Document:

EX-4(a)

 Exhibit 4(a) 
 SHARE PURCHASE AGREEMENT 
 between 

Goldcup 7149 AB, 
 changing name to 
 Trinity Biotech Sweden AB 

and 
 XXXX
Xxxxxxxxx AB, 
 et al 
 regarding the shares in 
 Fiomi Diagnostics AB 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page number	 
	 1
	 	PARTIES	  	 	4	  
			
	 2
	 	BACKGROUND	  	 	5	  
			
	 3
	 	DEFINITIONS AND INTERPRETATION	  	 	5	  
			
	 4
	 	SALE AND PURCHASE OF THE SHARES	  	 	11	  
			
	 5
	 	CONSIDERATION	  	 	11	  
			
	 6
	 	LOCKED BOX	  	 	13	  
			
	 7
	 	CLOSING	  	 	15	  
			
	 8
	 	POST-CLOSING EVENTS	  	 	16	  
			
	 9
	 	WARRANTIES OF THE SELLERS	  	 	17	  
			
	 10
	 	SPECIFIC WARRANTY	  	 	25	  
			
	 11
	 	BUYER’S WARRANTIES	  	 	25	  
			
	 12
	 	COVENANTS	  	 	26	  
			
	 13
	 	OTHER	  	 	28	  
			
	 14
	 	SELLERS’ INDEMNIFICATION	  	 	28	  
			
	 15
	 	LIMITATIONS TO THE SELLERS’ WARRANTIES	  	 	29	  
			
	 16
	 	THIRD PARTY CLAIMS	  	 	31	  
			
	 17
	 	MISCELLANEOUS	  	 	32	  

  
 2 

 Schedules 
  

			
		
	 Schedule 3.1.11
	  	Closing Balance Sheet
		
	 Schedule 3.1.15
	  	Company’s registration certificate
		
	 Schedule 3.1.16
	  	Data Room
		
	 Schedule 3.1.17
	  	Disclosure letter
		
	 Schedule 3.1.27
	  	XXX Xxxxxxx
		
	 Schedule 3.1.29
	  	Key Assets
		
	 Schedule 3.1.32
	  	Leased Premises
		
	 Schedule 3.1.40
	  	Material Agreements
		
	 Schedule 5.1.1
	  	Payment instructions and allocation of Aggregated Consideration
		
	 Schedule 5.2
	  	Milestone Payments
		
	 Schedule 7.1.1e)
	  	Company’s share register
		
	 Schedule 7.1.1f)
	  	Copy of the VAT Loan Agreement
		
	 Schedule 9.11.1
	  	Summary of employment terms and conditions prior to Closing
		
	 Schedule 9.13.1
	  	Insurances
		
	 Schedule 12.3.2
	  	Engagements and Assignments

  
 3 

	1	PARTIES 

As of the 28 February 2012, the below listed parties have entered into the following agreement. 

 

	1.1	Goldcup 7149 AB, c.n.t Trinity Biotech Sweden AB, corporate registration no. 556871-5410, a limited liability company incorporated under the laws of
Sweden, with registered address at Box 270, 851 04, Sundsvall, Sweden (the “Buyer”); 

  

	1.2	Xxxxxx x xxxxxxxxx xxxxxx xx, corporate registration xxxxxxxxxxxxxxx, a limited liability company incorporated under the laws of Sweden, with registered address
at xxxxxx xxxxxxxxxxxxxx xx, xxxxxx Stockholm, Sweden; 

  

	1.3	Xxxx xxxxxxxxx xx, corporate registration no. Xxxxxx-xxxx, a limited liability company incorporated under the laws of Sweden, with registered address at xxxxxx
xxxxxxxxxxxxxx xx, xx-xxx xx Stockholm, Sweden; 

  

	1.4	Xxxxxxxx XX, corporate registration no. xxxxxx-xxxx, a limited liability company incorporated under the laws of Sweden, with registered address at xxx
xxxxxxxxxxxxxxxx xx, xx-xxx xx Uppsala, Sweden; 

  

	1.5	Xxxxxx xx, corporate registration no. xxxxxx-xxxx, a limited liability company incorporated under the laws of Sweden, with registered address at xxxxxxxx
xxxxxxxx xx, xxxxxxxxxxxxx xx, xxx xx Stockholm, Sweden; 

  

	1.6	Xxxx Xxxxxxxxxx, personal identification no. xxxxxxxxx, with registered address at xxxxx xxx xxx xx, xxxxxxxxxxx, xx xxxxx, USA; 

 

	1.7	Xxx Xxxxx, personal identification no. xxxxxx-xxxx with registered address at xxxxxxxx xx, xxx xx Uppsala, Sweden; 

 

	1.8	Xxxx Xxxxxxxxx, personal identification no. xxxxxx-xxxx with registered address at Xxxxxxxxxxxx xx, xxx xx Xxxx; 

 

	1.9	Xxxxx Xxxxxxxxx, personal identification no. xxxxxx-xxxx, with registered address at Xxxxxxxxxxx xxx, xxx xx Uppsala, Sweden; 

 

	1.10	Xxxxxxx Xxxx, personal identification no. xxxxxx-xxxx, with registered address at Xxxxxxxxxxxx x, xxx xx Uppsala, Sweden; and 

 

	1.11	Xxxxx Xxxxx, personal identification no. xxxxxx-xxxx, with registered address at Xxxxxxxxxxx xxx, xxx xx Uppsala, Sweden. 

The legal and physical persons listed in above under the Sections 1.2 to 1.11 are below referred to jointly as the “Sellers” and
individually as a “Seller”). 

  
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 The Buyer and the Sellers are below referred to jointly as the “Parties”
and individually as a “Party”. 
  

	2	BACKGROUND 

  

	2.1	The Sellers are the owners of all issued and outstanding shares in Fiomi Diagnostics AB, corporate registration no. 556705-3730, a limited liability company
incorporated under the laws of Sweden, with registered address at Dag Hammarskjölds väg 52 A, 751 83 Uppsala, Sweden (the “Company”). 

 

	2.2	The Sellers are desirous to sell to the Buyer all shares in the Company and the Buyer is desirous to purchase all shares in the Company from the Sellers.

  

	2.3	In view of the foregoing, the Parties have entered into this Agreement, as defined below. 

 

	3	DEFINITIONS AND INTERPRETATION 

 

	3.1	Definitions 

 In addition
to the definitions under Section 1, the following definitions apply in this Agreement. 
  

	3.1.1	“Accounts Date” means 31 August, 2011. 

  

	3.1.2	“Accounting Principles” means the generally accepted accounting principles in Sweden, which shall include (without being limited to) the Swedish Annual
Accounts Act (Sw. Årsredovisningslag (SFS 1995:1554)), Accounting Act (Sw. Bokföringslag 1999:1078) and the general advice of the Swedish Accounting Standards Board (Sw. Bokföringsnämndens
allmänna råd). 

  

	3.1.3	“Additional Consideration” means the consideration payable in accordance with Section 5.1.1b). 

 

	3.1.4	“Affiliate” means, with respect to any person, any other person directly or indirectly controlling, controlled by or under common control with such
first-mentioned person. For the purposes of this definition the term “control” shall mean the possession, directly or indirectly, of the power to direct the direction of the management or policies of a legal person, whether through
ownership or otherwise. 

  

	3.1.5	“Aggregated Consideration” means the total consideration for the Shares, payable in accordance with Section 5.1. 

 

	3.1.6	“Agreement” means this share purchase agreement with all schedules and exhibits enclosed hereto. 

  
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	3.1.7	“Annual Accounts” means the audited annual accounts of the Company as per the Accounts Date, prepared in accordance with the Accounting Principles;

  

	3.1.8	“Business Day” means a day on which banks are generally open for business in Sweden and Ireland (excluding Saturdays, Sundays and public holidays).

  

	3.1.9	“Claim” means any claim made by the Buyer under the terms of this Agreement. 

 

	3.1.10	“Closing Balance Date” means 24 February 2012. 

  

	3.1.11	“Closing Balance Sheet” means the balance sheet of the Company as per the “Closing Balance Date”, attached hereto as Schedule 3.1.11.

  

	3.1.12	“Closing” means completion of the obligations of the Parties required by Section 7. 

 

	3.1.13	“Closing Date” means the date on which Closing is consummated pursuant to Section 7. 

 

	3.1.14	“Closing Cash Consideration” means the amount of USD 1,444,438 payable in accordance with Section 5.1.1a)(ii). 

 

	3.1.15	“Company” means Fiomi Diagnostics AB, corporate registration no. 556705-3730, a company organized under the laws of Sweden, the details of which are
set out in the attached registration certificate, Schedule 3.1.15. 

  

	3.1.16	“Data Room” means the information provided to the Buyer prior to the date of this Agreement and listed in Schedule 3.1.16.

  

	3.1.17	“Disclosure Letter” means the letter attached as Schedule 3.1.17. 

 

	3.1.18	“Employees” means Xxx Xxxxx, Xxxx Xxxxxxxxx, Xxxxx Xxxxxxxxx, Xxxxxxx Xxxx, Xxxxx Xxxxx, Xxx Xxxxxxxxxx and Xxxxxxxx Xxxxxxxxxx.

  

	3.1.19	“Employment Agreements” means the employment agreements with the Employees entered into by the Employees and the Company on Closing.

  

	3.1.20	“Encumbrance” includes any mortgage, charge, pledge, hypothecation, lien, assignment by way of security, title retention, option, right to acquire,
right of pre-emption, right of set off, counterclaim, trust arrangement or any other security, preferential right, equity or restriction, and any agreement to give or create any of the foregoing. 

 

	3.1.21	“FDA” means the United States Food and Drug Administration. 

 

	3.1.22	“Information Technology” means information technology infrastructure (including, but not limited to, hardware, software (in both object code and source
code) firmware, networks and connection media) and all manuals or other documents relating thereto used for the purposes of the Company’s business. 

  
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	3.1.23	“Initial Consideration” means the Investment Cash Consideration, the Closing Cash Consideration, the Investment Stock Consideration and the Surplus
Cash Consideration. 

  

	3.1.24	“Intellectual Property Rights” or “IPR” means all patents, registered and unregistered trademarks, service marks, trade names, domain
names, registered designs, unregistered designs, semiconductor topography rights, database rights, copyrights and all other intellectual property rights or rights in the nature of intellectual property rights (in each case in any part of the world,
whether or not registered or registrable and if registered or registrable for their full period of registration including all extensions and renewals, and including all applications for registration or otherwise), know how, inventions, formulae,
confidential or secret processes and information, and any other protected rights and assets. 

  

	3.1.25	“Investment Cash Consideration” means the amount of USD 4,104,474 payable in accordance with Section 5.1.1a)(i). 

 

	3.1.26	“Investment Stock Consideration” means the Investment Stock Consideration Shares transferred in accordance with Section 5.1.1a)(iii).

  

	3.1.27	“Investment Stock Consideration Shares” means 407,808 shares in Trinity Biotech Plc. 

 

	3.1.28	“Xxx Xxxxxxx” means the license agreement attached hereto as Schedule 3.1.28. 

 

	3.1.29	“Key Assets” means the assets listed in Schedule 3.1.29. 

 

	3.1.30	“Know-How” means confidential and proprietary industrial and/or commercial information and/or techniques in any form including (without limitation)
trade secrets, drawings, formulae, test results, reports, project reports and testing procedures, instruction and training manuals, tables of operating conditions, market forecasts, lists and particulars of customers and suppliers.

  

	3.1.31	“Leakage” means: 

  

	 	a)	the creation, issuance, redemption, purchase, declaration or payment of a shareholder or capital loan/contribution, a dividend or other distribution or a redemption,
repayment or purchase of shares or return of capital and/or shareholders’ contributions or a management or service charge by any Sellers or the Sellers’ Affiliates; 

 

	 	b)	the payment, assumption, indemnification or incurring of any liability or the transfer of any asset by the Company for the benefit of a Seller or an Affiliate of a
Seller or the Company; 

  

	 	c)	the grant of a waiver by the Company for the benefit of a Seller or an Affiliate of a Seller or the Company; 

  
 7 

	 	d)	the payment of any sum, incurring of any liability or the provision of any benefit by the Company to any director, officer or employee of any of the Company or a
Seller, or an Affiliate of a Seller or the Company, but excluding any such payment, incurring of liability or provision of a benefit by any of the Company to any such person due and payable under an employment contract entered into prior to the
Accounts Date; 

  

	 	e)	in relation to the sale of the Shares pursuant to this Agreement, the payment of any transaction costs or bonuses to any party (including any irrecoverable VAT and/or
Tax on such costs or bonuses); or 

  

	 	f)	any agreement entered into by the Company and a Seller, or an Affiliate of a Seller or the Company, which has the same effect as any of those items listed in items
(a) to (e) (inclusive) above. 

  

	3.1.32	“Leased Premises” means the leased premises set out in Schedule 3.1.32. 

 

	3.1.33	“Locked Box Claim” means a claim for breach of Section 6.1 of this Agreement. 

 

	3.1.34	“Loss” means any direct losses, damages, costs or expenses (including reasonable legal fees but excluding any indirect or consequential damage, loss or
expense) incurred by the Buyer and/or the Company, in each case arising as a result of a breach of this Agreement. 

  

	3.1.35	“Management Accounts” means the unaudited balance sheet and profit and loss account of the Company and a cash flow statement for the financial period
ended on the Management Accounts Date, including the reports, notes and documents annexed thereto. 

  

	3.1.36	“Management Accounts Date” means 31 December, 2011. 

  

	3.1.37	“Material Agreements” mean the agreements listed in Schedule 3.1.37. 

 

	3.1.38	“Milestone Payment No 1” means the amount of USD 1,050,817 payable in accordance with Section 5.1.1b)(i). 

 

	3.1.39	“Milestone Payment No 2” means the amount of USD 788,113 payable in accordance with Section 5.1.1b)(ii). 

 

	3.1.40	“Milestone Payment No 3” means the amount of USD 1,576,225 payable in accordance with Section 5.1.1b)(iii). 

 

	3.1.41	“Sellers’ Knowledge” means the knowledge that Xxxxxxx Xxxxxxxxx, Xxx Xxxxx, Xxxx Xxxxxxxxx, Xxxxx Xxxxxxxxx, Xxxxxxx Xxxx and/or Xxxxx Xxxxx have
or should have had considering their positions in, and/or ownership of, the Company. 

  

	3.1.42	“Sellers’ Representative” means Xxxxxxx Xxxxxxxxx. 

  
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	3.1.43	“Sellers’ Warranties” means the Sellers’ warranties (Sw. garantier) set out in Section 9. 

 

	3.1.44	“Shares” means the entire issued share capital and other securities such as warrants and convertibles or any other securities issued in and/or
capital/shareholders’ contributions given or taken by, the Company. 

  

	3.1.45	“Specific Warranty” means the Sellers’ specific warranty (Sw. särskild garanti) set out in Section 10. 

 

	3.1.46	“Surplus Cash Consideration” means the amount of USD 75,089 payable in accordance with Section 5.1.1a)(iv). 

 

	3.1.47	“Tax or Taxation” includes all forms of taxation and social security contributions and all statutory, governmental, state, provincial, local
governmental or municipal impositions, duties, contributions, levies and withholdings of any nature whatsoever, wherever and whenever imposed and whether chargeable directly or primarily or solely against or attributable directly or primarily or
solely to the Company or any other person, together with all penalties, charges and interest relating to any of the foregoing. 

  

	3.1.48	“Tax Authority” means any body or organisation in any country having authority in relation to Tax. 

 

	3.1.49	“Trinity Biotech Plc” means the incorporated in Ireland with corporate registration number 183476 and registered office at IDA Business Park, Southern
Cross Road, Bray, Co Wicklow. 

  

	3.1.50	“VAT” means value added tax and any other tax of a similar nature. 

 

	3.1.51	“VAT Loan” means the loan of SEK 3,871,000, given to the Company by Sparbanken in Enköping, on the terms and conditions set forth in VAT Loan
Agreement. 

  

	3.1.52	“VAT Loan Agreement” shall have the meaning ascribed to it under Section 7.1.1f). 

 

	3.2	Interpretation 

 In this
Agreement, unless otherwise specified: 
  

	 	a)	reference to an “event” means any event, transaction, action or omission whether alone or in conjunction with any other event, transaction, action or omission
and includes (without limitation) the execution of this Agreement, Closing and the Company becoming, being or ceasing to be a member of a group of companies for the purposes of any Tax. 

  
 9 

	 	b)	reference to any statute, regulation, rule, delegated legislation or order is to any statute, regulation, rule, delegated legislation or order as amended, modified or
replaced from time to time and to any statute, regulation, rule, delegated legislation or order replacing or made under any of them; 

  

	 	c)	references to any Section, paragraph or Schedule are to those contained in this Agreement and all Schedules to this Agreement are an integral part of this Agreement;

  

	 	d)	headings are for ease of reference only and shall not be taken into account in construing this Agreement; 

 

	 	e)	the expression “this Section” shall unless followed by reference to a specific provision be deemed to refer to the whole section (not merely the sub-section,
paragraph or other provision) in which the expression occurs; 

  

	 	f)	reference to a “person” includes any individual, firm, company or other incorporated or unincorporated body; 

 

	 	g)	“in writing” means any communication made by letter or fax, and written shall be construed accordingly; 

 

	 	h)	“agreement” means any agreement or commitment whether conditional or unconditional and whether by deed, under hand, oral or otherwise;

  

	 	i)	reference to “law” includes any legislation, any common or customary law, constitution, decree, judgment, order, ordinance, treaty or other legislative
measure in any jurisdiction and any directive, request, requirement, guidance or guideline (in each case, whether or not having the force of law but, if not having the force of law, compliance with which is required of persons to whom the directive,
request, requirement, guidance or guideline is addressed); 

  

	 	j)	a document is in the agreed form if it is in the form of a draft agreed between and initialled by or on behalf of the parties on or before the date of this Agreement or
Closing as the case may be; 

  

	 	k)	the word “including” shall be construed without limitation; and 

  

	 	l)	the phrase “income, profits or gains” earned, accrued or received on or before a particular dates or in respect of a particular period includes income profits
or gains which are deemed for Tax purposes to have been earned, accrued or received at or before that date or in respect of that period. 

  
 10 

	4	SALE AND PURCHASE OF THE SHARES 

 

	4.1	Sale and purchase 

 On the
terms and subject the conditions of this Agreement, the Sellers shall sell and the Buyer shall purchase the Shares free from any Encumbrance and with all rights attached or accruing to them. 

 

	4.2	Waiver of pre-emption and other rights 

 Each Seller waives: 
  

	 	a)	all pre-emption rights in respect of the Shares; and 

  

	 	b)	any other rights which restrict the transfer of the Shares, 

 whether applicable through the articles of association of the Company, by agreement or otherwise. 
  

	5	CONSIDERATION 

  

	5.1	Aggregate Consideration 

  

	5.1.1	The Aggregate Consideration for the sale of the Shares is composed of, and shall be paid in accordance with, the following. 

 

	 	a)	The payment by the Buyer of the Initial Consideration shall be made at Closing on the Closing Date in accordance with the terms of this Agreement. The Initial
Consideration is composed of, and shall be paid in accordance with, the following: 

  

	 	(i)	the Investment Cash Consideration (USD 4,104,474) which is to be allocated among the applicable Sellers in accordance with Schedule 5.1.1;

  

	 	(ii)	the Closing Cash Consideration (USD 1,444,438) which is to be allocated among the applicable Sellers in accordance with Schedule 5.1.1; 

 

	 	(iii)	the Investment Stock Consideration which is to be allocated among the applicable Sellers in accordance with Schedule 5.1.1; and 

 

	 	(iv)	Surplus Cash Consideration (USD 75,089) which is to be allocated among the applicable Sellers in accordance with Schedule 5.1.1. 

 

	 	b)	The payment by the Buyer of the Additional Consideration shall be made in accordance with the terms of this Agreement. The Additional Consideration is composed of, and
shall be paid in accordance with, the following: 

  
 11 

	 	(i)	the Milestone Payment No 1, as further described under Section 5.2.1, which is to be allocated among the applicable Sellers in accordance with Schedule 5.1.1.

  

	 	(ii)	the Milestone Payment No 2, as further described under Section 5.2.2, which is to be allocated among the applicable Sellers in accordance with Schedule 5.1.1.

  

	 	(iii)	the Milestone Payment No 3, as further described under Section 5.2.3, which is to be allocated among the applicable Sellers in accordance with Schedule
5.1.1. 

 The payments of Milestone Payment No 1, Milestone Payment No 2 and Milestone Payment No 3 are further
described under Section 5.2. 
  

	5.2	Milestone Payment 

  

	5.2.1	Milestone Payment No. 1 is to be paid to the applicable Sellers, allocated in accordance with Schedule 5.1.1, within 10 Business Days after the date when the xxxx
xxxxxxxxxxx xxxxxxxx x xxxxx xxx xxxxxxxx CE marking as further described in Schedule 5.2. If the xxxx xxxxxxxxxxx xxxxxxxx x xxxxx xxx xxx xxxxxxxx xxxxxxxxx xx xxxxxxx xx xxxxxx after the Closing Date, at the latest, the amount payable
under the Milestone Payment No. 1 shall be reduced with 10 per cent for each commencing month that passes. 

  

	5.2.2	Milestone Payment No. 2 is to be paid to the applicable Sellers, allocated in accordance with Schedule 5.1.1, within 10 Business Days after the submission for
approval of xxx xxxx xxxxxxxxxxx xxxxxxxx x xxxxx xx xxx xxx as further described in Schedule 5.2. If such xxxxxxxxxx xx xxx xxx has not been xxxx xx xxxxxx after the Closing Date, at the latest, the amount payable under the Milestone Payment
No. 2 shall be reduced with 10 per cent for each commencing month that passes. 

  

	5.2.3	Milestone Payment No. 3 is to be paid to the applicable Sellers, allocated in accordance with Schedule 5.1.1, within 10 Business Days after the date when the xxxx
xxxxxxxxxxx xxxxxxxx x xxxxx has been approved the FDA as further described in Schedule 5.2. If the xxxx xxxxxxxxxxx xxxxxxxx x xxxxx has not obtained said approval xxxx xxx xxx xxxxxx xx xxxxxx xxxxxx xxx xxxxxxx xxxx, at the latest, the amount
payable under the Milestone Payment No. 3 shall be reduced with 10 per cent for each commencing month that passes. 

  

	5.2.4	Subject to the applicable reduction of 10 per cent for each commencing month as set out in Sections 5.2.1—5.2.3, the Milestone Payment No. 1, No. 2
and No. 3 shall be immediately payable if 

  

	 	a)	the Buyer significantly reduces or withdraws funding from the development of the xxxx xxxxxxxxxxx xxxxxxxx x xxxxx, as further elaborated in Schedule 5.2, (for a reason
other than technical failure). In the event of technical failure an independent party shall verify that a technical failure has occurred; or 

  
 12 

	 	b)	the Buyer transfers ownership of the Company to a third party or the Company transfers the technology and development of the high sensitivity Troponin I assay, as
further elaborated in Schedule 5.2, to another entity principally with a view to preventing the payment of the Milestone Payments. 

  

	6	LOCKED BOX 

  

	6.1	Events since the Accounts Date 

 Each Seller warrants and undertakes to the Buyer that, save from what has been disclosed in Disclosure Letter, during the period commencing on the Accounts Date and up to and including the Closing Date,
unless otherwise agreed by the Parties in this Agreement: 
  

	6.1.1	no Leakage has taken place in the Company; 

  

	6.1.2	neither it nor any Affiliate to a Seller or the Company has received or will become entitled to receive Leakage; 

 

	6.1.3	the Company has carried on its business in the ordinary and normal course. Without prejudice to the generality of this Section 6.1 and except as disclosed in the
Data Room, the Company has not since the Accounts Date: 

  

	 	a)	altered its share capital or the rights attaching to any of its shares, warrants, options or otherwise reorganised its share capital or capitalised or paid any amount
standing to any reserve; 

  

	 	b)	subscribed or otherwise acquired or disposed of any shares or loan capital in the capital of any company; 

 

	 	c)	acquired or disposed of the whole or part of the business of it or of any other person, firm or company; 

 

	 	d)	transferred or disposed of any material assets or rights of the Company; 

  

	 	e)	ceased to carry on its business or be wound up or enter into receivership, administrative receivership or any form of management or administration of its assets,
applied or permitted its directors to apply to any court for an administration order or similar order to be made in respect of it or paid or settled with its creditors and collected from its debtors otherwise than in accordance with normal practice
and there has been no change in the manner or time of payment of creditors, or the issue of invoices or collection of debts, or policy for reserving of debtors; 

  
 13 

	 	f)	borrowed monies or incurred debt or accepted credit (other than normal trade credit); 

 

	 	g)	entered into or given or permitted any guarantee of or indemnity or contract or suretyship for or otherwise committed itself in respect of the due payment of money or
the performance of any contract, engagement or obligation of any other person or body; 

  

	 	h)	entered into any partnership, consortium or joint venture (pursuant to a joint venture agreement, and whether incorporated or otherwise) or any other agreement or
commitment of an unusual or abnormal nature; 

  

	 	i)	incurred any capital commitment, acquired or disposed of any asset of a capital nature, incurred costs outside of the ordinary course of business or any contingent
obligation; 

  

	 	j)	appointed or removed or varied the terms of employment or appointment of any employee or renewed, entered into or agreed to amend any union, collective bargain or
similar agreement affecting any employee of the Company; 

  

	 	k)	commenced or conducted any litigation, adjudication mediation, claim or dispute or settled or compromised any litigation, adjudication, mediation, claim or dispute,
which could reasonably be expected to result in loss, damage, cost or expense to the Company; 

  

	 	l)	varied the terms of any existing or created any new pension scheme, arrangement or agreement, or varied the level of any contributions to any pension scheme;

  

	 	m)	created or issued any mortgage, charge or other security interest upon or over the whole or any part of its assets or uncalled capital or redeemed any of the foregoing;

  

	 	n)	entered into any agreement of an unusual or long-term nature; 

  

	 	o)	granted any power of attorney, save in respect of a power of attorney for the execution of this Agreement; 

 

	 	p)	paid any liabilities other than current liabilities shown in the Annual Accounts or in the Management Accounts; 

 

	 	q)	agreed any transaction that was not on arm’s length terms; 

  

	 	r)	failed to file any claim covered under any insurance policy; or 

  

	 	s)	agreed, conditionally or otherwise, to do any of the above. 

  
 14 

	6.2	Breach of Section 6.1 

In the event of a breach of Section 6.1, the Sellers are jointly and severally liable to compensate and reimburse the Buyer in
respect of any Loss incurred by the Buyer or the Company (if applicable) due to such breach. Nothing in this Agreement shall have the effect of limiting, restricting or excluding the liability of any Seller in respect of a Locked Box Claim. Each
Seller’s total liability to indemnify the Buyer for breach of Section 6.1 shall not exceed an amount corresponding such Seller’s portion of the Aggregated Consideration. 

 

	7	CLOSING 

  

	7.1	Closing has taken place at 10 am on 28 February 2012, at the offices of Wistrand Advokatbyrå in Stockholm, and the Parties agree and confirm, by signing this
Agreement, that the following events have taken place (each such event shall be deemed to have taken place simultaneously): 

  

	7.1.1	The Sellers have 

  

	 	a)	procured that the Employees and the Company duly execute the Employment Agreements; 

 

	 	b)	hand over confirmations from the Employees by which each Employee (i) confirms that he/she has no right to or interest in any IPR owned or used by the Company and
(ii) waives in favour of the Company any possible rights to, as well as rights to compensation for, IPR emanating from his/hers employment with the Company up to and including Closing Date; 

 

	 	c)	procured that the designated board members and deputy board members of the Company have submitted the resignation letters to the board of the Company;

  

	 	d)	handed over to the Buyer confirmations that any and all conditional shareholders’ contributions given to the Company prior to Closing have been converted into
unconditional shareholders’ contributions; 

  

	 	e)	handed over to the Buyer the Company’s share register in which the Buyer has been entered as the owner of all Shares, free of any Encumbrances, of which a copy is
attached hereto as Schedule 7.1.1e); 

  

	 	f)	handed over the signed and executed VAT Loan Agreement regarding the VAT Loan, of which an copy is attached hereto as Schedule 7.1.1f); 

 

	 	g)	handed over the powers of attorneys, issued by the Company, enabling the persons appointed by the Buyer to sign for and on behalf of the Company until new signatories
have been duly registered; and 

  

	 	h)	procured that the refunded VAT, if any, has been used to repay the VAT Loan. 

  
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	7.1.2	The Buyer has 

  

	 	a)	paid the Investment Cash Consideration, the Closing Cash Consideration and the Surplus Cash Consideration to the Sellers’ Account in accordance with the payment
instruction that the Sellers have provided the Buyer with; 

  

	 	b)	executed and transferred the Investment Stock Consideration Shares to the applicable Sellers, allocated in accordance with Schedule 5.1.1, In relation thereto the
Sellers’ 

  

	 	(i)	acknowledge and agree that the Investment Stock Consideration Shares will be “restricted securities” as defined under the Securities Act of 1933 as amended
and may not be resold unless the offer and sale is registered under the said securities act or an exemption from registration is available. The Sellers have been advised of and are aware of Rule 144 promulgated under the said securities act which
permits limited resales of shares purchased in a private placement subject to the satisfaction of certain conditions, including among other things, the availability of public information about Trinity Biotech Plc. and the resale occurring after
designated holding periods under Rule 144, and 

  

	 	(ii)	acknowledge that the Buyer, through Trinity Biotech Plc., will deliver the Investment Stock Consideration Shares by delivering the certificates representing the Trinity
ADRs in accordance with Schedule 5.1.1. In respect of the Investment Stock Consideration Shares – save from the Investment Stock Consideration Shares allocated to xx –the recipient xxxx is acting as agents for the other applicable Sellers.
xxxx agrees to take delivery of the applicable Trinity ADR certificates and to promptly distribute them to the applicable Sellers in accordance with Schedule 5.1.1. The Shareholders appoint xxxx as agent and authorize xxxx to accept delivery of the
applicable Trinity ADR certificates and distribute them to the applicable Sellers as set forth in the preceding sentence; 

 and 
  

	 	c)	replaced the guarantee by xxxx in favour of xx regarding the VAT Loan, provided that the VAT Loan has not been repaid prior to Closing. 

 

	8	POST-CLOSING EVENTS 

  

	8.1	The Buyer shall cause a shareholders’ meeting to be held in the Company at which the Buyer shall appoint new board members. The Buyer shall prepare the minutes of
the said meetings as well as any ancillary documentation and shall ensure that the new board members are registered with the relevant Companies Registration Offices without undue delay. 

  
 16 

	9	WARRANTIES OF THE SELLERS 

The Buyer understands that the Sellers’ Warranties do not release the Buyer from carrying out a prudent investigation of the state of
affairs of the Company and the Buyer and its advisors have conducted a due diligence investigation of the Company, during which the Buyer and its advisors have had access to an electronic data room, and have reviewed the Data Room, conducted site
visits, attended management presentations and have had meetings with the management of the Company. The Parties agree and acknowledge that the Buyer shall, based on said investigation of the Company, be deemed to have fulfilled any and all
obligations to investigate the Company before as well as after the Closing. 
 The Sellers warrant, jointly and severally,
subject to the limitations set forth in this Agreement, the following to the Buyer up to and including the Closing Date. 
  

	9.1	Due incorporation 

  

	9.1.1	The Sellers, to the extent they are legal entities, are duly incorporated and validly existing under the laws of their respective jurisdiction of incorporation.

  

	9.1.2	The Sellers have not filed for (or has had filed against it) any petition for their respective winding-up, are not insolvent and have not made any assignment in favour
of their creditors, nor have any petition for receivership or any administration order been presented in respect of the Sellers. The Sellers have not initiated any proceedings with respect to a compromise or arrangement with their creditors or, to
the extent they are legal entities, for the dissolution, liquidation or reorganization of the Sellers or the winding-up or cessation of the business of any of the Sellers. 

 

	9.1.3	All corporate actions required on the part of each Seller, to the extent they are legal entities, to execute this Agreement have been properly taken in accordance with
the applicable laws and regulations under the jurisdiction of incorporation of each Seller, and the terms of this Agreement will be binding upon each Seller and enforceable against it in accordance with its terms. 

 

	9.2	No conflicts 

  

	9.2.1	The making of this Agreement and the transfer of the Shares herein will not infringe the constitutional documents of any of the Sellers, to the extent they are legal
entities. 

  

	9.2.2	The execution and delivery of and the performance by this Agreement and any other documents to be executed pursuant to or in connection with this Agreement will not, in
respect of each Seller: 

  

	 	a)	require any filing or registration with, or material permit, authorization, consent or approval of, any governmental or regulatory authority other than as shall have
been made and obtained; and 

  
 17 

	 	b)	result in a breach of any order, judgment or decree of any court, governmental agency or regulatory body. 

 

	9.2.3	The Company has full corporate power and all licenses, permits and authorizations required to carry on its business as conducted and to own, lease and operate all
assets and properties used in connection therewith. 

  

	9.3	Ownership 

  

	9.3.1	Each Seller lawfully owns and has full an unrestricted ownership, free and clear of all Encumbrances, to the Shares such Seller shall sell to the Buyer in accordance
with this Agreement. 

  

	9.3.2	The Company has (i) never issued any share certificates representing the Shares or (ii) issued or launched any options or other incentive schemes to its
shareholders, employees, board members or any other parties. 

  

	9.3.3	The Shares constitute all equity securities issued by the Company, and are legally and validly issued and fully paid. There are no outstanding subscriptions, options or
similar rights relating to the Company or the Shares and there are no agreements or arrangements entitling any person to subscribe or acquire shares or other securities in the Company. 

 

	9.3.4	The Company does not have any outstanding conditional shareholder’s contributions or other kinds of subordinated loans. 

 

	9.3.5	The Company does not hold, and has never held, any shares (or other interests) in any company, partnership, limited partnership or any other legal entity.

  

	9.4	Financial 

  

	9.4.1	The Annual Accounts give a true and fair view (Sw. rättvisande bild), as set out in the Swedish Annual Report Act (Sw. Årsredovisningslagen
(1995:1554)) and in accordance with the Accounting Principles, of the financial position and the results of the operations of the Company on the Accounts Date and they have been prepared in accordance with the Accounting Principles.

  

	9.4.2	The Management Accounts and the Closing Balance Sheet give a true and fair view of the financial condition and results of operations and the assets and liabilities of
the Company as of the Management Accounts Date and the Closing Balance Sheet Date, respectively. 

  

	9.4.3	The Company has no liabilities or obligations of any nature, except for liabilities or obligations reflected or reserved against in the Closing Balance Sheet (including
explanatory notes with respect to operating leases, capital commitments and other contingent or future undertakings not otherwise reflected in the Closing Balance Sheet). 

  
 18 

	9.4.4	Adequate reserves have been made in the Annual Accounts, the Management Accounts and the Closing Balance Sheet in accordance with the Accounting Principles.

  

	9.4.5	The Company has not made any forbidden payment to its shareholder or any other person or granted forbidden loans or furnished forbidden securities in contravention of
the Swedish Companies Act (Sw. aktiebolagslagen (2005:551)). 

  

	9.4.6	The Company has full and exclusive title to the Key Assets as well as to the properties and assets, tangible or intangible, which are set out in the Annual Accounts and
in the Management Accounts, free and clear of any Encumbrances. All trade receivables and outstanding leasing payments reflected in the Annual Accounts and in the Management Accounts have arisen in the ordinary course of business.

  

	9.5	Ordinary course of business 

 Since the Accounts Date: 
  

	 	a)	no material changes have been made in the normal and ordinary manner in which the business of the Company is conducted including, without limitation, changes in the
manner and timing of inventory purchases and payable payments, and changes in sales, marketing and collection practices and policies; 

  

	 	b)	no change in any method of accounting or auditing practice of the Company has been made; 

 

	 	c)	no Key Assets, nor any other assets owned by the Company, are subjected to any other Encumbrance; 

 

	 	d)	no agreements have been terminated or materially amended with any customer, distributor or representative other than in the ordinary course of business;

  

	 	e)	there has been no damage, destruction or loss (whether or not covered by insurance) to any of the assets, business or rights of the Company; 

 

	 	f)	no accounts receivable have been written off nor any rights of substantial value been waived; and 

 

	 	g)	the Company has not committed, verbally or in writing, to do any of the foregoing. 

 

	9.6	Tax 

  

	9.6.1	All Tax returns and Tax reports required to be filed by the Company have been duly and timely filed with the appropriate Tax Authority and such filings are true,
complete and correct and all information required for a correct assessment of Tax has been provided, and the Company is not in delay with the payment of any Tax due. 

  
 19 

	9.6.2	All Tax returns of the Company have been assessed and approved by the appropriate Tax Authority through the tax years up to and including the years for which such
assessment and approval is required and the Company are not subject to any dispute with any Tax Authority. 

  

	9.6.3	All Tax not due by any of the Company has been fully reserved for in the Annual Accounts and books and records of the Company or in the Management Accounts and the
Company will not be liable for any additional Tax pertaining to the period up until Closing. 

  

	9.6.4	Since the Accounts Date, the Company has not (i) engaged in any transaction or arrangement, and no event has occurred, which may give rise to any liability for
Taxes other than Taxes pertaining to transactions entered into in the ordinary course of business, or (ii) had any expenses that are not deductible for Tax purposes. 

 

	9.6.5	The Company is and has not been party to any scheme, arrangement or transaction designed wholly or partly for the purpose of avoiding Tax. 

 

	9.6.6	The Company is and will not be liable to pay any Taxes as a consequence of stock option plans, other incentive plans or bonuses issued, given or granted to any person
by the Company. 

  

	9.6.7	The Company is and will not be liable to pay any Taxes which are triggered by the transactions set forth in this Agreement, up to and including the Closing
Date.

  

	9.6.8	The amount of the tax losses carried forward by the Company as reflected in the Annual Accounts, Management Accounts and/or tax returns are true and correct at the time
when the Annual Accounts, Management Accounts and/or tax returns were prepared, respectively. 

  

	9.6.9	There are no tax audits, disputes or litigation currently pending with respect to the Company, and there is no basis for assessment of any deficiency in any Tax against
the Company which has not been provided or reserved for in the Annual Accounts or in the Management Accounts. 

  

	9.7	Agreements 

  

	9.7.1	The Material Agreements include all material agreements to which the Company is a party, receives any benefits or is otherwise bound and there are no other agreements
which are material for the operation of the business of Material Agreements than the Material Agreements. 

  

	9.7.2	The Material Agreements constitute valid and binding obligations, according to their terms, of the parties thereto and the terms thereof have been complied with in all
material respects by the Company and, to the best of the Sellers’ Knowledge, by any other party to such agreements, and the complete contents thereof are evident from the wording of the written agreements. 

  
 20 

	9.7.3	The Company has not received any notice of termination and, to the Sellers’ Knowledge, there is no intention to terminate a Material Agreement by a party thereto.

  

	9.7.4 	The consummation of the transactions contemplated by this Agreement will not result in the breach of, or constitute a default under, or result in automatic termination,
or trigger any change of control (or similar provisions entitling a party to terminate or amend the terms and conditions of a Material Agreement), cancellation or acceleration or amendment of any right of the Company under a Material Agreement.

  

	9.7.5 	The Company is not a party or subject to, nor has it outstanding obligations or liabilities related to, any agreement, transaction, arrangement, understanding,
obligation or liability which: 

  

	 	a)	is not in the ordinary course of business; or 

  

	 	b)	is not on an arm’s length basis. 

  

	9.7.6 	Following the Closing Date there are no contracts, arrangements or other agreements of any kind or nature, and there are no outstanding obligations, unsettled or unpaid
amounts, liabilities or debts between the Company on the one hand and any Seller, any member of the Sellers’ Group or any of their respective Affiliates on the other (except for ordinary employment related matters, such as salaries, travel
advances and out of pocket expenses in relation to such persons remaining employed by the Company following Closing). 

  

	9.7.7 	The consummation of the transactions contemplated by this Agreement will not (i) entitle any Employee, member of the board, director or officer of the Company to
severance pay, bonus payment or any other payment from the Company, or (ii) accelerate the time of payment of or vesting of, or increase the amount of compensation due to any of the aforementioned persons. 

 

	9.7.8 	The Company is not a party, nor has it outstanding obligations or liabilities related, to: 

 

	 	a)	any consultant agreements; 

  

	 	b)	any covenants granting any exclusive distribution rights with respect to the Company’s existing or future services or products; 

 

	 	c)	any settlement agreements under which the Company has any on-going obligations or receives on-going benefits or rights except for in the ordinary course of business;

  
 21 

	 	d)	any agreements or arrangements which does not comply with applicable laws and regulations; 

 

	 	e)	any agreements or arrangements under which the Company is committed to provide products or services at a later date at a fixed price; or 

 

	 	f)	any agreements or arrangements which adversely limit the freedom the Company to compete in any line of business or to conducts business with any person.

  

	9.7.9 	The Sellers have made available to the Buyer true and correct copies of all Material Agreements. 

 

	9.8	Real Property and Leased Premises 

  

	9.8.1 	The Company does not own any real property. 

  

	9.8.2 	The attached list of Leased Premises (Schedule 3.1.32) sets forth a true and complete list and description of all real property used or leased by the Company. Each such
lease is in full force and effect without any default or breach thereof by the Company. 

  

	9.9	Intellectual Property 

  

	9.9.1 	Save from web page “www.fiomi.se“, there are no registered Intellectual Property owned by, filed in the name of, or applied for, by the Company and there are
no current proceeding or actions before any court, tribunal (including the Swedish Patent and Registration Office or equivalent authority elsewhere) related to any Intellectual Property. The web page “www.fiomi.se“ is currently in
compliance with all legal requirements and is valid and subsisting. 

  

	9.9.2 	The Company’s use or distribution of any data, information, content or other works (including data, information, content or works belonging to third parties) does
not and has not (i) infringed or violated the intellectual property rights of any person or (ii) violated any law or regulation of any country or jurisdiction where the Company is or have been active, and the Company has not received any
notice of any infringement or violation with respect thereto. 

  

	9.9.3 	All Intellectual Property used in the business of the Company is (or, where appropriate in the case of pending applications, will be): 

 

	 	a)	owned by the Company or lawfully used with the consent of the owner under a valid licence which is on market terms on an arm’s length basis; and

  

	 	b)	to the Sellers’ Knowledge, not being infringed or attacked or opposed by any person. 

  
 22 

	9.9.4 	The Company has the right to use and to continue to use, pursuant to valid licenses, all data (including personal data) of third parties subject to applicable laws on
the data protection, all software, development tools, library functions, operating systems, data bases, compilers and all other third party software that is used by the Company or that are required to operate or support any software that is
incorporated into any of the products or services supplied the Company. All costs for such licenses have been clearly disclosed in the Data Room. 

  

	9.10	Information Technology 

There are no defects relating to the information technology used in connection with any of the Company’s operations and the
information technology is adequate in all material respects to fulfil the requirements of the Company’s operations in the manner in which and to the extent to which it is presently conducted. 

 

	9.11	Employees 

  

	9.11.1 	Schedule 9.11.1 contains the complete list of all material terms and conditions of the employment agreements – including, without excluding,
information on the monthly salary, pension agreements and arrangements and the basis on which the pension is calculated, number of holiday days per year, share incentive, share option, profit sharing, bonus or other incentive arrangements and all
other benefits of each of the Employees – of the Employees’ prior to entering into the Employment Agreements. There are no other persons employed by the Company than the Employees. 

 

	9.11.2 	The Company is not a part of any collective bargaining agreements. 

  

	9.11.3 	The arrangements listed in Schedule 9.11.1 are the only arrangements under which the Company is or may become liable to make payments for providing retirement,
disability or life assurance benefits. 

  

	9.11.4 	The pension schemes listed in Schedule 9.11.1 are operated in compliance with their terms and are in all respects in compliance with all applicable laws,
regulations and funding is in all material respects in compliance with all applicable laws, regulations and collective bargaining in all respects and such funding has been duly made by the Company in accordance with all applicable requirements of
such schemes and there are no outstanding or unpaid funding obligations related thereto. 

  

	9.11.5 	The Company has not given notice of termination of any Employee and no Employee has announced his or her termination of his or her position or employment with the
Company, and to the Sellers’ Knowledge, no Employee has any intention of terminating his or her position or employment with the Company. 

  

	9.12	Encumbrances 

  

	9.12.1 	All assets that are owned by the Company are free and clear of any Encumbrances except for those set out or referred to as encumbered in the Annual Accounts.

  
 23 

	9.13	Insurance 

  

	9.13.1 	The insurance policies that cover the Company are, listed in Schedule 9.13.1. The aforementioned insurance policies will remain in force and provide
coverage at least until three (3) months following the Closing Date. 

  

	9.13.2	The Company has not done or omitted to do anything to render the insurance coverage void or voidable and all known events which could justify an insurance claim have
been timely declared to each relevant insurance company. There is no material claim which remains outstanding under any of the insurance policies. 

  

	9.14	Compliance with laws 

  

	9.14.1 	The Company is not in violation of any statute, law, order, decree, regulation, license or authorisation having an adverse effect on the conduct of the business of the
Company, including for the avoidance of doubt, any competition laws or regulations. 

  

	9.14.2 	All regulatory licenses, permits and authorisations necessary for the Company to carry on its business as conducted, are in full force and effect and the Company is
not, in any material respects, in violation of any such licences, permits and authorisations and there is no pending action or other proceeding which seeks the revocation of any such existing licenses, permits or authorisations.

  

	9.14.3 	The Company is, in any material respects, complying and has always complied with all requirements of the Swedish Personal Data Act (Sw. Personuppgiftslagen
(1998:204)), and other applicable regulations, guidelines and industry standards, and the Company has satisfied any requests for access to personal data pursuant to aforementioned laws, regulations, guidelines and industry standards.

  

	9.14.4 	All material documents of the Company that are required to be kept by any of them under any applicable laws, such as, but not limited to, minutes of the boards and
shareholder’s meetings, permits, business licenses are safely kept and are correct, and all registrations and applications related thereto have fulfilled and all applicable fees have been paid. 

 

	9.15	Environment 

  

	9.15.1 	The Company has complied in all respects with all environmental laws. The Company has obtained all licenses and permits which are necessary for the conduct of its
business as presently conducted or for the ownership of their assets under any environmental laws. All renewals of such licenses and permits have been timely applied for. 

 

	9.15.2 	There are no past or present (or, to the Sellers’ Knowledge anticipated) events, conditions, circumstances, activities, practices, incidents, actions or plans
which may interfere with or prevent compliance or continued compliance by the Company with any environmental laws or which may give rise to any liability, or otherwise form the basis of any claim, action, demand, suit, proceeding, notice of
violation, study or investigation, based on or related to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling, or the emission, discharge, release or threatened release into the environment, by the
Company of any pollutant, contaminant, chemical, or industrial, toxic or hazardous substance or waste. 

  
 24 

	9.16	Legal proceedings 

  

	9.16.1 	The Company is not part in or otherwise engaged in any pending or, to the Sellers’ Knowledge, threatened legal dispute, litigation, arbitration proceedings or
administrative proceedings or investigations. 

  

	9.16.2 	There are no claims or disputes, complaints, actions, suits or proceedings pending or, to the Sellers’ Knowledge, threatened before any governmental entity or
arbitrator or as otherwise communicated to any of the Company by any third party. 

  

	9.17	Information 

  

	9.17.1 	All information provided to the Buyer in the Data Room is in all material respects true, accurate and complete. 

 

	9.17.2 	To the best of the Sellers’ Knowledge, there are no material facts or circumstances relating to the Company or to the business of the Company that have not been
disclosed to the Buyer, which if disclosed could reasonably have been expected to influence the decision of the Buyer to purchase the Shares on the terms contained in this Agreement. 

 

	9.17.3 	Unless otherwise agreed in this Agreement, the Buyer acknowledges that the Sellers shall be under no liability in respect of any Claim under the Sellers’
Warranties for the failure, if any, of the Company to meet forward-looking budgets and projections as to any future development of the Company. 

  

	10	SPECIFIC WARRANTY 

  

	10.1 	The Sellers shall, jointly and severally, indemnify, defend and hold harmless the Buyer and the Company from and against Loss suffered by the Buyer or the Company as a
result of a breach of the Specific Warranty below: 

  

	 	a)	Xxx xxxx xxx xxxxxxxx xxxxxxx xx xxx xxx xxxxxxx is attached hereto as Schedule 3.1.28. Xxx xxx xxxxxxx is fully valid and binding according to its terms, and there are
no other terms and conditions relating to the xxx xxxxxxx than those expressly stated therein. 

  

	11	BUYER’S WARRANTIES 

 

	11.1 	The Buyer is duly incorporated and validly existing under the laws of Sweden. 

  
 25 

	11.2 	The Buyer has the legal right and full power and authority to enter into and perform its duties and obligations under this Agreement and any other documents to be
executed by the Buyer pursuant to or in connection with this Agreement. 

  

	11.3 	The execution and delivery of and the performance by the Buyer of its obligations under this Agreement and any other documents to be executed by the Buyer pursuant to
or in connection with this Agreement will not: 

  

	 	a)	result in any breach of any provision of the articles of association of the Buyer; or 

 

	 	b)	violate or breach any material provision of any agreement, commitment or obligation of any kind to which Buyer is a party. 

 

	11.4 	The Buyer is not, at the date of this Agreement, aware of any fact or circumstance which would entitle the Buyer to make a Claim against the Sellers.

  

	11.5 	To the knowledge of the CEO, CFO, COO and the Chairman of the Audit Committee of Trinity Biotech Plc., Trinity Biotech Plc. complies with its listing agreement with
NASDAQ as of the Closing Date. 

  

	12	COVENANTS 

  

	12.1	Certain Claims 

  

	12.1.1 	The Sellers undertake not to make any claim against the Company regarding any matter, save from such matters that arise in the ordinary course of business due to the
employment of the applicable Sellers by the Company. 

  

	12.2	Non-Solicitation 

  

	12.2.1 	From the date of this Agreement and for a period of three (3) years after the Closing Date, each Seller individually undertakes, and shall procure that its
Affiliates undertake, to refrain from directly or indirectly employing, offering or negotiating employment with or enticing away, or receiving or accepting the performance of services by, any of the Employees. 

 

	12.2.2 	In case of any breach of the covenant set forth in Section 12.2.1, the Seller in breach undertakes to pay to the Buyer an amount of USD 150,000 for each breach of
such covenant. The Buyer’s rights above shall not limit or restrict any indemnification for the actual amount of damages suffered by the Buyer and the Company or other remedies available to the Buyer. 

  
 26 

	12.3	Non-Competition 

  

	12.3.1 	From the date of this Agreement and for a period of three (3) years after the Closing Date, each Seller being an Employee individually undertakes, and shall
procure that its Affiliates undertake, to refrain from, directly or indirectly, on its own or on anyone else’s behalf: 

  

	 	a)	engage in or in any other way participate in, facilitate or promote any activity within the business of the medical diagnostic industry, including but not limited to
research and development; 

  

	 	b)	engage in or in any other way participate in, facilitate or promote any activity which aims at or has the direct or indirect result to compete with the Company’s
current or future activities; and 

  

	 	c)	influence any supplier, customer, distributor, agent or any other person in a business relationship with Company to cease, change, break or not renew any contract or
relationship with the Company. 

  

	12.3.2 	Notwithstanding the provisions of Section 12.3.1, the Buyer confirms that xx may continue the engagements and assignments as set out in Schedule 12.3.2. The
Buyer’s written approval is required for any additional engagement or assignment other than those set out in Schedule 12.3.2. 

  

	12.3.3 	In case of any breach of the covenant set forth in Section 12.3.1, the Seller in breach undertakes to pay to the Buyer an amount of USD 300,000 for each breach of
such covenants. The Buyer’s rights above shall not limit or restrict any indemnification for the actual amount of damages suffered by the Buyer and the Company or other remedies available to the Buyer. Should the breaching Seller not terminate
any breach of Section 12.3.1 upon request by the Buyer, additional penalty amounts of USD 30,000 shall be paid by the breaching Seller to the Buyer for every initiated month during which such breach persists. 

 

	12.4	Conflict of provisions 

  

	12.4.1 	In case there are any other agreements (e.g. employment agreements) between the Buyer and a Seller that include provisions regarding non-solicitation or non-compete and
if such provisions should be in conflict with the content of Section 12.2 or 12.3, the latter shall prevail. 

  

	12.5	Liability of board members 

  

	12.5.1 	Provided that the auditors of the Company do not recommend otherwise and to the extent permitted under applicable law, the Buyer shall on the first annual general
meetings of shareholders in the Company following the Closing Date discharge all members and alternate members of the board of directors of the Company in office prior to Closing from their personal liability for the period up to and including the
Closing Date. 

  
 27 

	12.5.2 	Provided that the members and alternate members of the board of directors of the Company have been discharged from personal liability according to Section 12.5.1
and subject to the statutory limitations of such discharge, the Buyer undertakes not to make, and undertakes to procure that the Company does not make, any claims (other than for fraud or gross negligence) against members and alternate members of
the board of directors of the Company in office prior to Closing for their acts or omissions in their capacity as members and alternate members of the board of directors that took place on or before the Closing Date. 

 

	12.5.3 	This Section 12.5 shall not in any way limit the rights of the Buyer to forward Claim to any Seller in respect of a breach of this Agreement.

  

	13	OTHER 

  

	13.1.1 	The Company will not be liable to pay any finder’s fee, brokerage or other commission in connection with or due to the transaction contemplated by this Agreement.

  

	13.1.2 	The Company will as of the Closing Date have immediate access to all data that is used in the business of the Company. The Company may as of the Closing Date move,
transfer or export all data used in the business of the Company without incurring any costs, fees and expenses. 

  

	14	SELLERS’ INDEMNIFICATION 

  

	14.1	Buyer’s knowledge 

  

	14.1.1 	The Sellers shall not be liable in respect of any Claim for breach of the Sellers’ Warranties to the extent that the relevant matter, fact or circumstance giving
rise to the Claim were openly disclosed in one context in the Data Room and in a manner that allows a reasonably diligent person representing the a buyer to identify the potential consequences of such disclosure. However, in case of discrepancies
between the aforementioned and the information and facts stated in this Agreement, the information and facts in this Agreement shall prevail. 

  

	14.2	General Indemnification 

  

	14.2.1 	The Sellers shall jointly and severally compensate and reimburse the Buyer and the Company for any Loss suffered by them, as a result of a breach of the Sellers’
Warranties, the Specific Warranty or any other provision of this Agreement. Nonetheless, any liability for Loss suffered by the Buyer or the Company due to a breach of the Sellers’ Warranties under Section 9.1 (Due incorporation),
Section 9.3 (Ownership) or breaches of the covenants in Sections 12.2 and 12.3 shall be a several liability for each breaching Seller. Compensation for Losses shall only cover the actual Loss and shall not be multiplied by any factor reflecting
any valuation or potential purchase price impact. 

  
 28 

	14.3	Purchase Price Reduction 

  

	14.3.1 	Any payment by any or all of the Sellers under this Section 14 shall be paid to the Buyer and deemed a reduction of the Purchase Price. 

 

	14.3.2 	Reduction of the Purchase Price for breach of any of the Sellers’ Warranties shall be made with an amount corresponding to the incurred Loss on a USD by USD basis.

  

	14.4	No Other Remedy 

  

	14.4.1 	It is specifically agreed that the Sellers’ liability in relation to the Company’s business is exclusively governed by the Sellers’ Warranties and the
Specific Warranty and thus no remedy whatsoever under the Sale of Goods Act (Sw. Köplagen (1990:931)) or under any other statute, law or legal principle, including (but not limited to) the right to rescind this Agreement, shall be
available to the Buyer. 

  

	14.4.2 	The Parties agree that the provisions under the Swedish Sale of Goods Act regarding the Buyer’s obligation to examine the goods after delivery have been
substituted by the Buyer’s examination of the Company prior to the entering into of this Agreement and the provisions of this Agreement. 

  

	15	LIMITATIONS TO THE SELLERS’ WARRANTIES 

 

	15.1	Limitations in Time 

  

	15.1.1 	Any Claim by the Buyer for breach of the Sellers’ Warranties shall be made prior to the date falling eighteen (18) months after the Closing Date, except for
Claims (i) regarding Taxes, Section 9.6, which shall be made within three (3) months from the date when the Taxes in question have been subject to final and non-appealable decision by the relevant and competent Tax Authority and
(ii) under the Specific Warranty and Sections 9.1—9.3, which can be made within ten (10) years from the Closing Date. 

  

	15.1.2 	The Buyer shall not be entitled to make a Claim unless the Buyer has given written notice to the Sellers’ Representative – whereby providing reasonable
information of the circumstances giving rise to such Claim and accompanied by reasonable particulars of the Claim specifying the nature of the Claim and, as far as reasonably practicable, the amount of the Claim – within a period of thirty
(30) Business Days from the date when the Trinity Biotech Plc.’s CEO, COO or CFO became aware of such Claim. 

  
 29 

	15.2	Limitations in Amount 

  

	15.2.1 	Except in relation to the Specific Warranty and the Sellers’ Warranties in Sections 9.1—9.3, and 9.6, which shall not be subject to any limitations in
amount as stated below in this Section 15.2.1, the Buyer shall be entitled to indemnification for the breach by the Sellers of the Sellers’ Warranties (i) in respect of individual Claims (or multiple or series of claims pertaining, or
arising out of identical, similar or related facts and circumstances) if the Loss is greater than USD 5,000 (a “Qualifying Claim”) and (ii) if the aggregate amount of the Loss under such Qualifying Claim or Claims exceed an
amount corresponding to USD 50,000, in which case the Buyer shall be compensated with the full amount of such Losses, i.e. from the first USD of the Loss. 

  

	15.2.2 	Each Seller’s total liability under this Agreement shall not exceed an amount corresponding such Seller’s portion of the Aggregated Consideration. This
limitation shall however not apply to any liquidated damages payable by a Seller under Sections 12.2 or 12.3. 

  

	15.3	Other 

  

	15.3.1 	The Sellers shall have the reasonable right to remedy any breach of the Sellers’ Warranties and any Loss resulting therefrom within a period of sixty
(60) days after the Sellers’ Representative’s receipt of a notice of a claim from the Buyer. The Sellers shall not be liable for any breach to the extent that the breach and Loss has been so remedied by the Sellers.

  

	15.3.2 	No matter shall be the subject of a claim by the Buyer for any Loss to the extent that a specific reserve has been made for such matter in the Annual Accounts or the
Management Accounts. 

  

	15.3.3 	The Buyer and the Company shall take reasonable steps to mitigate Losses. Swedish general principles for mitigation of loss shall apply to such mitigation.

  

	15.3.4 	If any Loss for which the Sellers are liable under this Agreement is a tax-deductible item for the Buyer or the Company, the recoverable Loss shall be reduced by an
amount equivalent to the actual tax saving utilised by the Buyer or the Company during the fiscal year in which the Loss occurs or during the two subsequent fiscal years, provided however that neither the Buyer nor the Company has any unutilised tax
loss carried forward. The Sellers shall however always compensate and reimburse the Buyer, or the Company as case may be, in accordance with this Agreement for any recoverable Loss and the Buyer shall repay any actual tax saving utilised only when
the Buyer or the Company has received its final tax bill for the fiscal year during which year the tax saving was utilised. 

  

	15.3.5 	The Sellers shall have no obligation to satisfy a Claim with respect to Tax before the Buyer or the Company, as applicable, is obliged to make payment to the relevant
Tax Authority. 

  
 30 

	15.3.6 	A liability which is contingent shall not constitute a Loss unless and until such contingent liability becomes an actual liability and is due and payable.

  

	15.3.7 	No claim for a Loss may be brought by the Buyer against the Sellers if and to the extent that any such Loss (i) occurs on as a result of any legislation not in
force on the Closing Date, or which takes effect retrospectively, or occurs as a result of any increase in the tax rate that is in force as of the Closing Date and (ii) occurs as a result of any act, omission or transaction carried out at the
written request, or with the written consent, of the Buyer before the Closing. 

  

	15.3.8 	For the avoidance of doubt, no limitations shall apply on indemnification for breaches of this Agreement for the Sellers in case of fraud, intentional breach or wilful
misrepresentation on the part of the Sellers. 

  

	15.3.9 	If the Sellers make any payment to the Buyer as a settlement of a Claim and the Buyer or the Company (i) has the right to recover from any third party any amount
that has formed the basis of the Claim or (ii) recovers from any third party any corresponding amount that has formed the basis of the Claim, the Buyer shall promptly and without request from the Sellers either itself, or procure that the
Company, either repay(s) such payment to the Sellers or assign(s) the right to payment to the Sellers. The Buyer shall under no circumstances not be obliged to repay/assign, or procure that the Company repays/assigns, an amount that is higher the
amount received from the Sellers (reduced by the Buyer’s costs in relation to such recovery) to the Buyer as settlement of the said Claim. 

  

	16	THIRD PARTY CLAIMS 

  

	16.1 	If any of Trinity Biotech Plc’s CEO, COO or CFO becomes aware of any claims, actions or demands against the Buyer or any of its Affiliates by any third party which
may lead to a Claim, the Buyer shall procure that written notice thereof is given to the Sellers’ Representative no later than thirty (30) Business Days after any of Trinity Biotech Plc’s CEO, COO or CFO (as the case may be) became
aware of the relevant fact or circumstance. In connection with any third party claim, the Buyer shall; 

  

	 	a)	take such action and give such information and access to personnel, premises, documents and records to the Sellers and the Sellers’ professional advisors as the
Sellers may reasonably request in order to avoid, dispute, mitigate, settle, defend or appeal any claim; 

  

	 	b)	not make any admission of liability, agreement or compromise with any person, body or authority without (i) first having consulted the Sellers’ Representative
or (ii) taken due regard to the interests of the Sellers hereunder; 

  

	 	c)	make commercial reasonable endeavors to maintain any applicable policy of insurance under which such third party claim could be covered; 

  
 31 

	 	d)	at the request of the Sellers’ Representative, allow the Sellers the right to, at the Sellers’ own cost and expense, dispute and defend a third party claim in
the name of the Company. In connection with the handling of such third party claim, each Party shall provide the other Party with information and assistance as it reasonably requests; and 

 

	 	e)	at the Sellers’ expense, grant and give, and shall ensure that the Company will grant and give, to the Sellers reasonable authorizations and assistance in the
Sellers’ dispute and defense of any such third party claim and to properly conduct any litigation resulting therefrom. 

  

	17 	MISCELLANEOUS 

  

	17.1 	Waiver 

  

	17.1.1 	The failure of any Party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of any right hereunder, nor
shall it deprive that Party of the right thereafter to insist upon the strict adherence to that term or any other terms of this Agreement. 

  

	17.2	Assignment 

  

	17.2.1 	No Party may assign or otherwise transfer or pledge or grant any other security interest in or over any of its rights or obligations under this Agreement without the
prior written consent of the other Party. Notwithstanding the foregoing, Invifed shall prior to the Closing Date by written notice to the Buyer and the Sellers’ Representative have the right to assign all its right and obligations under this
Agreement to a company wholly-owned, directly or indirectly, by Investor Aktiebolag, corporate registration no. 556013-8298, provided however that Invifed at the same time transfers its Shares including its full and unrestricted ownership, free and
clear of all Encumbrances, in and to such Shares. Authorised signatories of Invifed and the transferee shall sign the written notice which shall contain full company details of the transferee (including full name, Swedish corporate registration
number and registered address) as well as statements that the transferee adheres to this Agreement and that Invifed has assigned and the transferee has assumed any and all rights and obligations of Invifed under this Agreement including the transfer
of Invifed’s Shares in the Company (which transfer also will be reflected in the Company’s share register at Closing). For the avoidance of doubt, it shall be expressly stated that Invifed may only assign and transfer all, and not less
than all, of its rights and obligations hereunder and all of its Shares. 

  

	17.3	Costs 

  

	17.3.1 	The Sellers and the Buyer will each bear their own fees and expenses, including but not limited to advisors’ fees and expenses, incurred in connection with the
negotiations, preparation and execution of this Agreement and the transactions contemplated hereby. 

  
 32 

	17.4	Entire Agreement 

  

	17.4.1 	This Agreement contains the entire understanding of the Parties with respect to the subject matter contained herein, and supersedes and cancel all agreements and
negotiations (whether written or oral) prior to the date hereof between the Parties regarding the subject matter hereof. There are no agreements between the Parties with respect to the transactions contemplated under this Agreement other than those
set forth herein or made hereunder. 

  

	17.5	Amendments 

  

	17.5.1 	No modifications, amendments or alterations of this Agreement may be made except in writing, duly signed by each of the Parties to this Agreement.

  

	17.6	Notices 

  

	17.6.1 	All notices and other communications required or permitted under this Agreement shall be in writing in the English language, and shall be addressed to as set forth
below or to such other addresses as may be given by written notice in accordance with this Section 17.6; 

If to the Buyer: 
 To: Trinity Biotech Plc. 
 Attn. Kevin Tansley 

IDA Business Park, 
 Southern Cross Road, 
 Bray, Co Wicklow. 

Ireland 
 With a
copy (not serving as notice) to: 
 Wistrand Advokatbyrå 

Attn: Lars Hasp 

Box 7543 
 103 93
Stockholm 
 Sweden 
 If to the Sellers: 
 To: Hjalmar Didrikson 

Alfvén & Didrikson Invest AB 
 Västra Trädgårdsgatan 15 
 SE-111 53 Stockholm 

Sweden 

  
 33 

 With a copy (not serving as notice) to: 

Advokatfirman Vinge KB 
 Attn: Johan Winnerblad 
 Box 1703 

111 87 Stockholm 

Sweden 
  

	17.6.2 	Should the Buyer or the Sellers’ Representative not have confirmed receipt (in any form), a notice or other communication shall nevertheless be deemed received:

  

	 	a)	if delivered by hand, sent by reputable international overnight courier (with return or delivery receipt obtained) on the date of receipt by the recipient thereof if
received prior to 17.00 (CET) and such day is a Business Day, and otherwise on the next succeeding Business Day; or 

  

	 	b)	seven (7) Business Days after having been sent by registered or certified mail, return or delivery receipt requested, postage prepaid. 

 

	17.7	Execution and Effectiveness 

  

	17.7.1	This Agreement may be executed in one or more counterparts, all of which taken together shall be considered one and the same agreement and shall become effective when
one or more such counterparts have been signed by each of the Parties and delivered, by facsimile or otherwise, to the other Party. 

  

	17.8	Confidentiality 

  

	17.8.1 	No Party may make any announcement relating to the existence or the subject matter of this Agreement without the prior written approval of the other Party. This shall
not affect any announcement required by law or any regulatory body or the rules of any recognised stock exchange, but the Party with an obligation to make an announcement shall consult with the other Party insofar as is reasonably practicable before
complying with such an obligation. 

  

	17.9	Sellers’ Representative 

  

	17.9.1 	The Sellers hereby irrevocably and unconditionally appoint the Sellers’ Representative to act as their lawful agent and representative to the effect that the
Sellers’ Representative shall be authorized to, acting alone, do the following on his, her or its behalf: 

  

	 	a)	receive, deliver, order or make any payment relating to this Agreement and any other document pertaining to the transactions subject to this Agreement;

	 	

	 	b)	enter into any agreement in relation to the transactions subject to this Agreement; 

  
 34 

	 	c)	sign, deliver and accept receipt of any notice, request, proposal or consent or other communication relating to this Agreement or any other document pertaining to the
transactions subject to this Agreement whereby the Buyer shall be entitled in its sole discretion to have regard only to, and to rely absolutely upon and act in accordance with, without any liability to any party for having relied or acted thereon,
notices, including requests, elections or proposals, issued by the Sellers’ Representative. Service of any notice or other communication on the Sellers’ Representative shall be deemed to constitute valid service thereof on all the Sellers,
and the Buyer shall be under no obligation to verify the validity of any actions taken by the Sellers’ Representative on behalf of the Sellers; 

  

	 	d)	agree to amend this Agreement or any other document pertaining to the transactions subject to this Agreement; 

 

	 	e)	assert, negotiate, enter into settlements, consent or agree to arbitration and comply with any orders of courts and awards of arbitrators with respect to any claim
under this Agreement (including with any third parties in respect of a third party claim) and any other document pertaining to the transactions subject to this Agreement; and 

 

	 	f)	take all actions necessary or appropriate in the sole judgment of the Sellers’ Representative for the accomplishment of any of the foregoing (including any
corporate actions in relation to the transactions subject to this Agreement) and otherwise to represent each of the Sellers in any other matter under this Agreement and otherwise in relation to the transactions subject to this Agreement.

  

	17.9.2 	The Sellers agree that the Sellers’ Representative shall not be liable for any act done or omitted in his or her capacity as the Sellers’ Representative while
acting in good faith and in the exercise of reasonable judgment, and any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith. Further, the Sellers’ Representative shall be entitled to reasonable
compensation from the Sellers for any work performed in his or her capacity as the Sellers’ Representative and for any legal fees and out of pocket expenses incurred in connection therewith 

 

	17.10	Governing Law 

 This
Agreement shall be governed by and construed in accordance with the laws of Sweden, without giving effect to the choice of law principles thereof. 

  
 35 

	17.11	Arbitration 

  

	17.11.1 	Any dispute arising out of this Agreement, or other contracts resulting from it, shall be finally settled by Arbitration in accordance with the Rules of the Arbitration
Institute of the Stockholm Chamber of Commerce in force at any time. The Arbitration tribunal shall be composed of three arbitrators. The place of arbitration shall be Stockholm, Sweden. The language to be used in the arbitration proceedings shall
be English. 

  

	17.11.2 	The Parties agree not to disclose any information obtained in connection with the arbitration proceedings (including all communications, decisions and rulings in the
arbitration proceedings) to any third party unless the other Party has given its written consent to disclose such information or if required to do so by law or other binding regulations. 

 

	17.11.3 	The Sellers acknowledge that any breach of Sections 12.2 or 12.3 could cause irreparable harm to the Buyer for which monetary reimbursement may be an inadequate remedy.
The Sellers therefore agree that notwithstanding Sections 17.11.1 and 17.11.2; the Buyer shall have the right, in addition to its rights to recover monetary damages and other rights and remedies under this Agreement, to seek injunctive relief for
any violation or threatened violation thereof, with optional Swedish public court as the court of jurisdiction. 

 [Signature
page to follow] 

  
 36 

 This Agreement has been executed in two originals of which the Buyer and the Sellers’ Representative
have taken one each. 
  

					
	 For and on behalf of

Goldcup 7149 AB, c.n.t
 Trinity
Biotech Sweden AB
	 		  	 For and on behalf of

XXXX Xxxxxxxxx XX
 Xxxxxx x Xxxxxxxxx
Xxxxxx XX
 Xxxxxxxx XX

Xxxx Xxxxxxxxxx
 Xxx
Xxxxx

	  
 Kevin Tansley, by
proxy
  
 For and on behalf of

Xxxxxxx XX
  
	 		  	 Xxxx Xxxxxxxxx
 Xxxxx
Xxxxxxxxx
 Xxxxxxx Xxxx

Xxxxx Xxxxx
  

	  
 Xxxxx Xxxxxxxxxx, by
proxy
	 		  	  
 Hjalmar Didrikson, by
proxy

 Guarantee and Undertaking 
 Trinity Biotech Plc, the parent company of the Buyer, hereby guarantees the due and punctual fulfilment of the Buyer’s obligations under the Agreement as if they were its own (Sw. såsom
för egen skuld) and hereby undertakes to perform those obligations of the Buyer under the Agreement which by their nature cannot be fulfilled by the Buyer. This guarantee and undertaking shall be governed by and construed in accordance with
the laws of Sweden, without giving effect to the choice of law principles thereof, and any disputes hereunder shall be settled by arbitration pursuant to the same rules as provided for in the Agreement. 

Trinity Biotech Plc undertakes to meet the current public information requirement under rule 144 of the Securities Act of 1933 as amended. 

Trinity Biotech Plc further undertakes to file form 20-F within six (6) months after the Closing Date, to the extent permissible or otherwise as
soon as possible thereafter, or failing such filing file a registration statement allowing the Trinity ADR certificates to become unrestricted. 

As of the date first above written. 
 TRINITY
BIOTECH PLC 
  
  

Kevin Tansley, by proxy 

  
 37Facility agreement

 Exhibit 10.1 
 Private and Confidential 
 DATED 23rd March 2012

 ASTRA MARITIME CORPORATION 
 and 
 SERENITY SHIPPING ENTERPRISES INC. 

as Borrowers 
 DVB BANK SE 
 EMPORIKI BANK OF GREECE S.A. 

and 

NORDDEUTSCHE LANDESBANK 
 GIROZENTRALE 
 as Lenders 

and 

DVB BANK SE 

as Arranger, Agent and Security Trustee 
  

 
 FACILITY
AGREEMENT FOR A USD 42,000,000 
 TERM LOAN FACILITY 

IN TWO TRANCHES 
  

 

INCE & CO 
 PIRAEUS 

 Index 

 

							
	Clause	  	Page	 
			
	1	    	Purpose, definitions, construction & Majority Lenders	  	 	1	  
			
	2	    	The Available Commitment and cancellation	  	 	20	  
			
	3	    	Interest and Interest Periods	  	 	22	  
			
	4	    	Repayment and prepayment	  	 	25	  
			
	5	    	fees and expenses	  	 	28	  
			
	6	    	Payments and taxes; accounts and calculations	  	 	30	  
			
	7	    	Representations and warranties	  	 	34	  
			
	8	    	Undertakings	  	 	41	  
			
	9	    	Conditions	  	 	56	  
			
	10	    	Events of Default	  	 	57	  
			
	11	    	Indemnities	  	 	62	  
			
	12	    	Unlawfulness and increased cosTS	  	 	63	  
			
	13	    	Application of Moneys, set off, pro-rata payments and Miscellaneous	  	 	65	  
			
	14	    	Accounts	  	 	70	  
			
	15	    	Assignment, transfer and lending office	  	 	72	  
			
	16	    	Arranger, Agent and Security Trustee	  	 	77	  
			
	17	    	Notices and other matters	  	 	91	  
			
	18	    	Borrowers’ obligations	  	 	94	  
			
	19	    	Governing law	  	 	96	  
			
	20	    	Jurisdiction	  	 	96	  
		
	Schedule 1	  	 	99	  
		
	The Lenders and their Commitments	  	 	99	  
		
	Schedule 2	  	 	101	  
		
	Form of Drawdown Notice	  	 	101	  
		
	Schedule 3 Conditions precedent	  	 	113	  

					
	 Schedule 4 Form transfer certificate
	  	 	118	  
		
	 Schedule 5 Form of Trust Deed
	  	 	119	  
		
	 Schedule 6 Form of Compliance Certificate
	  	 	119	  
		
	 Schedule 7 Vessel details
	  	 	120	  
		
	 Schedule 8 Form of Loan Administration Form
	  	 	121	  
		
	 Schedule 9 Indenture Excerpt
	  	 	122	  
		
	 Schedule 10 Indenture Definitions
	  	 	122	  
		
	 Execution Page
	  	 	134	  

 THIS AGREEMENT dated 23rd March 2012 is made BY and BETWEEN: 

 

	(1)	ASTRA MARITIME CORPORATION and SERENITY SHIPPING ENTERPRISES INC. as Borrowers; 

 

	(2)	DVB BANK SE, EMPORIKI BANK OF GREECE S.A. and NORDDEUTSCHE LANDESBANK GIROZENTRALE as Lenders; and 

 

	(3)	DVB BANK SE as Arranger, Agent and Security Trustee. 

 NOW IT IS HEREBY AGREED AS FOLLOWS: 
  

	1	PURPOSE, DEFINITIONS, CONSTRUCTION & MAJORITY LENDERS 

  

	1.1	Purpose 

 This Agreement
sets out the terms and conditions on which DVB Bank SE, Emporiki Bank of Greece S.A. and Norddeutsche Landesbank Girozentrale agree to make available to the Borrowers a loan of up to forty two million Dollars (USD 42,000,000) in two Tranches of:

  

	 	(a)	twenty six million (USD26,000,000), for the purpose of part-financing the purchase price of Vessel A to be acquired by Serenity from the Seller; and

  

	 	(b)	up to sixteen million Dollars (USD16,000,000) for the purpose of refinancing certain existing indebtedness secured on Vessel B owned by Astra. 

 

	1.2	Definitions 

 In this
Agreement, unless the context otherwise requires: 
 “Actual Rate” means, in respect of each Interest Period,
the rate per annum notified to the Agent by each Lender as the rate at which deposits in Dollars are offered to that Lender (and such Lender is under no obligation to take up that offer) in its ordinary course of business by brokers and/or leading
banks in the London Interbank Market or European Interbank Market at or about 11.00 a.m. (London time) on the day on which quotations would ordinarily be given by brokers and/or leading banks in the London Interbank Market or European Interbank
Market for deposits in the relevant currency to which such rate is to be determined for delivery on the first day of the relevant Interest Period, and, if that Lender obtains in the ordinary course of its business, quotes from more than one broker
and/or leading bank, that Lender’s actual rate shall be the weighted average of those quotes and the determination of the actual rate by a Lender shall be final, conclusive and binding on the Borrowers; 

  
 1 

 “Agent” means DVB Bank SE acting for the purposes of this Agreement through
its branch at Platz der Republik 6, D- 60325 Frankfurt Am-Main, Germany (or of such other address as may last have been notified to the other parties to this Agreement) or such other person as may be appointed as agent by the Banks pursuant to
clause 16.13; 
 “Approved Broker” means each of Fearnleys A.S., Clarkson Valuations Limited, Simpson
Spence & Young Shipbrokers Ltd., Maritime Strategies and RS Platou or such other reputable, independent and first class firm of shipbrokers specialising in the valuation of vessels of the relevant type appointed by the Agent and agreed with
the Borrowers; 
 “Arranger” means DVB Bank SE acting through its branch at Platz der Republik 6, D- 60325
Frankfurt Am-Main, Germany; 
 “Authorised Person” means each person named as an Authorised Person in the Loan
Administration Form who are authorised, on behalf of the Borrowers, to request information or communicate generally with the Agent in relation to the administration of the Loan by the Agent during the Facility Period, and with whom the Agent will
liaise in the first instance in relation to the administration of the Loan; 
 “Banking Day” means a day on
which dealings in deposits in USD are carried on in the London Interbank Eurocurrency Market and (other than Saturday or Sunday) on which banks are open for business in London, Frankfurt, Hannover, Piraeus, Athens and New York City (or any other
relevant place of payment under clause 6); 
 “Banks” means, together, the Arranger, the Agent, the Security
Trustee, the Lenders and any Transferee Lenders; 
 “Borrowed Money” means Indebtedness in respect of
(i) money borrowed or raised and debit balances at banks, (ii) any bond, note, loan stock, debenture or similar debt instrument, (iii) acceptance or documentary credit facilities, (iv) receivables sold or discounted (otherwise
than on a non-recourse basis), (v) deferred payments for assets or services acquired, (vi) finance leases and hire purchase contracts, (vii) swaps, forward exchange contracts, futures and other derivatives, (viii) any other
transaction (including without limitation forward sale or purchase agreements) having the commercial effect of a borrowing or raising of money or of any of (ii) to (vii) above and (ix) guarantees in respect of Indebtedness of any
person falling within any of (i) to (viii) above; 

  
 2 

 “Borrower” means each of Astra Maritime Corporation
(“Astra”) and Serenity Shipping Enterprises Inc. (“Serenity”) each having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands and in the plural means
both of them; 
 “Break Costs” means the aggregate amount of all losses, premiums, penalties, costs and expenses
whatsoever certified by the Agent at any time and from time to time as having been incurred by the Lenders or any of them in maintaining or funding their Contributions or in liquidating or re-employing fixed deposits acquired to maintain the same as
a result of either: 
  

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

  

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

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

“Charter Assignment” means a specific assignment of each Existing Charter and each Extended Employment Contract required
to be executed hereunder by either Borrower in favour of the Security Trustee (including any notices and/or acknowledgements and/or undertakings associated therewith) in such form as the Agent and the Majority Lenders may require in their sole
discretion; 
 “Charter Insurances” means all policies and contracts of insurance which are from time to time
during the Facility Period in place or taken out or entered into by or for the benefit of a Borrower in respect of loss of earnings and all benefits thereof (including claims of whatsoever nature and return of premiums); 

“Charter Insurance Assignment” means a first priority assignment of the Charter Insurances executed or to be executed by
such named insured as the Agent may require in favour of the Security Trustee, in such form as the Agent and the Majority Lenders may in their sole discretion require; 

  
 3 

 “Classification” means, in relation to each Vessel, the highest class
available for a vessel of her type with the relevant Classification Society; 
 “Classification Society” means,
in relation to each Vessel, any International Association of Classification Societies classification society which the Lenders shall, at the request of the Borrowers, have agreed in writing shall be treated as the classification society in relation
to such Vessel for the purposes of the relevant Ship Security Documents; 
 “Commitment” means, in relation to
the Loan in relation to each Lender, the sum set out opposite its name in Schedule 1 or any replacement thereof, or otherwise pursuant to the terms of any relevant Transfer Certificate as the amount which, subject to the terms of this Agreement, it
is obliged to advance to the Borrowers hereunder in respect of the Loan Facility, in each case as such amount may have been reduced and/or cancelled under this Agreement; 
 “Compliance Certificate” means a certificate substantially in the form set out in Schedule 6 signed by the chief financial officer of the Corporate Guarantor; 

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

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

  
 4 

 “Corporate Guarantor” means Navios Maritime Holdings Inc. a company
incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 
 “Default” means any Event of Default or any event or circumstance which with the giving of notice or lapse of time or the satisfaction of any other condition (or any combination thereof)
would constitute an Event of Default; 
 “Delivery Date” means the date on which title to and possession of
Vessel A is transferred from the Seller to Serenity; 
 “Dollars” and “USD” mean the lawful
currency of the USA and in respect of all payments to be made under any of the Security Documents means funds which are for same day settlement in the New York Clearing House Interbank Payments System (or such other US dollar funds as may at the
relevant time be customary for the settlement of international banking transactions denominated in US dollars); 

“Drawdown Date” means, in relation to each Tranche, any date being a Banking Day falling during the Drawdown Period, on
which that Tranche is, or is to be, made available; 
 “Drawdown Notice” means, in relation to each Tranche, a
notice substantially in the form of Schedule 2; 
 “Drawdown Period” means, in respect of each Tranche, the
period commencing on the Execution Date and ending on the earliest of (a) (in respect of Tranche A) the earlier of 31 March 2012 and the Delivery Date, (b) (in respect of Tranche B) the earlier of 30 June 2012 and the date on
which the Existing Mortgagee is repaid and discharges its mortgage over Vessel B and (d) any date on which (i) the amount of that Tranche is equal to the Total Commitment in respect thereof or (ii) the Total Commitment is reduced to
zero pursuant to clauses 10.2 or 12 or (iii) (in respect of Tranche A) the MOA is terminated, cancelled, revoked, suspended, rescinded, transferred, novated or otherwise ceases to remain in full force and effect for any reason; 

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

  
 5 

 “Earnings Account Bank” means Emporiki Bank of Greece SA or such other bank
as may be designated by the Agent as the Earnings Account Bank for the purposes of this Agreement and which is of a rating acceptable to the Lenders, in their sole discretion; 
 “Earnings Account Pledge” means, in respect of each Earnings Account, a first priority charge required to be executed hereunder between the relevant Borrower and the Security Trustee in
respect of its Earnings Account in such form as the Agent and the Majority Lenders may require in their sole discretion, and in the plural means both of them; 
 “EIAPP Certificate” means the Engine International Air Pollution Prevention Certificate issued or to be issued pursuant to Annex VI of the International Convention for the Prevention of
Pollution from Ships, MARPOL 73/78 (Regulations for the Prevention of Air Pollution from Ships) in relation to a Vessel; 

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

“Environmental Affiliate” means any agent or employee of either Borrower, the Manager, or any other Group Member or any
other person having a contractual relationship with either Borrower, the Manager, or any other Group Member in connection with any Relevant Ship or its operation or the carriage of cargo and/or passengers thereon and/or the provision of goods and/or
services on or from any Relevant Ship; 
 “Environmental Approval” means any consent, authorisation, licence or
approval of any governmental or public body or authorities or courts applicable to any Relevant Ship or its operation or the carriage of cargo and/or passengers thereon and/or the provision of goods and/or services on or from any Relevant Ship
required under any Environmental Law; 
 “Environmental Claim” means (i) any claim by any applicable
Government Entity alleging breach of, or non-compliance with, any Environmental Laws or Environmental Approvals or otherwise howsoever relating to or arising out of an Environmental Incident or (ii) any claim by any other third party howsoever
relating to or arising out of an Environmental Incident 

  
 6 

 
(and, in each such case, “claim” shall include a claim for damages and/or direction for and/or enforcement relating to clean-up costs, removal, compliance, remedial action or otherwise)
or (iii) any Proceedings arising from any of the foregoing; 
 “Environmental Incident” means, regardless
of cause, (i) any discharge or release of Environmentally Sensitive Material from any Relevant Ship; (ii) any incident in which Environmentally Sensitive Material is discharged or released from a vessel other than a Relevant Ship which
involves collision between a Relevant Ship and such other vessel or some other incident of navigation or operation, in either case, where the Relevant Ship, the Manager and/or the relevant Owner and/or the relevant Group Member and/or the relevant
Operator are actually, contingently or allegedly at fault or otherwise howsoever liable (in whole or in part) or (iii) any incident in which Environmentally Sensitive Material is discharged or released from a vessel other than a Relevant Ship
and where such Relevant Ship is actually or reasonably likely to be arrested as a result and/or where the Manager and/or the relevant Owner and/or other Group Member and/or the relevant Operator are actually or contingently at fault or allegedly and
reasonably likely to be found at fault or otherwise howsoever liable to any administrative or legal action; 

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

“Environmentally Sensitive Material” means oil, oil products or any other products or substance which are polluting,
toxic or hazardous or any substance the release of which into the environment is howsoever regulated, prohibited or penalised by or pursuant to any Environmental Law; 
 “Event of Default” means any of the events or circumstances listed in clause 10.1; 
 “Execution Date” means the date on which this Agreement has been executed by all the parties hereto; 
 “Existing Mortgagee” means the Marfin Egnatia Bank of Athens, Greece; 
 “Extended Employment Contract” means, in respect of a Vessel, any time charterparty, contract of affreightment or other contract of employment of such ship (including the entry of either
Vessel in any pool) which has a tenor exceeding twelve (12) months (including any options to renew or extend such tenor); 

  
 7 

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

“First Indenture” means the Indenture dated as of 28 January 2011 issued by the Corporate Guarantor and Navios
Maritime Finance II (US) Inc. for 8 1/8% Senior Notes due on 15 February 2019; 
 “Flag State” means
Panama, Liberia, the Marshall Islands or any other country acceptable to the Lenders; 
 “General Assignment”
means, in respect of each Vessel, the deed of assignment of its earnings, insurances and requisition compensation executed or to be executed by the relevant Owner in favour of the Security Trustee in such form as the Agent and the Majority Lenders
may require in their sole discretion and in the plural means both of them; 
 “Government Entity” means any
national or local government body, tribunal, court or regulatory or other agency and any organisation of which such body, tribunal, court or agency is a part or to which it is subject; 

“Group” means at any relevant time the Corporate Guarantor and its subsidiaries but not including any subsidiary which is
listed on any public stock exchange; 
 “Group Member” means any member of the Group; 

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

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

  
 8 

 “Indentures” means, together, the First Indenture and the Secured
Indenture; 
 “Indenture Excerpt” means the excerpt from the First Indenture set out in Schedule 9; 

“Interest Payment Date” means, in relation to each Tranche, the last day of an Interest Period and, if an Interest Period
is longer than 3 months, the date falling at the end of each successive period of 3 months during such Interest Period starting from its commencement; 
 “Interest Period” means each period for the calculation of interest in respect of the Loan or, as the case may be, Tranche ascertained in accordance with the provisions of clause 3;

 “ISM Code Documentation” means, in relation to a Vessel, the document of compliance (DOC) and safety
management certificate (SMC) issued by a Classification Society pursuant to the ISM Code in relation to that Vessel within the periods specified by the ISM Code; 
 “ISM SMS” means the safety management system which is required to be developed, implemented and maintained under the ISM Code; 

“ISPS Code” means the International Ship and Port Security Code of the International Maritime Organisation and includes
any amendments or extensions thereto and any regulations issued pursuant thereto; 
 “ISSC” means an
International Ship Security Certificate issued in respect of a Vessel pursuant to the ISPS Code; 
 “Latest
Accounts” means, in respect of any financial quarter or year of the Group, the latest unaudited (in respect of each financial quarter) or audited (in respect of each financial year) financial statements required to be prepared pursuant to
clause 8.1.6; 
 “Lenders” means the banks listed in Schedule 1 and Transferee Lenders; 

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

  
 9 

 “LIBOR” means, the greater of (i) and (ii) below: 

 

	 	(i)	the rate equal to the offered quotation for deposits in USD in an amount comparable with the amount in relation to which LIBOR is to be determined for a period equal
to, or as near as possible equal to, the relevant Interest Period which appears on Reuters BBA Page LIBOR 01 at or about 11 a.m. (London time) on the second Banking Day before the first day of such period (and, for the purposes of this Agreement,
“Reuters BBA Page LIBOR 01” means the display designated as “LIBOR01” on the Reuters Service or such other page as may replace LIBOR01 on that service for the purpose of displaying rates comparable to that rate or on such other
service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying the British Bankers’ Association Interest Settlement Rates for USD); and 

 

	 	(ii)	the rate per annum determined by the Agent to enable each Lender to receive, in relation to its Contribution, the Actual Rate certified by that Lender to the Agent in
accordance with the definition of “Actual Rate” above; 

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

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

  

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

“Loan” means the aggregate principal amount in respect of the Loan Facility owing to the Lenders under this Agreement at
any relevant time; 
 “Loan Administration Form” means a letter substantially in the form set out in Schedule 8
signed by the Borrowers; 
 “Loan Facility” means the loan facility provided by the Lenders on the terms and
subject to the conditions of this Agreement in the amount of USD 42,000,000; 

  
 10 

 “Majority Lenders” means at any relevant time when there are two Lenders,
both of them, and at any time when there are more than two Lenders, the Lenders whose Contributions exceed 75% of the Loan; 

“Management Agreement” means, in respect of Vessel A, the agreement dated 21 March 2012 made between Serenity and
the Manager and in respect of Vessel B, the agreement dated 17 February 2011 made between Astra and the Manager, each in a form previously approved in writing by the Agent (acting on the instructions of the Majority Lenders); 

“Manager” means Navios Shipmanagement Inc., a company incorporated in the Marshall Islands and having its registered
office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960 or (without the need for the Agent’s consent) any Group Member or (with the prior written consent of the Agent) any other person appointed by an
Owner, as the commercial and/or technical manager of the relevant Mortgaged Vessel; 
 “Manager’s
Undertakings” means, collectively, the undertakings and assignments required to be executed hereunder by the Manager in favour of the Security Trustee in respect of each of the Vessels each in such form as the Agent and the Majority Lenders
may require in their sole discretion (and “Managers’ Undertaking” means each of them); 

“Margin” means: 
  

	 	(a)	in respect of Tranche A, 2.85% per annum; and 

  

	 	(b)	in respect of Tranche B, 3.6% per annum; 

 “Material Adverse Effect” means any event or occurrence which the Majority Lenders reasonably determine has had or could reasonably be expected to have a material adverse effect on
(i) the Banks’ rights under, or the security provided by, any Security Document, (ii) the ability of any Security Party to perform or comply with any of its obligations under any Security Document or (iii) the value or nature of
the property, assets, operations, liabilities or financial condition of any Security Party; 
 “Maturity Date”
means in respect of each Tranche, the date falling 8 years after the Drawdown Date in respect thereof; 
 “MII &
MAP Policy” means a mortgagee’s interest and pollution risks insurance policy (including additional perils (pollution) cover) in respect of each Mortgaged Vessel to be 

  
 11 

 
effected by the Security Trustee on or before the first Drawdown Date to cover the Mortgaged Vessels as the same may be renewed or replaced annually thereafter and maintained throughout the
Facility Period through such brokers, with such underwriters and containing such coverage as may be acceptable to the Security Trustee in its sole discretion, insuring a sum of at least one hundred and twenty per cent (120%) of the Loan in
respect of mortgagee’s interest insurance and one hundred and twenty per cent (120%) of the Loan in respect of additional perils cover; 
 “month” means a period beginning in one calendar month and ending in the next calendar month on the day numerically corresponding to the day of the calendar month on which it started,
provided that (a) if the period started on the last Banking Day in a calendar month or if there is no such numerically corresponding day, it shall end on the last Banking Day in such next calendar month and (b) if such numerically
corresponding day is not a Banking Day, the period shall end on the next following Banking Day in the same calendar month but if there is no such Banking Day it shall end on the preceding Banking Day and “months” and
“monthly” shall be construed accordingly; 
 “Mortgage” means, in respect of each Vessel,
together, the first preferred mortgage thereof required to be executed hereunder by the Owner thereof in favour of the Security Trustee, each in such form as the Agent and the Majority Lenders may require in their sole discretion and in the plural
means both of them; 
 “Mortgaged Vessel” means, at any relevant time, either Vessel which is at such time
subject to a Mortgage and a Vessel shall, for the purposes of this Agreement, be regarded as a Mortgaged Vessel as from the date on which the Mortgage of that Vessel has been executed and registered in accordance with this Agreement until whichever
shall be the earlier of (i) the payment in full of the amount required to be paid to the Agent pursuant to clause 4.3 or 4.5 following the Total Loss or sale respectively of such Vessel and (ii) the end of the Facility Period; 

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

	 	(i)	Vessel A, Serenity; 

  
 12 

	 	(ii)	Vessel B, Astra, 

 and in the
plural means both of them; 
 “Permitted Encumbrance” means any Encumbrance in favour of the Banks or any of
them created pursuant to, or expressly permitted by, the Security Documents and Permitted Liens; 
 “Permitted
Liens” means any lien on either Vessel for master’s, officer’s or crew’s wages outstanding in the ordinary course of trading, any lien for salvage and any ship repairer’s or outfitter’s possessory lien for a sum not
(except with the prior written consent of the Agent) exceeding the Casualty Amount (as defined in the Ship Security Documents for such Vessel); 
 “Pertinent Jurisdiction” means any jurisdiction in which or where any Security Party is incorporated, resident, domiciled, has a permanent establishment or assets, carries on, or has a
place of business or is otherwise howsoever effectively connected; 
 “Proceedings” means any litigation,
arbitration, legal action or complaint or judicial, quasi-judicial or administrative proceedings whatsoever arising or instigated by anyone (private or governmental) in any court, tribunal, public office or other forum whatsoever and wheresoever
(including, without limitation, any action for provisional or permanent attachment of any thing or for injunctive remedies or interim relief and any action instigated on an ex parte basis); 

“Prohibited Person” means any person with whom transactions are currently prohibited or restricted under the United
States of America sanctions administered by the United States of America Department of Treasury’s Office of Foreign Assets Control (OFAC), any other United States of America government sanction, export or procurement laws or any other sanctions
or other such restrictions on business dealings imposed by a member state of the European Union, including a person on any list of restricted entities, persons or organisations published by the United States of America government, the United Nations
or the European Union or any member state of the European Union, including without limitation: 
  

	 	(a)	the United States of America Government’s List of Specially Designated Nationals and Blocked Persons, Denied Persons List, Entities List, Debarred Parties List,
Excluded Parties List and Terrorism Exclusion List; 

  

	 	(b)	Her Majesty’s Treasury’s Consolidated List of Financial Sanctions Targets; 

  
 13 

	 	(c)	the European Union Restricted Person Lists issued pursuant to Council Regulation (EC) No. 881/2002 of 27 May 2002, Council Regulation (EC) No. 2580/2001
of 27 December 2001 and Council Common Position 2005/725/CFSP of 17 October 2005; and 

 (d) the United
Nations Consolidated List established and maintained by the 1267 Committee; 
 “Registry” means, in relation to
each Vessel, the office of the registrar, commissioner or representative of the Flag State, who is duly empowered to register such Vessel, the relevant Owner’s title thereto and the relevant Mortgage under the laws and flag of the Flag State;

 “Relevant Ship” means each of the Vessels and any other ship from time to time (whether before or after the
date of this Agreement) owned, managed or crewed by, or chartered to, any Group Member; 
 “Repayment Dates”
means, in respect of each Tranche, subject to clause 6.3, each of the dates falling at quarterly intervals after the Drawdown Date in respect thereof, up to and including the date falling 96 months after such date; 

“Required Authorisation” means any authorisation, consent, declaration, licence, permit, exemption, approval or other
document, whether imposed by or arising in connection with any law, regulation, custom, contract, security or otherwise howsoever which must be obtained at any time from any person, Government Entity, central bank or other self-regulating or
supra-national authority in order to enable the Borrowers lawfully to borrow the loan or draw a Tranche and/or to enable any Security Party lawfully and continuously to continue its corporate existence and/or perform all its obligations whatsoever
whensoever arising and/or grant security under the relevant Security Documents and/or to ensure the continuous validity and enforceability thereof; 
 “Required Security Amount” means the amount in USD (as certified by the Agent) which is at any relevant time (i) between the first and third anniversaries of the second, or (if
Tranche B is not drawn down) the first Drawdown Date, 100% of the Loan, (ii) between the third and fifth anniversaries of that Drawdown Date, 110% of the Loan and (iii) thereafter, 120% of the Loan; 

  
 14 

 “Secured Indenture” means the Indenture dated as of January 2011 for
USD400,000,000 issued by the Corporate Guarantor and Navios Maritime Finance II (US) Inc. for 8 7/8% First Priority Ship Mortgage Notes due in 2017; 
 “Security Documents” means this Agreement, the Mortgages, the Corporate Guarantee, the General Assignments, the Charter Assignments, the Insurance Assignments, the Shares Pledges, the
Earnings Account Pledges, the Manager’s Undertakings, any Charter Insurance Assignment and any other documents as may have been or shall from time to time after the date of this Agreement be executed to guarantee and/or to govern and/or secure
all or any part of the Loan, interest thereon and other moneys from time to time owing by the Borrowers pursuant to this Agreement (whether or not any such document also secures moneys from time to time owing pursuant to any other document or
agreement); 
 “Security Party” means the Borrowers, the Corporate Guarantor, the Shareholder or any other
person who may at any time be a party to any of the Security Documents (other than the Banks); 
 “Security
Trustee” means DVB Bank SE acting for the purposes of this Agreement through its branch at Platz der Republik 6, D- 60325 Frankfurt Am-Main, Germany (or of such other address as may last have been notified to the other parties to this
Agreement pursuant to clause 17.2.3) or such other person as may be appointed as Security Trustee by the Lenders, the Arranger and the Agent pursuant to clause 16.14; 
 “Security Value” means the amount in USD (as certified by the Agent) which is, at any relevant time, the aggregate of (a) the Valuation Amounts of the Mortgaged Vessels as most
recently determined in accordance with clause 8.2.2 and (b) the net realizable market value of any additional security for the time being actually provided to the Lenders pursuant to clause 8.2.1(b) and (c) cash over which there is an
Encumbrance as security for the obligations of the Borrowers under this Agreement; 
 “Shareholder” means Anemos
Maritime Holdings Inc., a company incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 

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

  
 15 

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

“subsidiary” of a person means any company or entity directly or indirectly controlled by such person, and for this
purpose “control” means either the ownership of more than fifty per cent (50%) of the voting share capital (or equivalent rights of ownership) of such company or entity or the power to direct its policies and management, whether by
contract or otherwise; 
 “Taxes” includes all present and future income, corporation, capital or value-added
taxes and all stamp and other taxes and levies, imposts, deductions, duties, charges and withholdings whatsoever together with interest thereon and penalties in respect thereto, if any, and charges, fees or other amounts made on or in respect
thereof (and “Taxation” shall be construed accordingly); 
 “Total Assets” and “Total
Liabilities” mean, respectively, the total assets and total liabilities of the Group as evidenced at any relevant time by the Latest Accounts, in which they shall have been calculated by reference to the meanings assigned to them in
accordance with US GAAP which is in effect as at the Execution Date provided that cash shall be deducted from Total Assets and Total Liabilities; 
 “Total Commitment” means, at any relevant time, the aggregate of the Commitments of all the Lenders at such time (being the aggregate of the sums set out opposite their names in Schedule
1 and means (i) USD 26,000,000 in respect of Tranche A and (ii) USD 16,000,000 in respect of Tranche B); 

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

 

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

 

	 	(b)	Compulsory Acquisition; or 

  

	 	(c)	 any hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of such Vessel not falling within the definition of Compulsory
Acquisition by any Government Entity, or by persons allegedly acting or 

  
 16 

	 	
purporting to act on behalf of any Government Entity, unless such Vessel be released and restored to the relevant Owner within ninety (90) days after such incident; 

“Tranche” means either of Tranche A or Tranche B and in the plural means both of them; 

“Tranche A” means the amount of USD26,000,000 to be made available by the Lenders to the Borrowers to be applied, inter
alia, in or towards the acquisition of Vessel A by Serenity or, as the context requires, the amount thereof outstanding from time to time; 
 “Tranche B” means the amount of up to USD16,000,000 to be made available by the Lenders to the Borrowers to be applied, inter alia, in or towards refinancing amounts owed to the Existing
Mortgagee and secured on Vessel B or, as the context requires, the amount thereof outstanding from time to time; 

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

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

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

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

“Trust Property” means (i) the security, powers, rights, titles, benefits and interests (both present and future)
constituted by and conferred on the Banks or any of them under or pursuant to the Security Documents (including, without limitation, the benefit of all covenants, undertakings, representations, warranties and obligations given, made or undertaken to
any Bank in the Security Documents), (ii) all moneys, property and other assets paid or transferred to or vested in any Bank (or anyone else on such Bank’s behalf) or received or recovered by any Bank (or anyone else on such Bank’s
behalf) pursuant to, or in connection with, any of the Security Documents whether from any Security Party or any other person and (iii) all moneys, investments, property and other assets at any time representing or deriving from any of the
foregoing, including all interest, income and other sums at any time received or receivable by any Bank (or anyone else on such Bank’s behalf) in respect of the same (or any part thereof); 

  
 17 

 “Underlying Documents” means, together, the Existing Charters and the
Management Agreements; 
 “Unlawfulness” means any event or circumstance which either is or, as the case may be,
might in the reasonable opinion of the Agent become the subject of a notification by the Agent to the Borrowers under clause 12.1; 
 “USA” means the United States of America; 
 “Valuation
Amount” means, in respect of each Vessel, the value thereof as most recently determined under clause 8.2.2; and 

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

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

	1.3	Construction 

 In this
Agreement, unless the context otherwise requires: 
  

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

 

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

  

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

  

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

  

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

  
 18 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

 

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

  

	1.4	Accounting terms and references to currencies 

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

  
 19 

	1.5	Contracts (Rights of Third Parties Act) 1999 

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

 

	1.6	Majority Lenders 

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

	2	THE AVAILABLE COMMITMENT AND CANCELLATION 

  

	2.1	Agreement to lend 

 The
Lenders, relying upon each of the representations and warranties in clause 7, agree to provide to the Borrowers upon and subject to the terms of this Agreement, the principal sum of up to forty two million Dollars (USD 42,000,000) by making
available: 
  

	 	(a)	Tranche A in the amount of twenty six million Dollars (USD26,000,000); and 

 

	 	(b)	Tranche B in the amount of the lesser of (i) sixteen million Dollars (USD16,000,000) and (ii) 65% of the Valuation Amount of Vessel B (to be determined no
more than 60 days before then Drawdown Date in respect of Tranche B) for the purpose of refinancing Vessel B. 

.Subject to the terms of this Agreement, the obligations of the Lenders shall be to contribute to each Tranche, the proportion of the
relevant Tranche which their respective Commitments bear to the Total Commitment on any relevant Drawdown Date. 

  
 20 

	2.2	Obligations several 

 The
obligations of the Lenders under this Agreement are several according to their respective Commitments and/or Contributions. The failure of any Lender to perform such obligations shall not relieve any other party to this Agreement of any of its
respective obligations or liabilities under this Agreement nor shall any Bank be responsible for the obligations of any other Bank (except for its own obligations, if any, as a Lender) under this Agreement. 

 

	2.3	Interests several 

Notwithstanding any other term of this Agreement (but without prejudice to the provisions of this Agreement relating to or requiring
action by the Majority Lenders) the interests of the Banks are several and the amount due to any Bank is a separate and independent debt. Each Bank shall have the right to protect and enforce its rights arising out of this Agreement and it shall not
be necessary for any other Bank to be joined as an additional party in any Proceedings for this purpose. 
  

	2.4	Drawdown 

  

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

  

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

 

	2.5	Limitation and application of Tranches 

  

	2.5.1	The amount of the Loan shall not exceed the amount of the Loan Facility and the amount of each Tranche shall not exceed: 

 

	 	(a)	in respect of Tranche A, USD26,000,000; and 

  

	 	(b)	in respect of Tranche B, the lesser of (i) USD16,000,000 and (ii) 65% of the Valuation Amount of Vessel B under the valuation to be provided under (p) in
Part C of Schedule 3. 

  

	2.5.2	The Loan shall be made available by the advance of Tranche A and Tranche B each in the amounts referred to in clause 2.5.1 and the same shall be applied:

  

	 	(a)	as to Tranche A, in payment to the Seller under the MOA; 

  
 21 

	 	(b)	as to Tranche B, in payment to the Existing Mortgagee. 

  

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

  

	2.6	Availability 

 Upon
receipt of a Drawdown Notice complying with the terms of this Agreement, the Agent shall promptly notify each Lender and each Lender shall make available to the Agent its portion of the relevant Tranche for payment by the Agent in accordance with
clause 6.2. The Borrowers acknowledge that payment of a Tranche to the account referred to in the relevant Drawdown Notice shall satisfy the obligation of the Lenders to lend that Tranche to the Borrowers under this Agreement. 

 

	2.7	Voluntary cancellation of Facility 

 The Borrowers may at any time during the Drawdown Period by notice to the Agent (effective only on actual receipt) cancel with effect from a date not less than five Banking Days after the receipt by the
Agent of such notice the whole or any part (being five hundred thousand Dollars (USD 500,000) or any larger sum which is an integral multiple of five hundred thousand Dollars (USD 500,000)) of the Total Commitment. Any such notice of cancellation,
once given, shall be irrevocable and the Total Commitment shall be reduced accordingly and each Lender’s Commitment shall be reduced pro rata according to the proportion which its Commitment bears to the Total Commitment. 

 

	2.8	Use of proceeds 

 Without
prejudice to the Borrowers’ obligations under clause 8.1.4, no Bank shall have any responsibility for the application of the proceeds of a Tranche or any part thereof by the Borrowers. 

 

	3	INTEREST AND INTEREST PERIODS 

  

	3.1	Normal interest rate 

 The
Borrowers must pay interest on each Tranche in respect of each Interest Period relating thereto on each Interest Payment Date at the rate per annum determined by the Agent to be 

  
 22 

 
either (A) the aggregate of (a) the Margin and (b) LIBOR, or (B) if the Borrowers select an Interest Period of 6 months or over (with the agreement of the Lenders), the
aggregate of (a) the Actual Rate and (b) the Margin. 
  

	3.2	Selection of Interest Periods 

 Subject to clause 3.3, the Borrowers may by notice received by the Agent not later than 10:00 a.m. on the fourth Banking Day before the beginning of each Interest Period specify whether such Interest
Period shall have a duration of three (3) months or (with the prior agreement of the Lenders) one (1) month or such other period as the Borrowers may select and the Lenders may, in their complete discretion, agree, and if the Borrowers
wish to specify an Interest Period of more than 12 months, they must give at least 5 Banking Days prior notice thereof. 
  

	3.3	Determination of Interest Periods 

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

 

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

  

	3.3.3	if any Interest Period would otherwise overrun a Repayment Date, then the relevant Tranche shall be divided into parts so that there is one part in the amount of the
repayment instalment due on such Repayment Date and having an Interest Period ending on the relevant Repayment Date and another part in the amount of the balance of the relevant Tranche having an Interest Period ascertained in accordance with clause
3.2 and the other provisions of this clause 3.3; and 

  

	3.3.4	if the Borrowers fail to specify the length of an Interest Period in accordance with the provisions of clause 3.2 and this clause 3.3 such Interest Period shall last
three months or such other period as complies with this clause 3.3. 

  

	3.4	Default interest 

 If the
Borrowers fail to pay any sum (including, without limitation, any sum payable pursuant to this clause 3.4) on its due date for payment under any of the Security Documents, the Borrowers must pay interest on such sum on demand from the due date up to
the date of 

  
 23 

 
actual payment (as well after as before judgment) at a rate determined by the Agent pursuant to this clause 3.4. The period starting on such due date and ending on such date of payment shall be
divided into successive periods of not more than three (3) months as selected by the Agent each of which (other than the first, which shall start on such due date) shall start on the last day of the preceding such period. The rate of interest
applicable to each such period shall be the aggregate (as determined by the Agent) of (a) two per cent (2%) per annum, (b) the Margin and (c) the cost of funds to the Lenders which is the highest for such periods. Such
interest shall be due and payable on demand, or, if no demand is made, then on the last day of each such period as determined by the Agent and on the day on which all amounts in respect of which interest is being paid under this Clause are paid, and
each such day shall, for the purposes of this Agreement, be treated as an Interest Payment Date, provided that if such unpaid sum is an amount of principal which became due and payable by reason of a declaration by the Agent under clause 10.2.2 or a
prepayment pursuant to clauses 4.3, 4.5, 8.2.1(a) or 12.1, on a date other than an Interest Payment Date relating thereto, the first such period selected by the Agent shall be of a duration equal to the period between the due date of such principal
sum and such Interest Payment Date and interest shall be payable on such principal sum during such period at a rate of two per cent (2%) above the rate applicable thereto immediately before it shall have become so due and payable. If,
for the reasons specified in clause 3.6.1, the Agent is unable to determine a rate in accordance with the foregoing provisions of this clause 3.4, each Lender shall promptly notify the Agent of the cost of funds to such Lender and interest on any
sum not paid on its due date for payment shall be calculated at a rate determined by the Agent to be two per cent (2%) per annum above the aggregate of the Margin and if the unpaid amount is in respect of the Loan, the cost of funds to
the Lenders which is the highest compounded at such intervals as the Agent selects. 
  

	3.5	Notification of Interest Periods and interest rate 

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

	3.6	Market disruption; non-availability 

  

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

  

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

  
 24 

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

  

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

  

	3.6.2	Within ten (10) days of any Determination Notice being given by the Agent under clause 3.6.1, each Lender must certify an alternative basis (the
“Alternative Basis”) for maintaining its Contribution. The Alternative Basis may at the relevant Lender’s sole discretion include (without limitation) alternative interest periods, alternative currencies or alternative rates of
interest but shall include a Margin above the cost of funds to such Lender. The Agent shall calculate the arithmetic mean of the Alternative Bases provided by the relevant Lenders (the “Substitute Basis”) and certify the same to the
Borrowers and the Lenders. The Substitute Basis so certified shall be binding upon the Borrowers, and shall take effect in accordance with its terms from the date specified in the Determination Notice until such time as the Agent notifies the
Borrowers that none of the circumstances specified in clause 3.6.1 continues to exist whereupon the normal interest rate fixing provisions of this Agreement shall again apply and, subject to the other provisions of this Agreement, the Commitment may
again be borrowed. 

 Provided that the Banks shall try to ensure that any loss suffered by the Borrowers as a
result of the circumstances referred to above are kept to a minimum. 
  

	4	REPAYMENT AND PREPAYMENT 

  

	4.1	Repayment 

  

	4.1.1	Subject as otherwise provided in this Agreement, the Borrowers must repay: 

 (a) Tranche A by 32 equal quarterly instalments of USD362,500 each, one such instalment to be repaid on each of the Repayment Dates in respect of that Tranche and a balloon instalment (the
“Tranche A Balloon Instalment”) of USD14,400,000 to be repaid on the relevant final Repayment Date; and 

  
 25 

 (b) Tranche B by 32 equal quarterly instalments of USD287,500 each, one such instalment to
be repaid on each of the Repayment Dates in respect of that Tranche and a balloon instalment (the “Tranche B Balloon Instalment”) of USD6,800,000 to be repaid on the relevant final Repayment Date. 

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

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

  

	4.2	Voluntary prepayment 

Subject to clauses 4.5 and 4.6 the Borrowers may, subject to having given 5 Banking Days prior notice thereof to the Agent, prepay any
specified amount (such part being in an amount of five hundred thousand Dollars (USD 500,000) or any larger sum which is an integral multiple of such amount) of either Tranche on any relevant Interest Payment Date without (subject to Clause 4.5.3)
premium or penalty. 
  

	4.3	Mandatory Prepayment on Total Loss 

 On the date falling ninety (90) days after that on which a Mortgaged Vessel became a Total Loss or, if earlier, on the date upon which the relevant insurance proceeds are, or Requisition Compensation
(as defined in the Mortgage for such Vessel) is, received by the relevant Borrower (or the Security Trustee pursuant to the Security Documents), the Borrowers must prepay the Tranche relating to that Mortgaged Vessel. 

 

	4.3.1	Interpretation 

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

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

  
 26 

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

  

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

  

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

 

	 	(e)	in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of a Vessel (other than within the definition of Compulsory
Acquisition) by any Government Entity, or by persons allegedly acting or purporting to act on behalf of any Government Entity, which deprives an Owner of the use of such Vessel for more than ninety (90) days, upon the expiry of the Relevant
Period where “Relevant Period” means, for the purposes of this clause 4.3.1(e), either (i) the period of ninety (90) days after the date upon which the relevant incident occurred or, (ii) if relevant underwriters confirm in
writing (in customary terms) prior to the end of such ninety (90) day period that such capture, seizure, detention or confiscation will be covered by the relevant Owner’s war risks insurance the shorter of twelve (12) months and such
period for which cover is confirmed to attach. 

  

	4.4	Mandatory prepayment on sale of Mortgaged Vessel 

 On the date of completion of the sale of a Mortgaged Vessel the Borrowers must prepay the Tranche relating to that Mortgaged Vessel. 

 

	4.5	Amounts payable on prepayment 

 Any prepayment of all or part of the Loan under this Agreement shall be made together with: 
  

	4.5.1	accrued interest on the amount to be prepaid to the date of such prepayment; 

  
 27 

	4.5.2	any additional amount payable under clauses 3.6, 6.6 or 12.2; and 

  

	4.5.3	all other sums payable by the Borrowers to the Banks under this Agreement or any of the other Security Documents including, without limitation any Break Costs and, if
the whole Loan is being prepaid, any accrued commitment commission payable under clause 5.1. 

  

	4.6	Notice of prepayment; reduction of maximum loan amount 

  

	4.6.1	Every notice of prepayment shall be effective only on actual receipt by the Agent, shall be irrevocable, shall specify the amount to be prepaid and shall oblige the
Borrowers to make such prepayment on the date specified. Subject to the other provisions of this Agreement and in particular Clause 2.6, no amount prepaid under this Clause 4 in respect of the Loan may be reborrowed. 

 

	4.6.2	Any amounts prepaid pursuant to clause 4.2 shall be applied against the Loan pro rata between the Tranches in reducing the outstanding repayment instalments (excluding
the Balloon Instalments) of each Tranche pro rata. 

  

	4.6.3	The Borrowers’ obligations set out in Clause 4.1.1 shall not be affected by any prepayment in respect of the Loan pursuant to clause 4.2. 

 

	4.6.4	The Borrowers may not prepay any part of the Loan except as expressly provided in this Agreement. 

 

	5	FEES AND EXPENSES 

  

	5.1	Arrangement Fee 

 The
Borrowers shall pay to the Agent: 
 (a) by no later than the Drawdown Date in respect of Tranche A, an upfront fee of
USD160,000; and 
 (b) by no later than the Drawdown Date in respect of Tranche B, an upfront fee of USD240,000 

each for the account of the Lenders in such proportion as they shall agree between them. 

  
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	5.2	Agency Fee 

 the Borrowers
shall pay to the Agent, for its own account, on the Execution Date and annually thereafter, an agency fee of USD15,000 payable in advance for each year or part thereof of the Facility Period. 

 

	5.3	Expenses 

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

	5.3.1	in connection howsoever with the syndication of the Loan Facility and with the negotiation, preparation, execution and, where relevant, registration of the Security
Documents and of any contemplated or actual amendment, or indulgence or the granting of any waiver or consent howsoever in connection with, any of the Security Documents (including legal fees and any travel expenses); and 

 

	5.3.2	in contemplation or furtherance of, or otherwise howsoever in connection with, the exercise or enforcement of, or preservation of any rights, powers, remedies or
discretions under any of the Security Documents, or in consideration of the Banks’ rights thereunder or any action proposed or taken following the occurrence of a Default or otherwise in respect of the moneys owing under any of the Security
Documents, 

 together with interest at the rate referred to in clause 3.4 from the date on which reimbursement of
such expenses and/or disbursements were due following demand to the date of payment (as well after as before judgment). 
  

	5.4	Value added tax 

 All fees
and expenses payable pursuant to this Agreement must be paid together with value added tax or any similar tax (if any) properly chargeable thereon in any jurisdiction. Any value added tax chargeable in respect of any services supplied by the Banks
or any of them under this Agreement shall, on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid hereunder. 

  
 29 

	5.5	Stamp and other duties 

The Borrowers must pay all stamp, documentary, registration or other like duties or taxes (including any duties or taxes payable by any of
the Banks) imposed on or in connection with any of the Underlying Documents, the Security Documents or the Loan or a Tranche and agree to indemnify the Banks or any of them against any liability arising by reason of any delay or omission by the
Borrowers to pay such duties or taxes. 
  

	6	PAYMENTS AND TAXES; ACCOUNTS AND CALCULATIONS 

  

	6.1	No set-off or counterclaim 

All payments to be made by the Borrowers under any of the Security Documents must be made in full, without any set off or counterclaim
whatsoever and, subject as provided in clause 6.6, free and clear of any deductions or withholdings, in USD on or before 11:00 am on the due date in freely available funds to such account at such bank and in such place as the Agent may from time to
time specify for this purpose. Save as otherwise provided in this Agreement or any other relevant Security Documents, such payments shall be for the account of all Lenders and the Agent shall distribute such payments in like funds as are received by
the Agent to the Lenders rateably, in the proportions which their respective Contributions bear to the aggregate of the Loan and the Tranches on the date on which such payment is made. 

 

	6.2	Payment by the Lenders 

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

 

	6.3	Non-Banking Days 

 When
any payment under any of the Security Documents would otherwise be due on a day which is not a Banking Day, the due date for payment shall be extended to the next following Banking Day unless such Banking Day falls in the next calendar month in
which case payment shall be made on the immediately preceding Banking Day. 

  
 30 

	6.4	Calculations 

 All
interest and other payments of an annual nature under any of the Security Documents shall accrue from day to day and be calculated on the basis of actual days elapsed and a three hundred and sixty (360) day year. 

 

	6.5	Currency of account 

 If
any sum due from the Borrowers under any of the Security Documents, or under any order or judgment given or made in relation thereto, must be converted from the currency (“the first currency”) in which the same is payable thereunder into
another currency (“the second currency”) for the purpose of (i) making or filing a claim or proof against the Borrowers, (ii) obtaining an order or judgment in any court or other tribunal or (iii) enforcing any order or
judgment given or made in relation thereto, the Borrowers undertake to indemnify and hold harmless the Lender from and against any loss suffered as a result of any discrepancy between (a) the rate of exchange used for such purpose to convert
the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Lender may in the ordinary course of business purchase the first currency with the second currency upon receipt of a sum
paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof. Any amount due from the Borrowers under this clause 6.5 shall be due as a separate debt and shall not be affected by judgment being obtained for any other
sums due under or in respect of any of the Security Documents and the term “rate of exchange” includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency. 

 

	6.6	Grossing-up for Taxes - by the Borrowers 

 If at any time the Borrowers must make any deduction or withholding in respect of Taxes or deduction in respect of any royalty payment, duty, assessment or other charge or otherwise from any payment due
under any of the Security Documents for the account of any Bank or if the Agent or the Security Trustee must make any deduction or withholding from a payment to another Bank or withholding in respect of Taxes from any payment due under any of the
Security Documents, the sum due from the Borrowers in respect of such payment must be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the relevant Bank receives on the due date for such payment
(and retains, free from any liability in respect of such deduction or withholding), a net sum equal to the sum which it would have received had no such deduction or withholding been required to be made and the Borrowers must indemnify each Bank
against any losses or costs incurred by it by 

  
 31 

 
reason of any failure of the Borrowers to make any such deduction or withholding or by reason of any increased payment not being made on the due date for such payment. Provided however that if
any Bank or the Agent or the Security Trustee shall be or become entitled to any Tax credit or relief in respect of any Tax which is deducted from any payment by the Borrowers and it actually receives a benefit from such Tax credit or relief in its
country of domicile, incorporation or residence, the relevant Bank or the Agent or the Security Trustee, as the case may be, shall, subject to any laws or regulations applicable thereto, pay to the Borrowers after such benefit is effectively
received by the relevant Bank or the Agent or the Security Trustee, as the case may be, such amounts (which shall be conclusively certified by the Agent) as shall ensure that the net amount actually retained by the relevant Bank or the Agent or the
Security Trustee, as the case may be, is equal to the amount which would have been retained if there had been no such deduction. The Borrowers must promptly deliver to the Agent any receipts, certificates or other proof evidencing the amounts (if
any) paid or payable in respect of any deduction or withholding as aforesaid. 
  

	6.7	Grossing-up for Taxes - by the Lenders 

 If at any time a Lender must make any deduction or withholding in respect of Taxes from any payment due under any of the Security Documents for the account of the Agent or the Security Trustee, the sum
due from such Lender in respect of such payment must be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the Agent or, as the case may be, the Security Trustee receives on the due date for such
payment (and retains free from any liability in respect of such deduction or withholding) a net sum equal to the sum which it would have received had no such deduction or withholding been required to be made and each Lender must indemnify the Agent
and the Security Trustee against any losses or costs incurred by it by reason of any failure of such Lender to make any such deduction or withholding or by reason of any increased payment not being made on the due date for such payment. 

 

	6.8	Loan account 

 Each Lender
shall maintain, in accordance with its usual practice, an account evidencing the amounts from time to time lent by, owing to and paid to it under the Security Documents. The Agent and/or the Security Trustee shall maintain a control account showing
the Loan, the Tranches and other sums owing by the Borrowers under the Security Documents and all payments in respect thereof being made from time to time. The control account shall, in the absence of manifest error, be prima facie evidence of the
amount from time to time owing by the Borrowers under the Security Documents. 

  
 32 

	6.9	Agent may assume receipt 

Where any sum is to be paid under the Security Documents to the Agent or, as the case may be, the Security Trustee for the account of
another person, the Agent or, as the case may be, the Security Trustee may assume that the payment will be made when due and the Agent or, as the case may be, the Security Trustee may (but shall not be obliged to) make such sum available to the
person so entitled. If it proves to be the case that such payment was not made to the Agent or, as the case may be, the Security Trustee, then the person to whom such sum was so made available must on request refund such sum to the Agent or, as the
case may be, the Security Trustee together with interest thereon sufficient to compensate the Agent or, as the case may be, the Security Trustee for the cost of making available such sum up to the date of such repayment and the person by whom such
sum was payable must indemnify the Agent or, as the case may be, the Security Trustee for any and all loss or expense which the Agent or, as the case may be, the Security Trustee may sustain or incur as a consequence of such sum not having been paid
on its due date. 
  

	6.10	Partial payments 

 If, on
any date on which a payment is due to be made by the Borrowers under any of the Security Documents, the amount received by the Agent from the Borrowers falls short of the total amount of the payment due to be made by the Borrowers on such date then,
without prejudice to any rights or remedies available to the Agent, the Security Trustee and the Lenders under any of the Security Documents, the Agent must apply the amount actually received from the Borrowers in or towards discharge of the
obligations of the Borrowers under the Security Documents in the following order, notwithstanding any appropriation made, or purported to be made, by the Borrowers: 
  

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

  

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

  
 33 

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

  

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

 

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

 The order of application set out in clauses 6.10.1 to 6.10.5 may be
varied by the Agent if the Majority Lenders so direct, without any reference to, or consent or approval from, the Borrowers. 
  

	7	REPRESENTATIONS AND WARRANTIES 

  

	7.1	Continuing representations and warranties 

 The Borrowers represent and warrant to each Bank that: 
  

	7.1.1	Due incorporation 

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

	7.1.2	Corporate power 

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

  
 34 

	7.1.3	Binding obligations 

 the
Underlying Documents and the Security Documents, when executed, will constitute valid and legally binding obligations of the relevant Security Parties enforceable in accordance with their respective terms and admissible in evidence and the Security
Documents (other than the Corporate Guarantee) will create first priority Encumbrances; 
  

	7.1.4	No conflict with other obligations 

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

	7.1.5	No default 

 no Default has
occurred; 
  

	7.1.6	No litigation or judgments 

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

	7.1.7	No filings required 

 except for
the registration of the Mortgages in the relevant register under the laws of the relevant Flag State through the relevant Registry, it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of any of the
Underlying Documents or any of the Security Documents that they or any other instrument be notarised, filed, recorded, registered or enrolled in any court, public office or elsewhere in any Pertinent Jurisdiction or

  
 35 

 
that any stamp, registration or similar tax or charge be paid in any Pertinent Jurisdiction on or in relation to any of the Underlying Documents or the Security Documents and each of the
Underlying Documents and the Security Documents is in proper form for its enforcement in the courts of each Pertinent Jurisdiction; 
  

	7.1.8	Required Authorisations and legal compliance 

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

	7.1.9	Choice of law 

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

 

	7.1.10	No immunity 

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

	7.1.11	Financial statements correct and complete 

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

  
 36 

	7.1.12	Pari passu 

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

	7.1.13	Information/ Material Adverse Effect 

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

	7.1.14	No withholding Taxes 

 no Taxes
anywhere are imposed whatsoever by withholding or otherwise on any payment to be made by any Security Party under the Underlying Documents or the Security Documents to which such Security Party is or is to be a party or are imposed on or by virtue
of the execution or delivery by the Security Parties of the Underlying Documents or the Security Documents or any other document or instrument to be executed or delivered under any of the Security Documents; 

 

	7.1.15	Use of proceeds 

 the Borrowers
shall apply the Loan only for the purposes specified in clauses 1.1 and 2.1; 
  

	7.1.16	The Mortgaged Vessels 

throughout the Facility Period, each Mortgaged Vessel (and in relation to (a), her Earnings and Insurances, as defined in, and in
accordance with the requirements of, the Ship Security Documents) will, following the date on which it becomes a Mortgaged Vessel, be : 
  

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

  
 37 

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

 

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

 

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

  

	 	(e)	classed with the relevant Classification free of all requirements and recommendations of the relevant Classification Society which have not been complied with in
accordance with their terms; 

  

	 	(f)	insured in accordance with the relevant Ship Security Documents; and 

  

	 	(g)	managed by the Manager in accordance with the terms of the relevant Management Agreement; 

 

	7.1.17	Earnings 

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

 

	7.1.18	Freedom from Encumbrances 

 Save
as otherwise disclosed in writing by the Borrowers to the Agent on or prior to the date of this Agreement and disclosed in the Corporate Guarantor’s public filings, no Mortgaged Vessel nor its Earnings, Insurances or Requisition Compensation
(each as defined in the relevant Ship Security Documents) nor the Earnings Account nor any Extended Employment Contract in respect of such Mortgaged Vessel nor any other properties or rights which are, or are to be, the subject of any of the
Security Documents nor any part thereof will be subject to any Encumbrance except Permitted Encumbrances; 
  

	7.1.19	Environmental Matters 

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

	 	(a)	the Borrowers and, to the best of the Borrowers’ knowledge and belief (having made due enquiry), their respective Environmental Affiliates, have complied with the
provisions of all Environmental Laws; 

  
 38 

	 	(b)	the Borrowers and, to the best of the Borrowers’ knowledge and belief (having made due enquiry), their respective Environmental Affiliates have obtained all
Environmental Approvals and are in compliance with all such Environmental Approvals; 

  

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

  

	 	(d)	there has been no Environmental Incident; 

  

	7.1.20	ISM and ISPS Code 

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

	7.1.21	Copies true and complete 

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

	7.1.22	the Borrowers are the ultimate beneficiaries of the Loan; 

  

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

  
 39 

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

  

	7.1.25	neither Borrower has an office in England; 

  

	7.1.26	Prohibited Persons, unlawful activity 

  

	 	(a)	to the best of their knowledge, none of the shares in either Borrower nor in either Vessel are or will be at any time during the Facility Period legally and
beneficially owned and controlled by a Prohibited Person; 

  

	 	(b)	to the best of their knowledge, no Prohibited Person has or will have at any time during the Facility Period any legal or beneficial interest of any nature whatsoever
in any of the shares of any of the Security Parties; and 

  

	 	(c)	to the best of their knowledge, no title in any property or other assets subject to an Encumbrance created by a Security Document has been obtained in breach of any
existing applicable law, statute, rule or regulation; 

  

	7.1.27	Insolvency 

 none of the Security
Parties is unable or has admitted inability to pay its debts as they fall due, has suspended making payments on any of its debts or has announced an intention to do so, is or has become insolvent; or has suffered the declaration of a moratorium in
respect of any of its Indebtedness; 
  

	7.1.28	No business 

 neither Borrower
has undertaken any business or employed any person or incurred any obligations in respect of any pension scheme, save in respect of the Master, officers and crew of the Vessel owned or to be owned by it; 

 

	7.1.29	Ownership of Borrowers 

 all the
shares in each Borrower are legally and beneficially owned and controlled by the Shareholder, all of whose shares are legally and beneficially owned and controlled by the Corporate Guarantor; 

 

	7.1.30	Accounting reference date 

 The
Borrower’s and the Corporate Guarantor’s accounting reference date is 31 December; 

  
 40 

	7.1.31	Indentures 

 The entry by the
Borrowers into this Agreement, and their borrowing of the Loan hereunder, and the execution by the Corporate Guarantor of the Corporate Guarantee do not breach Section 4.10 or any other provision of either Indenture; 

 

	7.1.32	Manager 

 the Manager is fit and
proper commercial and technical manager of the Vessel with the sufficient and fully trained personnel, experience and ability to perform their obligations in accordance with all applicable laws and regulations and in accordance with first class
international ship management practice. 
  

	7.2	Repetition of representations and warranties 

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

	8	UNDERTAKINGS 

  

	8.1	General 

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

	8.1.1	Notice of Default and Proceedings 

promptly inform the Agent of (a) any Default (including the occurrence of any Event of Default under (and as defined in) either
Indenture, in which case the Borrowers shall also provide to the Agent copies of all demands or notices made in connection therewith) and of any other circumstances or occurrence which might adversely affect the ability of any Security Party to
perform its obligations under any of the Security Documents and (b) as soon as the same is instituted or threatened, details of any Proceedings involving any Security Party which could have a material adverse effect on that Security Party
and/or the operation of any of the Vessels (including, but not limited to any Total Loss of a Vessel or the occurrence of any Environmental Incident) and will from time to time, if so requested by the Agent, confirm to the Agent in writing that,
save as otherwise stated in such confirmation, no Default has occurred and is continuing and no such Proceedings are on foot or threatened; 

  
 41 

	8.1.2	Authorisation 

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

 

	8.1.3	Corporate Existence/Ownership 

ensure that each Security Party maintains its corporate existence as a body corporate duly organised and validly existing and in good
standing under the laws of the Pertinent Jurisdiction and ensure that each Borrower is owned, directly or through other companies, by the Corporate Guarantor; 
  

	8.1.4	Use of proceeds 

 use the
Tranches exclusively for the purposes specified in clauses 1.1 and 2.1; 
  

	8.1.5	Pari passu 

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

	8.1.6	Financial statements 

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

	 	(a)	as soon as possible, but in no event later than 180 days after the end of each of its financial years, annual audited (prepared in accordance with US GAAP by a
firm of accountants acceptable to the Agent) consolidated balance sheet and profit and loss accounts of the Corporate Guarantor (commencing with the financial year ending 31 December 2012), together with updated details (in a form acceptable to
the Agent) of all off-balance sheet and time-charter hire commitments of any ship owned by a Group Member; and 

  
 42 

	 	(b)	as soon as possible, but in no event later than 75 days after the end of each 3 month period in each of its financial years, the Corporate Guarantor’s Management
accounts for that 3 month period certified as to their correctness by its chief financial officer. 

  

	8.1.7	Reimbursement of MII & MAP Policy premiums 

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

	8.1.8	Compliance Certificates 

 deliver
to the Agent on the earlier of (i) the date on which the quarterly reports are delivered under clause 8.1.6(b) and (ii) the date falling 75 days after the end of the financial quarter to which they refer, a Compliance Certificate together
with such supporting information as the Agent may require. 
  

	8.1.9	Provision of further information 

provide the Agent, and procure that the Corporate Guarantor provides the Agent, with such financial or other information concerning the
Corporate Guarantor, all vessels (including those under construction) owned (or to be owned in the case of newbuildings) by the Corporate Guarantor or any of its subsidiaries, including, in relation to Borrowed Moneys, repayment of Borrowed Money,
operating expenses and charter arrangements in respect of all ships (including newbuildings under construction) which are owned, chartered, or controlled by any Group Member as the Agent or any Lender (acting through the Agent) may from time to time
reasonably require and all other documentation and information as any Lender may from time to time require in order to comply with its, and all other relevant, know-your-customer regulations; 

  
 43 

	8.1.10	Provision of bank statements 

provide the Agent at the Agent’s request, with copy, in an electronic format, of all bank statements relating to the Earnings
Accounts; 
  

	8.1.11	Obligations under Security Documents 

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

 

	8.1.12	Compliance with ISM Code 

 comply
with, and will procure that any Operator will comply with, and ensure that the Mortgaged Vessels and any Operator comply with the requirements of the ISM Code, including (but not limited to) the maintenance and renewal of valid certificates pursuant
thereto throughout the Security Period (as defined in the Mortgages); 
  

	8.1.13	Withdrawal of DOC and SMC 

immediately inform the Agent if there is any actual withdrawal of their or any Operator’s DOC or the SMC of either Mortgaged Vessel;

  

	8.1.14	Issuance of DOC and SMC 

 and
will procure that any Operator will promptly inform the Agent of the receipt by either Borrower or any Operator of notification that its application for a DOC or any application for an SMC for either Mortgaged Vessel has been refused; 

 

	8.1.15	ISPS Code Compliance 

 and will
procure that the Manager or any Operator will: 
  

	 	(a)	maintain at all times a valid and current ISSC in respect of each Mortgaged Vessel; 

 

	 	(b)	immediately notify the Agent in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC in respect of a Mortgaged Vessel;
and 

  

	 	(c)	procure that each Mortgaged Vessel will comply at all times with the ISPS Code; 

  
 44 

	8.1.16	Compliance with Laws and payment of taxes 

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

 

	8.1.17	Charters etc. 

 (i) deliver to
the Agent a Certified Copy of each Extended Employment Contract upon its execution, (ii) forthwith on the Agent’s request execute (a) a Charter Assignment in respect thereof and (b) any notice of assignment required in connection
therewith and use reasonable efforts to procure the acknowledgement of any such notice of assignment by the relevant charterer (provided that any failure to procure the same shall not constitute an Event of Default) and (iii) pay all legal and
other costs incurred by the Agent in connection with any such Charter Assignments, forthwith following the Agent’s demand. 
  

	8.1.18	Charter Insurance etc. 

 (i) give
the Agent confirmation immediately on having the benefit of any Charter Insurance, (ii) forthwith on the Agent’s request execute (a) a Charter Insurance Assignment in respect thereof and (b) any notice of assignment required in
connection therewith and (iii) pay all legal and other costs incurred by the Agent in connection with any such Charter Insurance Assignments, forthwith following the Agent’s demand 

 

	8.1.19	Indentures 

 comply with all of
the obligations undertaken by the Corporate Guarantor under the Indentures which are set out in the Indenture Excerpt and the Borrowers further agree: 
 (a) any terms defined in the First Indenture shall have those meanings when used in the Indenture Excerpt; 
 (b) no waiver or variation of any term of either Indenture by any person shall waive or vary the Borrowers’ obligations hereunder to comply with the obligations in the Indenture Excerpt, except with
the consent of the Agent; 

  
 45 

 (c) the Borrowers shall continue to be bound by their, or as the case may be, the Corporate
Guarantor’s, obligations as set out in the Indenture Excerpt following a Covenant Defeasance (as defined in either Indenture) or a Legal Defeasance (as defined in either Indenture) or other termination or cancellation of the Indenture;

 (d) the Borrowers will not, and will procure that the Corporate Guarantor will not, vary any material term of either Indenture
without the prior written consent of the Banks, however this will not affect its right of partial or full prepayment of either Indenture; 
  

	8.1.20	Financial Covenants of the Corporate Guarantor’s Group 

 procure that 
  

	 	(a)	at no time shall the Liquidity of the Group be less than USD30,000,000; 

  

	 	(b)	there shall be no breach of the Fixed Charge Coverage Ratio (as that is defined in Schedule 10 and tested annually in accordance with the Indenture);

  

	 	(c)	the Total Liabilities divided by the Total Assets (adjusted for market values of vessels calculated in accordance with Clause 8.2.2 but taking into account the burden
or benefit of any charterparty) shall be less than 75%. 

  

	8.1.21	Inspection 

 permit the Agent,
upon receipt of at least 15 days written notice, by surveyors or other persons appointed by it for such purpose, to board a Mortgaged Vessel at all reasonable times (which the Agent shall use reasonable endeavours to ensure do not adversely affect
the operation of the Vessels) for the purpose of inspecting her and to afford all proper facilities for such inspections and for this purpose to give the Agent reasonable advance notice of any intended drydocking of each Vessel (whether for the
purpose of classification, survey or otherwise) and the Borrower shall pay the costs in respect of (i) one inspection in each calendar year and (ii) all such inspections following the occurrence of an Event of Default which has not been
remedied or waived and the Borrowers shall effect all repairs which the Agent may reasonably request as a result of such inspection; 

  
 46 

	8.1.22	Subordination 

 ensure that all
Indebtedness of either Borrower to the Shareholders, to the Manager or to any other Group Member is fully subordinated, and to subordinate any Indebtedness (save for the Indentures) issued to it by the Corporate Guarantor, all in a form acceptable
to the Agent (acting on the instructions of the Majority Lenders); and 
  

	8.1.23	Classification Society undertaking 

 If so requested by the Agent and provided that the Classification rules allow, on or before the relevant Drawdown Date, or immediately on any change of Classification Society for either Vessel,
irrevocably instruct (in such form as the Agent and the Majority Lenders may require in their sole discretion) the Classification Society of each Vessel to do all or any of the following during the Facility Period (and use reasonable endeavours to
procure that the Classification Society undertakes with the Agent at such time): 
  

	 	(a)	to send to the Agent, following receipt of a written request from the Agent, certified true copies of all original class records held by the Classification Society in
relation to that Vessel; 

  

	 	(b)	to allow the Agent (or its agents), at any time and from time to time, to inspect the original class and related records of the relevant Owner and that Vessel at the
offices of the Classification Society and to take copies of them; 

  

	 	(c)	to notify the Agent immediately by email (dbg@dvbbank.com, and techcom@dvbbank.com) if the Classification Society: 

 

	 	(i)	receives notification from the relevant Owner or any person that that Vessel’s Classification Society is to be changed; 

 

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

  

	 	(iii)	has imposed any requirements or recommendations in respect of the relevant Vessel which have not been complied with in accordance with their terms;

  
 47 

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

  

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

  

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

  

	8.1.24	Class records 

 arrange for the
Agent to have access electronically to the class records of each Vessel by either (i) arranging for the relevant Classification Society to give the Agent direct access to such class records or (ii) designating the Agent as a user or
administrator of the Borrowers’ electronic accounts with the relevant Classification Society if so allowed under the Classification Society rules; and 
  

	8.1.25	Insurance opinion 

 provide the
Agent on request, at the Borrowers’ cost, with an opinion from insurance consultants on the insurances effected or to be effected in respect of each Vessel, confirming that the Vessels are insured on terms approved by the Agent (acting on the
instructions of the Lenders) or, if such insurance opinion has been obtained by the Agent, shall reimburse the Agent for the cost of such opinion. 
  

	8.1.26	Sanctions 

 ensure that neither
Vessel will be employed, and will not suffer either Vessel to be employed, and will not and will ensure that no Group Member does, conduct or undertake any business: 
  

	 	(a)	in breach of any embargo or sanction or prohibited order (or any similar order or directive) of: 

 

	 	(i)	the United Nations Security Council; 

  

	 	(ii)	the European Union; 

  

	 	(iii)	the United Kingdom; or 

  
 48 

	 	(iv)	the United States of America, 

 as they apply to their members or nationals; or 
  

	 	(b)	in any trade, carriage of goods or business which is forbidden by the laws of the United Kingdom or the United States of America as they apply to their members or
nationals, or any law applicable to each Borrower, any Operator of either Vessel, any charterer of either Vessel or any country which either Vessel may visit; or 

 

	 	(c)	in carrying illicit or prohibited goods; or 

  

	 	(d)	in a way which may make it liable to be condemned by a prize court or destroyed, seized or confiscated; or 

 

	 	(e)	to the knowledge of the Borrowers, by or for the benefit of a Prohibited Person 

 

	8.1.27	Dividends 

 The Corporate
Guarantor may declare or pay dividends in accordance with the terms of the Indentures and then so long as no Event of Default shall have occurred, or shall occur as a result of such declaration and/or payment. 

 

	8.1.28	Vessel information 

 provide the
Agent, and shall procure that the Corporate Guarantor shall provide the Agent, promptly on request with all such information as it may from time to time require in relation to each Vessel, her Insurances (as defined in, and in accordance with the
requirements of, the Ship Security Documents), her employment, position and engagements, particulars of all towages and salvages, and copies of all charters and other contracts for her employment, or otherwise howsoever concerning her, as well as
copies of all original class records held by the Classification Society in relation to each Vessel, all reports of port state control inspections and technical reports of each Vessel and information on the financial and operating performance of each
Vessel in such form as the Agent may approve or require and all such information as it may from time to time require to determine the Market Value of each Vessel in accordance with clause 8.2.2; 

 

	8.1.29	Transactions with associated companies 

 not enter into any transactions with any Group Member, other than on arm’s length terms and shall not co-mingle its assets, nor become liable for any third party obligations or encumber its rights
under this Agreement (and for the purpose of this clause, the Management Agreement are to be treated as having been entered into on arms-length terms); 

  
 49 

	8.2	Security value maintenance 

  

	8.2.1	Security shortfall 

 If, at any
time after the first anniversary of the second (or if Tranche B is not drawn down, first) Drawdown Date, the Security Value shall be less than the Required Security Amount, the Agent (acting on the instructions of the Majority Lenders) shall give
notice to the Borrowers requiring that such deficiency be remedied and then the Borrowers must either: 
  

	 	(a)	prepay within a period of thirty (30) days of the date of receipt by the Borrowers of the Agent's said notice such part of the Loan as will result in the Security
Value after such prepayment (taking into account any other repayment of the Loan made between the date of the notice and the date of such prepayment) being equal to or higher than the Required Security Amount; or 

 

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

 The provisions of clauses 4.5 and 4.6 shall apply to prepayments under clause 8.2.1(a) provided that the Agent shall apply such prepayments (i) pro rata against the Tranches, (ii) in reduction
of the repayment instalments under clause 4.1 pro rata and the amounts of the Loan prepaid hereunder shall not be available to be re-borrowed. 
  

	8.2.2	Valuation of Mortgaged Vessels 

Each Mortgaged Vessel shall, for the purposes of this Agreement, be valued (at the Borrowers’ expense) in USD by taking either
(i) the valuation prepared by an Approved Broker appointed by the Borrowers or (ii) if requested by the Agent, the arithmetic mean of valuations prepared by the Approved Broker so appointed by the Borrowers and an Approved Broker appointed
by the Agent (which shall be Maritime Strategies International 

  
 50 

 
Ltd. or such other Approved Broker as the Agent may notify to the Borrower), in each case such valuations to be made without physical inspection, and on the basis of a sale for prompt delivery
for cash at arms’ length, on normal commercial terms, as between a willing buyer and a willing seller without taking into account the benefit or burden of any charterparty or other engagement concerning the relevant Mortgaged Vessel provided
that if such two valuations vary by 15% or more then the Borrowers may select a third Approved Broker to provide a valuation and the Valuation Amount shall be the arithmetic mean of such three valuations. Valuations shall be obtained: 

 

	 	(a)	on the date falling six months after the second or (or if Tranche B is not drawn down, first) Drawdown Date and semi-annually thereafter; and 

 

	 	(b)	(in addition to (a) above) at any other time as the Agent shall require (in its absolute discretion). 

The Approved Brokers’ valuations for each Mortgaged Vessel on each such occasion shall constitute the Valuation Amount of such
Mortgaged Vessel for the purposes of this Agreement until superceded by the next such valuation. 
  

	8.2.3	Information 

 The Borrowers
undertake with the Banks to supply to the Agent and to the Approved Broker such information concerning the relevant Mortgaged Vessel and its condition as such shipbrokers may require for the purpose of determining any Valuation Amount. 

 

	8.2.4	Costs 

 All costs in connection
with obtaining and determining (i) any Valuation Amount pursuant to Clause 8.2.2(a), (ii) any Valuation Amount pursuant to clause 8.2.2(b) after the occurrence of a Default, (iii) any Valuation Amount which obliges the Borrowers to
make a prepayment of the Loan or provide additional security in accordance with Clause 8.2.1, and (iv) any valuation either of any additional security for the purposes of ascertaining the Security Value at any time or necessitated by the
Borrowers electing to constitute additional security pursuant to clause 8.2.1(b), must be paid by the Borrowers and all costs in connection with obtaining and determining any Valuation Amount under clause 8.2.2(b) prior to the occurrence of a
Default shall be at the cost of the Lenders. 

  
 51 

	8.2.5	Valuation of additional security 

For the purposes of this clause 8.2, the market value (i) of any additional security over a ship (other than the Vessels) shall be
determined in accordance with clause 8.2.2 and (ii) of any other additional security (except for cash) provided or to be provided to the Banks or any of them shall be determined by the Agent in its discretion. 

 

	8.2.6	Documents and evidence 

 In
connection with any additional security provided in accordance with this clause 8.2, the Agent shall be entitled to receive (at the Borrowers’ expense) such evidence and documents of the kind referred to in Schedule 3 as may in the Agent's
opinion be appropriate and such favourable legal opinions as the Agent shall in its absolute discretion require. 
  

	8.3	Negative undertakings 

The Borrowers jointly and severally undertake with each Bank that, from the Execution Date until the end of the Facility Period, they will
not, without the prior written consent of the Agent (acting on the instructions of the Lenders): 
  

	8.3.1	Negative pledge 

 permit any
Encumbrance (other than a Permitted Encumbrance or as otherwise disclosed in writing by the Borrowers to the Agent on or prior to the date of this Agreement) to subsist, arise or be created or extended over all or any part of their respective
present or future undertakings, assets, rights or revenues to secure or prefer any present or future Indebtedness or other liability or obligation of any Group Member or any other person, unless the same is reasonably required in the ordinary course
of business; 
  

	8.3.2	No merger or transfer 

 merge or
consolidate with any other person or permit any change to the legal ownership of their shares from that existing at the Execution Date; 
  

	8.3.3	Disposals 

 Save as otherwise
disclosed in writing by the Borrowers to the Agent on or prior to the date of this Agreement, sell, transfer, assign, create security or option over, pledge, pool, abandon, lend or otherwise dispose of or cease to exercise direct control over more
than 30% (in aggregate) of their present or future undertakings, assets, rights or revenues (otherwise than by transfers, sales or disposals for full consideration in the ordinary course of trading) whether by one or a series of transactions related
or not; 

  
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	8.3.4	Other business or manager 

undertake any business other than the ownership and operation of the Vessels or employ anyone other than the Manager as commercial and
technical manager of the Vessels; 
  

	8.3.5	Acquisitions or investments 

acquire any further assets other than the Vessels and rights arising under contracts entered into by or on behalf of the Borrowers in the
ordinary course of their businesses of owning, operating and chartering the Vessels, or make any financial investments; 
  

	8.3.6	Other obligations 

 incur any
obligations (to any Group Member or otherwise) except for obligations arising under the Underlying Documents or the Security Documents or contracts entered into (or in the case of any obligation to any Group Member, reasonably entered into) in the
ordinary course of their business of owning, operating and chartering the Vessels (and for the purposes of this Agreement any obligations incurred under any of the Management Agreement are deemed to have been reasonably incurred in the ordinary
course of business) or as otherwise disclosed in writing by the Borrowers to the Agent on or prior to the date of this Agreement; 
  

	8.3.7	No borrowing 

 incur any Borrowed
Money except for Borrowed Money pursuant to the Security Documents or as otherwise disclosed in writing by the Borrowers to the Agent on or prior to the date of this Agreement; 

 

	8.3.8	Repayment of borrowings 

 repay
or prepay the principal of, or pay interest on or any other sum in connection with any of their Borrowed Money except for Borrowed Money pursuant to the Security Documents or as otherwise disclosed in writing by the Borrowers to the Agent on or
prior to the date of this Agreement; 

  
 53 

	8.3.9	Guarantees 

 issue any guarantees
or otherwise become directly or contingently liable, or give security or quasi security for the obligations of any person, firm, or corporation except pursuant to the Security Documents and except for (i) guarantees from time to time required
in the ordinary course by any protection and indemnity or war risks association with which a Vessel is entered, guarantees required to procure the release of such Vessel from any arrest, detention, attachment or levy or guarantees required for the
salvage of a Vessel and (ii) such other guarantees to which the Agent shall have consented in writing on behalf of the Banks and (iii) senior unsecured guarantees issued under the Indentures and (iii) as otherwise disclosed in writing
by the Borrowers to the Agent on or prior to the date of this Agreement; 
  

	8.3.10	Loans 

 make any loans or grant
any credit (save for normal trade credit in the ordinary course of business) to any person or agree to do so; 
  

	8.3.11	Sureties 

 permit any
Indebtedness of either Borrower to any person (other than the Banks pursuant to the Security Documents) to be guaranteed by any person (except for guarantees from time to time required in the ordinary course of business and in the ordinary course by
any protection and indemnity or war risks association with which a Vessel is entered, guarantees required to procure the release of such Vessel from any arrest, detention, attachment or levy or guarantees or undertakings required for the salvage of
a Vessel); 
  

	8.3.12	Subsidiaries 

 form or acquire
any Subsidiaries; 
  

	8.3.13	Change of name, flag or class 

change the name, flag, Classification or Classification Society of either Vessel; 

 

	8.3.14	Charters 

 without the prior
written consent of the Agent (acting on the instructions of the Lenders) and then, if such consent is given, only subject to such conditions as the Agent (acting on the instructions of the Lenders) may impose, let or agree to let either Vessel:

  

	 	(i)	on demise charter for any period; or 

  
 54 

	 	(ii)	by any time or consecutive voyage charter for a term which exceeds or which by virtue of any optional extensions therein contained may exceed twelve
(12) months’ duration; or 

  

	 	(iii)	on terms whereby more than two (2) months’ hire (or the equivalent) is payable in advance; or 

 

	 	(iv)	below a fair and reasonable arms-length rate obtainable at the time when the relevant Vessel is fixed; 

 

	8.3.15	Nuclear waste 

 permit either
Vessel to carry nuclear waste or radioactive material. 
  

	8.3.16	Prohibited Persons 

 and shall
use reasonable endeavours to procure that no Group Member will, have any course of dealings, directly or indirectly, with any Prohibited Person; 
  

	8.3.17	Change in constitutional documents 

 amend or vary its constitutional documents; 
  

	8.3.18	Employees 

 employ any person
except the Master, officers and crew of the Vessel owned by it. 
  

	8.4	Indentures 

Notwithstanding anything in this Agreement: 
 (i) any terms, transactions or events permitted by the Indenture Excerpt and 
 (ii)
save as otherwise expressly provided in this Agreement, any other terms or transactions or events permitted by the Indentures 

shall be deemed to be permitted by this Agreement 

  
 55 

	9	CONDITIONS 

  

	9.1	Advance of a Tranche 

 The
obligation of each Lender to make its Commitment available in respect of a Tranche is conditional upon: 
  

	9.1.1	that, on or before the service of the first Drawdown Notice the Agent has received the documents described in Part A of Schedule 3 in form and substance satisfactory to
the Agent (after consultation with the Lenders) and its lawyers; 

  

	9.1.2	that, on or before the Drawdown Date of Tranche A but prior to making such Tranche available, the Agent has received the documents described in Part B of Schedule 3 in
respect of Vessel A in form and substance satisfactory to the Agent and its lawyers; 

  

	9.1.3	that, on or before the Drawdown Date of Tranche B but prior to making such Tranche available, the Agent has received the documents described in Part C of Schedule 3 in
respect of Vessel B in form and substance satisfactory to the Agent and its lawyers; 

  

	9.1.4	the representations and warranties contained in clause 7 and clauses 4.1 and 4.2 of the Corporate Guarantee being then true and correct as if each was made with respect
to the facts and circumstances existing at such time; and 

  

	9.1.5	no Default having occurred and being continuing and there being no Default which would result from the making of the Loan. 

 

	9.2	Waiver of conditions precedent 

 The conditions specified in this clause 9 are inserted solely for the benefit of the Lenders and may be waived by the Agent in whole or in part and with or without conditions only with the consent of the
Majority Lenders. 
  

	9.3	Further conditions precedent 

 Not later than five (5) Banking Days prior to a Drawdown Date and not later than five (5) Banking Days prior to any Interest Payment Date, the Agent (acting on the instructions of the Majority
Lenders) may request and the Borrowers must, not later than two (2) Banking Days prior to such date, deliver to the Agent (at the Borrowers’ expense) on such request further favourable certificates and/or opinions as to any or all of the
matters which are the subject of clauses 7, 8, 9 and 10. 

  
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	10	EVENTS OF DEFAULT 

  

	10.1	Events 

 Each of the
following events shall constitute an Event of Default (whether such event shall occur voluntarily or involuntarily or by operation of law or regulation or in connection with any judgment, decree or order of any court or other authority or otherwise,
howsoever): 
  

	10.1.1	Non-payment: any Security Party fails to pay any sum payable by it under any of the Security Documents at the time, in the currency and in the manner stipulated
in the Security Documents or the Underlying Documents (and so that, for this purpose, sums payable (i) under clauses 3.1 and 4.1 shall be treated as having been paid at the stipulated time if (aa) received by the Agent within two (2) days
of the dates therein referred to and (bb) such delay in receipt is caused by administrative or other delays or errors within the banking system and (ii) on demand shall be treated as having been paid at the stipulated time if paid within two
(2) Banking Days of demand); or 

  

	10.1.2	Breach of Insurance and certain other obligations: any Owner or, as the context may require, the Manager or any other person fails to obtain and/or maintain the
Insurances (as defined in, and in accordance with the requirements of, the Ship Security Documents) for any of the Mortgaged Vessels or if any insurer in respect of such Insurances cancels the Insurances or disclaims liability by reason, in either
case, of mis-statement in any proposal for the Insurances or for any other failure or default on the part of the Borrowers or any other person or a Borrower commits any breach of or omits to observe any of the obligations or undertakings expressed
to be assumed by them under clause 8; or 

  

	10.1.3	Breach of other obligations: any Security Party commits any breach of or omits to observe any of its obligations or undertakings expressed to be assumed by it
under any of the Security Documents (other than those referred to in clauses 10.1.1 and 10.1.2 above) unless such breach or omission, in the opinion of the Agent (following consultation with the Banks) is capable of remedy, in which case the same
shall constitute an Event of Default if it has not been remedied within fifteen (15) days of the occurrence thereof; or 

  
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	10.1.4	Misrepresentation: any representation or warranty made or deemed to be made or repeated by or in respect of any Security Party in or pursuant to any of the
Security Documents or in any notice, certificate or statement referred to in or delivered under any of the Security Documents is or proves to have been incorrect or misleading in any material respect; or 

 

	10.1.5	Cross-default: There shall occur a default (howsoever therein described) under any Indebtedness of either Borrower in an amount exceeding one million Dollars
(USD1,000,000) or any Indebtedness of any Security Party in an amount exceeding five million Dollars (USD5,000,000) is not paid when due (subject to applicable grace periods) or any such Indebtedness of either Borrower or any Security Party becomes
(whether by declaration or automatically in accordance with the relevant agreement or instrument constituting the same) due and payable prior to the date when it would otherwise have become due (unless as a result of the exercise by the relevant
Borrower or Security Party of a voluntary right of prepayment), or any creditor of a Borrower or any Security Party becomes entitled to declare any such Indebtedness due and payable or any facility or commitment available to either Borrower or any
Security Party relating to Indebtedness is withdrawn, suspended or cancelled by reason of any default (however described) of the person concerned; or 

  

	10.1.6	Execution: any uninsured judgment or order made against any Security Party is not stayed, appealed against or complied with within fifteen (15) days or a
creditor attaches or takes possession of, or a distress, execution, sequestration or other process is levied or enforced upon or sued out against, any of the undertakings, assets, rights or revenues of any Security Party and is not discharged within
thirty (30) days; or 

  

	10.1.7	Insolvency: any Security Party is unable or admits inability to pay its debts as they fall due; suspends making payments on any of its debts or announces an
intention to do so; becomes insolvent; or suffers the declaration by any court, liquidator, receiver or administrator of a moratorium in respect of any of its Indebtedness; or 

 

	10.1.8	Reduction or loss of capital: a meeting is convened by any Security Party (other than the Corporate Guarantor and the Shareholder) without the Agent’s prior
written consent, for the purpose of passing any resolution to purchase, reduce or redeem any of its share capital without the Agent’s prior written consent; or 

  
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	10.1.9	Dissolution: any corporate action, Proceedings or other steps are taken to dissolve or wind-up any Security Party or an order is made or resolution passed for
the dissolution or winding up of any Security Party or a notice is issued convening a meeting for such purpose; or 

  

	10.1.10	Administration: any petition is presented, notice given or other steps are taken anywhere to appoint an administrator of any Security Party or the Agent
reasonably believes that any such petition or other step is imminent or an administration order is made in relation to any Security Party; or 

  

	10.1.11	Appointment of receivers and managers: any administrative or other receiver is appointed anywhere of any Security Party or any part of its assets and/or
undertaking or any other steps are taken to enforce any Encumbrance over all or any part of the assets of any Security Party; or 

  

	10.1.12	Compositions: any corporate action, legal proceedings or other procedures or steps are taken, or negotiations commenced, by any Security Party or by any of its
creditors (other than the Corporate Guarantor), with a view to the general readjustment or rescheduling of all or part of its Indebtedness or to proposing any kind of composition, compromise or arrangement involving such company and any of its
creditors; or 

  

	10.1.13	Analogous proceedings: there occurs, in relation to any Security Party, in any country or territory in which any of them carries on business or to the
jurisdiction of whose courts any part of their assets is subject, any event which, in the reasonable opinion of the Agent, appears in that country or territory to correspond with, or have an effect equivalent or similar to, any of those mentioned in
clauses 10.1.6 to 10.1.12 (inclusive) or any Security Party otherwise becomes subject, in any such country or territory, to the operation of any law relating to insolvency, bankruptcy or liquidation; or 

 

	10.1.14	Cessation of business: any Security Party suspends or ceases or threatens to suspend or cease to carry on its business without the prior written consent of the
Agent, such consent not to be unreasonably withheld; or 

  

	10.1.15	Seizure: all or a material part of the undertaking, assets, rights or revenues of, or shares or other ownership interests in, any Security Party are seized,
nationalised, expropriated or compulsorily acquired by or under the authority of any Government Entity; or 

  
 59 

	10.1.16	Invalidity: any of the Security Documents and the Underlying Documents shall at any time and for any reason become invalid or unenforceable or otherwise cease to
remain in full force and effect, or if the validity or enforceability of any of the Security Documents and the Underlying Documents shall at any time and for any reason be contested by any Security Party which is a party thereto, or if any such
Security Party shall deny that it has any, or any further, liability thereunder; or 

  

	10.1.17	Unlawfulness: any Unlawfulness occurs or it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the covenants and obligations
expressed to be assumed by it in any of the Security Documents or for a Bank to exercise the rights or any of them vested in it under any of the Security Documents or otherwise; or 

 

	10.1.18	Repudiation: any Security Party repudiates any of the Security Documents or does or causes or permits to be done any act or thing evidencing an intention to
repudiate any of the Security Documents; or 

  

	10.1.19	Encumbrances enforceable: any Encumbrance (other than Permitted Liens) in respect of any of the property (or part thereof) which is the subject of any of the
Security Documents becomes enforceable; or 

  

	10.1.20	Arrest: a Mortgaged Vessel is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained in exercise or purported exercise of any
possessory lien or other claim or otherwise taken from the possession of its Owner and that Owner shall fail to procure the release of such Mortgaged Vessel within a period of fifteen (15) days thereafter (this clause does not include capture
of a Vessel by pirates for up to 12 months (but does apply if such capture exceeds 12 months) if relevant underwriters confirm in writing (in customary terms) within ninety (90) day of capture, that such capture will be covered by the relevant
Owner’s war risks insurance); or 

  

	10.1.21	Registration: the registration of a Mortgaged Vessel under the laws and flag of the relevant Flag State is cancelled or terminated without the prior written
consent of the Majority Banks; or 

  

	10.1.22	Unrest: the Flag State of a Mortgaged Vessel or the country in which any Security Party is incorporated or domiciled becomes involved in hostilities or civil war
or there is a seizure of power in the Flag State by unconstitutional means unless the Owner of the Vessel registered in such Flag State shall have transferred its Vessel onto a new flag acceptable to the Banks within sixty (60) days of the
start of such hostilities or civil war or seizure of power; or 

  
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	10.1.23	Environmental Incidents: an Environmental Incident occurs which gives rise, or may give rise, to an Environmental Claim which could, in the opinion of the Agent
be expected to have a material adverse effect (i) on the business, assets or financial condition of any Security Party or the Group taken as a whole or (ii) on the security constituted by any of the Security Documents or the enforceability
of that security in accordance with its terms; or 

  

	10.1.24	P&I: an Owner or the Manager or any other person fails or omits to comply with any requirements of the protection and indemnity association or other insurer
with which a Mortgaged Vessel is entered for insurance or insured against protection and indemnity risks (including oil pollution risks) to the effect that any cover (including, without limitation, any cover in respect of liability for Environmental
Claims arising in jurisdictions where such Mortgaged Vessel operates or trades) is or may be liable to cancellation, qualification or exclusion at any time; or 

 

	10.1.25	Material events: any other event occurs or circumstance arises which, in the opinion of the Agent (following consultation with the Banks), is likely materially
and adversely to affect either (i) the ability of any Security Party to perform all or any of its obligations under or otherwise to comply with the terms of any of the Security Documents or (ii) the security created by any of the Security
Documents; or 

  

	10.1.26	Required Authorisations: any Required Authorisation is revoked or withheld or modified or is otherwise not granted or fails to remain in full force and effect or
if any exchange control or other law or regulation shall exist which would make any transaction under the Security Documents or the continuation thereof, unlawful or would prevent the performance by any Security Party of any term of any of the
Security Documents; 

  

	10.1.27	Ownership: there is any change in the direct or indirect ownership of either Borrower without the prior written consent of the Agent; 

 

	10.1.28	Change of Control: There shall occur a “Change of Control” (as defined in the Secured Indenture) or the “Permitted Holder” (as defined in the
Secured Indenture) owns less than 20% of the issued share capital of the Corporate Guarantor; or 

  
 61 

	10.1.29	Money Laundering: any Security Party is in breach of or fails to observe any law, requirement, measure or procedure implemented to combat “money
laundering” as defined in Article 1 of the Directive (91/308 EEC) of the Council of the European Communities. 

  

	10.2	Acceleration 

 The Agent
may, and if so requested by the Majority Lenders shall, without prejudice to any other rights of the Lenders, at any time after the happening of an Event of Default by notice to the Borrowers declare that: 

 

	10.2.1	the obligation of each Lender to make its Commitment available shall be terminated, whereupon the Commitment shall be reduced to zero forthwith; and/or

  

	10.2.2	the Loan and all interest accrued and all other sums payable whatsoever under the Security Documents have become due and payable, whereupon the same shall, immediately
or in accordance with the terms of such notice, become due and payable. 

  

	10.3	Demand Basis 

 If, under
clause 10.2.2, the Agent has declared the Loan to be due and payable on demand, at any time thereafter the Agent may (and if so instructed by the Majority Lenders shall) by written notice to the Borrowers (a) demand repayment of the Loan on
such date as may be specified whereupon, regardless of any other provision of this Agreement, the Loan shall become due and payable on the date so specified together with all interest accrued and all other sums payable under this Agreement or
(b) withdraw such declaration with effect from the date specified in such notice. 
  

	11	INDEMNITIES 

  

	11.1	General indemnity 

 The
Borrowers agree to indemnify each Bank on demand, without prejudice to any of such Bank’s other rights under any of the Security Documents, against any loss (including loss of Margin) or expense (including, without limitation, Break Costs)
which such Bank shall certify as sustained by it as a consequence of any Default, any prepayment of the Loan being made under clauses 4.2, 4.3, 4.4, 4.5, 8.2.1(a) or 12.1 or any other repayment or prepayment of the Loan or part thereof being made
otherwise than on an Interest Payment Date relating to the part of the Loan prepaid or repaid; and/or a Tranche not being made available for any reason 

  
 62 

 
(excluding any default by the Agent, the Security Trustee or any Lender) after the Drawdown Notice for such Tranche has been given; and/or any breach by any Security Party of any existing
applicable law, statute, rule or regulation. 
  

	11.2	Environmental indemnity 

The Borrowers shall indemnify each Bank on demand and hold it harmless from and against all costs, claims, expenses, payments, charges,
losses, demands, liabilities, actions, Proceedings, penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be incurred or made or asserted whensoever against such Bank at any time, whether before or
after the repayment in full of principal and interest under this Agreement, arising howsoever out of an Environmental Claim made or asserted against such Bank which would not have been, or been capable of being, made or asserted against such Bank
had it not entered into any of the Security Documents or been involved in any of the resulting or associated transactions. 
  

	11.3	Capital adequacy and reserve requirements indemnity 

 The Borrowers shall promptly indemnify each Lender on demand against any cost incurred or loss suffered by such Lender as a result of its complying with (i) the minimum reserve requirements from time
to time of the European Central Bank (ii) any capital adequacy directive of the European Union and/or (iii) any revised framework for international convergence of capital measurements and capital standards and/or any regulation imposed by
any Government Entity in connection therewith, and/or in connection with maintaining required reserves with a relevant national central bank to the extent that such compliance or maintenance relates to such Lender’s Commitment and/or
Contribution or deposits obtained by it to fund the whole or part thereof and to the extent such cost or loss is not recoverable by such Lender under clause 12.2. 
  

	12	UNLAWFULNESS AND INCREASED COSTS 

  

	12.1	Unlawfulness 

 If it is or
becomes unlawful or contrary to a directive or regulation for any Lender to contribute to a Tranche or to maintain its Commitment or fund its Contribution to the Loan or a Tranche, such Lender shall promptly, through the Agent, give notice to the
Borrowers whereupon (a) such Lender’s Contribution and Commitment shall be reduced to zero and (b)

  
 63 

 
the Borrowers shall be obliged to prepay such Lender’s Contribution either (i) forthwith or (ii) on a future specified date not being earlier than the latest date permitted by the
relevant law, directive or regulation together with interest accrued to the date of prepayment and all other sums payable by the Borrowers under this Agreement. 
  

	12.2	Increased costs 

 If the
result of any change in, or in the interpretation or application of, or the introduction of, any law or any regulation, request or requirement (whether or not having the force of law, but, if not having the force of law, with which a Lender or, as
the case may be, its holding company habitually complies), including (without limitation) those relating to Taxation, capital adequacy, liquidity, reserve assets, cash ratio deposits and special deposits, is to: 

 

	12.2.1	subject any Lender to Taxes or change the basis of Taxation of any Lender with respect to any payment under any of the Security Documents (other than Taxes or Taxation
on the overall net income, profits or gains of such Lender imposed in the jurisdiction in which its principal or lending office under this Agreement is located); and/or 

 

	12.2.2	increase the cost to, or impose an additional cost on, any Lender or its holding company in making or keeping such Lender’s Commitment available or maintaining or
funding all or part of such Lender’s Contribution; and/or 

  

	12.2.3	reduce the amount payable or the effective return to any Lender under any of the Security Documents; and/or 

 

	12.2.4	reduce any Lender’s or its holding company’s rate of return on its overall capital by reason of a change in the manner in which it is required to allocate
capital resources to such Lender’s obligations under any of the Security Documents; and/or 

  

	12.2.5	require any Lender or its holding company to make a payment or forgo a return on or calculated by reference to any amount received or receivable by such Lender under
any of the Security Documents; and/or 

  

	12.2.6	require any Lender or its holding company to incur or sustain a loss (including a loss of future potential profits) by reason of being obliged to deduct all or part of
its Contribution or the Loan from its capital for regulatory purposes, 

 then and in each such case (subject to
clause 12.3): 
  

	 	(a)	such Lender shall notify the Borrowers in writing of such event promptly upon its becoming aware of the same; and 

  
 64 

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

 Provided that the Banks shall try to ensure that any loss suffered by the Borrowers as a result of the circumstances referred to above are kept to a minimum. 

For the purposes of this clause 12.2 “holding company” means the company or entity (if any) within the consolidated supervision
of which a Lender is included. 
  

	12.3	Exception 

 Nothing in
clause 12.2 shall entitle any Lender to receive any amount in respect of compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss to the extent that the same is the subject of an
additional payment under clause 6.6. 
  

	13	APPLICATION OF MONEYS, SET OFF, PRO-RATA PAYMENTS AND MISCELLANEOUS 

 

	13.1	Application of moneys 

All moneys received by the Agent and/or the Security Trustee under or pursuant to any of the Security Documents and expressed to be
applicable in accordance with the provisions of this clause 13.1 or in a manner determined in the Security Trustee’s or (as the case may be) the Agent’s discretion, shall be applied in the following manner: 

 

	13.1.1	first, in or towards payment, on a pro-rata basis, of any unpaid costs and expenses of the Banks or any of them under any of the Security Documents;

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

  

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

  

	13.1.4	fourthly, in or towards repayment of the Loan (whether the same is due and payable or not); 

 

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

  

	13.1.6	sixthly, the surplus (if any) shall be paid to the Borrowers or to whomsoever else may then be entitled to receive such surplus. 

 

	13.2	Set-off 

  

	13.2.1	Each Borrower irrevocably authorises each Bank (without prejudice to any of such Bank’s rights at law, in equity or otherwise), at any time and without notice to
the Borrowers, to apply any credit balance to which either Borrower is then entitled standing upon any account of either Borrower with any branch of such Bank in or towards satisfaction of any sum due and payable from the Borrowers to such Bank
under any of the Security Documents. For this purpose, each Bank is authorised to purchase with the moneys standing to the credit of such account such other currencies as may be necessary to effect such application. 

 

	13.2.2	No Bank shall be obliged to exercise any right given to it by this clause 13.2. Each Bank shall notify the Borrowers through the Agent forthwith upon the exercise or
purported exercise of any right of set off giving full details in relation thereto and the Agent shall inform the other Banks. 

  

	13.2.3	Nothing in this clause 13.2 shall be effective to create a charge or other security interest. 

 

	13.3	Pro rata payments 

  

	13.3.1	 If at any time any Lender (the “Recovering Lender”) receives or recovers any amount owing to it by the Borrowers under this Agreement
(other than pursuant to any other Security Document) by direct payment, set-off or in any manner other than by payment through the 

  
 66 

	 	
Agent pursuant to clauses 6.1 or 6.9 (not being a payment received from a Transferee Bank or a sub-participant in such Lender’s Contribution or any other payment of an amount due to the
Recovering Lender for its sole account pursuant to clauses 3.6, 5, 6.6, 11.1, 11.2, 11.3, 12.1, or 12.2), the Recovering Lender shall, within two (2) Banking Days of such receipt or recovery (a “Relevant Receipt”) notify the
Agent of the amount of the Relevant Receipt. If the Relevant Receipt exceeds the amount which the Recovering Lender would have received if the Relevant Receipt had been received by the Agent and distributed pursuant to clause 6.1 or 6.10 (as the
case may be) then: 

  

	 	(a)	within two (2) Banking Days of demand by the Agent, the Recovering Lender shall pay to the Agent an amount equal (or equivalent) to the excess;

  

	 	(b)	the Agent shall treat the excess amount so paid by the Recovering Lender as if it were a payment made by the Borrowers and shall distribute the same to the Lenders
(other than the Recovering Lenders) in accordance with clause 6.10; and 

  

	 	(c)	as between the Borrowers and the Recovering Lender the excess amount so re-distributed shall be treated as not having been paid but the obligations of the Borrowers to
the other Lenders shall, to the extent of the amount so re-distributed to them, be treated as discharged. 

  

	13.3.2	If any part of the Relevant Receipt subsequently has to be wholly or partly refunded by the Recovering Lender (whether to a liquidator or otherwise) each Lender to
which any part of such Relevant Receipt was so re-distributed shall on request from the Recovering Lender repay to the Recovering Lender such Lender’s pro-rata share of the amount which has to be refunded by the Recovering Lender.

  

	13.3.3	Each Lender shall on request supply to the Agent such information as the Agent may from time to time request for the purposes of this clause 13.3.

  

	13.3.4	Notwithstanding the foregoing provisions of this clause 13.3, no Recovering Lender shall be obliged to share any Relevant Receipt which it receives or recovers pursuant
to Proceedings taken by it to recover any sums owing to it under this Agreement with any other party which has a legal right to, but does not, either join in such Proceedings or commence and diligently pursue separate Proceedings to enforce its
rights in the same or another court (unless the Proceedings instituted by the Recovering Lender are instituted by it without prior notice having been given to such party through the Agent). 

  
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	13.4	No release 

 For the
avoidance of doubt it is hereby declared that failure by any Recovering Lender to comply with the provisions of clause 13.3 shall not release any other Recovering Lender from any of its obligations or liabilities under clause 13.3. 

 

	13.5	No charge 

 The provisions
of this clause 13 shall not, and shall not be construed so as to, constitute a charge or create or declare a trust by a Lender over all or any part of a sum received or recovered by it in the circumstances mentioned in clause 13.3. 

 

	13.6	Further assurance 

 Each
Borrower undertakes with each Bank that the Security Documents shall both at the date of execution and delivery thereof and throughout the Facility Period be valid and binding obligations of the respective parties thereto which, with the rights of
each Lender thereunder, are enforceable in accordance with their respective terms and that they will, at their expense, execute, sign, perfect and do, and will procure the execution, signing, perfecting and doing by each of the other Security
Parties of, any and every such further assurance, document, act or thing as in the reasonable opinion of the Majority Lenders may be necessary or desirable for perfecting the security contemplated or constituted by the Security Documents.

  

	13.7	Conflicts 

 In the event
of any conflict between this Agreement and any of the other Security Documents, the provisions of this Agreement shall prevail. 
  

	13.8	No implied waivers, remedies cumulative 

 No failure or delay on the part of any of the Banks to exercise any power, right or remedy under any of the Security Documents shall operate as a waiver thereof, nor shall any single or partial exercise
by any Bank of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. The remedies provided in the Security Documents are cumulative and are not exclusive of any remedies
provided by law. No waiver by any Bank shall be effective unless it is in writing. 

  
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	13.9	Severability 

 If any
provision of this Agreement is prohibited, invalid, illegal or unenforceable in any jurisdiction, such prohibition, invalidity, illegality or unenforceability shall not affect or impair howsoever the remaining provisions thereof or affect the
validity, legality or enforceability of such provision in any other jurisdiction. 
  

	13.10	Force Majeure 

 Regardless
of any other provision of this Agreement, none of the Banks shall be liable for any failure to perform the whole or any part of this Agreement resulting directly or indirectly from (i) the action or inaction or purported action of any
governmental or local authority (ii) any strike, lockout, boycott or blockade (including any strike, lockout, boycott or blockade effected by or upon any Bank or any of its representatives or employees) (iii) any act of God (iv) any
act of war (whether declared or not) or terrorism (v) any failure of any information technology or other operational systems or equipment affecting any Bank or (vi) any other circumstances whatsoever outside any Bank’s control.

  

	13.11	Amendments 

 This
Agreement may be amended or varied only by an instrument in writing executed by all parties hereto who irrevocably agree that the provisions of this clause 13.11 may not be waived or modified except by an instrument in writing to that effect signed
by all of them. 
  

	13.12	Counterparts 

 This
Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute one and the same agreement which may be sufficiently evidenced by one counterpart. 

 

	13.13	Financial collateral arrangements 

  

	13.13.1	Each of the agreements for the opening of the Earnings Accounts and each of the Earnings Account Pledges shall include, inter alia, “a close-out netting
provision” under law 3301/2004 and Directive 2002/47/EC of the European Parliament and the Council of 6 June 2002 on financial collateral arrangements (the “Cash Collateral Legislation”); 

 

	13.13.2	 Upon the occurrence of an Enforcement Event, both any amount standing to the Earnings Accounts (regardless of any other provision) and the Loan
together with any accrued interest 

  
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shall become, immediately and automatically without any notice, due and payable and shall be set off and a net sum equal to any difference shall be payable by the party from whom the larger
amount is due to the other party (Close Out netting); 

  

	13.13.3	In the event that the terms of this clause 13.13 apply pursuant to an Enforcement Event relating to the Lender at which the Earnings Accounts are held, the Contribution
of that Lender shall be reduced by the aggregate amount standing to the credit of the Earnings Accounts, and the Contributions of the other Lenders shall not be affected by such set-off; 

 

	13.13.4	For the purposes of this Clause 13.13, “Enforcement Event” means in respect of the Banks and/or the Borrowers “winding up proceedings” or
“reorganisation measures” (as these terms are defined in the Cash Collateral Legislation) or any other event (except an Event of Default) which, in each case, prevents or results in preventing the Borrowers from withdrawing the funds
deposited into the Earnings Accounts, whether this is by virtue of a provision of any law, regulation, statutory rule or regulatory requirement or any request or order of any central bank, monetary, regulatory or other authority or any court.

  

	13.14	English language 

 All
documents required to be delivered under and/or supplied whensoever in connection howsoever with any of the Security Documents and all notices, communications, information and other written material whatsoever given or provided in connection
howsoever therewith must either be in the English language or accompanied by an English translation certified by a notary, lawyer or consulate acceptable to the Agent. 
  

	14	ACCOUNTS 

  

	14.1	General 

 Each Borrower
undertakes with each Bank that it will ensure that: 
  

	14.1.1	it will on or before the relevant Drawdown Date, open an Earnings Account in its name; and 

 

	14.1.2	 all moneys payable to either Borrower in respect of the Earnings (as defined in the relevant Mortgage) of its Vessel shall, unless and until the Agent
(acting on the instructions of the Majority Lenders) directs to the contrary pursuant to the provisions of the relevant Mortgage, be paid to its Earnings Account, Provided however that if any of the moneys paid to an Earnings Account are payable in
a currency other than USD, they shall be paid to a 

  
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sub-account of that Earnings Account denominated in such currency (except that if the relevant Borrower fails to open such a sub-account, the Earnings Account Bank shall then convert such moneys
into USD at the Earnings Account Bank’s spot rate of exchange at the relevant time for the purchase of USD with such currency and the term “spot rate of exchange” shall include any premium and costs of exchange payable in connection
with the purchase of USD with such currency). 

  

	14.2	Earnings Accounts: withdrawals 

 Any sums standing to the credit of the Earnings Accounts may be applied from time to time (i) firstly to make the payments required under this Agreement, (ii) secondly, subject to there being no
breach of Clause 14.3 and to no Event of Default having occurred, in the operation of the Mortgaged Vessels and (iii) thirdly in building up a balance of USD500,000 (hereinafter, the “Minimum Balance”) on each Earnings Account
and (iv) subject to there being at any time sufficient funds to pay amounts due under (i) and (ii) above as they fall due, thirdly for the general corporate purposes of the Borrowers. 

 

	14.3	Minimum Balance. 

 The
Borrowers shall accumulate and maintain the Minimum Balance on each Earnings Account throughout the Facility Period. 
  

	14.4	Application of accounts 

At any time after the occurrence of an Event of Default, the Agent may (and on the instructions of the Majority Lenders shall), without
notice to the Borrowers, instruct the Earnings Account Bank to apply all moneys then standing to the credit of the Earnings Accounts (together with interest from time to time accruing or accrued thereon) in or towards satisfaction of any sums due to
the Banks or any of them under the Security Documents in the manner specified in clause 13.1. 
  

	14.5	Charging of accounts 

 The
Earnings Accounts and all amounts from time to time standing to the credit thereof shall be subject to the security constituted and the rights conferred by the Earnings Account Pledges respectively and the Borrowers undertake to take all such steps,
and give all such instructions to the Earnings Account Bank to enable the Agent and/or the Security Trustee to have: 
  

	 	(a)	full e-banking monitoring access to the Earnings Accounts at all times; and 

  
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	 	(b)	full unconditional access to the Earnings Accounts following the occurrence of an Event of Default which is continuing. 

 

	15	ASSIGNMENT, TRANSFER AND LENDING OFFICE 

  

	15.1	Benefit and burden 

 This
Agreement shall be binding upon, and enure for the benefit of, the Banks and the Borrowers and their respective successors in title. 
  

	15.2	No assignment by Borrowers 

No Borrower may assign or transfer any of its rights or obligations under this Agreement. 

 

	15.3	Transfers by Banks 

 any
Lender (the “Transferor Lender”) may at any time, without the consent of, or consultation with, but after giving 30-day notice to, the Borrowers and/or the Corporate Guarantor (other than in the circumstances referred to in Clause
15.9, in respect of which the terms of Clause 15.9 shall apply), cause all or any part of its rights, benefits and/or obligations under this Agreement and the other Security Documents to be transferred to (i) another Lender, (ii) another
branch, subsidiary or affiliate of, or company controlled by, a Lender, (iii) another first class international bank or financial institution, insurer, social security fund, pension fund, capital investment company, financial intermediary or
special purpose vehicle associated to any of them, (iv) a trust corporation, fund or other person which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets and
which is advised by or the assets of which are managed or serviced by a Lender (in each case a “Transferee Lender”) in each case by delivering to the Agent a Transfer Certificate duly completed and duly executed by the Transferor
Lender and the Transferee Lender. No such transfer is binding on, or effective in relation to, the Borrowers or the Agent unless (i) it is effected or evidenced by a Transfer Certificate which complies with the provisions of this clause 15.3
and is signed by or on behalf of the Transferor Lender, the Transferee Lender and the Agent (on behalf of itself, the Borrowers and the other Banks) and (ii) such transfer of rights under the other Security Documents has been effected and
registered. Upon signature of any such Transfer Certificate by the Agent, which signature shall be effected as promptly as is practicable after such Transfer Certificate has been delivered to the Agent, and subject to the terms of such Transfer
Certificate, such Transfer Certificate shall have effect as set out below. 

  
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 The following further provisions shall have effect in relation to any Transfer Certificate:

  

	15.3.1	a Transfer Certificate may be in respect of a Lender’s rights in respect of all, or part of, its Commitment and shall be in respect of the same proportion of its
Contribution; 

  

	15.3.2	a Transfer Certificate shall only be in respect of rights and obligations of the Transferor Lender in its capacity as a Lender and shall not transfer its rights and
obligations (if applicable) as the Agent and/or the Agent and/or the Security Trustee, or in any other capacity, as the case may be and such other rights and obligations may only be transferred in accordance with any applicable provisions of this
Agreement; 

  

	15.3.3	a Transfer Certificate shall take effect in accordance with English law as follows: 

 

	 	(a)	to the extent specified in the Transfer Certificate, the Transferor Lender’s payment rights and all its other rights (other than those referred to in clause 15.3.2
above) under this Agreement are assigned to the Transferee Lender absolutely, free of any defects in the Transferor Lender’s title and of any rights or equities which the Borrowers had against the Transferor Lender and the Transferee Lender
assumes all obligations of the Transferor Lender as are transferred by such Transfer Certificate; 

  

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

 

	 	(c)	the Transferee Lender becomes a Lender with a Contribution and/or a Commitment in respect of the Loan Facility of the amounts specified in the Transfer Certificate;

  

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

  

	 	(e)	 a Tranche or part of a Tranche which the Transferee Lender makes after the Transfer Certificate comes into effect ranks in point of priority and
security in the 

  
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same way as it would have ranked had it been made by the Transferor Lender, assuming that any defects in the Transferor Lender’s title and any rights or equities of any Security Party
against the Transferor Lender had not existed; and 

  

	 	(f)	the Transferee Lender becomes entitled to all the rights under this Agreement which are applicable to the Lenders generally, including but not limited to those relating
to the Majority Lenders and those under clauses 3.6, 5 and 12 and to the extent that the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to be entitled to them; 

 

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

  

	15.3.5	the Borrowers, the Security Trustee, the Agent and the Lenders hereby irrevocably authorise and instruct the Agent to sign any such Transfer Certificate on their behalf
and undertake not to withdraw, revoke or qualify such authority or instruction at any time. Promptly upon its signature of any Transfer Certificate, the Agent shall notify the Borrowers, the Transferor Lender and the Transferee Lender.

  

	15.4	Reliance on Transfer Certificate 

  

	15.4.1	The Agent shall be entitled to rely on any Transfer Certificate believed by it to be genuine and correct and to have been presented or signed by the persons by whom it
purports to have been presented or signed, and shall not be liable to any of the parties to this Agreement and the Security Documents for the consequences of such reliance. 

 

	15.4.2	The Agent shall at all times during the continuation of this Agreement maintain a register in which it shall record the name, Commitments, Contributions and
administrative details (including the lending office) from time to time of the Lenders holding a Transfer Certificate and the date at which the transfer referred to in such Transfer Certificate held by each Lender was transferred to such Lender, and
the Agent shall make the said register available for inspection by any Lender or the Borrowers during normal banking hours upon receipt by the Agent of reasonable prior notice requesting the Agent to do so. 

 

	15.4.3	The entries on the said register shall, in the absence of manifest error, be conclusive in determining the identities of the Commitments, the Contributions and the
Transfer Certificates held by the Lenders from time to time and the principal amounts of such Transfer Certificates and may be relied upon by all parties to this Agreement. 

  
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	15.5	Transfer fees and expenses 

Any Transferor Lender who causes the transfer of all or any part of its rights, benefits and/or obligations under the Security Documents
in accordance with the foregoing provisions of this clause 15, must, on each occasion, pay to the Agent a transfer fee of one thousand five hundred Dollars (USD 1,500) and, in addition, be responsible for all other costs and expenses (including, but
not limited to, reasonable legal fees and expenses) associated therewith and all value added tax thereon, as well as those of the Agent (in addition to its fee as aforesaid) in connection with such transfer. 

 

	15.6	Documenting transfers 

 If
any Lender assigns all or any part of its rights or transfers all or any part of its rights, benefits and/or obligations as provided in clause 15.3, each Borrower undertakes, immediately on being requested to do so by the Agent and at the cost of
the Transferor Lender, to enter into, and procure that the other Security Parties shall (at the cost of the Transferor Lender) enter into, such documents as may be necessary or desirable to transfer to the Transferee Lender all or the relevant part
of such Lender’s interest in the Security Documents and all relevant references in this Agreement to such Lender shall thereafter be construed as a reference to the Transferor Lender and/or its Transferee Lender (as the case may be) to the
extent of their respective interests. 
  

	15.7	Sub-Participation 

 A
Lender may sub-participate all or any part of its rights and/or obligations under the Security Documents at its own expense without the consent of, consultation with or notice to, the Borrowers. 

 

	15.8	Lending office 

 Each
Lender shall lend through its office at the address specified in Schedule 1 or, as the case may be, in any relevant Transfer Certificate or through any other office of such Lender selected from time to time by it through which such Lender wishes to
lend for the purposes of this Agreement. If the office through which a Lender is lending is changed pursuant to this clause 15.8, such Lender shall notify the Agent promptly of such change and the Agent shall notify the Borrowers, the Security
Trustee, the Agent and the other Lenders. 

  
 75 

	15.9	Securitisation 

 A Lender
may include all or any part of the Loan in a securitisation or similar transaction without the consent of, or consultation with, but after giving 30-day notice to, the Borrower or any Security Party. The Borrowers will (and will procure that the
Corporate Guarantor) assist the Lenders as necessary to achieve a successful securitisation (or similar transaction) Provided that the Borrowers shall not be required to bear any third party costs related to any such securitisation and need only
provide such information which any third parties may reasonably request. 
  

	15.10	Disclosure of information 

The Borrowers hereby do, and shall procure that the other Security Parties do, irrevocably authorise each Bank to give, divulge and reveal
from time to time information and details relating to their accounts, the Security Parties, the Vessels, the Security Documents, the Loan, the Commitments and any agreement entered into by the Borrowers and/or Security Party or information provided
by the Borrowers or Security Party in connection with the Security Documents to: 
  

	 	(i)	any public or internationally recognised authorities that are entitled to and have requested to obtain such information, 

 

	 	(ii)	the Banks’ respective head offices, branches and affiliates and professional advisors, 

 

	 	(iii)	any other parties to the Security Documents, 

  

	 	(iv)	a rating agency or their professional advisors, 

  

	 	(v)	any person with whom such Bank proposes to enter (or considers entering) into contractual relations in relation to the Loan and/or its Commitment or Contribution, and

  

	 	(vi)	 any other person regarding the funding, re-financing, transfer, assignment, sale, sub-participation or operational arrangements or other transaction in
relation to the Loan, its Contribution or its Commitment, including without limitation, for purposes in 

  
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connection with a securitisation or similar transaction or any enforcement, preservation, assignment, transfer, sale or sub-participation of any of such Bank’s rights and obligations

 Provided that, prior to the provision of any information under sub-clauses (v) and (vi) above, such
persons therein referred to will be required to sign a confidentiality agreement. 
  

	16	ARRANGER, AGENT AND SECURITY TRUSTEE 

  

	16.1	Appointment of the Agent 

Each Lender irrevocably appoints the Agent as its agent for the purposes of this Agreement and such of the Security Documents to which it
may be appropriate for the Agent to be party. Accordingly each of the Lenders hereby authorise the Agent: 
  

	16.1.1	to execute such documents as may be approved by the Majority Lenders for execution by the Agent; and 

 

	16.1.2	(whether or not by or through employees or agents) to take such action on such Lender’s behalf and to exercise such rights, remedies, powers and discretions as are
specifically delegated to the Agent by any Security Document, together with such powers and discretions as are reasonably incidental thereto. 

  

	16.2	Agent’s actions 

 Any
action taken by the Agent under or in relation to any of the Security Documents whether with requisite authority or on the basis of appropriate instructions received from the Majority Lenders (or as otherwise duly authorised) shall be binding on all
the Banks. 
  

	16.3	Agent’s duties 

  

	16.3.1	The Agent shall promptly notify each Lender of the contents of each notice, certificate or other document received by it from the Borrowers under or pursuant to clauses
8.1.1, 8.1.6, 8.1.9, 8.1.10, 8.1.13 and 8.1.17; and 

  

	16.3.2	The Agent shall (subject to the other provisions of this clause 16) take (or instruct the Security Trustee to take) such action or, as the case may be, refrain from
taking (or authorise the Security Trustee to refrain from taking) such action with respect to the exercise of any of its rights, remedies, powers and discretions as agent, as the Majority Lenders may direct. 

  
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	16.4	Security Trustee’s and Agent’s rights 

 The Security Trustee and the Agent may: 
  

	16.4.1	in the exercise of any right, remedy, power or discretion in relation to any matter, or in any context, not expressly provided for by this Agreement or any of the other
Security Documents, act or, as the case may be, refrain from acting (or authorise the Security Trustee to act or refrain from acting) in accordance with the instructions of the Lenders, and shall be fully protected in so doing;

  

	16.4.2	unless and until it has received directions from the Majority Lenders, take such action or, as the case may be, refrain from taking such action (or authorise the
Security Trustee to take or refrain from taking such action) in respect of a Default of which the Agent has actual knowledge as it shall consider advisable in the best interests of the Lenders (but shall not be obliged to do so);

  

	16.4.3	refrain from acting (or authorise the Security Trustee to refrain from acting) in accordance with any instructions of the Lenders to institute any Proceedings arising
out of or in connection with any of the Security Documents until it and/or the Security Trustee has been indemnified and/or secured to its satisfaction against any and all costs, expenses or liabilities (including legal fees) which it would or might
incur as a result; 

  

	16.4.4	deem and treat (i) each Lender as the person entitled to the benefit of the Contribution of such Lender for all purposes of this Agreement unless and until a
notice shall have been filed with the Agent pursuant to clause 15.3 and shall have become effective, and (ii) the office set opposite the name of each of the Lenders in Schedule 1 as its lending office unless and until a written notice of
change of lending office shall have been received by the Agent and the Agent may act upon any such notice unless and until the same is superseded by a further such notice; 

 

	16.4.5	rely as to matters of fact which might reasonably be expected to be within the knowledge of any Security Party upon a certificate signed by any director or officer of
the relevant Security Party on behalf of the relevant Security Party; and 

  

	16.4.6	do anything which is in its opinion necessary or desirable to comply with any law or regulation in any jurisdiction. 

  
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	16.5	No Liability of Agent or Arranger 

 None of the Security Trustee, the Agent, the Arranger nor any of their respective employees and agents shall: 
  

	16.5.1	be obliged to make any enquiry as to the use of any of the proceeds of the Loan unless (in the case of the Agent) so required in writing by a Lender, in which case the
Agent shall promptly make the appropriate request to the Borrowers; or 

  

	16.5.2	be obliged to make any enquiry as to any breach or default by the Borrowers or any other Security Party in the performance or observance of any of the provisions of the
Security Documents or as to the existence of a Default unless (in the case of the Agent) the Agent has actual knowledge thereof or has been notified in writing thereof by a Bank, in which case the Agent shall promptly notify the Banks of the
relevant event or circumstance; or 

  

	16.5.3	be obliged to enquire whether or not any representation or warranty made by the Borrowers or any other Security Party pursuant to this Agreement or any of the other
Security Documents is true; or 

  

	16.5.4	be obliged to do anything (including, without limitation, disclosing any document or information) which would, or might in its opinion, be contrary to any law or
regulation or be a breach of any duty of confidentiality or otherwise be actionable or render it liable to any person; or 

  

	16.5.5	be obliged to account to any Lender for any sum or the profit element of any sum received by it for its own account; or 

 

	16.5.6	be obliged to institute any Proceedings arising out of or in connection with any of the Security Documents other than on the instructions of the Majority Lenders; or

  

	16.5.7	be liable to any Lender for any action taken or omitted under or in connection with any of the Security Documents unless caused by its gross negligence or wilful
misconduct. 

 For the purposes of this clause 16, none of the Security Trustee, the Arranger or the Agent shall be
treated as having actual knowledge of any matter of which the corporate finance or any other division outside the agency or loan administration department of the Arranger, the Security Trustee or the Agent or the person for the time being acting as
the Arranger, the Security Trustee or the Agent may become aware in the context of corporate finance, advisory or lending activities from time to time undertaken by the Arranger, the Security Trustee or the Agent or, as the case may be, the Security
Trustee or Agent for any Security Party or any other person which may be a trade competitor of any Security Party or may otherwise have commercial interests similar to those of any Security Party. 

  
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	16.6	Non –reliance on Arranger, Security Trustee, Agent 

 Each Lender acknowledges that it has not relied on any statement, opinion, forecast or other representation made by the Arranger, the Security Trustee or the Agent to induce it to enter into any of the
Security Documents and that it has made and will continue to make, without reliance on the Arranger, the Security Trustee or the Agent and based on such documents as it considers appropriate, its own appraisal of the creditworthiness of the Security
Parties and its own independent investigation of the financial condition, prospects and affairs of the Security Parties in connection with the making and continuation of such Lender’s Commitment or Contribution under this Agreement. None of the
Arranger, the Security Trustee and the Agent shall have any duty or responsibility, either initially or on a continuing basis, to provide any Lender with any credit or other information with respect to any Security Party whether coming into its
possession before the making of a Tranche available or the Loan or at any time or times thereafter other than as provided in clause 16.3.1. 
  

	16.7	No responsibility on Arranger, Security Trustee, Agent for Borrowers’ performance 

None of the Arranger, the Security Trustee or the Agent shall have any responsibility or liability to any Lender: 

 

	16.7.1	on account of the failure of any Security Party to perform its obligations under any of the Security Documents; or 

 

	16.7.2	for the financial condition of any Security Party; or 

  

	16.7.3	for the completeness or accuracy of any statements, representations or warranties in any of the Security Documents or any document delivered under any of the Security
Documents; or 

  

	16.7.4	for the execution, effectiveness, adequacy, genuineness, validity, enforceability or admissibility in evidence of any of the Security Documents or of any certificate,
report or other document executed or delivered under any of the Security Documents; or 

  

	16.7.5	to investigate or make any enquiry into the title of the Borrowers or any other Security Party to the Vessels or any other security or any part thereof; or

  
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	16.7.6	for the failure to register any of the Security Documents with any official or regulatory body or office or elsewhere; or 

 

	16.7.7	for taking or omitting to take any other action under or in relation to any of the Security Documents or any aspect of any of the Security Documents; or

  

	16.7.8	on account of the failure of the Security Trustee to perform or discharge any of its duties or obligations under the Security Documents; or 

 

	16.7.9	otherwise in connection with the Security Documents or their negotiation or for acting (or, as the case may be, refraining from acting) in accordance with the
instructions of the Lenders. 

  

	16.8	Reliance on documents and professional advice 

 Each of the Arranger, the Security Trustee and the Agent shall be entitled to rely on any communication, instrument or document believed by it to be genuine and correct and to have been signed or sent by
the proper person and shall be entitled to rely as to legal or other professional matters on opinions and statements of any legal or other professional advisers selected or approved by it (including those in the Arranger, Security Trustee’s or
Agent’s employment). 
  

	16.9	Other dealings 

 Each of
the Arranger, the Security Trustee and the Agent may, without any liability to account to the Lenders, accept deposits from, lend money to, and generally engage in any kind of banking or other business with, and provide advisory or other services
to, any Security Party or any company in the same group of companies as such Security Party or any of the Lenders as if it were not the Arranger, the Security Trustee or the Agent. 

 

	16.10	Rights of Agent as Lender; no partnership 

 With respect to its own Commitment and Contribution (if any) the Security Trustee and the Agent shall have the same rights and powers under the Security Documents as any other Lender and may exercise the
same as though it were not performing the duties and functions delegated to it under this Agreement and the term “Lenders” shall, unless the context clearly otherwise indicates, include the Security Trustee and the Agent in their
respective individual capacity as a Lender. This Agreement shall not be construed so as to constitute a partnership between the parties or any of them. 

  
 81 

	16.11	Amendments and waivers 

  

	16.11.1	Subject to clause 16.11, the Arranger, the Security Trustee and/or the Agent (as the case may be) may, with the consent of the Majority Lenders (or if and to the extent
expressly authorised by the other provisions of any of the Security Documents) and, if so instructed by the Majority Lenders, shall: 

  

	16.11.2	agree (or authorise the Security Trustee to agree) amendments or modifications to any of the Security Documents with the Borrowers and/or any other Security Party;
and/or 

  

	16.11.3	vary or waive breaches of, or defaults under, or otherwise excuse performance of, any provision of any of the other Security Documents by the Borrowers and/or any other
Security Party (or authorise the Security Trustee to do so). 

 Any such action so authorised and effected by the
Agent shall be documented in such manner as the Security Trustee and/or the Agent (as the case may be) shall (with the approval of the Majority Lenders) determine, shall be promptly notified to the Lenders by the Security Trustee and/or the Agent
(as the case may be) and (without prejudice to the generality of clause 16.2) shall be binding on the Lenders. 
  

	16.11.4	Except with the prior written consent of the Lenders, the Security Trustee and the Agent shall have no authority on behalf of the Lenders to agree (or authorise the
Security Trustee to agree) with the Borrowers and/or any other Security Party any amendment or modification to any of the Security Documents or to grant (or authorise the Security Trustee to grant) waivers in respect of breaches or defaults or to
vary or excuse (or authorise the Security Trustee to vary or excuse) performance of or under any of the Security Documents by the Borrowers and/or any other Security Party, if the effect of such amendment, modification, waiver or excuse would be to:

  

	 	(a)	reduce the Margin, postpone the due date or reduce the amount of any payment of principal, interest or other amount payable by any Security Party under any of the
Security Documents; 

  

	 	(b)	change the currency in which any amount is payable by any Security Party under any of the Security Documents; 

 

	 	(c)	increase any Lender’s Commitment; 

  
 82 

	 	(d)	extend any Maturity Date; 

  

	 	(e)	change any provision of any of the Security Documents which expressly or impliedly requires the approval or consent of all the Lenders such that the relevant approval
or consent may be given otherwise than with the sanction of all the Lenders; 

  

	 	(f)	change the order of distribution under clauses 6.10 and 13.1; 

  

	 	(g)	change this clause 16.11; 

  

	 	(h)	change the definition of “Majority Lenders” in clause 1.2; 

 

	 	(i)	release any Security Party from the security constituted by any Security Document (except as required by the terms thereof or by law) or change the terms and conditions
upon which such security or guarantee may be, or is required to be, released. 

  

	16.12	Reimbursement and indemnity by Lenders 

 Each Lender shall reimburse the Security Trustee and the Agent (rateably in accordance with such Lender’s Commitment or, after the first Tranche or the Loan has been drawn, its Contribution,) to the
extent that the Security Trustee or the Agent is not reimbursed by the Borrowers, for the costs, charges and expenses incurred by the Security Trustee or the Agent which are expressed to be payable by the Borrowers under clause 5.3 including (in
each case), without limitation, the fees and expenses of legal or other professional advisers provided that, if following any payment to the Security Trustee or the Agent by a Lender under this clause the Security Trustee or the Agent receives
payment from the Borrowers in respect of the same costs, fees or expenses, the Security Trustee or the Agent shall upon receipt thereof reimburse the relevant Lender. Each Lender must on demand indemnify the Security Trustee or the Agent (rateably
in accordance with such Lender’s Commitment or, after the first Tranche or the Loan has been drawn, its Contribution) against all liabilities, damages, costs and claims whatsoever incurred by the Security Trustee in connection with any of the
Security Documents or the performance of its duties under any of the Security Documents or any action taken or omitted by the Security Trustee or, as the case may be, the Agent, under any of the Security Documents, unless such liabilities, damages,
costs or claims arise from the Security Trustee’s or as the case may be, the Agent’s own gross negligence or wilful misconduct. 

  
 83 

	16.13	Retirement of the Security Trustee /Agent 

  

	16.13.1	The Agent may, having given to the Borrowers and each of the Lenders not less than fifteen (15) days’ notice of its intention to do so, retire from its
appointment as the Security Trustee or the Agent (as the case may be) under this Agreement, provided that no such retirement shall take effect unless there has been appointed by the Lenders as a successor agent: 

 

	 	(a)	a company in the same group of companies as the Security Trustee or, as the case may be, the Agent nominated by the Security Trustee or, as the case may be, the Agent,

  

	 	(b)	a Lender nominated by the Majority Lenders or, failing such a nomination, 

  

	 	(c)	any reputable and experienced bank or financial institution nominated by the retiring Agent or, as the case may be, the retiring Security Trustee.

 Any corporation into which the retiring Agent and/or the retiring Security Trustee (as the case may be) may be
merged or converted or any corporation with which the Security Trustee and/or the Agent (as the case may be) may be consolidated or any corporation resulting from any merger, conversion, amalgamation, consolidation or other reorganisation to which
the Security Trustee or the Agent (as the case may be) shall be a party shall, to the extent permitted by applicable law, be the successor Agent or Security Trustee under this Agreement and the other Security Documents without the execution or
filing of any document or any further act on the part of any of the parties to the Security Documents save that notice of any such merger, conversion, amalgamation, consolidation or other reorganisation shall forthwith be given to each Security
Party and the Lenders. Prior to any such successor being appointed, the Agent agrees to consult with the Borrowers and the Lenders as to the identity of the proposed successor and to take account of any reasonable objections which the Borrowers and
the Lenders may raise to such successor being appointed. 
  

	16.13.2	If the Majority Lenders, acting reasonably, are of the opinion that the Security Trustee or Agent is unable to fulfil its respective obligations under this Agreement in
a professional and acceptable manner, then they may require the Security Trustee or Agent, by written notice, to resign in accordance with clause 16.13.1, which the Agent shall promptly do, and the terms of clause 16.13.1 shall apply to the
appointment of any substitute Security Trustee or Agent, save that the same shall be appointed by the Majority Lenders and not by all of the Lenders. 

  
 84 

	16.13.3	Upon any such successor as aforesaid being appointed, the retiring Agent or, as the case may be, the Security Trustee shall be discharged from any further obligation
under the Security Documents (but shall continue to have the benefit of this clause 16 in respect of any action it has taken or refrained from taking prior to such discharge) and its successor and each of the other parties to this Agreement shall
have the same rights and obligations among themselves as they would have had if such successor had been a party to this Agreement in place of the retiring Agent or Security Trustee. The retiring Agent shall (at its own expense) provide its successor
with copies of such of its records as its successor reasonably requires to carry out its functions under the Security Documents. 

  

	16.14	Appointment and retirement of Security Trustee 

  

	16.14.1	Appointment 

 Each of the Lenders
and the Agent irrevocably appoints the Security Trustee as its Security Trustee and trustee for the purposes of the Security Documents, in each case on the terms set out in this Agreement. Accordingly, each of the Lenders and the Agent hereby
authorises the Security Trustee (whether or not by or through employees or agents) to take such action on its behalf and to exercise such rights, remedies, powers and discretions as are specifically delegated to the Security Trustee by this
Agreement and/or the Security Documents, together with such powers and discretions as are reasonably incidental thereto. 
  

	16.14.2	Retirement 

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

	 	(a)	a company in the same group of companies of the Security Trustee nominated by the Security Trustee which the Lenders hereby irrevocably and unconditionally agree to
appoint or, failing such nomination, 

  
 85 

	 	(b)	a Lender or trust corporation nominated by the Majority Lenders or, failing such a nomination, 

 

	 	(c)	any bank or trust corporation nominated by the retiring Security Trustee, 

 and, in any case, such successor Security Trustee and trustee shall have duly accepted such appointment by delivering to the Agent (i) written confirmation (in a form acceptable to the Agent) of such
acceptance agreeing to be bound by this Agreement in the capacity of Security Trustee as if it had been an original party to this Agreement and (ii) a duly executed Trust Deed. 

Any corporation into which the retiring Security Trustee may be merged or converted or any corporation with which the Security Trustee may
be consolidated or any corporation resulting from any merger, conversion, amalgamation, consolidation or other reorganisation to which the Security Trustee shall be a party shall, to the extent permitted by applicable law, be the successor Security
Trustee under this Agreement, any Trust Deed and the other Security Documents without the execution or filing of any document or any further act on the part of any of the parties to this Agreement, any Trust Deed and the other Security Documents
save that notice of any such merger, conversion, amalgamation, consolidation or other reorganisation shall forthwith be given to each Security Party and the Lenders. Prior to any such successor being appointed, the Security Trustee agrees to consult
with the Borrowers as to the identity of the proposed successor and to take account of any reasonable objections which the Borrowers may raise to such successor being appointed. 

Upon any such successor as aforesaid being appointed, the retiring Security Trustee shall be discharged from any further obligation under
the Security Documents (but shall continue to have the benefit of this clause 16 in respect of any action it has taken or refrained from taking prior to such discharge) and its successor and each of the other parties to this Agreement shall have the
same rights and obligations among themselves as they would have had if such successor had been a party to this Agreement in place of the retiring Security Trustee. The retiring Security Trustee shall (at its own expense) provide its successor with
copies of such of its records as its successor reasonably requires to carry out its functions under the Security Documents. 

  
 86 

	16.15	Powers and duties of the Security Trustee 

  

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

  

	 	(a)	each of the Security Documents to which the Security Trustee is or is intended to be a party; and 

 

	 	(b)	any and all such other Security Documents as may be approved by the Agent in writing (acting on the instructions of the Majority Lenders) for entry into by the Security
Trustee, 

 and, in each and every case, to hold any and all security thereby created upon trust for the Lenders
and the Agent for the time being in the manner contemplated by this Agreement. 
  

	16.15.2	Subject to clause 16.15.3 the Security Trustee may, with the prior consent of the Majority Lenders communicated in writing by the Agent, concur with any of the Security
Parties to: 

  

	 	(a)	amend, modify or otherwise vary any provision of the Security Documents to which the Security Trustee is or is intended to be a party; or 

 

	 	(b)	waive breaches of, or defaults under, or otherwise excuse performance of, any provision of the Security Documents to which the Security Trustee is or is intended to be
a party; or 

  

	 	(c)	give any consents to any Security Party in respect of any provision of any Security Document 

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

	16.15.3	The Security Trustee shall not concur with any Security Party with respect to any of the matters described in clause 16.11.4 without the consent of the Lenders
communicated in writing by the Agent. 

  

	16.15.4	 The Security Trustee shall (subject to the other provisions of this clause 16) take such action or, as the case may be, refrain from taking such
action, with respect to any of its rights, powers and discretions as Security Trustee and trustee, as the Agent may direct. Subject as 

  
 87 

	 	
provided in the foregoing provisions of this clause, unless and until the Security Trustee has received such instructions from the Agent, the Security Trustee may, but shall not be obliged to,
take (or refrain from taking) such action under or pursuant to the Security Documents referred to in clause 16.14 as the Security Trustee shall deem advisable in the best interests of the Banks provided that (for the avoidance of doubt), to the
extent that this clause might otherwise be construed as authorising the Security Trustee to take, or refrain from taking, any action of the nature referred to in clause 16.15.2 - and for which the prior consent of the Lenders is expressly required
under clause 16.15.3 - clauses 16.15.2 and 16.15.3 shall apply to the exclusion of this clause. 

  

	16.15.5	None of the Lenders nor the Agent shall have any independent power to enforce any of the Security Documents referred to in clause 16.14 or to exercise any rights,
discretions or powers or to grant any consents or releases under or pursuant to such Security Documents or any of them or otherwise have direct recourse to the security and/or guarantees constituted by such Security Documents or any of them except
through the Security Trustee. 

  

	16.15.6	For the purpose of this clause 16, the Security Trustee may, rely and act in reliance upon any information from time to time furnished to the Security Trustee by the
Agent (whether pursuant to clause 16.15.7 or otherwise) unless and until the same is superseded by further such information, so that the Security Trustee shall have no liability or responsibility to any party as a consequence of placing reliance on
and acting in reliance upon any such information unless the Security Trustee has actual knowledge that such information is inaccurate or incorrect. 

  

	16.15.7	Without prejudice to the foregoing each of the Agent and the Lenders (whether directly or through the Agent) shall provide the Security Trustee with such written
information as it may reasonably require for the purpose of carrying out its duties and obligations under the Security Documents referred to in clause 16.14. 

 

	16.16	Trust provisions 

  

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

  

	 	(a)	the expiration of a period of eighty (80) years from the date of this Agreement; and 

  
 88 

	 	(b)	receipt by the Security Trustee of confirmation in writing by the Agent that there is no longer outstanding any Indebtedness (actual or contingent) which is secured or
guaranteed or otherwise assured by or under any of the Security Documents, 

 and the parties to this Agreement
declare that the perpetuity period applicable to this Agreement and the trusts declared by the Trust Deed shall for the purposes of the Perpetuities and Accumulations Act 1964 be the period of eighty (80) years from the date of this Agreement.

  

	16.16.2	In its capacity as trustee in relation to the Security Documents specified in clause 16.14, the Security Trustee shall, without prejudice to any of the powers,
discretions and immunities conferred upon trustees by law (and to the extent not inconsistent with the provisions of any of those Security Documents), have all the same powers and discretions as a natural person acting as the beneficial owner of
such property and/or as are conferred upon the Security Trustee by any of those Security Documents. 

  

	16.16.3	It is expressly declared that, in its capacity as trustee in relation to the Security Documents specified in clause 16.14, the Security Trustee shall be entitled to
invest moneys forming part of the security and which, in the opinion of the Security Trustee, may not be paid out promptly following receipt in the name or under the control of the Security Trustee in any of the investments for the time being
authorised by law for the investment by trustees of trust moneys or in any other property or investments whether similar to the aforesaid or not or by placing the same on deposit in the name or under the control of the Security Trustee as the
Security Trustee may think fit without being under any duty to diversify its investments and the Security Trustee may at any time vary or transpose any such property or investments for or into any others of a like nature and shall not be responsible
for any loss due to depreciation in value or otherwise of such property or investments. Any investment of any part or all of the security may, at the discretion of the Security Trustee, be made or retained in the names of nominees.

  

	16.17	Independent action by Banks 

 None of the Banks shall enforce, exercise any rights, remedies or powers or grant any consents or releases under or pursuant to, or otherwise have a direct recourse to the security and/or guarantees
constituted by any of the Security Documents without the prior written consent of the Majority Lenders but, provided such consent has been obtained, it shall not be necessary for any other Bank to be joined as an additional party in any Proceedings
for this purpose. 

  
 89 

	16.18	Common Agent and Security Trustee 

 The Agent and the Security Trustee have entered into the Security Documents in their separate capacities (a) as agent for the Lenders under and pursuant to this Agreement (in the case of the Agent)
and (b) as Security Trustee and trustee for the Lenders and the Agent under and pursuant to this Agreement, to hold the guarantees and/or security created by the Security Documents specified in clause 16.14 on the terms set out in such Security
Documents (in the case of the Security Trustee). If and when the Agent and the Security Trustee are the same entity and any Security Document provides for the Agent to communicate with or provide instructions to the Security Trustee (and vice
versa), all parties to this Agreement agree that any such communications or instructions on such occasions are unnecessary and are hereby waived. 
  

	16.19	Co-operation to achieve agreed priorities of application 

 The Lenders and the Agent shall co-operate with each other and with the Security Trustee and any receiver under the Security Documents in realising the property and assets subject to the Security
Documents and in ensuring that the net proceeds realised under the Security Documents after deduction of the expenses of realisation are applied in accordance with clause 13.1. 

 

	16.20	The prompt distribution of proceeds 

 Moneys received by any of the Banks (whether from a receiver or otherwise) pursuant to the exercise of (or otherwise by virtue of the existence of) any rights and powers under or pursuant to any of the
Security Documents shall (after providing for all costs, charges, expenses and liabilities and other payments ranking in priority) be paid to the Agent for distribution (in the case of moneys so received by any of the Banks other than the Agent or
the Security Trustee) and shall be distributed by the Agent or, as the case may be, the Security Trustee (in the case of moneys so received by the Agent or, as the case may be, the Security Trustee) in each case in accordance with clause 13.1. The
Agent or, as the case may be, the Security Trustee shall make each such application and/or distribution as soon as is practicable after the relevant moneys are received by, or otherwise become available to, the Agent or, as the case may be, the
Security Trustee save that (without prejudice to any other provision 

  
 90 

 
contained in any of the Security Documents) the Agent or, as the case may be, the Security Trustee (acting on the instructions of the Majority Lenders) or any receiver may credit any moneys
received by it to a suspense account for so long and in such manner as the Agent or such receiver may from time to time determine with a view to preserving the rights of the Agent and/or the Security Trustee and/or the Arranger and/or the Lenders or
any of them to provide for the whole of their respective claims against the Borrowers or any other person liable. 
  

	16.21	Reconventioning 

 After
consultation with the Borrowers and the Lenders and notwithstanding clause 16.11, the Agent shall be entitled to make such amendments to this Agreement as it may determine to be necessary to take account of any changes in market practices as a
consequence of the European Monetary Union (whether as to the settlement or rounding of obligations, business days, the calculation of interest or otherwise whatsoever). So far as possible such amendments shall be such as to put the parties in the
same position as if the event or events giving rise to the need to amend this Agreement had not occurred. Any amendment so made to this Agreement by the Agent shall be promptly notified to the other parties hereto and shall be binding on all parties
hereto. 
  

	16.22	Exclusivity 

 Without
prejudice to the Borrowers’ rights, in certain instances, to give their consent thereunder, clauses 15 and 16 are for the exclusive benefit of the Banks. 
  

	17	NOTICES AND OTHER MATTERS 

  

	17.1	Notices 

  

	17.1.1	unless otherwise specifically provided herein, every notice under or in connection with this Agreement shall be given in English by letter delivered personally and/or
sent by post and/or transmitted by fax and/or electronically; 

  

	17.1.2	in this clause “notice” includes any demand, consent, authorisation, approval, instruction, certificate, request, waiver or other communication.

  
 91 

	17.2	Addresses for communications, effective date of notices  

  

	17.2.1	Subject to clause 17.2.2, clause 17.2.5 and 17.3 notices to the Borrowers shall be deemed to have been given and shall take effect when received in full legible form by
the Borrowers at the address and/or the fax number appearing below (or at such other address or fax number as the Borrowers may hereafter specify for such purpose to the Agent by notice in writing); 

 

			
	Address	  	c/o Navios Shipmanagement Inc.
		  	85 Akti Miaouli
		  	Piraeus
		  	Greece
		
	Fax no:	  	+ 30 210 4171984

  

	17.2.2	notwithstanding the provisions of clause 17.2.1 or clause 17.2.5, a notice of Default and/or a notice given pursuant to clause 10.2 or clause 10.3 to the Borrowers
shall be deemed to have been given and shall take effect when delivered, sent or transmitted by the Banks or any of them to the Borrowers to the address or fax number referred to in clause 17.2.1; 

 

	17.2.3	subject to clause 17.2.5, notices to the Agent and/or the Security Trustee and/or Security Trustee shall be deemed to be given, and shall take effect, when received in
full legible form by the Agent and/or the Security Trustee at the address and/or the fax number address appearing below (or at any such other address or fax number as the Agent and/or the Security Trustee (as appropriate) may hereafter specify for
such purpose to the Borrowers and the other Lenders by notice in writing); 

  

			
	Agent:	  	
		
	Address:	  	DVB Bank SE
		  	Park House
		  	16-18 Finsbury Circus
		  	London EC2M 7EB
		  	England
		
	Attn:	  	Transaction & Loan Services.
	Fax no:	  	+44 207 256 4552
		
	with a copy to:	  	DVB Bank SE
		  	Representative Office
		  	95 Akti Miaouli
		  	Piraeus 185 38
		  	Greece
		
	Attn:	  	Dry Bulk Group
	Fax no:	  	+30210 455 7420

  
 92 

	17.2.4	subject to clause 17.2.5 and 17.3, notices to a Lender shall be deemed to be given and shall take effect when received in full legible form by such Lender at its
address and/or fax number specified in Schedule 1 or in any relevant Transfer Certificate (or at any other address or fax number as such Lender may hereafter specify for such purpose to the other Banks); and 

 

	17.2.5	if under clause 17.2.1 or clause 17.2.3 a notice would be deemed to have been given and effective on a day which is not a working day in the place of receipt or is
outside the normal business hours in the place of receipt, the notice shall be deemed to have been given and to have taken effect at the opening of business on the next working day in such place. 

 

	17.3	Electronic Communication 

  

	17.3.1	Any communication to be made by and/or between the Banks or any of them and the Security Parties or any of them under or in connection with the Security Documents or
any of them may be made by electronic mail or other electronic means, if and provided that all such parties: 

  

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

  

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

 

	17.3.2	Any electronic communication made by and/or between the Banks or any of them and the Security Parties or any of them will be effective only when actually received in
readable form and, in the case of any electronic communication made by the Borrowers or the Lenders to the Agent, only if it is addressed in such manner as the Agent shall specify for this purpose. 

 

	17.4	Notices through the Agent 

Every notice under this Agreement or (unless otherwise provided therein) any other Security Document to be given by the Borrowers to any
other party, shall be given to the Agent for onward transmission as appropriate and every notice under this Agreement to be given to the Borrowers shall (except as otherwise provided in the Security Documents) be given to the Borrowers by the Agent.

  
 93 

	18	BORROWERS’ OBLIGATIONS 

  

	18.1	Joint and several 

Regardless of any other provision in any of the Security Documents, all obligations and liabilities whatsoever of the Borrowers herein
contained are joint and several and shall be construed accordingly. Each of the Borrowers agrees and consents to be bound by the Security Documents to which it becomes a party notwithstanding that the other Borrower may not do so or be effectually
bound and notwithstanding that any of the Security Documents may be invalid or unenforceable against the other Borrower, whether or not the deficiency is known to any Bank. 

 

	18.2	Borrowers as principal debtors 

 Each Borrower acknowledges that it is a principal and original debtor in respect of all amounts which may become payable by the Borrowers in accordance with the terms of any of the Security Documents and
agrees that each Bank may continue to treat it as such, whether or not such Bank is or becomes aware that such Borrower is or has become a surety for the other Borrower. 

 

	18.3	Indemnity 

 The Borrowers
undertake to keep the Banks fully indemnified on demand against all claims, damages, losses, costs and expenses arising from any failure of either Borrower to perform or discharge any purported obligation or liability of that Borrower which would
have been the subject of this Agreement or any other Security Document had it been valid and enforceable and which is not or ceases to be valid and enforceable against the other Borrower on any ground whatsoever, whether or not known to any Bank
including, without limitation, any irregular exercise or absence of any corporate power or lack of authority of, or breach of duty by, any person purporting to act on behalf of the other Borrower (or any legal or other limitation, whether under the
Limitation Acts or otherwise or any disability or death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution, winding up, administration, receivership, amalgamation, reconstruction or any other incapacity of any person whatsoever
(including, in the case of a partnership, a termination or change in the composition of the partnership) or any change of name or style or constitution of any Security Party)). 

  
 94 

	18.4	Liability unconditional 

None of the obligations or liabilities of the Borrowers under any Security Document shall be discharged or reduced by reason of:

  

	18.4.1	the death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other
incapacity of any person whatsoever (including, in the case of a partnership, a termination or change in the composition of the partnership) or any change of name or style or constitution of either Borrower or any other person liable;

  

	18.4.2	any Bank granting any time, indulgence or concession to, or compounding with, discharging, releasing or varying the liability of, either Borrower or any other person
liable or renewing, determining, varying or increasing any accommodation, facility or transaction or otherwise dealing with the same in any manner whatsoever or concurring in, accepting, varying any compromise, arrangement or settlement or omitting
to claim or enforce payment from either Borrower or any other person liable; or 

  

	18.4.3	anything done or omitted which but for this provision might operate to exonerate the Borrowers or both of them. 

 

	18.5	Recourse to other security 

No Bank shall be obliged to make any claim or demand or to resort to any security or other means of payment now or hereafter held by or
available to them for enforcing any of the Security Documents against either Borrower or any other person liable and no action taken or omitted by any Bank in connection with any such security or other means of payment will discharge, reduce,
prejudice or affect the liability of the Borrowers under the Security Documents to which any of them is, or is to be, a party. 
  

	18.6	Waiver of Borrowers’ rights 

 Each Borrower agrees with the Banks that, throughout the Facility Period, it will not, without the prior written consent of the Agent: 

 

	18.6.1	exercise any right of subrogation, reimbursement and indemnity against the other Borrower or any other person liable under the Security Documents;

  
 95 

	18.6.2	demand or accept repayment in whole or in part of any Indebtedness now or hereafter due to such Borrower from the other Borrower or from any other person liable for
such Indebtedness or demand or accept any guarantee against financial loss or any document or instrument created or evidencing an Encumbrance in respect of the same or dispose of the same; 

 

	18.6.3	take any steps to enforce any right against the other Borrower or any other person liable in respect of any such moneys; or 

 

	18.6.3	claim any set-off or counterclaim against the other Borrower or any other person liable or claim or prove in competition with any Bank in the liquidation of the other
Borrower or any other person liable or have the benefit of, or share in, any payment from or composition with, the other Borrower or any other person liable or any security granted under any Security Document now or hereafter held by any Bank for
any moneys owing under this Agreement or for the obligations or liabilities of any other person liable but so that, if so directed by the Agent, it will prove for the whole or any part of its claim in the liquidation of the other Borrower or other
person liable on terms that the benefit of such proof and all money received by it in respect thereof shall be held on trust for the Banks and applied in or towards discharge of any moneys owing under this Agreement in such manner as the Agent shall
require. 

  

	19	GOVERNING LAW 

 This
Agreement is governed by and shall be construed in accordance with English law. 
  

	20	JURISDICTION 

  

	20.1	Exclusive Jurisdiction 

For the benefit of the Banks, and subject to clause 20.4 below, the Borrowers hereby irrevocably agree that the courts of England shall
have exclusive jurisdiction: 
  

	20.1.1	to settle any disputes or other matters whatsoever arising under or in connection with this Agreement and any disputes or other such matters arising in connection with
the negotiation, validity or enforceability of this Agreement or any part thereof, whether the alleged liability shall arise under the laws of England or under the laws of some other country and regardless of whether a particular cause of action may
successfully be brought in the English courts; and 

  

	20.1.2	to grant interim remedies or other provisional or protective relief. 

  
 96 

	20.2	Submission and service of process 

 Each Borrower accordingly irrevocably and unconditionally submits to the jurisdiction of the English courts. Without prejudice to any other mode of service each Borrower: 

 

	20.2.1	irrevocably empowers and appoints HFW Nominees Ltd at present of Friary Court, 65 Crutched Friars, London EC3N 2AE, England as its agent to receive and accept on its
behalf any process or other document relating to any proceedings before the English courts in connection with this Agreement; 

  

	20.2.2	agrees to maintain such an agent for service of process in England from the date hereof until the end of the Facility Period; 

 

	20.2.3	agrees that failure by a process agent to notify the Borrowers of service of process will not invalidate the proceedings concerned; 

 

	20.2.4	without prejudice to the effectiveness of service of process on its agent under clause 20.2.1 above but as an alternative method, consents to the service of process
relating to any such proceedings by mailing or delivering a copy of the process to its address for the time being applying under clause 17.2; 

  

	20.2.5	agrees that if the appointment of any person mentioned in clause 20.2.1 ceases to be effective, the Borrowers shall immediately appoint a further person in England to
accept service of process on its behalf in England and, failing such appointment within seven (7) days the Agent shall thereupon be entitled and is hereby irrevocably authorised by the Borrowers in those circumstances to appoint such person by
notice to the Borrowers. 

  

	20.3	Forum non conveniens and enforcement abroad 

 Each Borrower: 
  

	20.3.1	waives any right and agrees not to apply to the English court or other court in any jurisdiction whatsoever to stay or strike out any proceedings commenced in England
on the ground that England is an inappropriate forum and/or that Proceedings have been or will be started in any other jurisdiction in connection with any dispute or related matter falling within clause 20.1; and 

  
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	20.3.2	agrees that a judgment or order of an English court in a dispute or other matter falling within clause 20.1 shall be conclusive and binding on the Borrowers and may be
enforced against it in the courts of any other jurisdiction. 

  

	20.4	Right of Banks, but not Borrowers, to bring proceedings in any other jurisdiction 

 

	20.4.1	Nothing in this clause 20 limits the right of any Bank to bring Proceedings, including third party proceedings, against any one or both Borrowers, or to apply for
interim remedies, in connection with this Agreement in any other court and/or concurrently in more than one jurisdiction; 

  

	20.4.2	the obtaining by any Bank of judgment in one jurisdiction shall not prevent such Bank from bringing or continuing proceedings in any other jurisdiction, whether or not
these shall be founded on the same cause of action. 

  

	20.5	Enforceability despite invalidity of Agreement 

 Without prejudice to the generality of clause 13.9, the jurisdiction agreement contained in this clause 20 shall be severable from the rest of this Agreement and shall remain valid, binding and in full
force and shall continue to apply notwithstanding this Agreement or any part thereof being held to be avoided, rescinded, terminated, discharged, frustrated, invalid, unenforceable, illegal and/or otherwise of no effect for any reason. 

 

	20.6	Effect in relation to claims by and against non-parties 

  

	20.6.1	For the purpose of this clause “Foreign Proceedings” shall mean any Proceedings except proceedings brought or pursued in England arising out of or in
connection with (i) or in any way related to any of the Security Documents or any assets subject thereto or (ii) any action of any kind whatsoever taken by any Bank pursuant thereto or which would, if brought by any or all of the Borrowers
against any Bank, have been required to be brought in the English courts; 

  

	20.6.2	no Borrower shall bring or pursue any Foreign Proceedings against any Bank and shall use its best endeavours to prevent persons not party to this Agreement from
bringing or pursuing any Foreign Proceedings against any Bank; 

  

	20.6.3	 If, for any reason whatsoever, any Security Party and/or any person connected howsoever with any Security Party brings or pursues against any Bank any
Foreign Proceedings, the 

  
 98 

	 	
Borrowers shall indemnify such Bank on demand in respect of any and all claims, losses, damages, demands, causes of action, liabilities, costs and expenses (including, but not limited to, legal
costs) of whatsoever nature howsoever arising from or in connection with such Foreign Proceedings which such Bank (or the Agent on its behalf) certifies as having been incurred by it; 

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

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

 

					
	SIGNED by Alexandros Laios	 	)	 	        /s/ Alexandros Laios
	as a deed for and on behalf of	 	)	 	
	ASTRA MARITIME CORPORATION	 	)	 	
	(as Borrower under and pursuant to	 	)	 	
	a power of attorney dated	 	)	 	
	16 March 2012) in the presence of Anthony Paizes	 	)	 	
	/s/ AP                	 		 	
			
	SIGNED by Alexandros Laios	 	)	 	        /s/ Alexandros Laios
	as a deed for and on behalf of	 	)	 	
	SERENITY SHIPPING ENTERPRISES INC.	 	)	 	
	(as Borrower under and pursuant to	 	)	 	
	a power of attorney dated	 	)	 	
	16 March 2012) in the presence of Anthony Paizes	 	)	 	
	/s/ AP                	 		 	
			
	SIGNED by Robin Parry	 	)	 	        /s/ Robin Parry
	for and on behalf of	 	)	 	
	DVB BANK SE	 	)	 	
	(as a Lender) in the presence of Anthony Paizes	 	)	 	
	/s/ AP                	 		 	
			
	SIGNED by C. Margelou & E. Makri	 	)	 	        /s/ C. Margelou
	for and on behalf of	 	)	 	        /s/ E. Makri
	EMPORIKI BANK OF GREECE S.A.	 	)	 	
	(as a Lender) in the presence of Anthony Paizes	 	)	 	
	/s/ AP                	 		 	
			
	SIGNED by Robin Parry	 	)	 	        /s/ Robin Parry
	for and on behalf of	 	)	 	
	NORDDEUTSCHE LANDESBANK	 	)	 	
	GIROZENTRALE	 	)	 	
	(as a Lender under and pursuant to	 	)	 	
	a power of attorney dated	 	)	 	
	22 March 2012) in the presence of Anthony Paizes	 	)	 	
	/s/ AP                	 		 	
			
	SIGNED by Robin Parry	 	)	 	        /s/ Robin Parry
	for and on behalf of	 	)	 	
	DVB BANK SE	 	)	 	
	(as Arranger, Agent and Security Trustee)	 	)	 	
	in the presence of Anthony Paizes	 	)	 	
	Anthony Paizes                           
                             /s/ AP           
     	 		 	
	Ince & Co	 		 	
	Akti Miaouli 47-49	 		 	
	Piraeus 185 36	 		 	
	Greece	 		 	

  
 100

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