting in adverse
  claims or demands being made in connection with the amounts standing to the
  credit of 115

  

 

	
  

  	
  the Earnings
  Accounts, or in the event that the Account Bank in good faith is in doubt as
  to what action it should take hereunder, the Account Bank shall be entitled
  to retain such amounts until required to release it in accordance with Clause
  18.4(d)(ii). (0) No printed or other matter in any language (including
  without limitation prospectuses, notices, reports and promotional material) which
  mentions the Account Bank’s name or the rights, powers, or duties of the
  Account Bank shall be issued by either Borrower or on its behalf unless the
  Account Bank shall first have given its written consent thereto. (p) The
  obligations and duties of the Account Bank will be performed only by the
  Account Bank and, except to the extent required under any applicable law, are
  not obligations or duties of any other Citigroup Company (including any
  branch or office of the Account Bank) and the rights of a Borrower and the
  Security Agent with respect to the Account Bank extend only to such Account
  Bank and, except to the extent required under any applicable law, do not
  extend to any other Citigroup Company. (q) The Account Bank may use (and its
  performance will be subject to the rules of) any communications,
  clearing or payment system, intermediary bank or other system. 31.8 Cessation by the Account Bank (a)
  The Account Bank may at any time (without assigning any reason therefor) notify the Agent and the Borrowers in writing
  that it wishes to cease to be the Account Bank under this Agreement and upon
  receipt of such notice the Agent, with the consent of the Borrowers (such
  consent not to be unreasonably withheld or delayed), may nominate as a
  successor to the Account Bank: (i) another Lender
  which has a minimum credit rating in respect of its unsecured long term debt
  of either BBB+ from S&P or Baal from Moody’s
  or, if higher, a rating equivalent to the retiring Account Bank; or, if none
  are able or willing to do so; (ii) another financial institution acting
  through an office in London and which has a minimum credit rating in respect
  of its unsecured long term debt of either A+ from S&P
  or Al from Moody’s, by giving notice to the Secured Parties and the
  Borrowers. (b) The Account Bank may (at its own cost) resign and appoint one
  of its Affiliates acting through an office in London and which has a minimum
  credit rating in respect of its unsecured long term debt of either BBB+ from S&P or Baal from Moody’s as successor by giving
  notice to the Lenders and the Borrowers. (c) The Account Bank’s resignation
  shall only take effect upon the successor Account Bank notifying the Agent
  that it accepts its appointment and such successor acceding to each of the
  Finance Documents to which the retiring Account Bank was a party, (d) If
  there is a change of Account Bank, the amount (if any) standing to the credit
  of the Earnings Accounts maintained with the old Account Bank will be
  transferred to the corresponding Earnings Accounts maintained with the new
  Account Bank immediately upon the appointment 116

  

 

	
  

  	
  taking effect,
  whereupon the Account Bank shall be discharged from all further obligations
  arising in connection with this Agreement. (e) The Borrowers shall do all
  such things as the Agent and the Security Agent may reasonably request in
  order to facilitate any such change (including, without limitation, the
  execution of bank mandate forms and replacement Security over the Earnings
  Accounts). They shall do so at their own expense in all cases other than
  where the Account Bank is resigning and appointing one of its Affiliates
  pursuant to paragraph (b) above. (f) Upon the appointment of a
  successor, the retiring Account Bank shall be discharged from any further
  obligation in respect of the Finance Documents but shall remain entitled to
  the benefit of this Clause 31. Its successor and each of the other Parties
  shall have the same rights and obligations amongst themselves as they would
  have had if such successor had been an original Party. (g) With the agreement
  of the Borrowers, such agreement not to be unreasonably withheld or delayed,
  the Lenders may, by notice to the Account Bank, require it to resign in
  accordance with paragraph (a) or (b) above.
  In this event, the Account Bank shall resign in accordance with paragraph
  (a) or (b) above, as the case may be. (h) The retiring Account Bank
  shall, at its own cost, make available to the successor Account Bank such
  documents and records and provide such assistance as the successor Account
  Bank may reasonably request for the purposes of performing its functions as the
  Account Bank under the Finance Documents. 32. CONDUCT OF BUSINESS BY THE FINANCE PARTIES No provision of this
  Agreement will: (a) interfere with the right of any Secured Party to arrange
  its affairs (tax or otherwise) in whatever manner it thinks fit; (b) oblige
  any Secured Party to investigate or claim any credit, relief, remission or
  repayment available to it or the extent, order and manner of any claim; or
  (c) oblige any Secured Party to disclose any information relating to its
  affairs (tax or otherwise) or any computations in respect of Tax. 33. SHARING AMONG THE SECURED PARTIES
  33.1 Payments to Secured Parties
  If a Secured Party (a “Recovering
  Secured Party”) receives or recovers any amount from an Obligor other
  than in accordance with Clause 34 (Payment
  mechanics) and applies that amount to a payment due under the Finance
  Documents then: (a) the Recovering Secured Party shall, within three Business
  Days, notify details of the receipt or recovery to the Agent; (b) the Agent shall determine
  whether the receipt or recovery is in excess of the amount the Recovering
  Secured Party would have been paid had the receipt or recovery been received
  or made by the Agent and distributed in accordance with Clause 34 (Payment 117

  

 

	
  

  	
  mechanics), without taking
  account of any Tax which would be imposed on the Agent in relation to the
  receipt, recovery or distribution; and (c)
  the Recovering Secured Party shall, within three Business Days of
  demand by the Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any
  amount which the Agent determines may be retained by the Recovering Secured
  Party as its share of any payment to be made, in accordance with Clause 34.5 (Partial payments and prepayments),
  provided that this Clause shall not apply to the Security Agent except in
  respect of amounts which would otherwise fall under paragraph (a) of Clause 34.5 (Partial payments and prepayments).
  33.2 Redistribution of payments The Agent shall treat the
  Sharing Payment as if it had been paid by the relevant Obligor and distribute
  it between the Secured Parties (other than the Recovering Secured Party) in
  accordance with Clause 34.5 (Partial
  payments and prepayments). 33.3 Recovering Secured Party’s rights (a) On a distribution by the
  Agent under Clause 33.2 (Redistribution
  of payments), the Recovering Secured Party will be subrogated to the
  rights of the Secured Parties which have shared in the redistribution. (b) If
  and to the extent that the Recovering Secured Party is not able to rely on its
  rights under paragraph (a) above, the relevant Obligor shall be liable
  to the Recovering Secured Party for a debt equal to the Sharing Payment which
  is immediately due and payable. 33.4 Reversal
  of redistribution If any
  part of the Sharing Payment received or recovered by a Recovering Secured
  Party becomes repayable and is repaid by that Recovering Secured Party, then:
  (a) each Secured Party which has received a share of the relevant Sharing
  Payment pursuant to Clause 33.2 (Redistribution
  of payments) shall, upon request of the Agent, pay to the Agent for
  account of that Recovering Secured Party an amount equal to the appropriate
  part of its share of the Sharing Payment (together with an amount as is
  necessary to reimburse that Recovering Secured Party for its proportion of
  any interest on the Sharing Payment which that Recovering Secured Party is
  required to pay); and (b) that Recovering Secured Party’s rights of
  subrogation in respect of any reimbursement shall be cancelled and the
  relevant Obligor will be liable to the reimbursing Secured Party for the
  amount so reimbursed. 33.5 Exceptions
  (a) This Clause 33 shall not apply to the extent that the Recovering Secured
  Party would not, after making any payment pursuant to this Clause, have a
  valid and enforceable claim against the relevant Obligor. (b) A Recovering
  Secured Party is not obliged to share with any other Secured Party any amount
  which the Recovering Secured Party has received or recovered as a result of
  taking legal or arbitration proceedings, if: 118

  

 

	
  

  	
  (i) it notified that other Secured Party of the legal or
  arbitration proceedings; and (ii) that other Secured Party had an opportunity
  to participate in those legal or arbitration proceedings but did not do so as
  soon as reasonably practicable having received notice and did not take
  separate legal or arbitration proceedings. 119

  

 

	
  

  	
  SECTION 11  ADMINISTRATION
  34. PAYMENT MECHANICS 34.1 Payments to the Agent (a) On each date on which an
  Obligor or a Lender is required to make a payment under a Finance Document
  (other than a payment under a Hedging Document), that Obligor (subject to
  Clause 34.10 (Payments to the
  Security Agent) or Lender shall make the same available to the Agent
  (unless a contrary indication appears in a Finance Document) for value on the
  due date at the time and in such funds specified by the Agent as being
  customary at the time for settlement of transactions in the relevant currency
  in the place of payment. (b) Payment shall be made to such account in the
  principal financial centre of the country of that currency with such bank as
  the Agent specifies. 34.2 Distributions
  by the Agent Each payment received by the Agent under the Finance
  Documents for another Party shall, subject to Clause 34.3 (Distributions to an Obligor) and
  Clause 34.4 (Clawback)
  and Clause 34.10 (Payments to
  the Security Agent), be made available by the Agent as soon as
  practicable after receipt to the Party entitled to receive payment in
  accordance with this Agreement (in the case of a Lender, for the account of
  its Facility Office), to such account as that Party may notify to the Agent
  by not less than five Business Days’ notice with a bank in the principal
  financial centre of the country of that currency. 34.3 Distributions to an Obligor The Agent and the Security Agent may
  (with the consent of the Obligor or in accordance with Clause 35 (Set-off)) apply any amount
  received by it for that Obligor in or towards payment (on the date and in the
  currency and funds of receipt) of any amount due from that Obligor under the
  Finance Documents or in or towards the purchase of any amount of any currency
  to be so applied. 34.4 Clawback (a) Where a sum is
  to be paid to the Agent or the Security Agent under the Finance Documents for
  another Party, the Agent or, as the case may be, the Security Agent is not
  obliged to pay that sum to that other Party (or to enter into or perform any
  related exchange contract) until it has been able to establish to its
  satisfaction that it has actually received that sum. (b) if the Agent or the
  Security Agent pays an amount to another Party and it proves to be the case
  that it had not actually received that amount, then the Party to whom that
  amount (or the proceeds of any related exchange contract) was paid shall on
  demand refund the same to the Agent or, as the case may be, the Security
  Agent together with interest on that amount from the date of payment to the
  date of receipt by the Agent or, as the case may be, the Security Agent,
  calculated by it to reflect its cost of funds. 120

  

 

	
  

  	
  34.5 Partial payments and prepayments (a)
  If the Agent receives a payment that is insufficient to discharge all the
  amounts then due and payable by an Obligor under the Finance Documents, the
  Agent shall apply that payment towards the obligations of that Obligor under
  the Finance Documents in the following order: (i) first, in or towards payment pro
  rata of any unpaid fees, costs and expenses of the Agent and the Security
  Agent under the Finance Documents; (ii)
  secondly, in or towards payment pro rata of any unpaid fees, costs and
  expenses of the Sinosure Agent, the Arranger, the
  Account Bank or Sinosure under the Finance
  Documents and the Sinosure Insurance Policy; (iii) thirdly, in or towards payment
  pro rata of any accrued interest, fee or commission due but unpaid under this
  Agreement; (iv) fourthly, in
  or towards payment pro rata of any principal due but unpaid under this
  Agreement; and (v) fifthly, in
  or towards payment pro rata of any other sum due but unpaid under the Finance
  Documents (which for the avoidance of doubt, includes any and all amounts due
  and payable under a Hedging Document). (b) The Agent shall, if so directed by
  all Lenders, vary the order set out in paragraphs (a)(iii) to
  (v) above unless such variance would adversely affect the priority of any
  payment due but unpaid to Sinosure or, as the case
  may be, to a Hedging Bank under a Hedging Document. In such circumstances the
  Agent shall not vary the order in this Clause 34.5 without the prior written
  consent of Sinosure and, as the case may be, each
  Hedging Bank. (c) Paragraphs (a) and (b) above will override any
  appropriation made by an Obligor. 34.6 No set-off by Obligors All payments to be made by an Obligor
  under the Finance Documents shall be calculated and be made without (and free
  and clear of any deduction for) set-off or counterclaim. 34.7 Business Days (a) Any payment which
  is due to be made on a day that is not a Business Day shall be made on the
  next Business Day in the same calendar month (if there is one) or the
  preceding Business Day (if there is not). (b) During any extension of the due
  date for payment of any principal or Unpaid Sum under this Agreement interest
  is payable on the principal or Unpaid Sum at the rate payable on the original
  due date. 34.8 Currency of account
  (a) Subject to paragraphs (b) to (e) below, Dollars is the currency
  of account and payment for any sum due from an Obligor under any Finance
  Document. (b) A repayment of a Loan or Unpaid Sum or a part of a Loan or
  Unpaid Sum shall be made in the currency in which that Loan or Unpaid Sum is
  denominated on its due date. (c) Each payment of interest shall be made in
  the currency in which the sum in respect of which the interest is payable was
  denominated when that interest accrued. 121

  

 

	
  

  	
  (d) Each
  payment in respect of costs, expenses or Taxes shall be made in the currency
  in which the costs, expenses or Taxes are incurred. (e) Any amount expressed
  to be payable in a currency other than Dollars shall be paid in that other
  currency. 34.9 Change of currency
  (a) Unless otherwise prohibited by law, if more than one currency or currency
  unit are at the same time recognised by the central
  bank of any country as the lawful currency of that country, then: (i) any reference in the Finance Documents to, and any
  obligations arising under the Finance Documents in, the currency of that
  country shall be translated into, or paid in, the currency or currency unit
  of that country designated by the Agent (after consultation with the
  Obligors); and (ii) any translation from one currency or currency unit to
  another shall be at the official rate of exchange recognised
  by the central bank for the conversion of that currency or currency unit into
  the other, rounded up or down by the Agent (acting reasonably). (b) If a
  change in any currency of a country occurs, this Agreement will, to the
  extent the Agent (acting reasonably and after consultation with the Obligors)
  specifies to be necessary, be amended to comply with any generally accepted
  conventions and market practice in the Relevant Interbank Market and
  otherwise to reflect the change in currency. 34.10 Payments to the Security Agent Notwithstanding any other
  provision of any Finance Document, at any time after any Security created by
  or pursuant to any Security Document becomes enforceable, the Security Agent
  may require: (a) any Obligor to pay all sums due under any Finance Document;
  or (b) the Agent to pay all sums received or recovered from an Obligor under
  any Finance Document, in each case as the Security Agent may direct for
  application in accordance with the terms of the Security Documents. Any
  payment made by the Security Agent to the Agent or directed by the Security
  Agent to be made to the Agent for distribution pursuant to this Clause 34
  shall discharge the obligations of the Security Agent to make payment of the
  same. 34.11 Parallel Debt (a)
  Each Obligor hereby irrevocably and unconditionally undertakes to pay to the
  Security Agent amounts equal to any amounts owing from time to time by that
  Obligor to any Secured Party under any Finance Document as and when those
  amounts are due. (b) Each Obligor and the Security Agent acknowledge that the
  obligations of each Obligor under paragraph (a) are several and are
  separate and independent from, and shall not in any way limit or affect, the
  corresponding obligations of that Obligor to any Secured Party under any
  Finance Document (its “Corresponding
  Debt”) nor shall the amounts for which each Obligor is liable under
  paragraph (a) (its “Parallel
  Debt”) be limited or affected in any way by its Corresponding Debt
  provided that: 122

  

 

	
  

  	
  (i) the Parallel Debt of each Obligor shall be decreased
  to the extent that its Corresponding Debt has been irrevocably paid or (in
  the case of guarantee obligations) discharged; and (ii) the Corresponding
  Debt of each Obligor shall be decreased to the extent that its Parallel Debt
  has been irrevocably paid or (in the case of guarantee obligations)
  discharged; and (iii) the amount of the Parallel Debt of an Obligor shall at
  all times be equal to the amount of its Corresponding Debt. (c) For the
  purpose of this Clause 34.11, the Security Agent acts in its own name and not
  as a trustee, and its claims in respect of the
  Parallel Debt shall not be held on trust. The Security granted under the
  Finance Documents to the Security Agent to secure the Parallel Debt is
  granted to the Security Agent in its capacity as creditor of the Parallel
  Debt and shall not be held on trust. (d) All monies received or recovered by
  the Security Agent pursuant to this Clause 34.11, and all amounts received or
  recovered by the Security Agent from or by the enforcement of any Security
  granted to secure the Parallel Debt, shall be applied in the order set out in
  sub-paragraphs (i) to (iv) (inclusive) of
  Clause 34.5(a) (Partial
  payments and prepayments) or in accordance with the provisions of
  Clause 34.10 (Payments to the
  Security Agent). (e) Without limiting or affecting the Security
  Agent’s rights against the Obligors (whether under this Clause 34.11 or under
  any other provision of the Finance Documents), each Obligor acknowledges
  that: (i) nothing in this Clause 34.11 shall impose
  any obligation on the Security Agent to advance any sum to any Obligor or
  otherwise under any Finance Document, except in its capacity as Lender; and
  (ii) for the purpose of any vote taken under any Finance Document, the
  Security Agent shall not be regarded as having any participation or
  commitment other than those which it has in its capacity as a Lender. 35. SET-OFF A Secured Party may set off
  any matured obligation due from an Obligor under the Finance Documents (to
  the extent beneficially owned by that Secured Party) against any matured
  obligation owed by that Secured Party to that Obligor, regardless of the
  place of payment, booking branch or currency of either obligation. If the
  obligations are in different currencies, the Secured Party may convert either
  obligation at a market rate of exchange in its usual course of business for
  the purpose of the set-off. For the purpose of this Clause 35, the term “Secured Party” includes each of the
  relevant Secured Party’s Holding Companies and Subsidiaries and each
  Subsidiary of each of the relevant Secured Party’s Holding Companies and each
  Affiliate of the relevant Secured Party. 123

  

 

	
  

  	
  36. NOTICES 36.1 Communications in writing Any communication to be made
  under or in connection with the Finance Documents shall be made in writing
  and, unless otherwise stated, may be made by fax or letter. 36.2 Addresses
  The address and fax number (and the department or officer, if any, for whose
  attention the communication is to be made) of each Party for any
  communication or document to be made or delivered under or in connection with
  the Finance Documents is: (a) in the case of each Obligor, that identified
  with its name below; (b) in the case of each Lender that notified in writing
  to the Agent on or prior to the date on which it becomes a Party; and (c) in
  the case of the Agent, the Sinosure Agent, the
  Security Agent, the Arranger, the Account Bank and the Original Hedging Bank,
  that identified with its name below, or any substitute address, fax number or
  department or officer as the Party may notify to the Agent (or the Agent may
  notify to the other Parties, if a change is made by the Agent) by not less
  than five Business Days’ notice. 36.3 Delivery
  (a) Any communication or document made or delivered by one person to another
  under or in connection with the Finance Documents will only be effective: (i) if by way of fax, when received in legible form; or
  (ii) if by way of letter, when it has been left at the relevant address or
  five Business Days after being deposited in the post postage prepaid in an
  envelope addressed to it at that address, and, if a particular department or
  officer is specified as part of its address details provided under Clause
  36.2 (Addresses), if
  addressed to that department or officer. (b) Any communication or document to
  be made or delivered to the Agent or the Security Agent will be effective
  only when actually received by the Agent and then only if it is expressly marked
  for the attention of the department or officer identified with its signature
  below (or any substitute department or officer as it shall specify for this purpose). (c) All notices (other than
  notices under the Hedging Documents) from or to an Obligor shall be sent
  through the Agent. (d) Any communication or document made or delivered to an
  Obligor in accordance with this Clause will be deemed to have been made or
  delivered to each of the Obligors. 36.4 Notification of address and fax number Promptly upon receipt of
  notification of an address and fax number or change of address or fax number
  pursuant to Clause 36.2 (Addresses) or
  changing its own address or fax number, the Agent shall notify the other
  Parties. 124

  

 

	
  

  	
  36.5 Electronic communication (a) 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 Lender: (i)
  agree that, unless and until notified to the contrary, this is to be an
  accepted form of communication; (ii) 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 (iii) notify each other
  of any change to their address or any other such information supplied by
  them. (b) Any electronic communication made between the Agent and a Lender
  will be effective only when actually received in readable form and in the
  case of any electronic communication made by a Lender to the Agent only if it
  is addressed in such a manner as the Agent shall specify for this purpose.
  36.6 English language (a) Any
  notice given under or in connection with any Finance Document must be in
  English. (b) All other documents provided under or in connection with any
  Finance Document must be: (i) in English; or (ii)
  if not in English, and if so required by the Agent, accompanied by a
  certified English translation and, in this case, the English translation will
  prevail unless the document is a constitutional, statutory or other official
  document. 37. CALCULATIONS AND
  CERTIFICATES 37.1 Accounts
  In any litigation or arbitration proceedings arising out of or in connection
  with a Finance Document, the entries made in the accounts maintained by a
  Secured Party are prima facie evidence of the matters to which they relate.
  37.2 Certificates and Determinations
  Any certification or determination by a Secured Party of a rate or amount
  under any Finance Document is, in the absence of manifest error, conclusive
  evidence of the matters to which it relates. 37.3 Day count convention Any interest, commission or fee accruing
  under a Finance Document will accrue from day to day and is calculated on the
  basis of the actual number of days elapsed and a year of 360 days or, in any
  case where the practice in the Relevant Interbank Market differs, in
  accordance with that market practice. 125

  

 

	
  

  	
  38. PARTIAL INVALIDITY If, at any
  time, any provision of the Finance Documents is or becomes illegal, invalid
  or unenforceable in any respect under any law of any jurisdiction, neither
  the legality, validity or enforceability of the remaining provisions nor the
  legality, validity or enforceability of such provision under the law of any
  other jurisdiction will in any way be affected or impaired. 39. REMEDIES AND WAIVERS No failure
  to exercise, nor any delay in exercising, on the part of any Secured Party,
  any right or remedy under the Finance Documents shall operate as a waiver,
  nor shall any single or partial exercise of any right or remedy prevent any
  further or other exercise or the exercise of any other right or remedy. The
  rights and remedies provided in this Agreement are cumulative and not
  exclusive of any rights or remedies provided by law. 40. AMENDMENTS AND WAIVERS 40.1 Required consents (a) Subject to Clause 40.2 (Exceptions) any term of the
  Finance Documents may be amended or waived only with the consent of the
  Majority Lenders and the Obligors (except in respect of the Hedging Documents
  and the Intercreditor Agreement, where the consent
  of the relevant Hedging Banks shall also be obtained) and any such amendment
  or waiver will be binding on all Parties. (b) The Agent may effect, on behalf
  of any Finance Party, any amendment or waiver permitted by this Clause. 40.2 Exceptions (a) An amendment or
  waiver that has the effect of changing or which relates to: (i) the definition of “Majority Lenders” in Clause 1.1 (Definitions); (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 or commission payable; (iv) an increase in or an
  extension of any Commitment; (v) a
  change to the Borrowers or the Guarantor other than in accordance with Clause
  28 (Changes to the Obligors);
  (vi) any provision which expressly requires the consent, direction or
  instruction of all the Lenders; (vii) Clause 2.6 (Secured Parties’ rights and obligations), Clause 22.10 (Hedging), Clause 27 (Changes to the Lenders), Clause 28
  (Changes to the Obligors), Clause
  33 (Sharing among the Secured
  Parties), Clause 34.5 (Partial
  payments and prepayments) (other than as provided in Clause 34.5) or
  this Clause 40, or clause 10 of the Intercreditor
  Agreement; (viii) the release of any Security created pursuant to any
  Security Document or of any Charged Assets (except as provided in any
  Security Document); 126

  

 

	
  

  	
  (ix) the  Sinosure Insurance Policy
  (except any amendment which is of a minor or technical nature or is made to
  correct a manifest error); (x) paragraph
  21 (Time Charterer) of
  Part II of Schedule 2 (Conditions
  Precedent to a Loan), shall not be made without the prior consent of
  all the Lenders. (b) An amendment or waiver which relates to the Intercreditor Agreement or to Clause 44 (Guarantee and indemnity) shall not be made without the prior
  consent of the Hedging Banks. (c) An amendment or waiver which relates to the
  rights or obligations of the Agent, the Security Agent, Sinosure,
  the Sinosure Agent or the Arranger may not be
  effected without the consent of the Agent, the Security Agent, Sinosure, the Sinosure Agent
  or, as the case may be the Arranger. (d) The decision of any Lender to any
  request to approve any consent, waiver, amendment or any other vote under the
  Finance Documents shall be irrevocable once delivered to the Agent. 40.3 Disenfranchisement of Defaulting Lenders
  (a) For so long as a Defaulting Lender has any Available Commitment, in
  ascertaining the Majority Lenders or whether any given percentage (including,
  for the avoidance of doubt, unanimity) of the Total Commitments has been
  obtained to approve any request for a consent, waiver, amendment or other
  vote under the Finance Documents, that Defaulting Lender’s Commitments will
  be reduced by the amount of its Available Commitments. (b) For the purposes
  of this Clause 40.3, the Agent may assume that the following Lenders are
  Defaulting Lenders: (i) any Lender which has
  notified the Agent that it has become a Defaulting Lender; (ii) any Lender in relation to which
  it is aware that any of the events or circumstances referred to in paragraphs
  (a), (b) or (c) of the definition of “Defaulting Lender” has occurred, unless it has received notice
  to the contrary from the Lender concerned (together with any supporting evidence
  reasonably requested by the Agent) or the Agent is otherwise aware that the
  Lender has ceased to be a Defaulting Lender. 40.4 Replacement of a Defaulting Lender (a) The Guarantor may,
  at any time a Lender has become and continues to be a Defaulting Lender, by
  giving 15 Business Days’ prior written notice to the Agent and such Lender: (i) replace such Lender by requiring such Lender to (and
  such Lender shall) transfer pursuant to Clause 27 (Changes to the Lenders) all (and not part only) of its rights
  and obligations under this Agreement; (ii) require such Lender to (and such Lender shall) transfer
  pursuant to Clause 27 (Changes to the Lenders) all (and not
  part only) of the undrawn Commitment of the Lender; or (iii) require such Lender to (and
  such Lender shall) transfer pursuant to Clause 27 (Changes to the Lenders) all (and not part only) of its rights
  and obligations in respect of each Facility, 127

  

 

	
  

  	
  to a Lender or
  other bank, financial institution, trust, fund or other entity (a “Replacement Lender”) selected by
  the Guarantor, and which is acceptable to the Agent (acting on the
  instructions of all of the Lenders), which confirms its willingness to assume
  and does assume all the obligations or all the relevant obligations of the
  transferring Lender (including the assumption of the transferring Lender’s
  participations or unfunded participations (as the case may be) on the same
  basis as the transferring Lender) for a purchase price in cash payable at the
  time of transfer equal to the outstanding principal amount of such Lender’s
  participation in the outstanding Loans and all accrued interest, Break Costs
  and other amounts payable in relation thereto under the Finance Documents.
  (b) Any transfer of rights and obligations of a Defaulting Lender pursuant to
  this Clause shall be subject to the following conditions: (i) the Guarantor shall have no right to replace the Agent
  or Security Agent; (ii) neither the Agent nor the Defaulting Lender shall
  have any obligation to the Guarantor to find a Replacement Lender; (iii) the
  transfer must take place no later than 15 days after the notice referred to
  in paragraph (a) above; and (iv) in no event shall the Defaulting Lender
  be required to pay or surrender to the Replacement Lender any of the fees
  received by the Defaulting Lender pursuant to the Finance Documents. 41. COUNTERPARTS Each Finance Document
  may be executed in any number of counterparts, and
  this has the same effect as if the signatures on the counterparts were on a
  single copy of the Finance Document. 128

  

 

	
  

  	
  SECTION 12 GOVERNING LAW AND ENFORCEMENT 42. GOVERNING LAW This Agreement and
  any non-contractual obligations arising out of or in connection with it is governed by English law. 43. ENFORCEMENT 43.1 Jurisdiction
  (a) The Parties irrevocably agree that any dispute arising out of or
  connected with this Agreement, including a dispute as to the validity,
  existence or termination of this Agreement or any non-contractual obligation
  arising out of or in connection with it (a “Dispute”), shall be resolved: (i)
  subject to sub-clause (ii) below, by proceedings brought in the courts
  of England, which courts are to have exclusive jurisdiction; or (ii) at the
  sole option of the Agent (or each Hedging Bank in respect of the Hedging
  Documents only), by arbitration in London, England, conducted in the English
  language by three arbitrators, in accordance with the LCIA
  Rules, which rules are deemed to be incorporated by reference into this
  clause, save that: (A) unless the parties agree otherwise, the third
  arbitrator, who shall act as chairman of the tribunal, shall be nominated by
  the two arbitrators nominated by or on behalf of the parties. If he is not so
  nominated within 30 days of the date of nomination of the later of the two
  party-nominated arbitrators to be nominated, he shall be chosen by the LCIA. If the Agent (or any Hedging Bank in respect of the
  Hedging Documents only) is in the position of a respondent and wishes to
  exercise this option, it must do so by notice to the other parties to the
  Dispute within 30 days of service on it of the request for arbitration; and
  (B) any provision of the LCIA Rules relating
  to the nationality of an arbitrator shall, to that extent, not apply. For the
  avoidance of doubt, sub-clause (i) above is
  for the benefit of the Secured Parties alone and shall not limit the right of
  the Secured Parties to bring proceedings in any other court of competent
  jurisdiction. (b) Each of the Parties irrevocably waives any objection which
  it might now or hereafter have to the courts of England being nominated as
  the forum to hear and determine any Dispute, and agrees not to claim that any
  such court is not a convenient or appropriate forum. 43.2 Obligors’ process agent Each Obligor
  irrevocably appoints Danaos Management Consultants
  (UK) Limited as the process agent (the “Obligor’s Agent”), now of 4 Staple Inn, Holborn,
  London WC1V  7QU, as its
  agent to accept service of process in England in any Dispute (whether that
  Dispute is to be resolved by arbitration or litigation), provided that: 129

  

 

	
  

  	
  (a) service
  upon the Obligor’s Agent shall be deemed valid service upon the relevant
  Obligor whether or not the process is forwarded to or received by that
  Obligor; (b) an Obligor shall inform all other Parties, in writing, of any
  change in the address of the Obligor’s Agent within 28 days of such change;
  (c) if the Obligor’s agent ceases to be able to act as a process agent or to
  have an address in England, each Obligor irrevocably agrees to appoint a new
  process agent in England acceptable to the other Parties to the Agreement and
  to deliver to the other Parties to the Agreement within 14 days a copy of a
  written acceptance of appointment by the new process agent; and (d) nothing
  in this Agreement shall affect the right to serve process in any other manner
  permitted by law. 43.3 Waiver of
  Consequential Damages In no event shall any Secured Party be liable on
  any theory of liability for any special, indirect, consequential or punitive
  damages and each Obligor hereby waives, releases and agrees (for itself and on
  behalf of its Subsidiaries) not to sue upon any such claim for any such
  damages, whether or not accrued and whether or not known or suspected to
  exist in its favour. 130

  

 

	
  

  	
  SECTION 13 EXISTING HEDGING DOCUMENTS 44. GUARANTEE AND INDEMNITY 44.1 Guarantee and indemnity Each
  Borrower absolutely, irrevocably and unconditionally, jointly and severally:
  (a) guarantees to each Hedging Bank punctual performance by the Guarantor of all the Guarantor’s obligations
  under the Existing Hedging Documents; (b) undertakes with each Hedging Bank
  that whenever the Guarantor does not pay any amount when due under or in
  connection with any Existing Hedging Document, it shall immediately on demand
  pay that amount as if it was the principal obligor; and (c) agrees with each Hedging
  Bank that if any obligation guaranteed by it is or becomes unenforceable,
  invalid or illegal, it will, as an independent and primary obligation,
  indemnify that Hedging Bank immediately on demand against any Loss it incurs
  as a result of the Guarantor not paying any amount which would, but for such
  unenforceability, invalidity or illegality, or any operation of law have been
  payable by it under any Existing Hedging Document on the date when it would
  have been due. The amount payable by a Borrower under this indemnity will not
  exceed the amount it would
  have had to pay under this Clause 44 if the amount claimed had been
  recoverable on the basis of a guarantee. 44.2 Continuing guarantee This guarantee is a continuing guarantee
  and will extend to the ultimate balance of sums payable by the Guarantor
  under the Existing Hedging Documents, regardless of any intermediate payment
  or discharge in whole or in part. 44.3 Reinstatement If any discharge, release or arrangement (whether
  in respect of the obligations of the Guarantor or any security for those
  obligations or otherwise) is made by a Hedging Bank in whole or in part on
  the basis of any payment, security or other disposition which is avoided or
  must be restored in insolvency, liquidation or otherwise, without limitation,
  then the liability of each Borrower under this Clause 44 will continue or be
  reinstated as if the discharge, release or arrangement had not occurred. 44.4 Waiver of defences
  The obligations of the Borrower under this Clause 44 will not be affected by
  an act, omission, matter or thing which, but for this Clause, would reduce,
  release or prejudice any of its obligations under this Clause 44 (without limitation and whether
  or not known to it or any Hedging Bank) including: (a) any time, waiver or
  consent granted to, or composition with, any Obligor or other person; 131

  

 

	
  

  	
  (b) the release
  of any other Obligor or any other person under the terms of any composition
  or arrangement with any creditor of any member of the Group; (c) the taking,
  variation, compromise, exchange, renewal or release of, or refusal or neglect
  to perfect, take up or enforce, any rights against, or security over assets
  of, any Obligor or other person or any non-presentation or non-observance of
  any formality or other requirement in respect of any instrument or any
  failure to realise the full value of any security;
  (d) any incapacity or lack of power, authority or legal personality of or
  dissolution or change in the members or status of an Obligor or any other
  person; (e) any amendment, novation, supplement,
  extension, restatement (however fundamental and whether or not more onerous)
  or replacement of any Finance Document or any other document or security,
  including any change in the purpose of, any extension of or any increase in
  any facility or the addition of any new facility under any Finance Document or
  other document or security; (f) any unenforceability, illegality or
  invalidity of any obligation of any person under any Finance Document or any
  other document or security; or (9) any insolvency or similar proceedings. 44.5 Immediate recourse Each Borrower
  waives any right it may have of first requiring any Hedging Bank (or any
  trustee or agent on its behalf) to proceed against or enforce any other
  rights or security or claim payment from any person before claiming from that
  Borrower under this Clause 44. This waiver applies irrespective of any law or
  any provision of a Finance Document to the contrary. 44.6 Appropriations Until all amounts
  which may be or become payable by the Obligors under or in connection with
  the Finance Documents have been irrevocably paid in full, each Hedging Bank
  (or any trustee or agent on its behalf) may: (a) refrain from applying or
  enforcing any other moneys, security or rights held or received by that
  Hedging Bank (or any trustee or agent on its behalf) in respect of those amounts,
  or apply and enforce the same in such manner and order as it sees fit
  (whether against those amounts or otherwise) and that Borrower shall be
  entitled to the benefit of the same;
  and (b) hold in an interest-bearing suspense account any moneys received from
  any Borrower or on account of the Borrower’s liability under this Clause 44.
  44.7 Deferral of Borrowers’ rights
  Until all amounts which may be or become payable by the Obligors under or in
  connection with the Finance Documents have been irrevocably paid in full and
  unless the Agent or, as the case may be, the Security Agent otherwise
  directs, no Borrower will exercise any rights which it may have by reason of
  performance by it of its obligations under the Finance Documents or by reason
  of any amount being payable or liability arising under this Clause 44: 132

  

 

	
  

  	
  (a) to be
  indemnified by an Obligor; (b) to claim or exercise any rights of
  contribution from any Obligor or any other guarantor of any Obligor’s
  obligations under the Finance Documents; (c) to exercise its rights of
  subrogation and reimbursement against any Obligor; (d) to claim or exercise
  any set-off or counterclaim against any Obligor or claim or prove in
  competition with the Agent or the Security Agent or any of the other Secured
  Parties in the liquidation of the Guarantor or any other Obligor or have the
  benefit of, or share in, any payment from or composition with, the Guarantor
  or any other Obligor or any other Finance Document now or hereafter held by
  any of the Secured Parties in respect of the obligations under the Finance
  Documents; (e) to bring legal or other proceedings for an order requiring any
  Obligor to make any payment, or perform any obligation, in respect of which
  any Borrower has given a guarantee, undertaking or indemnity under Clause
  44.1 (Guarantee and indemnity); and/or
  (f) to take the benefit (in whole or in part and whether by way of
  subrogation or otherwise) of any rights of the Secured Parties under the
  Finance Documents or of any other guarantee or security taken pursuant to, or
  in connection with, the Finance Documents by any Secured Party. If a Borrower
  receives any benefit, payment or distribution in relation to such rights it
  shall hold that benefit, payment or distribution to the extent necessary to
  enable all amounts which may be or become payable to the Hedging Banks by the
  Obligors under or in connection with the Finance Documents to be repaid in
  full on trust for the Secured Parties and shall promptly pay or transfer the
  same to the Agent or as the Agent may direct for application in accordance
  with Clause 34 (Payment mechanics) of
  this Agreement. 44.8 Additional
  security This guarantee is in addition to and is not in any way
  prejudiced by any other guarantee or security now or subsequently held by any
  Hedging Bank. 44.9 Limited Recourse
  Notwithstanding anything contained herein to the contrary, each Hedging Bank
  irrevocably and unconditionally agrees that: (a) its recourse under the
  guarantee provided by each Borrower pursuant to Clause 44.1 (Guarantee and indemnity), shall (subject to the terms of the Intercreditor Agreement) be limited to (i) the realisation of
  proceeds from the enforcement of any Security provided by the Borrowers under
  the Security Documents (including any proceeds thereunder
  realised in connection with such enforcement) and
  (ii) the recovery of any amounts under Clause 10 of the Intercreditor Agreement (the “Collateral”) and that it shall have no recourse against any
  Borrower or any of its assets (other than the Collateral) with respect to the
  obligations of the Borrower under this Clause 44; and (b) save as permitted
  under the Intercreditor Agreement, it shall not
  take any action to commence any case, proceeding, proposal or other action
  under any existing or future 133

  

 

	
  

  	
  law or in any
  jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganisation, arrangement in the nature of insolvency
  proceedings, adjustment, winding-up, liquidation, dissolution, or composition
  with respect to a Borrower or the debts of a Borrower. 44.10 Intercreditor Agreement This guarantee and
  indemnity is subject to the terms of the Intercreditor
  Agreement. This Agreement has been
  entered into on the date stated at the beginning of this Agreement. 134

  

 

	
  

  	
  SCHEDULE 1 THE ORIGINAL PARTIES PART I THE OBLIGORS Name of Borrowers
  Registration number (or equivalent, if any)  Teucarrier
  (No.2) Corp. C-109523 Teucarrier
  (No.3) Corp. C-109524 Teucarrier
  (No.4) Corp. C-109525 Name of Guarantor Trade registry number (or equivalent, if any)  Danaos Corporation 16381 135

  

 

	
  

  	
  PART II ORIGINAL LENDERS AND COMMITMENTS ORIGINAL LENDER
  COMMITMENT (US$) TRANCHE A TRANCHE B TRANCHE C The Export-Import Bank
  of China 47,460,000 47,460,000  47,460,000 Citibank
  N.A., London Branch 20,340,000 20,340,000  20,340,000 TOTAL 67,800,000 67,800,000  67,800,000 136

  

 

	
  

  	
  SCHEDULE 2 CONDITIONS PRECEDENT TO A LOAN PART I INITIAL
  CONDITIONS PRECEDENT 1. Obligors
  (a) A copy of the constitutional documents of each Obligor. (b) A copy of a
  resolution of the board of directors of each Obligor: (i)
  approving the terms of, and the transactions contemplated by, the Finance
  Documents and Operative Documents to which it is a party and resolving that
  it execute the Finance Documents and Operative Documents to which it is a
  party; (ii) authorising a specified person or
  persons to execute the Finance Documents and Operative Documents to which it
  is a party on its behalf; and (iii) authorising a
  specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if
  relevant, any Utilisation Request) to be signed
  and/or despatched by it under or in connection with
  the Finance Documents to which it is a party. (c) A specimen of the signature
  of each person authorised by the resolution
  referred to in paragraph 1(b) above. (d) A certificate of each Obligor
  (signed by a director) confirming that borrowing or guaranteeing, as
  appropriate, the Total Commitments would not cause any borrowing,
  guaranteeing or similar limit binding on any Obligor to be exceeded. (e) A
  certificate of an authorised signatory of the
  relevant Obligor certifying that each copy document relating to it specified
  in this Part I of Schedule 2 is correct, complete and in full force and
  effect as at a date no earlier than the date of this Agreement. (f) An
  original of each of the following Finance Documents duly executed by all
  parties to it: (i) this Agreement; (ii) the Sinosure Insurance Policy. (iii) the Intercreditor
  Agreement; (iv) each Hedging Document; (v) each Share Charge; (vi) each
  Manager’s Undertaking; (vii) each Hedging Documents Assignment; (viii) each
  Management Agreement Assignment; and (ix) each Fee Letter, 137

  

 

	
  

  	
  together with all
  notices and acknowledgements thereunder. (g) A
  certified copy of each Shipbuilding Contract executed by all parties to it.
  2. Borrower Parents A copy of
  a resolution of the board of directors of each Borrower Parent, approving the
  entry of the relevant Borrower into the terms of, and the transactions
  contemplated by, this Agreement Legal
  opinions (a) A legal opinion of Linklaters
  LLP, English law legal advisers to the Arranger, the Agent, the Original
  Hedging Bank and the Security Agent in England. (b) A legal opinion of Global
  Law Office, Chinese law legal advisers to the Sinosure
  Agent in the People’s Republic of China. (c) A legal opinion of
  Seward & Kissel LLP, Liberian law legal
  advisers to the Arranger, the Agent, the Original Hedging Bank and the
  Security Agent in New York. (d) A legal opinion of Seward & Kissel LLP, Marshall Islands advisers to the Arranger,
  the Agent, the Original Hedging Bank and the Security Agents in New York. (e)
  A legal opinion of Pologiorgis, Troullinos &
  Mavrou Greek law legal advisers to the Arranger,
  the Agent, the Original Hedging Bank and the Security Agent in Greece. (f) If
  an Obligor is incorporated in a jurisdiction other than England and Wales, a
  legal opinion of the legal advisers to the Arranger, the Agent, the Original
  Hedging Bank and the Security Agent in the relevant jurisdiction. 3. Construction stage certificates (a)
  A certified copy of the facsimile advice from the Seller attaching the
  confirmation from the Classification Society that the steel cutting has
  commenced. (b) A certified copy of the facsimile advice from the Seller
  attaching the confirmation from the Classification Society that the first
  block of the keel has been laid. 4. No
  variations to Shipbuilding Contract Confirmation from the Borrowers
  that there have been no amendments or variations agreed to the applicable
  Shipbuilding Contract that have not been agreed in writing by the Agent and
  that no action has been taken by either the Seller or any Obligor which might
  in any way render the applicable Shipbuilding Contract inoperative or
  unenforceable, in whole or in any part 5. Other documents and evidence
  (a) Evidence that any process agent referred to in Clause 43.2 (Obligors’ process agent) and other
  equivalent provisions in the other Finance Documents, if not an Obligor, has
  accepted its appointment. 138

  

 

	
  

  	
  (b) A certified
  copy of any other Authorisation or other document,
  opinion or assurance which the Agent considers to be necessary or desirable
  in connection with the entry into and performance of the transactions
  contemplated by any Finance Document or for the validity and enforceability
  of any Finance Document. (c) The Original Financial Statements of the
  Guarantor. (d) Evidence that the fees, costs and expenses then due from the
  Obligors pursuant to Clause 11 (Fees)
  and Clause 16 (Costs and
  expenses) have been paid or will be paid by the first Utilisation Date. (e) Evidence that each Earnings Account
  has been opened. (f) Evidence that: (i) each
  Borrower Parent remains the legal and beneficial owners of all of the issued
  capital of the relevant Borrower; (ii) members of the Coustas
  Family remain the ultimate legal and beneficial owners of at least thirty
  three and one third per cent. (331/3%) plus one share of the Guarantor. (g)
  Original signed share certificates of the entire issued share capital of each
  Borrower. (h) Executed undated resignation letter from each director of each
  Borrower. (i) Evidence that no law or regulation
  applies to the transaction which in the judgment of the Agent would restrain,
  prevent or impose a material adverse condition on the transactions
  contemplated under the Finance Documents including evidence that there is no
  material outstanding litigation in respect of an Obligor. (j) A certificate
  from Sinosure (signed by an authorised
  officer of Sinosure) confirming that all corporate
  actions have been taken to approve the transaction to be covered by the Sinosure Insurance Policy. (k)
  Evidence that the Sinosure Premium has been paid in
  full by the Obligors. (l) Evidence that the Sinosure
  Insurance Policy is in full force and effect and will apply to any and all
  Deliveries. (m) Certified copies of each of the Existing Hedging Documents.
  (n) A certificate of each Obligor (signed by a director) certifying either
  that (i) it has not registered one or more
  “establishments” (as that term is defined in Part 1 of the Overseas
  Companies Regulations 2009) with the Companies Registry; or (ii) it has
  such an establishment and specifying the name and registered number under
  which it is registered with the Companies Registry. (o) Evidence satisfactory
  to the Security Agent that the due registration of the Security created under
  each Account Charge, Share Charge, each Manager’s Undertaking, each
  Management Agreement Assignment, and each Hedging Documents Assignment and
  that all filings, registrations, recordings and other notices deemed necessary
  by the Security Agent in order to perfect the Security created by each Share
  Charge each Manager’s Undertaking and each Hedging Documents Assignment have
  been effected. 139

  

 

	
  

  	
  (p) Evidence
  that the export by the Seller of the Vessel and the issuance by Sinosure of the Sinosure
  Insurance Policy for the Facility under this Agreement has been approved by
  the Ministry of Commerce of the PRC and the China
  Chamber of Commerce for Import and Export Machinery as covered by the Export
  Insurance Financing Scheme for Large-Scale Complete Equipments of the PRC. 140

  

 

	
  

  	
  PART II CONDITIONS PRECEDENT TO A LOAN 1. Seller’s invoice, Receipts and Protocol of
  Delivery and Acceptance (a) Certified copy of the invoice from the
  Seller in respect of which payment of Final Instalment
  is due to the Seller from the Borrower. (b) In relation to the first Loan
  made under a Tranche, a copy of the receipt from the Seller and such other
  reasonable evidence confirming that all prior instalments
  of the Contract Price for the relevant Vessel, have been paid and that at
  least fifty per cent. (50%) of the Contract Price for the relevant Vessel has
  been paid to the Seller. (c) A copy of the Protocol of Delivery and
  Acceptance referred to in Article VII 2 of the Shipbuilding Contract, in
  form and substance satisfactory to the Agent to be duly executed by the
  relevant Borrower as buyer and the Seller as seller at Delivery of the
  Vessel. 2. Borrower confirmation
  Confirmation from the Borrower or its legal
  advisers that the conditions precedent set out in Part I of this
  Schedule 2 remain satisfied and confirmation from the Borrower that no
  further Authorisations are required. 3. No encumbrance Confirmation from the
  Borrowers that there is no Security (other than Permitted Lien) of any kind
  or permitted by any person on or relating to the relevant Vessel. 4. Vessel status Evidence that the
  Vessel: (a) is, or simultaneously with the delivery of the Vessel shall be,
  registered in the name of the relevant Borrower through the Registry under
  the laws and flag of the Flag State and confirmation from the relevant
  Borrower that the Vessel and its Earnings, Insurances and Requisition
  Compensation are free of Security (other than Permitted Lien); (b) has the
  Classification free of all recommendations and conditions of the
  Classification Society; and (c) is available to the Time Charterer for
  service under the Time Charter respectively. 5. Deletion of prior registration Evidence that any prior
  registration of the Vessel has been cancelled and that no Security (other
  than Permitted Lien) is registered against the Vessel on such register. 6. Delivery documents Confirmation
  from the relevant Borrower for each Vessel that it has received, or will
  receive, each of the following delivery documents (as referred to in Article VII
  3 of the relevant 141

  

 

	
  

  	
  Shipbuilding
  Contract), or evidence that each will be delivered to the relevant Borrower
  simultaneously with the Delivery of the Vessel: (a) the Protocol of Trials of
  the Vessel made pursuant to the Shipbuilding Contract specifications; (b) the
  Protocol of Inventory of the equipment of the Vessel pursuant to the
  Shipbuilding Contract specifications; (c) Protocol of Stores of Consumable
  Nature (if applicable under the Shipbuilding Contract); (d) Drawing and Plans
  of the Vessel pursuant to the Shipbuilding Contract specification; (e) all
  vessel certificates listed in paragraph 7 below; (f) Declaration of Warranty
  of the Seller that the Vessel is delivered free and clear of all Security,
  Tax and liabilities of the Seller to its sub-contractors and employees and
  all liabilities arising from trial runs of the Vessel and any other
  liabilities; (g) the Commercial Invoice; (h) the Bill of Sale (notarised and legalised); (i) Protocol of Deadweight Determination and Inclining
  Experiments; (j) the Non-Registration Certificate; (k) any other document
  required by the Registry in form and substance satisfactory to it; (l) any
  other certificate, drawing, plan or other document reasonably required by the
  Borrower and/or Agent for Vessel registration purposes. 7. Vessel Certificate A certified copy
  for the applicable Vessel of each of the following original or provisional
  certificates (as referred to in Article VII 3 (f) of the relevant
  Shipbuilding Contract), or evidence that each will be delivered
  simultaneously with the Delivery of the Vessel: (i)
  Classification Certificate; (ii) Safety Construction Certificate; (iii)
  Safety Equipment Certificate; (iv) Safety Radio Certificate; (v)
  International Loadline Certificate; (vi)
  International Tonnage Certificate; (vii) Builder’s Certificate; and (viii)
  De-ratting Exemption Certificate, with certified copies of original formal
  certificates to follow promptly where a certificate was delivered in
  provisional format. 142

  

 

	
  

  	
  8. Security Documents and Operative Documents
  (a) The: (i) Mortgage, Assignment of Earnings and
  Insurances, Account Charge and Time Charter Assignment and each duly executed
  and delivered together with any other documents, notices of assignment or
  acknowledgments required pursuant thereto; and (ii) Time Charters and
  Management Agreements, each duly executed and delivered, or to be duly
  executed and delivered simultaneously with the Delivery of the Vessel. (b) In
  relation to an Account Charge already entered into by any Borrower, sign,
  seal, execute, acknowledge, deliver, file and register all such additional
  documents, instruments, agreements, certificates, consents and assurances and
  do all such other acts and things as may be requested by law or reasonably
  requested by the Agent from time to time in order to establish, maintain,
  amend, protect or preserve the rights of a Finance Party under such Account
  Charge or to enable the same to obtain the full benefits of such Account
  Charge. (c) Evidence satisfactory to the Security Agent that the due
  registration of the Security created under the Assignment of Earnings and
  Insurances and Time Charter Assignments and that all filings, registrations,
  recordings and other notices deemed necessary by the Security Agent in order
  to perfect the Security created by the Assignment of Earnings and Insurances
  and Time Charter Assignments have been effected. (d) Evidence satisfactory to
  the Lenders that the relevant Vessel has been delivered and/or accepted
  under, in accordance with and for the purposes of the Time Charter relating
  to that Vessel. 9. Hedging
  Arrangements If applicable, any Hedging Documents, duly executed. 10. Mortgage registration Evidence that
  the relevant Mortgage has been (or will be simultaneously with the delivery
  of the Vessel) registered against the Vessel through the Registry under the
  laws and flag of the Flag State. 11.
  Insurances Evidence that the relevant Vessel is (or will be
  simultaneously with the Delivery of the Vessel) insured in accordance with
  the provisions of the Finance Documents and that all requirements of the
  Finance Documents in respect of such insurance have been complied with
  (including, without limitation, (A) confirmation from the P&I Club or other insurer with which the relevant
  Vessel is, or is to be, entered for insurance or insured against protection
  and indemnity risks (including oil pollution risks) that any necessary
  declarations required by the association or insurer for the removal of any
  oil pollution exclusion have been made and that any such exclusion does not
  apply to the relevant Vessel and (B) receipt by the Agent of pro-forma
  letters of undertaking from the brokers and the relevant protection and
  indemnity or war risks association in such form as the Agent may reasonably
  require. 143

  

 

	
  

  	
  12. Manager’s confirmation  Confirmation from the Manager in writing that, to the
  best of its knowledge, information and belief, the representations and
  warranties set out in Clause 19.1(p) (Environmental releases) are true and correct. 13. ISM Code and ISPS Code compliance
  (a) Evidence that the Manager has applied to the appropriate regulatory
  agency for a DOC for itself and a SMC for the Vessel to be issued pursuant to
  the ISM Code within any time limit required or recommended by such regulatory
  agency and, if available, copies of such certificates. (b) Evidence that the
  Manager has applied for and/or obtained an international ship security
  certificate (ISSC) in respect of each Vessel under
  the provisions of the ISPS Code. 14.
  Asset Cover Requirement and valuation  (a) Evidence
  that the minimum Asset Cover Ratio has been met. (b) A Valuation in relation
  to the Vessel. 15. Consents and
  approvals All permissions and approvals, if any, required by the
  Borrowers and/or the Time Charterers with regard to the operation of the
  Vessel. 16. Export licence A copy, certified as true, complete and up
  to date by an officer of the Borrower, of the Certificate of Export Report in
  respect of the Vessel, filed or to be filed by the Seller with the relevant
  agency in the People’s Republic of China 17. Corporate Authorisations Copies of the
  resolutions of the Borrower’s directors and the shareholders (where
  applicable) evidencing authorisation of the
  acceptance of the delivery of the Vessel and authorisation
  and approval of the Finance Documents and Operative Documents to be executed
  upon or in relation to the delivery of the Vessel and the transactions
  contemplated therein and any other documents issued or to be issued pursuant
  thereto and authorising its appropriate officer or
  other representative to execute the same on its behalf certified in the
  manner referred to in Part I of this Schedule 2 (or other evidence of
  such authorisations, approval and/or ratification)
  together with originals or certified copies of any power of attorney issued
  pursuant to the said resolutions. 18 Legal
  Opinions (a) A legal opinion of Linklaters
  LLP, English law legal advisers to the Arranger, the Agent, the Original
  Hedging Bank and the Security Agent in England. 144

  

 

	
  

  	
  (b) A legal
  opinion of Global Law Office, Chinese law legal advisers to the Sinosure Agent in the People’s Republic of China. (c) A
  legal opinion of Seward & Kissel LLP,
  Liberian law legal advisers to the Arranger, the Agent, the Original Hedging
  Bank and the Security Agent in New York. (d) A legal opinion of
  Seward & Kissel LLP, Marshall Islands
  legal advisers to the Arranger, the Agent, the Original Hedging Bank and the
  Security Agent in New York. (e) A legal opinion of MCConsult,
  Maltese law legal advisers to the Arranger, the Agent and the Security Agent
  in Malta. (f) If an Obligor is incorporated in a jurisdiction other than
  England and Wales, a legal opinion of the legal advisers to the Arranger, the
  Agent and the Security Agent in the relevant jurisdiction. 19. No Default Confirmation from the
  Borrower that no Default or Event of Default has occurred or is continuing
  under any Finance Document and that no default or event of default, howsoever
  described, has occurred or is continuing under any Operative Document. 20. Material adverse change and litigation
  There has been: (a) no Material Adverse Effect; or (b) no litigation,
  arbitration or administrative proceedings of or before any court, arbitral
  body or agency (including but not limited to investigative proceedings)
  which, if adversely determined, would have a Material Adverse Effect. 21. Time Charterer Evidence satisfactory
  to the Lenders that the relevant Time Charter remains in full force and
  effect. 22. Other conditions
  Such other conditions as the Agent may reasonably require to evidence, based
  on the legal advice received from the legal advisers referred to herein, the
  legality, validity and/or enforceability of the obligations of each Party
  under the Finance Documents and the Operative Documents. 145

  

 

	
  

  	
  PART III CONDITIONS SUBSEQUENT Each Borrower
  shall separately fulfil the conditions set out in
  Part 111 of Schedule 2 (Conditions
  Subsequent) on the Delivery of each Vessel. 1. Protocol of Delivery and Acceptance An original Protocol of
  Delivery and Acceptance, referred to in Part III(b) of
  Schedule 2, duly executed by the relevant Borrower as buyer and the Seller as
  seller of the Vessel. 2. Vessel
  status Evidence (to the extent this evidence has not already been
  provided pursuant to Part II 4(a) of Schedule 2) that: (a) the relevant
  Vessel is registered in the name of the relevant Borrower through the
  Registry under the laws and flag of the Flag State; (b) has the
  Classification free of all qualifications, requirements and recommendations
  of the Classification Society; and (c) is available to the Time Charterer for
  service under the Time Charter. 3. Delivery
  documents Confirmation from the relevant Borrower that each of the
  Delivery documents listed at Part II 6(a) - (I) inclusive of
  Schedule 2 has been received. 4.
  Vessel Certificates Certified copies of each of the Vessel
  Certificates listed at Part II 7(i) -
  (viii) inclusive of Schedule 2. 5. Security Documents and Operative Documents The Mortgage,
  Assignment of Earnings and Insurances, Time Charter Assignment, Manager’s
  Undertaking, Time Charters and Management Agreements, each duly executed and
  delivered (to the extent these have not already been provided pursuant to
  Part II 8 (a) and (b) of Schedule 2). 6. Registration of Mortgage Evidence
  that the Mortgage has been registered against the Vessel through the
  Registry. 7. Insurance
  Evidence that the Vessel is insured in accordance with the provisions of the
  Finance Documents (to the extent this evidence has not already been provided
  pursuant to Part II 11 of Schedule 2). 8. Certificate of Export Report A certified copy of the
  Certificate of Export Report filed by the Seller with the relevant agency in
  the People’s Republic of China (to the extent this has not already been
  provided pursuant to Part III 16 of Schedule 2). 146

  

 

	
  

  	
  9. Legal opinions Each of the
  legal opinions issued pursuant to Part III 18 of Schedule 2. 10. Contract Price Evidence from the
  Seller that Contract Price and any other amount under the relevant
  Shipbuilding Contract has been paid in full by the relevant Borrower. 147

  

 

	
  

  	
  SCHEDULE 3 REQUESTS  UTILISATION REQUEST From: [Name of relevant
  Borrower] To: Citibank International plc Dated: Dear Sirs Teucarrier (No.2) Corp., Teucarrier (No.3) Corp. and Teucarrier (No.4) Corp. — US$203,400,000 Facility Agreement dated
  February 2011 (the “Agreement”) 1. We refer to the Agreement.
  This is a  Utilisation
  Request. Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in
  this Utilisation Request. 2. We wish to borrow a
  Loan on the following terms: Proposed Utilisation
  Date: Tranche A, Tranche B or Tranche C to be utilised:
  Amount: [ ] or, if that is not a Business Day, the next Business Day)
  [ ] [ ] or, if less, the Available Facility for the above mentioned
  Tranche Interest Period: 6 (six) months (subject to Clause 9 (Interest Periods)) 3. We confirm
  that each condition specified in Clause 4.4 (Further conditions precedent) is satisfied on the date of
  this Utilisation Request. 4. The proceeds of this
  Loan should be remitted [to a non-interest bearing suspense account of the
  Security Agent to be held to the order of the Security Agent, for further
  credit to a Borrower for the purposes of re-financing instalments
  of the Contract Price paid to date, subject to the conditions set out in
  Clause 4.2(c)(ii)] [to the Seller’s Bank for the purpose of financing the
  Final Instalment, subject to the irrevocable
  payment instructions substantially in the form set out in Clause 4.2(d)]. 5.
  This Utilisation Request is irrevocable. Yours
  faithfully authorised signatory for [name of
  relevant Borrower] 148

  

 

	
  

  	
  SCHEDULE 4 MANDATORY COST FORMULA 1. The Mandatory Cost is an addition to the interest rate to
  compensate Lenders for the cost of compliance with (a) the requirements
  of the Bank of England and/or the Financial Services Authority (or, in either
  case, any other authority which replaces all or any of its functions) or
  (b) the requirements of the European Central Bank. 2. On the first day
  of each Interest Period (or as soon as possible thereafter) the Agent shall
  calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory
  Cost will be calculated by the Agent as a weighted average of the Lenders’
  Additional Cost Rates (weighted in proportion to the percentage participation
  of each Lender in the relevant Loan) and will be expressed as a percentage
  rate per annum. 3. The Additional Cost Rate for any Lender lending from a
  Facility Office in a Participating Member State will be the percentage
  notified by that Lender to the Agent. This percentage will be certified by
  that Lender in its notice to the Agent to be its reasonable determination of
  the cost (expressed as a percentage of that Lender’s participation in all
  Loans made from that Facility Office) of complying with the minimum reserve
  requirements of the European Central Bank in respect of loans made from that
  Facility Office. 4. The Additional
  Cost Rate for any Lender lending from a Facility Office in the United Kingdom
  will be calculated by the Agent as follows: E x 0.01 per cent. per annum. Where: 300 E is designed to compensate Lenders
  for amounts payable under the Fees Rules and is calculated by the Agent
  as being the average of the most recent rates of charge supplied by the
  Reference Banks to the Agent pursuant to paragraph 7 below and expressed in
  pounds per £1,000,000. 5. For
  the purposes of this Schedule: (a)
  “Fees Rules” means the rules on periodic fees contained in the
  Financial Services Authority Fees Manual or such other law or regulation as
  may be in force from time to time in respect of the payment of fees for the
  acceptance of deposits; (b) “Fee
  Tariffs” means the fee tariffs specified in the Fees Rules under
  the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero
  rated fee required pursuant to the Fees Rules but taking into account
  any applicable discount rate); and (c)
  “Tariff Base” has the meaning given to it in, and will be calculated
  in accordance with, the Fees Rules. 149

  

 

	
  

  	
  6. The
  resulting figure shall be rounded to four decimal places. 7. If requested by
  the Agent, each Reference Bank shall, as soon as practicable after
  publication by the Financial Services Authority, supply to the Agent, the
  rate of charge payable by that Reference Bank to the Financial Services
  Authority pursuant to the Fees Rules in respect of the relevant
  financial year of the Financial Services Authority (calculated for this
  purpose by that Reference Bank as being the average of the Fee Tariffs
  applicable to that Reference Bank for that financial year) and expressed in
  pounds per £1,000,000 of the Tariff Base of that Reference Bank. 8. Each
  Lender shall supply any information required by the Agent for the purpose of
  calculating its Additional Cost Rate. In particular, but without limitation,
  each Lender shall supply the following information on or prior to the date on
  which it becomes a Lender: (a) the jurisdiction of its Facility Office; and
  (b) any other information that the Agent may reasonably require for such
  purpose. Each Lender shall promptly notify the Agent of any change to the
  information provided by it pursuant to this paragraph. 9. The rates of charge
  of each Reference Bank for the purpose of E above shall be determined by the
  Agent based upon the information supplied to it pursuant to paragraph 7 and 8
  above. 10. The Agent shall have no liability to any person if such
  determination results in an Additional Cost Rate which over or under
  compensates any Lender and shall be entitled to assume that the information
  provided by any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8
  above is true and correct in all respects. 11. The Agent shall distribute the
  additional amounts received as a result of the Mandatory Cost to the Lenders
  on the basis of the Additional Cost Rate for each Lender based on the
  information provided by each Lender and each Reference Bank pursuant to
  paragraphs 3, 7 and 8 above. 12. Any determination by the Agent pursuant to
  this Schedule in relation to a formula, the Mandatory Cost, an Additional
  Cost Rate or any amount payable to a Lender shall, in the absence of manifest
  error, be conclusive and binding on all Parties. 13. The Agent may from time
  to time, after consultation with the Obligors, determine and notify to all
  Parties any amendments which are required to be made to this Schedule in
  order to comply with any change in law, regulation or any requirements from
  time to time imposed by the Bank of England, the Financial Services Authority
  or the European Central Bank (or, in any case, any other authority which
  replaces all or any of its functions) and any such determination shall, in
  the absence of manifest error, be conclusive and binding on all Parties. 150

  

 

	
  

  	
  SCHEDULE 5 FORM OF TRANSFER CERTIFICATE AND ACCESSION LETTER PART I
  FORM OF TRANSFER CERTIFICATE To: Citibank International plc as
  Agent for the Finance Parties, the Hedging Banks and the Obligors From: [ ]
  (the “Existing Lender”) and [ ] (the “New Lender”) Dated: TEUCARRIER (NO.2) CORP., TEUCARRIER (NO.3) CORP. and TEUCARRIER (NO.4) CORP. as
  Borrowers US$203,400,000 Facility Agreement dated
  February 2011 (the “Agreement”) 1. We refer to the Agreement.
  This is a Transfer Certificate. Terms defined in the Agreement have the same
  meaning in this Transfer Certificate unless given a different meaning in this
  Transfer Certificate. 2. We refer to Clause 27.5 (Procedure for transfer): (a) The Existing Lender, the Finance Parties, the Obligors and
  the New Lender agree to the Existing Lender transferring to the New Lender by
  novation all or part of the Existing Lender’s
  Commitment, rights and obligations referred to in the Schedule in accordance
  with Clause 27.5 (Procedure for
  transfer). (b) The proposed Transfer Date is [ ]. (c) The Facility
  Office and address, fax number and attention details for notices of the New
  Lender for the purposes of Clause 36.2 (Addresses)
  are set out in the Schedule. (d) The New Lender agrees to be bound by
  the terms of the Intercreditor Agreement as a
  [Lender]. 3. The New Lender expressly acknowledges the limitations on the
  Existing Lender’s obligations set out in paragraph (c) of Clause 27.4 (Limitation of responsibility of Existing Lenders). 4. [The New
  Lender confirms that the person beneficially entitled to interest payable to
  that Lender in respect of an advance under a Finance Document is either: (a)
  a company resident in the United Kingdom for United Kingdom tax purposes; (b)
  a partnership each member of which is: (i) a
  company so resident in the United Kingdom; or (ii) a company not so resident
  in the United Kingdom which carries on a trade in the United Kingdom through
  a permanent establishment and which brings into account in computing its
  chargeable profits (for the purposes of section 11(2) of the Taxes Act)
  the whole of any share of interest payable in respect of that advance that
  falls to it by reason of sections 114 and 115 of the Taxes Act. 151

  

 

	
  

  	
  5. This
  Transfer Certificate may be executed in any number of counterparts and this
  has the same effect as if the signatures on the counterparts were on a single
  copy of this Transfer Certificate. 6. This Transfer Certificate is governed
  by English law. 152

  

 

	
  

  	
  THE SCHEDULE Commitment/rights and obligations to be transferred [insert relevant details] [Facility Office address, fax number
  and attention details for notices and account details for payments.]
  [Existing Lender] [New Lender] By By: This Transfer
  Certificate is accepted by the Agent and the Transfer Date is confirmed as [
  ]. Citibank International plc By: 153

  

 

	
  

  	
  PART II FORM OF ACCESSION LETTER To: Citibank International plc, London Branch From: [ ] Dated: TEUCARRIER (NO.2) CORP., TEUCARRIER (NO.3) CORP. and TEUCARRIER (NO.4) CORP. as
  Borrowers Loan Agreement dated February 2011 (the “Agreement”) 1.
  We refer to the Agreement. This is an Accession Letter. Terms defined in the
  Agreement have the same meaning in this Accession Letter unless given a
  different meaning in this Accession Letter. 2. [ ] agrees to be bound by the
  terms of the Agreement as Additional Arranger. 3. [Additional Arranger]
  confirms to the Agent (on behalf of the Lenders) that it: (i) has made (and shall continue to make) its own
  independent investigation and assessment of the financial condition and
  affairs of each Obligor and its related entities and Sinosure
  in connection with its participation in this Agreement and has not relied
  exclusively on any information provided to it by the Existing Lender in
  connection with any Finance Document or the Sinosure
  Insurance Policy; and (ix) will continue to make its own independent
  appraisal of the creditworthiness of each Obligor and its related entities
  and Sinosure whilst any amount is or may be
  outstanding under the Finance Documents or any Commitment is in force. 4. [ ]’s
  administrative details are as follows: Address: [ ] Fax No.: [ ] Attention: [
  ] 5. This Accession Letter is governed by English law. By: Yours faithfully [
  ] This Accession Letter is accepted by the Agent. [Agent] Date: By: 154

  

 

	
  

  	
  SCHEDULE 6 FACILITY LOAN
  REPAYMENT PART I REPAYMENT
  OF TRANCHE A Repayment of Tranche A  Instalment No. Balance Principal Amount US$ US$ 1
  3,390,000 2 64,410,000 3,390,000 3 61,020,000 3,390,000 4 57,630,000
  3,390,000 5 54,240,000 3,390,000 6 50,850,000 3,390,000 7 47,460,000
  3,390,000 8 44,070,000 3,390,000 9 40,680,000 3,390,000 10 37,290,000
  3,390,000 11 33,900,000 3,390,000 12 30,510,000 3,390,000 13 27,120,000
  3,390,000 14 23,730,000 3,390,000 15 20,340,000 3,390,000 16 16,950,000
  3,390,000 17 13,560,000 3,390,000 18 10,170,000 3,390,000 19 6,780,000 3,390,000
  20 3,390,000 3,390,000 155

  

 

	
  

  	
  PART II REPAYMENT
  OF TRANCHE B Repayment of Tranche B Instalment No.
  Balance Principal Amount US$ US$ 1 3,390,000 2 64,410,000 3,390,000 3
  61,020,000 3,390,000 4 57,630,000 3,390,000 5 54,240,000 3,390,000 6 50,850,000
  3,390,000 7 47,460,000 3,390,000 8 44,070,000 3,390,000 9 40,680,000
  3,390,000 10 37,290,000 3,390,000 11 33,900,000
  3,390,000 12 30,510,000 3,390,000 13 27,120,000 3,390,000 14 23,730,000
  3,390,000 15 20,340,000 3,390,000 16 16,950,000 3,390,000 17 13,560,000
  3,390,000 18 10,170,000 3,390,000 19 6,780,000 3,390,000 20 3,390,000 3,390,000 156

  

 

	
  

  	
  PART III REPAYMENT OF TRANCHE C Repayment of Tranche C  Instalment No. Balance Principal
  Amount US$ US$ 1 3,390,000 2 64,410,000 3,390,000 3 61,020,000 3,390,000 4
  57,630,000 3,390,000 5 54,240,000 3,390,000 6 50,850,000 3,390,000 7
  47,460,000 3,390,000 8 44,070,000 3,390,000 9 40,680,000 3,390,000 10
  37,290,000 3,390,000 11 33,900,000 3,390,000 12 30,510,000 3,390,000 13
  27,120,000 3,390,000 14 23,730,000 3,390,000 15 20,340,000 3,390,000 16
  16,950,000 3,390,000 17 13,560,000 3,390,000 18 10,170,000 3,390,000 19
  6,780,000 3,390,000 20 3,390,000 3,390,000 157

  

 

	
  

  	
  SCHEDULE 7 SECURITY AGENCY PROVISIONS 1. Definitions
  In this Schedule: “Security Property” means all right, title and interest in,
  to and under the lntercreditor Deed and any
  Security Document, including: (a) the Charged Assets; (b) the benefit of the
  undertakings in any Security Document; and (c) all sums received or recovered
  by the Security Agent pursuant to any Security Document and any assets
  representing the same. 2. Declaration
  of trust (a) The Security Agent and each other Secured Party agree
  that the Security Agent shall hold the Security Property in trust for the
  benefit of the Secured Parties on the terms of the Finance Documents. (b)
  Subject to paragraph (c) below, paragraph (a) above shall not apply
  to any Security Document which is expressed to be governed by any law other
  than English or Greek or any other law from time to time designated by the
  Security Agent and an Obligor or any Security Property arising under any such
  Security Document. (c) Paragraph (b) above shall not affect or limit
  paragraph (d) of Clause 34.11 (Parallel
  Debt) nor the application of the provisions of this Schedule 7 with
  respect to any Security Document which is expressed to be or is construed to
  be governed by any law other than English or Greek law or any other law from
  time to time designated by the Security Agent and an Obligor or any Security
  Property arising under any such Security Document. 3. Defects in Security The Security Agent shall not be liable for
  any failure or omission to perfect, or defect in perfecting, the Security
  created pursuant to any Security Document, including: (a) failure to obtain
  any Authorisation for the execution, validity,
  enforceability or admissibility in evidence of any Security Document; or (b)
  failure to effect or procure registration of or otherwise protect or perfect
  any of the Security created by the Security Documents under any laws in any
  territory. 158

  

 

	
  

  	
  4. No enquiry The Security Agent may
  accept without enquiry, requisition, objection or investigation such title as
  any Obligor may have to any Charged Assets. 5. Retention of documents The Security Agent may hold title deeds and
  other documents relating to any of the Charged Assets in such manner as it
  sees fit (including allowing any Obligor to retain them). 6. Indemnity out of Security Property
  The Security Agent and every receiver, delegate, attorney, agent or other
  similar person appointed under any Security Document may indemnify itself out
  of the Security Property against any cost, loss or liability incurred by it
  in that capacity (otherwise than by reason of its own gross negligence, fraud
  or wilful misconduct). 7. Basis of distribution To enable it to make any distribution, the
  Security Agent may fix a date as at which the amount of the Liabilities is to
  be calculated and may require, and rely on, a certificate from any Secured
  Party giving details of: (a) any sums due or owing to any Secured Party as at
  that date; and (b) such other matters as it thinks fit. 8. Rights of Security Agent The
  Security Agent shall have all the rights, privileges and immunities which
  gratuitous trustees have or may have in England, even though it is entitled
  to remuneration. 9. No duty to
  collect payments The Security Agent shall not have any duty: (a) to
  ensure that any payment or other financial benefit in respect of any of the
  Charged Assets is duly and punctually paid, received or collected; or (b) to
  ensure the taking up of any (or any offer of any) stocks, shares, rights,
  moneys or other property accruing or offered at any time by way of interest,
  dividend, redemption, bonus, rights, preference, option, warrant or otherwise
  in respect of any of the Charged Assets. 159

  

 

	
  

  	
  10. Duration of Trust The trusts created
  by the Finance Documents shall remain in full force and effect from the date
  of this Agreement until receipt by the Security Agent of written confirmation
  that all liabilities have been paid, repaid, satisfied, performed and
  discharged in full. 11. Appropriation
  (a) Each Party irrevocably waives any right to appropriate any payment to, or
  other sum received, recovered or held by, the Security Agent in or towards
  payment of any particular part of the Liabilities and agrees that the
  Security Agent shall have the exclusive right to do so. (b) Paragraph
  (a) above will override any application made or purported to be made by
  any other person. 12. Investments All money received or held by the Security
  Agent under the Finance Documents may, in the name of, or under the control
  of, the Security Agent: (a) be invested in any investment it may select,
  provided that the Security Agent shall not be liable to any person for any
  loss occasioned by any such investment; or (b) be deposited at such bank or
  institution (including itself, any other Secured Party or any Affiliate of
  any Secured Party) as it thinks fit. 13. Suspense account Subject to paragraph 14 (Timing of Distributions) below the Security Agent may: (a)
  hold in an interest bearing suspense account any money received by it from
  any Obligor; and (b) invest an amount equal to the balance from time to time
  standing to the credit of that suspense account in any of the investments authorised by paragraph 12 (Investments) above. 14. Timing of Distributions  Distributions
  by the Security Agent shall be made as and when determined by it. 15. Delegation (a) The Security Agent
  may: (i) employ and pay an agent selected by it to
  transact or conduct any business and to do all acts required to be done by it
  (including the receipt and payment of money); 160

  

 

	
  

  	
  (ii) delegate
  to any person on any terms (including power to sub-delegate) all or any of
  its functions; and (iii) with the prior consent of the Majority Lenders and
  the Hedging Banks, appoint, on such terms as it may determine, or remove, any
  person to act either as separate or joint security agent with those rights
  and obligations vested in the Security Agent by this Agreement or any
  Security Document. (b) The Security Agent will not be: (i)
  responsible to anyone for any misconduct or omission by any agent, person or
  security agent appointed by it pursuant to paragraph (a) above; or (ii)
  bound to supervise the proceedings or acts of any such agent, person or
  security agent, provided that it exercises reasonable care in selecting that
  agent, person or security agent. 16.
  Unwinding Any appropriation or distribution which later transpires to
  have been or is agreed by the Security Agent to have been invalid or which
  has to be refunded shall be refunded and shall be deemed never to have been
  made. 17. Disapplication
  Section 1 of the Trustee Act 2000 shall not apply to the duties and
  powers of the Security Agent in relation to the trusts constituted by any Finance
  Document save to the extent required by law. Where there are inconsistencies
  between the Trustee Act 1925 and the Trustee Act 2000 and the express
  provisions of any such Finance Document, the provisions of such Finance
  Document shall, to the extent allowed by law, prevail and, in the case of any
  such inconsistency with the Trustee Act 2000, the provisions of such Finance
  Document shall constitute a restriction or exclusion for the purposes of that
  Act. 18. Lenders The Security
  Agent shall be entitled to assume that each Lender is a Lender unless
  notified by the Agent to the contrary. 19. Majority Lender instructions Subject to paragraph 22 below,
  the Security Agent shall be entitled to assume any instructions purported to
  be given to it by the Majority Lenders are from the Majority Lenders and it
  shall have no liability for so assuming. 20. Hedging Banks The Security Agent shall be entitled to assume
  that each Hedging Bank is a Hedging Bank unless notified by the Agent to the
  contrary. 161

  

 

	
  

  	
  21. Majority
  Hedging Bank instructions Subject to paragraph 22 below, the Security Agent
  shall be entitled to assume any instructions purported to be given to it by
  the Majority Hedging Banks are from the Majority Hedging Banks and it shall
  have no liability for so assuming. 22. Security Agent Liability Unless the
  Security Agent is satisfied that it will not incur any liability (whether
  environmental or otherwise) arising from it enforcing the Security, or is
  indemnified and/or secured to its satisfaction in respect of any such
  liability, it will not enforce the Security when required to do so by the
  Agent. 23. Possession If the Security Agent or any receiver, agent or
  delegate appointed by the Security Agent takes possession of the Charged
  Assets, it or he may at any time relinquish possession. The Security Agent
  shall not be liable as a mortgagee in possession by reason of viewing or
  repairing any of the present or future Charged Assets. Notwithstanding any
  other provision of this Agreement or any of the Security Documents, the
  Security Agent shall not have any power to remediate contamination of the
  Environment. 24. Insurance The Security Agent shall have no duty to insure or
  keep on foot any insurance policy relating to the Charged Assets. 25.
  Default/Event of Default The Security Agent shall be entitled to rely and act
  upon, in each case without liability, any notice from the Agent that an Event
  of Default or Default has or has not occurred and has no obligation to
  monitor whether such is the case but shall assume until it has notice of an
  Event of Default or Default from the Agent that none has occurred. 162

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