Document:

Loan Agreement Dated May 2, 2002

 Exhibit 4.18 
  
 Date 2 May 2002 
  
 TSAKOS ENERGY NAVIGATION LIMITED 
 as
Borrower 
  
 - and - 
  
 COMMERCIAL BANK OF GREECE S.A. 
 as Lender 
  

  
 LOAN AGREEMENT 
  

  
 relating to a loan 
 facility of up to US$30,500,000 to 
 part-finance the acquisition of 
 m.t.
“OPAL QUEEN” a 2001-built 
 single screw crude oil carrier of 
 107,181 metric tons deadweight 
  
 WATSON, FARLEY & WILLIAMS 
 London 

 INDEX 
  

	CLAUSE

	  	 	  	PAGE

			
	1	  	 INTERPRETATION
	  	1
			
	2	  	 FACILITY
	  	12
			
	3	  	 DRAWDOWN
	  	12
			
	4	  	 CURRENCY OPTION
	  	13
			
	5	  	 INTEREST
	  	15
			
	6	  	 INTEREST PERIODS
	  	16
			
	7	  	 DEFAULT INTEREST
	  	16
			
	8	  	 REPAYMENT AND PREPAYMENT
	  	17
			
	9	  	 CONDITIONS PRECEDENT
	  	18
			
	10	  	 REPRESENTATIONS AND WARRANTIES
	  	19
			
	11	  	 GENERAL UNDERTAKINGS
	  	21
			
	12	  	 CORPORATE UNDERTAKINGS
	  	24
			
	13	  	 INSURANCE
	  	24
			
	14	  	 SHIP COVENANTS
	  	29
			
	15	  	 SECURITY COVER
	  	32
			
	16	  	 PAYMENTS AND CALCULATIONS
	  	33
			
	17	  	 APPLICATION OF RECEIPTS
	  	34
			
	18	  	 EARNINGS
	  	35
			
	19	  	 EVENTS OF DEFAULT
	  	36
			
	20	  	 FEES AND EXPENSES
	  	40
			
	21	  	 INDEMNITIES
	  	40
			
	22	  	 NO SET-OFF OR TAX DEDUCTION
	  	42
			
	23	  	 ILLEGALITY, ETC
	  	43
			
	24	  	 INCREASED COSTS
	  	43
			
	25	  	 SET-OFF
	  	44
			
	26	  	 TRANSFERS AND CHANGES IN LENDING OFFICES
	  	44
			
	27	  	 VARIATIONS AND WAIVERS
	  	45

			
	28	  	 NOTICES
	  	46
			
	29	  	 SUPPLEMENTAL
	  	47
			
	30	  	 LAW AND JURISDICTION
	  	47
		
	SCHEDULE 1 DRAWDOWN NOTICE	  	49
		
	SCHEDULE 2 CONDITION PRECEDENT DOCUMENTS	  	50
		
	EXECUTION PAGE	  	53

  

 LOAN AGREEMENT made on 2 May 2002 
  
 BETWEEN 
  

	(1)	 	TSAKOS ENERGY NAVIGATION LIMITED, a limited liability company incorporated as an exempt company in Bermuda whose registered office is at Mintflower Place, 2nd Floor, 8
Par-la-Ville Road, Hamilton HM08, Bermuda (the “Borrower”); and 

  

	(2)	 	COMMERCIAL BANK OF GREECE S.A., a company duly incorporated under the laws of Greece having its registered office at 11 Sofokleous Street, Athens, Greece acting for the
purposes of this Agreement through its office at 114 Kolokotroni & 15 Defteras Merarchias Street, Piraeus 185 35, Greece (the “Lender”) 

  
 WHEREAS the Lender has agreed to make available to the Borrower a loan facility of up to US$30,500,000 (or the equivalent amount in
an Optional Currency) for the purpose of financing part of the purchase price of m.t. “OPAL QUEEN”, a 107,181 metric tons deadweight crude oil carrier. 
  
 IT IS AGREED as follows: 
  

	1	 	INTERPRETATION 

  

	1.1	 	Definitions. Subject to Clause 1.5, in this Agreement: 

  
 “Accounts Pledge” means a pledge of the Earnings Account and the Retention Account in such form as the Lender may require; 
  
 “Approved Manager” means Tsakos Energy Management Limited, a
company incorporated in Liberia whose principal place of business is at Macedonia House, 367 Syngrou Avenue, GR—175 64 P. Faliro, Athens, Greece; 
  
 “Approved Technical Sub-Manager” means Tsakos Shipping & Trading S.A., a company incorporated in Liberia whose principal place of
business is at Macedonia House, 367 Syngrou Avenue, GR-175 64 P. Faliro, Athens, Greece; 
  
 “Argosy” means Argosy Insurance Company Limited, a company incorporated in Bermuda 
  
 “Availability Period” means the period commencing on the date of this Agreement and ending on: 
  

	 	(a)	 	30 June 2002 (or such later date as the Lender may agree with the Borrower); or 

  

	 	(b)	 	if earlier, the Drawdown Date or the date on which the Lender’s obligation to make the Loan is cancelled or terminated; 

  
 “Borrower’s Group” means the Borrower and each of its
subsidiaries; 
  
 “Business Day” means a day on
which banks are generally open for business in London and Piraeus and, if on that day a payment or other dealing is due to take place under this Agreement: 
  

	 	(a)	 	in Dollars, a day on which commercial banks are open in New York City; 

  

	 	(b)	 	in an Optional Currency (other than Euros), a day on which commercial banks are open in New York City and the principal financial centre of the country of that Optional Currency;
and 

  

	 	(c)	 	in Euros, a Target Day; 

  

 “Charter Assignment” means a deed of assignment in respect of (inter alia) the Time
Charter and the Owner’s rights under the Seller’s Sub-Charter Assignment in such form as the Lender may require; 
  
 “Contractual Currency” has the meaning given in Clause 21.5; 
  
 “Dollars” and “$” means the lawful currency for the time being of the United States of
America; 
  
 “Drawdown Date” means the date
requested by the Borrower for the Loan to be made, or (as the context requires) the date on which the Loan is actually made; 
  
 “Drawdown Notice” means a notice in the form set out in Schedule 1 (or in any other form which the Lender approves or reasonably
requires); 
  
 “Earnings” means all moneys
whatsoever which are now, or later become, payable (actually or contingently) to the Owner and which arise out of the use or operation of the Ship, including (but not limited to): 
  

	 	(a)	 	all freight, hire and passage moneys, compensation payable to the Owner in the event of requisition of the Ship for hire, remuneration for salvage and towage services, demurrage and
detention moneys and damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of the Ship; 

  

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

  

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

  
 “Earnings Account” means an account in the name of the Borrower with the Lender in Piraeus designated “Tsakos Energy Navigation
Limited—Earnings Account”, or any other account (with that or another office of the Lender or with a bank or financial institution other than the Lender) which is designated by the Lender as the Earnings Account for the purposes of this
Agreement; 
  
 “EMU Legislation” means
legislative measures of the Council of the European Union for the introduction of, changeover to, or operation of, a single or unified European currency being part of the implementation of the Third Stage; 
  
 “Environmental Claim” means: 
  

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

  

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

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

 2 

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

  

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

  

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

  
 “Environmental Law” means any law relating to pollution or protection of the environment, to the carriage
of Environmentally Sensitive Material or to actual or threatened releases of Environmentally Sensitive Material; 
  
 “Environmentally Sensitive Material” means oil, oil products and any other substance (including any chemical, gas or other hazardous or
noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous; 
  
 “EURIBOR” means, for an Interest Period: 
  

	 	(a)	 	the rate per annum equal to the offered quotation for deposits in Euros for a period equal to, or as near as possible equal to, the relevant Interest Period which appears on
Telerate Page 248 at or about 11.00 a.m. (Brussels time) on the Quotation Date for that Interest Period (and, for the purposes of this Agreement, “Telerate Page 248” means the display designated as “Page 248” on the Telerate
Service or such other page as may replace Page 248 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
purposes of displaying British Bankers’ Association Interest Settlement Rates for Euros); or 

  

	 	(b)	 	if no rate is quoted on Telerate Page 248, the rate per annum at which deposits in Euros are offered to the Lender by leading banks in the European Interbank Market at the
Lender’s request at or about 11.00 a.m. (Brussels time) on the Quotation Date for that Interest Period for a period equal to that Interest Period and for delivery on the first Business Day of it; 

  
 “Euro” and “Euros” means, for the time
being, the single currency of Participating Member States as provided in the EMU Legislation; 
  
 “European Interbank Market” means the interbank market for Euros operating in Participating Member States; 
  
 “Event of Default” means any of the events or circumstances described in Clause 19.1; 
  
 “Finance Documents” means: 
  

	 	(a)	 	this Agreement; 

  

	 	(b)	 	the Guarantee; 

  

	 	(c)	 	the General Assignment; 

  

 3 

	 	(d)	 	the Mortgage; 

  

	 	(e)	 	the Charter Assignment; 

  

	 	(f)	 	the Reinsurances Assignment; 

  

	 	(g)	 	the Accounts Pledge; and 

  

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

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

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

  

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

  

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

  

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

  

	 	(e)	 	under any interest or currency swap or any other kind of derivative transaction entered into by the debtor; or 

  

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

  
 “Guarantee” means a guarantee of the obligations of the Borrower under this Agreement and the Finance Documents to which it is a party made or to be made between the Owner and the Lender in such form as the Lender may
require; 
  
 “General Assignment” means a general
assignment of the Earnings, the Insurances and any Requisition Compensation in such form as the Lender may require; 
  
 “IGAAP” means generally accepted international accounting principles as from time to time set forth by the statements of International
Account Standards issued by the International Accounting Standards Committee; 
  
 “Insurances” means: 
  

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

  

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

  
 “Interest Period” means the period determined in accordance
with Clause 6; 
  
 “ISM Code” means in relation
to its application to the Owner, the Ship and its operation: 
  

 4 

	 	(a)	 	“The International Management Code for the Safe Operation of Ships and for Pollution Prevention”, currently known or referred to as the “ISM Code”, adopted by
the Assembly of the International Maritime Organisation by Resolution A.741(18) on 4 November 1993 and incorporated on 19 May 1994 into chapter IX of the International Convention for the Safety of Life at Sea 1974 (SOLAS 1974); and

  

	 	(b)	 	all further resolutions, circulars, codes, guidelines, regulations and recommendations which are now or in the future issued by or on behalf of the International Maritime
Organisation or any other entity with responsibility for implementing the ISM Code, including without limitation, the “Guidelines on implementation or administering of the International Safety Management (ISM) Code by Administrations”
produced by the International Maritime Organisation pursuant to Resolution A.788(19) adopted on 25 November 1995; 

  
 as the same may be amended, supplemented or replaced from time to time; 
  
 “ISM Code Documentation” includes: 
  

	 	(a)	 	the document of compliance (DOC) and safety management certificate (SMC) issued pursuant to the ISM Code in relation to the Ship within the periods specified by the ISM Code; and

  

	 	(b)	 	all other documents and data which are relevant to the ISM SMS and its implementation and verification which the Lender may require; and 

  

	 	(c)	 	any other documents which are prepared or which are otherwise relevant to establish and maintain the Ship’s or the Owner’s compliance with the ISM Code which the Lender
may require; 

  
 “ISM SMS” means
the safety management system for the Ship which is required to be developed, implemented and maintained under the ISM Code; 
  
 “Japanese Yen” means the lawful currency for the time being of Japan; 
  
 “Lender” means Commercial Bank of Greece S.A., a company duly incorporated under the laws of Greece having
its registered office at 11 Sofokleous Street, Athens, Greece acting through its office at 114 Kolokotroni & 15 Defteras Merarchias Street, Piraeus 185 35, Greece (or through another branch notified to the Borrower under Clause 26.6) or its
direct or indirect successors or assigns; 
  
 “LIBOR” means: 
  

	 	(a)	 	the rate per annum equal to the offered quotation for deposits in Dollars or, as the case may be, the relevant Optional Currency (other than Euros) for a period equal to, or as near
as possible equal to, the relevant Interest Period which appears on the Relevant Telerate Page at or about 11.00 a.m. (London time) on the Quotation Date for that Interest Period (and, for the purposes of this Agreement, “the Relevant
Telerate Page” means, in the case of Dollars, the display designated as “Page 3750” on the Telerate Service and, in the case of an Optional Currency (other than Euros), the display designated as “Page 3750” or “Page
3740” on the Telerate Service (being whichever of such pages is the page on which rates for the relevant Optional Currency are displayed) or, in either such case, such other page as may replace Page 3750 or Page 3740 on that service for the
purpose of displaying rates comparable to that rate or on such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement
Rates for Dollars or, as the case may be, the relevant Optional Currency); or 

  

 5 

	 	(b)	 	if no rate is quoted on the Relevant Telerate Page, the rate per annum determined by the Lender to be the rate at which deposits in Dollars or, as the case may be, the relevant
Optional Currency are offered to the Lender by leading banks in the London Interbank Market at the Lender’s request at or about 11.00 a.m. (London time) on the Quotation Date for that Interest Period for a period equal to that Interest Period
and for delivery on the first Business Day of it; 

  
 “Loan” means the principal amount for the time being outstanding under this Agreement; 
  
 “Major Casualty” means any casualty to the Ship in respect of which the claim or the aggregate of the claims against all insurers, before
adjustment for any relevant franchise or deductible, exceeds $700,000 or the equivalent in any other currency; 
  
 “Margin” means 1.20 per cent. per annum; 
  
 “MOA” means a memorandum of agreement dated 28 March 2001 made between the Seller and the Owner whereby the Seller agreed to sell, and
the Owner agreed to purchase, the Ship for an amount of US$38,000,000; 
  
 “Mortgage” means a first preferred Panamanian ship mortgage on the Ship in such form as the Lender may require; 
  
 “Net Income” means in relation to each financial year of the Borrower the aggregate income of the Borrower’s Group appearing in the
annual consolidated accounts of the Borrower’s Group for such financial year less the aggregate of: 
  

	 	(a)	 	the amounts incurred by the Borrower’s Group during such financial year as expenses of their business (including, without limitation, vessel and voyage expenses commissions,
vessel running expenses (including, but not limited to voyage, operating, repair, insurance, victualling and other related expenses), management fees, board of directors fees and general and administration expenses); 

  

	 	(b)	 	depreciation, amortisation and interest expense; 

  

	 	(c)	 	taxes; and 

  

	 	(d)	 	other items charged to the Borrower’s consolidated profit and loss account for the relevant financial year; 

  
 “Optional Currency” means any one of Euro, Japanese Yen or
Swiss Francs Provided that such currency is for the time being freely transferable, freely convertible into Dollars and dealt in on the London Interbank Market or, as the case may be, the European Interbank Market; 
  
 “Original Dollar Amount” means: 
  
 (a) if the Loan is denominated in Dollars, the amount of the Loan in
Dollars; and 
  
 (b) if the Loan is denominated in an Optional
Currency, the amount in Dollars which would have been outstanding if the Loan had first been drawn in and had remained denominated in Dollars, 
  
 reduced as may be appropriate from time to time by repayments and/or prepayments; 
  
 “Owner” means Azimuth Shipping Company Ltd., a company incorporated in Liberia having its registered office
at 80 Broad Street, Monrovia, Liberia; 
  

 6 

 “Participating Member State” means each state so described in any EMU Legislation;

  
 “Payment Currency” has the meaning given in
Clause 21.5; 
  
 “Pertinent Jurisdiction”, in
relation to a company, means: 
  

	 	(a)	 	England and Wales; 

  

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

  

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

  

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

  

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

  

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

  
 “Potential Event of Default” means an event or circumstance which, with the giving of any notice, the lapse of time, a determination of
the Lender and/or the satisfaction of any other condition, would constitute an Event of Default; 
  
 “Quotation Date” means, in relation to any Interest Period (or any other period for which an interest rate is to be determined under any
provision of a Finance Document): 
  

	 	(a)	 	in the case of deposits in Dollars or an Optional Currency (other than Euros), the day on which quotations would ordinarily be given by leading banks in the London Interbank Market
for deposits in the relevant currency to which such rate is to be determined for delivery on the first day of that Interest Period or other period; and 

  

	 	(b)	 	in the case of deposits in Euros, the Target Day on which quotations would ordinarily be given by leading banks in the European Interbank Market for deposits in Euros for delivery
on the first day of that Interest Period or other period; 

  
 “Reference Rate” means: 
  

	 	(a)	 	at any time when the Loan is denominated in Dollars or an Optional Currency (other than Euros), LIBOR; and 

  

	 	(b)	 	at any time when the Loan is denominated in Euros, EURIBOR; 

  
 “Reinsurances Assignment” means, in respect of the Ship, an assignment of the policies and contracts of reinsurances entered into by
Argosy with certain underwriters and insurance companies relating to cover for the Ship, to be executed by Argosy in favour of the Lender in such form as the Lender may agree; 
  
 “Relevant Person” has the meaning given in Clause 19.7; 
  

 7 

 “Repayment Date” means each date on which a repayment of the Loan is required to be made
under Clause 8; 
  
 “Requisition Compensation”
includes all compensation or other moneys payable by reason of any act or event such as is referred to in paragraph (b) of the definition of “Total Loss”; 
  
 “Retention Account” means an account in the name of the Borrower with the Lender in Piraeus designated
“Tsakos Energy Navigation Limited—Retention Account”, or any other account (with that or another office of the Lender or with a bank or financial institution other than the Lender) which is designated by the Lender as the Retention
Account for the purposes of this Agreement; 
  
 “Secured
Liabilities” means all liabilities which the Borrower, the Security Parties or any of them have, at the date of this Agreement or at any later time or times, under or by virtue of the Finance Documents or any judgment relating to the
Finance Documents; and for this purpose, there shall be disregarded any total or partial discharge of these liabilities, or variation of their terms, which is effected by, or in connection with, any bankruptcy, liquidation, arrangement or other
procedure under the insolvency laws of any country; 
  
 “Security Interest” means: 
  

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

  

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

  

	 	(c)	 	any arrangement entered into by a person (A) the effect of which is to place another person (B) in a position which is similar, in economic terms, to the position in which B would
have been had he held a security interest over an asset of A; but (c) does not apply to a right of set off or combination of accounts conferred by the standard terms of business of a bank or financial institution; 

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

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

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

  

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

  

	 	(c)	 	neither the Borrower nor any Security Party has any future or contingent liability under Clause 19, 20 or 21 below or any other provision of this Agreement or another Finance
Document; and 

  

	 	(d)	 	the Lender does not consider that there is a significant risk that any payment or transaction under a Finance Document would be set aside, or would have to be reversed or adjusted,
in any present or possible future bankruptcy of the Borrower or a Security Party or in any present or possible future proceeding relating to a 

  

 8 

	 	Finance	 	Document or any asset covered (or previously covered) by a Security Interest created by a Finance Document; 

  
 “Seller” means Los Halillos Shipping S.A., a corporation
organised and existing under the laws of Panama and having its principal office at 53rd Street, Urbanizacion Obarrio, Torre Swiss Bank, 16th Floor, Panama City, Panama; 
  
 “Seller’s Sub-Charter Assignment” means an assignment of the Seller’s rights under the Sub-Time
Charter made or to be made between the Seller and the Owner as security for the Seller’s obligations under the Time Charter; 
  
 “Ship” means the 107,181 deadweight tons crude oil carrier currently registered in the ownership of the Seller under Panamanian flag with
the name “OPAL QUEEN” which is to be acquired by the Owner pursuant to the terms of the MOA and registered in the ownership of the Owner under Panamanian flag with the same name; 
  
 “Spot Rate of Exchange” means, in relation to an Optional
Currency and in respect of any Interest Period, the Lender’s spot rate of exchange for the purchase in the London Interbank Market or, as the case may be, the European Interbank Market, of that Optional Currency with Dollars at or about 11.00
a.m. (London Time) on the Quotation Date for the relevant Interest Period; 
  
 “Sub-Time Charter” means a sub-time charterparty agreement in respect of the Ship made or to be made between the Seller as head charterer and Mitsubishi Corporation as sub-charterer; 
  
 “Swiss Francs” means the lawful currency for the time being
of the Swiss Federation; 
  
 “Target Day” means a
day on which the Trans-european Automated Real time Gross settlement Express Transfer system is open, which is, at the date of this Agreement, any day (other than a Saturday or Sunday) other than Christmas Day and New Year’s Day; 
  
 “Third Stage” means the third stage of European economic and
monetary union pursuant to the Treaty on European Union; 
  
 “Time Charter” means a time charterparty agreement in respect of the Ship dated 28 March 2001 (as amended by addenda numbers 1 and 2 dated respectively 29 March 2001 and 13 April 2001) made between the Owner and the Seller
as charterer; 
  
 “Total Loss” means: 

 

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

  

	 	(b)	 	any expropriation, confiscation, requisition or acquisition of the Ship, whether for full consideration, a consideration less than her proper value, a nominal consideration or
without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority, excluding a requisition for hire for a fixed period not exceeding one
year without any right to an extension; 

  

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

  

	 	(d)	 	any arrest, capture, seizure or detention of the Ship (including any hijacking or theft) unless she is within 30 days redelivered to the Owner’s full control;

  
 “Total Loss Date” means:

  

 9 

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

  

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

  

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

  

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

  

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

  
 “Treaty on European Union”
means the Treaty of Rome of 25 March 1957, as amended by the Single European Act 1986 and the Maastricht Treaty of 7 February 1992. 
  

	1.2	 	Construction of certain terms. In this Agreement: 

  
 “approved” means, for the purposes of Clause 13, approved in writing by the Lender; 
  
 “asset” includes every kind of property, asset, interest or
right, including any present, future or contingent right to any revenues or other payment; 
  
 “company” includes any partnership, joint venture and unincorporated association; 
  
 “contingent liability” means a liability which is not certain to arise and/or the amount of which remains unascertained; 
  
 “document” includes a deed; also a letter, fax or telex;

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

  
 “expense” means any kind of cost, charge or
expense (including all legal costs, charges and expenses) and any applicable value added or other tax; 
  
 “law” includes any form of delegated legislation, any order or decree, any treaty or international convention and any regulation,
directive or decision of the Council of the European Union or the European Commission; 
  
 “legal or administrative action” means any legal proceeding or arbitration and any administrative or regulatory action or investigation; 
  
 “liability” includes every kind of debt or liability (present or future, certain or contingent), whether
incurred as principal or surety or otherwise; 
  
 “months” shall be construed in accordance with Clause 1.3; 
  
 “obligatory insurances” means all insurances effected, or which the Owner is obliged to effect, under Clause 13 below or any other provision of this Agreement or another Finance Document; 

 
 “official consent” and “official
requirement” include respectively: 
  

	 	(a)	 	any consent, authorisation or clearance; and 

  

 10 

	 	(b)	 	any requirement, directive, request, guideline or notice (whether general or specific and whether or not having the force of law); 

  
 of or issued by any fiscal, monetary or banking authority or any other
governmental, official or public authority of any kind, including the Council of the European Union or the European Commission; 
  
 “parent company” has the meaning given in Clause 1.4; 
  
 “person” includes any company; any state, political sub-division of a state and local or municipal
authority; and any international organisation; 
  
 “policy” in relation to any insurance, includes a slip, cover note, certificate of entry or other document evidencing the contract of insurance or its terms; 
  
 “protection and indemnity risks” means the usual risks covered by a protection and indemnity association
managed in London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation therein
of Clause 1 of the Institute Time Clauses (Hulls) (1/10/83) or Clause 8 of the Institute Time Clauses (Hulls) (1/11/1995) or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision; 
  
 “subsidiary” has the meaning given in Clause 1.4;

  
 “tax” includes any present or future tax,
duty, impost, levy or charge of any kind which is imposed by any state, any political sub-division of a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any connected penalty, interest
or fine; and 
  
 “war risks” includes the risk of
mines and all risks excluded by Clause 23 of the Institute Time Clauses (Hulls) (1/10/83) or Clause 24 of the Institute Time Clauses (Hulls) (1/11/1995). 
  

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

  

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

  

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

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

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

  

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

  

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

  

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

  

 11 

	(d)	 	P otherwise has the direct or indirect power to ensure that the affairs of S are conducted in accordance with the wishes of P; 

  
 and any company of which S is a subsidiary is a parent company of S.

  

	1.5	 	General Interpretation. 

  

	(a)	 	In this Agreement: 

  

	 	(i)	 	references to, or to a provision of, a Finance Document or any other document are references to it as amended or supplemented, whether before the date of this Agreement or
otherwise; 

  

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

  

	 	(iii)	 	words denoting the singular number shall include the plural and vice versa. 

  

	(b)	 	Clauses 1.1 to 1.4 and paragraph (a) of this Clause 1.5 apply unless the contrary intention appears. 

  

	(c)	 	References in Clause 1.1 to a document being in the form of a particular Appendix include references to that form with any modifications to that form which the Lender approves or
reasonably requires. 

  

	(d)	 	The clause headings shall not affect the interpretation of this Agreement. 

  

	2	 	FACILITY 

  

	2.1	 	Amount of facility. Subject to the other provisions of this Agreement, the Lender shall make a loan facility of up to the lesser of (a) $30,500,000 (or the equivalent
in an Optional Currency at the applicable Spot Rate of Exchange calculated in accordance with Clause 4) and (b) 80% of the market value of the Ship (determined in accordance with Clause 15.4) available to the Borrower. 

  

	2.2	 	Purpose of Loan. The Borrower undertakes with the Lender to use the Loan only for the purpose stated in the preamble to this Agreement. 

  

	3	 	DRAWDOWN 

  

	3.1	 	Request for advance of Loan. Subject to the following conditions, the Borrower may request the Loan to be advanced by ensuring that the Lender receives a completed
Drawdown Notice not later than 11.00 a.m. (London time) 2 Business Days prior to the intended Drawdown Date. 

  

	3.2	 	Availability. The Drawdown Date has to be a Business Day during the Availability Period. 

  

	3.3	 	Drawdown Notice irrevocable. A Drawdown Notice must be signed by a duly authorised person on behalf of the Borrower; and once served, a Drawdown Notice cannot be
revoked without the prior consent of the Lender. 

  

	3.4	 	Disbursement of Loan. Subject to the provisions of this Agreement, the Lender shall on the Drawdown Date advance the Loan (after deducting the arrangement fee and all
accrued commitment commission referred to in Clause 20.1) to the Borrower; and payment to the Borrower shall be made to an account of the Seller nominated by the Owner in accordance with the MOA but subject to such conditions or restrictions as the
Lender may reasonably impose. 

  

 12 

 The payment by the Lender under this Clause 3.4 shall constitute the making of the Loan and the Borrower
shall thereupon become indebted, as principal and direct obligor, to the Lender in an amount equal to the Loan. 
  

	4	 	CURRENCY OPTION 

  

	4.1	 	Notice of Optional Currency. Subject to the following provisions of this Clause and the other provisions of this Agreement, the Borrower may elect that the whole of
the Loan be denominated in an Optional Currency during an Interest Period by ensuring that the Lender receives, not later than 11.00 a.m. (London time) on the second Business Day before the commencement of the Interest Period, a notice specifying
the Optional Currency in which the Borrower wishes the Loan to be denominated during the Interest Period. 

  

	4.2	 	Failure to give notice. If the Borrower fails to give a notice in accordance with, and by the time mentioned in Clause 4.1 for any Interest Period, the Loan shall
continue in that Interest Period to be denominated in the same currency as it had been in the immediately preceding Interest Period. 

  

	4.3	 	Objection by Lender to requested Optional Currency. If, after the Borrower has requested that the Loan be denominated in an Optional Currency during an Interest
Period, the Lender notifies the Borrower by 11.00 a.m. (London time) on the first Business Day before the commencement of the Interest Period that it does not agree to the Loan being denominated in the Optional Currency requested, the Loan shall be
denominated in Dollars for the Interest Period. 

  

	4.4	 	Initial advance in an Optional Currency. If the Loan is to be made available in an Optional Currency for the first Interest Period applicable to it, the Lender will
make available to the Borrower an amount determined by converting into that Optional Currency the Original Dollar Amount of the Loan at the Spot Rate of Exchange applicable to the Interest Period. 

  

	4.5	 	Continuation of the Loan in the same Currency. If the Loan is to be continued during an Interest Period in the same Optional Currency in which it was denominated
during the preceding Interest Period on the first day of the Interest Period (and after taking into account any repayment or prepayment of all or any part of the Loan to be made under Clause 8.1 at the time) either: 

  

	(a)	 	the Borrower shall repay to the Lender the excess of the amount in the Optional Currency of the Loan during the preceding Interest Period over the amount in that Optional Currency
of the Loan during the Interest Period; or 

  

	(b)	 	so long as no Event of Default has occurred and subject to the other provisions of this Agreement, the Lender shall make available to the Borrower the shortfall by which the amount
in that Optional Currency of the Loan during the preceding Interest Period is less than the amount in that Optional Currency of the Loan during the Interest Period. 

  
 The amount in any Optional Currency of the Loan during the Interest Period shall be determined by converting into that
Optional Currency the Original Dollar Amount of the Loan on the basis of the Spot Rate of Exchange applicable to that Interest Period. 
  

	4.6	 	Payment of difference. If and so often as at any time (whether during, or at the end of, an Interest Period) during which the Loan is denominated in an Optional
Currency the Lender shall determine that, at the current spot rate of exchange for the purchase of Dollars with the Optional Currency, the amount of the Loan is greater than 110 per cent. of the Original Dollar Amount of the Loan (for the purposes
of this Clause 4.6, the “excess”) the Borrower shall, within 3 Business Days’ of notice from the Lender: 

  

 13 

	(a)	 	deposit in an account (which shall, at the cost of the Borrower, be pledged in favour of the Lender) with the Lender an amount in the Optional Currency equal to the excess if the
amount of the Loan (at the then current spot rate of exchange for the purchase of Dollars with the relevant Optional Currency) does not exceed 120 per cent. of the Original Dollar Amount of the Loan. Amounts paid pursuant to this Clause 4.6(a) shall
be retained on the deposit account until such time as the amount of the Loan (at the then current spot rate of exchange for the purchase of Dollars with the relevant Optional Currency) shall be less than 110 per cent. of the Original Dollar Amount
of the Loan for a period of 10 consecutive Business Days whereupon the amount on the deposit account shall, following a request from the Borrower, be released to the Borrower; and 

  

	(b)	 	pay to the Retention Account an amount in the Optional Currency equal to the excess if the amount of the Loan (at the then current spot rate of exchange for the purchase of Dollars
with the relevant Optional Currency) exceeds 120 per cent. of the Original Dollar Amount of the Loan. Amounts paid pursuant to this Clause 4.6(b) shall be retained by the Lender and applied on the last day of the then current Interest Period in
prepayment of the Loan. 

  

	4.7	 	Continuation of the Loan in a different Currency. If the Loan is to be continued during an Interest Period in a different currency from that in which it was
denominated during the preceding Interest Period: 

  

	(a)	 	the Loan shall be repaid at the end of the preceding Interest Period in the currency in which it is then denominated; 

  

	(b)	 	conditional upon the repayment and subject to the other provisions of this Agreement, the Loan shall be re-advanced forthwith on terms that: 

  

	 	(i)	 	if the Loan is to be denominated in Dollars during the Interest Period, the Lender shall make available to the Borrower in accordance with Clause 2.2 the Original Dollar Amount of
the Loan; and 

  

	 	(ii)	 	if the Loan is to be denominated in an Optional Currency during the Interest Period, the Lender shall make available to the Borrower an amount in the Optional Currency determined by
converting into that Optional Currency the Original Dollar Amount of the Loan on the basis of the Spot Rate of Exchange applicable to the Interest Period; 

  

	(c)	 	the Lender may, with value on the first day of the Interest Period, apply a sum equal to the amount (determined as aforesaid) to be advanced (or, as the case may be, so much of that
amount as may be necessary) in purchasing an amount in the currency in which the Loan is then outstanding sufficient to make the repayment (or so much of the repayment as can be purchased with the amount to be advanced on that date) and shall on
receipt thereof apply the amount so purchased in or towards the repayment; 

  

	(d)	 	if: 

  

	 	(i)	 	after the purchase and application referred to in Clause 4.8(c) any moneys remain owing to the Lender or any moneys remain to be advanced to the Borrower by the Lender on that date
in respect of the Loan; or 

  

	 	(ii)	 	for any reason the application is not or cannot be effected on that date, 

  
 the Lender shall promptly notify the Borrower of the fact and of the amount so owing or to be advanced and the Borrower shall forthwith pay the amount to
the Lender or (as the case may be), and so long as no Event of Default has occurred and is continuing, the Lender shall forthwith advance the amount to the Borrower; and 
  
  

 14 

	(e)	 	the Borrower shall indemnify the Lender on demand against all costs, expenses, liabilities and losses sustained as incurred as a result of or in connection with the operation of
this Clause 4.7. 

  

	5	 	INTEREST 

  

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

  

	5.2	 	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest on the Loan in respect of the Interest Period shall be the aggregate of the
Margin and the Reference Rate for the Interest Period. 

  

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

  

	5.4	 	Notification of market disruption. The Lender shall promptly notify the Borrower if: 

  

	(a)	 	at any time when the Loan is denominated in Dollars or an Optional Currency (other than Euros), no rate is quoted on Telerate Page 3750, or as the case may be, Telerate Page 3740;
or 

  

	(b)	 	at any time when the Loan is denominated in Euros, no rate is quoted on Telerate Page 248; or 

  

	(c)	 	if for any reason the Lender is unable to obtain Dollars, or as the case may be, the relevant Optional Currency in the London Interbank Market in order to fund the Loan (or any part
of it) during the Interest Period, stating the circumstances which have caused such notice to be given. 

  

	5.5	 	Suspension of drawdown. If the Lender’s notice under Clause 5.4 is served on the Borrower before the Loan is made, the Lender’s obligation to make the Loan
shall be suspended while the circumstances referred to in the Lender’s notice continue. 

  

	5.6	 	Negotiation of alternative rate of interest. If the Lender’s notice under Clause 5.4 is served after the Loan has been advanced, the Borrower and the Lender shall
use reasonable endeavours to agree, within the 30 days after the date on which the Lender serves its notice under Clause 5.4 (the “Negotiation Period”), an alternative interest rate or (as the case may be) an alternative basis for
the Lender to fund or continue to fund the Loan during the Interest Period concerned. 

  

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

  

	5.8	 	Alternative rate of interest in absence of agreement. If an alternative interest rate or alternative basis is not agreed within the Negotiation Period, and the
relevant circumstances are continuing at the end of the Negotiation Period, then the Lender shall set an interest period and interest rate representing the cost of funding to the Lender in Dollars or in any available currency of the Loan plus the
Margin; and the procedure provided for by this Clause 5.8 shall be repeated if the relevant circumstances are continuing at the end of the interest period so set by the Lender. 

  

	5.9	 	Notice of prepayment. If the Borrower does not agree with an interest rate set by the Lender under Clause 5.8, the Borrower may give the Lender not less than 15
Business Days’ notice of its intention to prepay at the end of the interest period set by the Lender. 

  

 15 

	5.10	 	Prepayment. A notice under Clause 5.9 shall be irrevocable; and on the last Business Day of the interest period set by the Lender, the Borrower shall prepay (without
premium or penalty) the Loan, together with accrued interest thereon at the applicable rate plus the Margin. 

  

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

  

	6	 	INTEREST PERIODS 

  

	6.1	 	Commencement of Interest Periods. The first Interest Period shall commence on the Drawdown Date and each subsequent Interest Period shall commence on the expiry of the
preceding Interest Period. 

  

	6.2	 	Duration of normal Interest Periods. Subject to Clauses 6.3 and 6.4, each Interest Period shall be: 

  

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

  

	(b)	 	3 months, if the Borrower fails to notify the Lender by the time specified in paragraph (a); or 

  

	(c)	 	such other period requested by the Borrower as the Lender may agree with the Borrower. 

  

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

  

	6.4	 	Non-availability of matching deposits for Interest Period selected. If, after the Borrower has selected and the Lender have agreed an Interest Period longer than 6
months, the Lender notifies the Borrower by 11.00 a.m. (London time) on the first Business Day before the commencement of the Interest Period that it is not satisfied that deposits in Dollars or, as the case may be, the relevant Optional Currency
for a period equal to the Interest Period will be available to it in the London Interbank Market when the Interest Period commences, the Interest Period shall be of 6 months. 

  

	7	 	DEFAULT INTEREST 

  

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

  

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

  

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

  

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

  

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

  

	(a)	 	in the case of an overdue amount of principal, the higher of the rates set out at Clauses 7.3(a) and (b); or 

  

 16 

	(b)	 	in the case of any other overdue amount, the rate set out at Clause 7.3(b). 

  

	7.3	 	Calculation of default rate of interest. The rates referred to in Clause 7.2 are: 

  

	(a)	 	the rate applicable to the overdue principal amount immediately prior to the relevant date (but only for any unexpired part of any then current Interest Period);

  

	(b)	 	the Margin plus, in respect of successive periods of any duration (including at call) up to 3 months which the Lender may select from time to time: 

  

	 	(i)	 	the Reference Rate; or 

  

	 	(ii)	 	if the Lender determines that deposits in Dollars or, as the case may be, the relevant Optional Currency for any such period are not being made available to it by leading banks in
the London Interbank Market in the ordinary course of business, a rate from time to time determined by the Lender by reference to the cost of funds to it from such other sources as the Lender may from time to time determine.

  

	7.4	 	Notification of interest periods and default rates. The Lender shall promptly notify the Borrower of each interest rate determined by it under Clause 7.2; but this
shall not be taken to imply that the Borrower is liable to pay such interest only with effect from the date of the Lender’s notification. 

  

	7.5	 	Payment of accrued default interest. Subject to the other provisions of this Agreement, any interest due under this Clause shall be paid on the last day of the period
by reference to which it was determined. 

  

	7.6	 	Compounding of default interest. Any such interest which is not paid at the end of the period by reference to which it was determined shall thereupon be compounded.

  

	8	 	REPAYMENT AND PREPAYMENT 

  

	8.1	 	Repayment. The Borrower shall repay the Loan by: 

  

	(a)	 	24 equal consecutive semi-annual instalments of $875,000 (or the equivalent in an Optional Currency at the applicable Spot Rate of Exchange) each; and 

  

	(b)	 	a balloon instalment (the “Balloon Instalment”) of $9,500,000 (or the equivalent in an Optional Currency at the applicable Spot Rate of Exchange).

  
 Provided that if the amount of the Loan
drawndown is less than $30,500,000, then the Balloon Instalment and each repayment instalment shall be reduced pro rata by an amount in aggregate equal to such undrawn amount. 
  

	8.2	 	Repayment Dates. The first repayment instalment shall be repaid on the date falling 6 months after the Drawdown Date, each subsequent repayment instalment shall be
repaid at six-monthly intervals thereafter and the last instalment together with the Balloon Instalment shall be repaid on the earlier of (i) the date falling on the twelfth anniversary of the Drawdown Date and (ii) 30 June 2014.

  

	8.3	 	Voluntary prepayment. Subject to the following conditions, the Borrower may prepay the whole (or any part) of the Loan. 

  

	8.4	 	Conditions for voluntary prepayment. Those conditions are that: 

  

	(a)	 	a partial prepayment shall be $500,000 (or the equivalent in an Optional Currency at the applicable Spot Rate of Exchange) or a higher integral multiple thereof;

  

 17 

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

  

	(c)	 	the Borrower has provided evidence satisfactory to the Lender that any official consent required by the Borrower or any Security Party in connection with the prepayment has been
obtained and remains in force, and that any official requirement relevant to this Agreement which affects the Borrower or any Security Party has been complied with; and 

  

	(d)	 	if a prepayment made on or before the date falling on the second anniversary of the Drawdown Date is financed (either in whole or in part) by a facility made available by a bank or
financial institution other than the Lender, the Borrower will pay to the Lender a prepayment fee equal to 0.5 per cent. of the amount prepaid. 

  

	8.5	 	Effect of notice of prepayment. A prepayment notice may not be withdrawn or amended without the consent of the Lender and the amount specified in the prepayment notice
shall become due and payable by the Borrower on the date for prepayment specified in the prepayment notice. 

  

	8.6	 	Mandatory prepayment. The Borrower shall be obliged to prepay the whole of the Loan if the Ship is sold or becomes a Total Loss: 

  

	(a)	 	in the case of a sale, on or before the date on which the sale is completed by delivery of the Ship to the buyer; or 

  

	(b)	 	in the case of a Total Loss, on the earlier of the date falling 150 days after the Total Loss Date and the date of receipt by the Lender of the proceeds of insurance relating to
such Total Loss. 

  

	8.7	 	Amounts payable on prepayment. A prepayment shall be made together with accrued interest (and any other reasonable amount payable under Clause 21 below or otherwise)
in respect of the amount prepaid together with any sums payable under Clause 21.1(b) but without premium or penalty. 

  

	8.8	 	Application of partial prepayment. Each partial prepayment shall be applied firstly against the Balloon Instalment and thereafter against the repayment instalments
specified in Clause 8.1 in inverse order of maturity. 

  

	8.9	 	Currency of payment. Each repayment or prepayment of the Loan or any part thereof shall be made in the currency in which the Loan or the relevant part thereof was
outstanding on the relevant Repayment Date or, as the case may be, date of prepayment and on the basis of the Spot Rate of Exchange applicable to the Interest Period expiring on such Repayment Date or date of prepayment or, if not the last day of an
Interest Period, applicable to the then current Interest Period. 

  

	8.10	 	No reborrowing. No amount prepaid may be reborrowed. 

  

	9	 	CONDITIONS PRECEDENT 

  

	9.1	 	Documents, fees and no default. The Lender’s obligation to make the Loan is subject to the following conditions precedent: 

  

	(a)	 	that, on or before the service of the Drawdown Notice, the Lender receives the documents described in Part A of Schedule 2 in form and substance satisfactory to it;

  

	(b)	 	that, on the Drawdown Date but prior to the advance of the Loan, the Lender receives the documents described in Part B of Schedule 2 in form and substance satisfactory to it;

  

	(c)	 	that both at the date of the Drawdown Notice and at the Drawdown Date: 

  

 18 

	 	(i)	 	no Event of Default or Potential Event of Default has occurred and is continuing or would result from the borrowing of the Loan; 

  

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

  

	 	(iii)	 	none of the circumstances contemplated by Clause 5.4 has occurred and is continuing; and 

  

	 	(iv)	 	there has been no material adverse change in the financial position, state of affairs or prospects of the Borrower or the Owner in the light of which the Lender considers, in its
opinion, that the Borrower or the Owner is, or will at a later time become, unable to discharge its liabilities under this Agreement or the other Finance Documents to which it is a party as they fall due; 

  

	(d)	 	that on or before the Drawdown Date, the Lender receives the arrangement fee and all accrued commitment commission referred to in Clause 20.1; and 

  

	(e)	 	that, if the ratio set out in Clause 15.1 were applied immediately following the advance of the Loan, the Borrower would not be obliged to provide additional security or prepay part
of the Loan under that Clause. 

  

	9.2	 	Waivers of conditions precedent. If the Lender, at its discretion, permits the Loan to be borrowed before certain of the conditions referred to in Clause 9.1 are
satisfied, the Borrower shall ensure that those conditions are satisfied within 5 Business Days after the Drawdown Date (or such longer period as the Lender may specify). 

  

	10	 	REPRESENTATIONS AND WARRANTIES 

  

	10.1	 	General. The Borrower represents and warrants to the Lender as follows. 

  

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

  

	10.3	 	Share capital and ownership. The Borrower has an authorised share capital of $40,000,000 divided into 40,000,000 shares of $1 each, 16,978,857 such shares have been
issued each fully paid. The whole of the authorised and issued share capital of the Owner is owned by the Borrower. 

  

	10.4	 	Corporate power. The Borrower has the corporate capacity, and has taken all corporate action and obtained all official consents necessary for it:

  

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

  

	(b)	 	to borrow under this Agreement and to make all the payments contemplated by, and to comply with, those Finance Documents. 

  

	10.5	 	Official consents in force. All the official consents referred to in Clause 10.4 remain in force and nothing has occurred which makes any of them liable to revocation.

  

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

  

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

  

 19 

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

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

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

  

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

  

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

  

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

  

	(a)	 	any law or official requirement; or 

  

	(b)	 	the constitutional documents of the Borrower; or 

  

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

  

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

  

	10.10	 	No default. No Event of Default or Potential Event of Default has occurred and is continuing. 

  

	10.11	 	Information. All information which has been provided in writing by or on behalf of the Borrower or any Security Party to the Lender in connection with any Finance
Document satisfied the requirements of Clause 11.5; and there has been no material adverse change in the financial position or state of affairs of the Borrower from that disclosed in the latest of those accounts. 

  

	10.12	 	No litigation. No legal or administrative action involving the Borrower has been commenced or taken or, to the Borrower’s knowledge, is likely to be commenced or
taken which, in either case, would be likely to have a material adverse effect on the Borrower’s financial position or profitability, 

  

	10.13	 	Validity and completeness of MOA, Time Charter and Sub-Time Charter. 

  

	(a)	 	copies of the MOA, the Time Charter and the Sub-Time Charter delivered to the Lender before the date of this Agreement are true and complete copies thereof;

  

	(b)	 	each of the MOA, the Time Charter and the Sub-Time Charter constitutes valid, binding and enforceable obligations of the parties thereto respectively in accordance with its terms;
and 

  

	(c)	 	no amendments or additions to the MOA, the Time Charter and the Sub-Time Charter have been agreed nor has any party to any of the aforesaid documents waived any of its rights under
those documents. 

  

	10.14	 	No rebates etc. There is no agreement or understanding to allow or pay any rebate, premium, commission, discount or other benefit or payment (howsoever described) to
the Borrower, the Owner, the Seller or a third party in connection with the purchase by the 

  

 20 

 Borrower of the Ship, other than as disclosed to the Lender in writing on or prior to the date of this
Agreement. 
  

	10.15	 	Compliance with certain undertakings. At the date of this Agreement, the Borrower is in compliance with Clauses 11.2, 11.4, 11.9 and 11.13. 

 

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

  

	10.17	 	ISM Code Compliance. All requirements of the ISM Code as they relate to the Owner, the Approved Manager, the Approved Technical Sub-Manager and the Ship have been, or
will, on or prior to the date on which the Ship is delivered to the Lender, be complied with. 

  

	11	 	GENERAL UNDERTAKINGS 

  

	11.1	 	General. The Borrower undertakes with the Lender to comply with the following provisions of this Clause 11 at all times during the Security Period, except as the
Lender may otherwise permit. 

  

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

  

	(a)	 	hold the legal title to, and own the entire beneficial interest in, the whole of the authorised share capital of the Owner, free from all Security Interests and other interests and
rights of every kind, except for those created by the Finance Documents; 

  

	(b)	 	not create or permit to arise any Security Interest over any other asset, present or future other than in the normal course of its business of acquiring, financing and operating
vessels; and 

  

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

  

	11.3	 	No disposal of assets. The Borrower will not transfer, lease or otherwise dispose of: 

  

	(a)	 	all or a substantial part of its assets (including, without limitation, any of the authorised share capital of the Owner), whether by one transaction or a number of transactions,
whether related or not; or 

  

	(b)	 	any debt payable to it or any other right (present, future or contingent right) to receive a payment, including any right to damages or compensation. 

  

	11.4	 	No other liabilities or obligations to be incurred. The Borrower will not incur any liability or obligation except liabilities and obligations:

  

	(a)	 	under the Finance Documents to which it is a party; 

  

	(b)	 	reasonably incurred in the normal course of its business of operating vessels; 

  

	(c)	 	reasonably incurred in the normal course of its business of acquiring and financing vessels. 

  

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

  

	11.6	 	Provision of financial statements. The Borrower will send to the Lender: 

  

 21 

	(a)	 	as soon as possible, but in no event later than 6 months after the end of each financial year of the Borrower, the audited consolidated accounts of the Borrower’s Group
(commencing with those for the year ended 31 December 2001) and the unaudited individual accounts of the Owner certified as to their correctness by the chief financial officer of the Owner; and 

  

	(b)	 	as soon as possible, but in no event later than 4 months after the end of each 6 month period in each financial year of the Borrower, the unaudited consolidated accounts of the
Borrower’s Group certified as to their correctness by the chief financial officer of the Borrower. 

  

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

  

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

  

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

  

	(c)	 	fully disclose or provide for all significant liabilities of the Borrower’s Group or, as the case may be, the Owner. 

  

	11.8	 	Creditor notices. The Borrower will, following the occurrence of an Event of Default which is continuing, send the Lender, at the same time as they are despatched,
copies of all communications which are despatched to the Borrower’s creditors or any class of them. 

  

	11.9	 	Official consents. The Borrower will maintain in force and promptly obtain or renew, and will promptly send certified copies to the Lender of, all official consents
required: 

  

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

  

	(b)	 	for the validity or enforceability of any Finance Document; and 

  

	(c)	 	for the Owner to continue to own and operate the Ship, 

  
 and the Borrower will (or will procure that the Owner will) comply with the terms of all such official consents. 
  

	11.10	 	Maintenance of Security Interests. The Borrower will: 

  

	(a)	 	at its own cost, do all that it reasonably can to ensure that any Finance Document validly creates the obligations and the Security Interests which it purports to create; and

  

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

  

	11.11	 	Notification of litigation. The Borrower will provide the Lender with details of any legal or administrative action involving the Borrower, the Owner, any other
Security Party, the Approved Manager, the Approved Technical Sub-Manager or the Ship, the Earnings or the Insurances as soon as such action is instituted or it becomes apparent to the Borrower that it is likely to be instituted, unless it is clear
that the legal or 

  

 22 

 administrative action cannot be considered material in the context of any Finance Document. 

 

	11.12	 	No amendment to MOA and Time Charter. The Borrower will ensure that the Owner shall not agree to any amendment or supplement to, either the MOA or the Time Charter or
any of their respective provisions. 

  

	11.13	 	Principal place of business. The Borrower will maintain its place of business, and keep its corporate documents and records, at the address stated in Clause 28.2(a);
and the Borrower will not establish, or do anything as a result of which it would be deemed to have, a place of business in any other country. 

  

	11.14	 	Confirmation of no default. The Borrower will, within 2 Business Days after service by the Lender of a written request, serve on the Lender a notice which is signed by
an authorised officer of the Borrower and which: 

  

	(a)	 	states that no Event of Default or Potential Event of Default has occurred; or 

  

	(b)	 	states that no Event of Default or Potential Event of Default has occurred, except for a specified event or matter, of which all material details are given.

  

	11.15	 	Notification of default. The Borrower will notify the Lender as soon as the Borrower becomes aware of: 

  

	(a)	 	the occurrence of an Event of Default or a Potential Event of Default; or 

  

	(b)	 	any matter which indicates that an Event of Default or a Potential Event of Default may have occurred; 

  
 and will thereafter keep the Lender fully up-to-date with all developments. 
  

	11.16	 	Provision of further information. The Borrower will: 

  

	(a)	 	as soon as practicable after receiving the request, provide the Lender with any additional financial or other information relating: 

  

	 	(i)	 	to the Borrower, the Owner, the Ship, the Insurances, the Earnings, the Time Charter or the Sub-Time Charter; 

  

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

  
 which may be requested by the Lender at any time; and 
  

	(b)	 	provide the Lender as soon as practicable with information regarding any significant financial developments involving or affecting the Borrower or the Borrower’s Group
(including, but not limited to, any proposed sales or acquisitions of vessels and the refinancing or restructuring of any credit facilities made available to any company in the Borrower’s Group). 

  

	11.17	 	Minimum Liquidity. The Borrower shall ensure that, together with the Owner, it shall maintain with the Lender aggregate deposits of not less than $300,000 on average
during each calendar month falling within the Security Period. Any credit balances from time to time on each of the Earnings Account and the Retention Account shall count towards satisfying the test in this Clause 11.17. 

  

	11.18	 	Time Charter Assignment. The Borrower shall ensure that if the Owner enters into a time or bareboat charter in respect of the Ship which is of 6 or more months in
duration, or is capable of exceeding 6 months in duration, the Owner shall at the request of the Lender, execute in favour of the Lender a first priority assignment of such charter in such 

  

 23 

 form and on such terms as the Lender may require, and shall deliver to the Lender such other documents
equivalent to those referred to at paragraphs 3, 4 and 5 of Part A of Schedule 2 hereof. 
  

	12	 	CORPORATE UNDERTAKINGS 

  

	12.1	 	General. The Borrower also undertakes with the Lender to comply with the following provisions of this Clause 12 at all times during the Security Period except as the
Lender may otherwise permit. 

  

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

  

	12.3	 	Negative undertakings. The Borrower will not: 

  

	(a)	 	change the nature of its business; or 

  

	(b)	 	pay any dividend or make any other form of distribution or effect any form of redemption, purchase or return of share capital save that the Borrower will be entitled to pay
dividends in respect of any financial year of the Borrower in an amount: 

  

	 	(i)	 	other than as provided in sub-paragraph (ii) below, not exceeding 50 per cent. of its Net Income for such Financial Year; or 

  

	 	(ii)	 	which, when aggregated with all dividends declared and/or paid by the Borrower after 1 January 1998, does not exceed 50 per cent. of its accumulated Net Income from 1 January 1998
up to the most recent date as at which any annual consolidated accounts of the Borrower’s Group have been delivered or were required to be delivered under this Agreement, 

  
 Provided that no such restriction shall apply in respect of dividends
declared or paid by the Borrower in the form of ordinary shares or stock in the Borrower or similar instruments; 
  

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

  

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

  

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

  
 or enter into any transaction with or involving such a person or company on terms which are, in any respect, less favourable
to the Borrower than those which it could obtain in a bargain made at arms’ length provided that this shall not prevent or restrict the Borrower from on-lending the Loan to the Owner; or 
  

	(d)	 	enter into any form of amalgamation, merger or de-merger or any form of reconstruction or reorganisation. 

  

	13	 	INSURANCE 

  

	13.1	 	General. The Borrower also undertakes with the Lender to procure that the Owner will comply with the following provisions of this Clause 13 at all times during the
Security Period except as the Lender may otherwise permit. 

  

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

  

 24 

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

  

	(b)	 	war risks; and 

  

	(c)	 	protection and indemnity risks; and 

  

	(d)	 	any other risks against which the Lender considers, having regard to practices and other circumstances prevailing at the relevant time, it would in the opinion of the Lender be
reasonable for the Owner to insure and which are specified by the Lender by notice to the Owner. 

  

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

  

	(a)	 	in Dollars; 

  

	(b)	 	in the case of fire and usual marine risks and war risks, in an amount on an agreed value basis at least the greater of (i) 125 per cent. of the Loan and/or (ii) the market value of
the Ship (determined in accordance with Clause 15.4); and 

  

	(c)	 	in the case of oil pollution liability risks, for an aggregate amount equal to the highest level of cover from time to time available (and which a prudent shipowner may reasonably
be expected to take out) under basic protection and indemnity club entry and the international marine insurance market (currently $1,000,000,000); 

  

	(d)	 	in relation to protection and indemnity risks, in respect of the Ship’s full tonnage; 

  

	(e)	 	on approved terms; and 

  

	(f)	 	through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and
protection and indemnity risks associations. 

  

	13.4	 	Further protections for the Lender. In addition to the terms set out in clause 13.3, the Borrower shall procure that the obligatory insurances shall:

  

	(a)	 	(except in relation to risks referred to in Clause 13.2(c)), if the Lender so requires, name (or be amended to name) the Lender as additional named assured for its rights and
interests, warranted no operational interest and with full waiver of rights of subrogation against the Lender, but without the Lender thereby being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such
insurance; 

  

	(b)	 	name the Lender as loss payee with such directions for payment as the Lender may specify; 

  

	(c)	 	provide that all payments by or on behalf of the insurers under the obligatory insurances to the Lender shall be made (other than in respect of premiums due in relation to the Ship)
without set-off, counterclaim or deductions or condition whatsoever; 

  

	(d)	 	provide that such obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Lender; and 

  

	(e)	 	provide that the Lender may make proof of loss if the Owner fails to do so. 

  

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

  

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

  

 25 

	 	(i)	 	notify the Lender of the brokers (or other insurers) and any protection and indemnity or war risks association through or with whom the Owner proposes to renew that insurance and of
the proposed terms of renewal; and 

  

	 	(ii)	 	obtain the Lender’s approval to the matters referred to in paragraph (i) above; 

  

	(b)	 	at least 14 days before the expiry of any obligatory insurance, renew the insurance in accordance with the Lender’s approval pursuant to paragraph (a) above; and

  

	(c)	 	procure that the approved brokers and/or the war risks and protection and indemnity associations with which such a renewal is effected shall promptly after the renewal notify the
Lender in writing of the terms and conditions of the renewal. 

  

	13.6	 	Copies of policies; letters of undertaking. The Borrower shall procure that the Owner shall ensure that all approved brokers provide the Lender with pro forma copies
of all policies relating to the obligatory insurances which they are to effect or renew and of a letter or letters or undertaking in a form required by the Lender (or as may be customary in the market) and including undertakings by the approved
brokers that: 

  

	(a)	 	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment complying with the provisions of Clause 13.4;

  

	(b)	 	they will hold such policies, and the benefit of such insurances, to the order of the Lender in accordance with the said loss payable clause; 

  

	(c)	 	they will advise the Lender immediately of any material change to the terms of the obligatory insurances; 

  

	(d)	 	they will notify the Lender, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from the
Owner or its agents and, in the event of their receiving instructions to renew, they will promptly notify the Lender of the terms of the instructions; and 

  

	(e)	 	they will not (other than in respect of premiums due in relation to the Ship) set off against any sum recoverable in respect of a claim relating to the Ship under such obligatory
insurances any premiums or other amounts due to them or any other person whether in respect of the Ship or otherwise, they waive any lien on the policies or, any sums received under them, which they might have in respect of such premiums or other
amounts, and they will not cancel such obligatory insurances by reason of non-payment of such premiums or other amounts, and will arrange for a separate policy to be issued in respect of the Ship forthwith upon being so requested by the Lender.

  

	13.7	 	Copies of certificates of entry. The Borrower shall procure that the Owner shall ensure that any protection and indemnity and/or war risks associations in which the
Ship is entered provides the Lender with: 

  

	(a)	 	a certified copy of the certificate of entry for the Ship; 

  

	(b)	 	a letter or letters of undertaking in such form as may be required by the Lender; and 

  

	(c)	 	where required to be issued under the terms of insurance/indemnity provided by the Owner’s protection and indemnity association, a certified copy of each United States of
America voyage quarterly declaration (or other similar document or documents) made by the Owner in relation to the Ship in accordance with the requirements of such protection and indemnity association; and 

  

	(d)	 	a certified copy of each certificate of financial responsibility for pollution by oil or other Environmentally Sensitive Material issued by the relevant certifying authority in
relation to the Ship. 

  

 26 

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

  

	13.9	 	Payment of premiums. The Borrower shall procure that the Owner shall punctually pay all premiums or other sums payable in respect of the obligatory insurances and
produce all relevant receipts when so required by the Lender. 

  

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

  

	13.11	 	Compliance with terms of insurances. The Borrower shall procure that the Owner shall neither do nor omit to do (nor permit to be done or not to be done) any act or
thing which would or might render any obligatory insurance invalid, void, voidable or unenforceable or render any sum payable thereunder repayable in whole or in part; and, in particular: 

  

	(a)	 	the Owner shall take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without limiting the
obligation contained in Clause 13.7(c) above) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Lender has not given its prior approval; 

  

	(b)	 	the Owner shall not make any changes relating to the classification or classification society or manager or operator of the Ship approved by the underwriters of the obligatory
insurances; 

  

	(c)	 	the Owner shall make all quarterly or other voyage declarations which may be required by the protection and indemnity risks association to maintain cover for trading to the United
States of America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990 or any other applicable legislation); and 

  

	(d)	 	the Owner shall not employ the Ship, nor allow it to be employed, otherwise than in conformity with the terms and conditions of the obligatory insurances, without first obtaining
the consent of the insurers and complying with any requirements (as to extra premium or otherwise) which the insurers specify. 

  

	13.12	 	Alteration to terms of insurances. The Borrower shall procure that the Owner shall neither make nor agree to any alteration to the terms of any obligatory insurance
nor waive any right relating to any obligatory insurance. 

  

	13.13	 	Settlement of claims. The Borrower shall procure that the Owner shall not settle, compromise nor abandon any claim under any obligatory insurance for Total Loss or
(subject as hereinafter provided) for a Major Casualty, and shall do all things necessary and provide all documents, evidence and information to enable the Lender to collect or recover any moneys which at any time become payable in respect of the
obligatory insurances Provided that the Lender shall not unreasonably withhold its consent to the settlement of a claim by the Owner in respect of a Major Casualty (not constituting a Total Loss). 

  

	13.14	 	Provision of copies of communications. The Borrower shall procure that the Owner shall provide the Lender (after the occurrence of an Event of Default which is
continuing), at the time of each such communication, copies of all written communications (other than (unless specifically required by the Lender) communications of an entirely routine nature) between the Owner and: 

  

	(a)	 	the approved brokers; and 

  

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

  

 27 

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

  

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

  

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

  

	13.15	 	Provision of information. In addition, the Owner shall promptly provide the Lender (or any persons which it may designate) with any information which the Lender (or
any such designated person) reasonably requests for the purpose of: 

  

	(a)	 	obtaining or preparing any report from an independent marine insurance broker as to the adequacy of the obligatory insurances effected or proposed to be effected; and/or

  

	(b)	 	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.16 below or dealing with or considering any matters relating to any such insurances;

  

	  	 	and the Borrower shall, forthwith upon demand, indemnify the Lender in respect of all fees and other expenses reasonably incurred by or for the account of the Lender in connection
with any such report as is referred to in paragraph (a) above Provided that so long as no Event of Default has occurred and is continuing the Borrower shall be obliged to pay such fees and expenses in respect of one such report in each
calendar year. 

  

	13.16	 	Mortgagee’s interest and additional perils insurance. The Lender shall be entitled from time to time in its absolute discretion to effect, maintain and renew a
mortgagee’s interest insurance and a mortgagee’s interest additional perils policy providing for the indemnification of the Lender against, among other things, any possible losses or other consequences of an Environmental Claim, including
the risk of expropriation, arrest or any form of detention of the Ship, or the imposition of any Security Interest over the Ship and/or any other matter capable of being insured against under a mortgagee’s interest additional perils policy in
such amounts (not less than 110% of the Loan), on such terms, through such insurers and generally in such manner as the Lender may from time to time consider appropriate and the Borrower shall upon demand fully indemnify the Lender in respect of all
premiums and other expenses which are incurred in connection with or with a view to effecting, maintaining or renewing any such insurance or dealing with, or considering, any matter arising out of any such insurance. 

  

	13.17	 	Review of insurance requirements. The Lender shall be entitled to review the requirements of this Clause 13 from time to time in order to take account of any changes
in circumstances after the date of this Agreement which are, in the opinion of the Lender, significant and capable of affecting the Owner or the Ship and its insurance (including, without limitation, changes in the availability or the cost of
insurance coverage or the risks to which the Owner may be subject). 

  

	13.18	 	Modification of insurance requirements. The Lender shall, following consultation with the Borrower, notify the Borrower of any proposed modification under Clause 13.17
to the requirements of this Clause 13 which the Lender reasonably considers appropriate in the circumstances, and such modification shall take effect on and from the date it is notified in writing to the Borrower and the Owner as an amendment to
this Clause 13 and shall bind the Borrower and the Owner accordingly. 

  

	13.19	 	Compliance with mortgagee’s instructions. The Lender shall be entitled (without prejudice to or limitation of any other rights which it may have or acquire under
any Finance Document) to require the Ship to remain at any safe port or to proceed to and remain at any safe port designated by the Lender until the Owner implements any 

  

 28 

	  	 	amendments to the terms of the obligatory insurances and any operational changes required as a result of a notice served under Clause 13.18. 

  

	14	 	SHIP COVENANTS 

  

	14.1	 	General. The Borrower also undertakes with the Lender to procure that the Owner shall comply with the following provisions of this Clause 14 at all times during the
Security Period except as the Lender may otherwise permit (such permission not to be unreasonably withheld in relation to Clause 14.13). 

  

	14.2	 	Ship’s name and registration. The Owner shall keep the Ship registered in its name as a Panamanian ship; shall not do or allow to be done anything as a result of
which such registration might be cancelled or imperilled; and shall not change the name or port of registry of the Ship. 

  

	14.3	 	Repair and classification. The Owner shall keep the Ship in a good and safe condition and state of repair: 

  

	(a)	 	consistent with first-class ship ownership and management practice; 

  

	(b)	 	so as to maintain the Ship’s present class (namely NS* (Tanker, Oils-Flashpoint below 60°C) (ESP) MNS* at Nippon Kaiji Kyokai) free of outstanding recommendations and
qualifications; and 

  

	(c)	 	so as to comply with all laws and official requirements applicable to vessels registered at ports in Panama or to vessels trading to any jurisdiction to which the Ship may trade
from time to time including, but not limited to, the ISM Code and the ISM Code Documentation. 

  

	14.4	 	Classification Society undertaking. The Borrower shall procure that the Owner shall instruct the classification society to do all the following at any time after the
occurrence of an Event of Default which is continuing (and procure that the classification society undertakes with the Lender): 

  

	(a)	 	to send to the Lender, following receipt of a written request from the Lender, certified true copies of all original class records held by the classification society in relation to
the Ship; 

  

	(b)	 	to allow the Lender (or its agents), at any time and from time to time, to inspect the original class and related records of the Owner and the Ship at the offices of the
classification society and to take copies of them; 

  

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

  

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

  

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

  

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

  

	 	(i)	 	to confirm that the 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 

  

 29 

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

  

	14.5	 	Modification. The Borrower shall procure that the Owner shall not make any modification or repairs to, or replacement of, the Ship or equipment installed on her which
would or might materially alter the structure, type or performance characteristics of the Ship or materially reduce her value. 

  

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

  

	14.7	 	Surveys. The Borrower shall procure that the Owner shall submit the Ship regularly to all periodical or other surveys which may be required for classification purposes
and, if so required by the Lender provide the Lender, with copies of all survey reports. 

  

	14.8	 	Inspection. The Borrower shall procure that the Owner shall permit the Lender (by surveyors or other persons appointed by it for that purpose) to board the Ship at all
reasonable times (but in any event without interfering in the ordinary trading of the Ship) to inspect her condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections.

  

	14.9	 	Prevention of and release from arrest. The Borrower shall procure that the Owner shall promptly discharge: 

  

	(a)	 	all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against the Ship, the Earnings or the Insurances; 

  

	(b)	 	all taxes, dues and other amounts charged in respect of the Ship, the Earnings or the Insurances; and 

  

	(c)	 	all other outgoings whatsoever in respect of the Ship, the Earnings or the Insurances; 

  

	  	 	and, forthwith upon receiving notice of the arrest of the Ship, or of her detention in exercise or purported exercise of any lien or claim, the Owner shall procure her release
within 2 Business Days of receiving such notice by providing bail or otherwise as the circumstances may require. 

  

	14.10	 	Compliance with laws etc. The Borrower shall procure that the Owner, the Approved Manager and the Approved Technical Sub-Manager shall: 

  

	(a)	 	comply, or procure compliance with, the ISM Code, all Environmental Laws and all other laws or official requirements relating to the Ship, its ownership, operation and management or
to the business of the Owner; 

  

	(b)	 	not employ the Ship nor allow her employment in any manner contrary to any law or official requirement in any relevant jurisdiction including, but not limited to, the ISM Code; and

  

	(c)	 	in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit her to enter or trade to any zone which is declared a war zone by any
government or by the Ship’s war risks insurers unless in the case of such a zone where 

  

 30 

	  	 	any additional premium would be payable, prior notification to the Lender has been given and the Owner has (at its expense) effected any special, additional or modified insurance
cover which the Lender may require. 

  

	14.11	 	Provision of information. The Borrower shall procure that the Owner shall promptly provide the Lender with any information which it requests (which request shall be
reasonable prior to the occurrence of an Event of Default which is continuing) regarding: 

  

	(a)	 	the Ship, her employment, position and engagements; 

  

	(b)	 	the Earnings and payments and amounts due to the Ship’s master and crew; 

  

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

  

	(d)	 	any towages and salvages; 

  

	(e)	 	the Owner’s compliance, the Approved Manager’s compliance, the Approved Technical Sub-Manager’s compliance and the Ship’s compliance, with the ISM Code,

  
 and, upon the Lender’s request, provide
copies of any current charter relating to the Ship, of any current charter guarantee and of the ISM Documentation. 
  

	14.12	 	Notification of certain events. The Borrower shall procure that the Owner shall immediately notify the Lender by telex, confirmed forthwith, by letter of:

  

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

  

	(b)	 	any occurrence as a result of which the Ship has become or is, by the passing of time or otherwise, likely to become a Total Loss; 

  

	(c)	 	any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with its terms;

  

	(d)	 	any arrest or detention of the Ship, any exercise or purported exercise of any lien on the Ship or her Earnings or any requisition of the Ship for hire; 

  

	(e)	 	any intended dry docking of the Ship; 

  

	(f)	 	any Environmental Claim made against the Owner, the Approved Manager, the Approved Technical Sub-Manager or in connection with the Ship, or any Environmental Incident;

  

	(g)	 	any claim for breach of the ISM Code being made against the Owner, the Approved Manager, the Approved Technical Sub-Manager or otherwise in connection with the Ship; or

  

	(h)	 	any other matter, event or incident, actual or threatened, the effect of which will or could lead to the ISM Code not being complied with, 

  
 and the Owner shall keep the Lender advised in writing on a regular basis
and in such detail as the Lender shall require of the Owner’s, the Approved Manager’s, the Approved Technical Sub-Manager’s or any other person’s response to any of those events or matters. 
  

	14.13	 	Restrictions on chartering, appointment of managers etc. The Borrower shall procure that the Owner shall not without the prior written consent of the Lender:

  

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

  

 31 

	(b)	 	(other than in respect of the Time Charter) enter into any time or consecutive voyage charter in respect of the Ship for a term which exceeds, or which by virtue of any optional
extensions may exceed, 6 months; 

  

	(c)	 	charter the Ship otherwise than on bona fide arm’s length terms at the time when the Ship is fixed; 

  

	(d)	 	appoint a manager of the Ship other than the Approved Manager, the Approved Technical Sub-Manager or agree to any alteration to the terms of the Approved Manager’s and the
Approved Technical Sub-Manager’s appointment without the consent of the Lender, such consent not to be unreasonably withheld; 

  

	(e)	 	de-activate or lay up the Ship; or 

  

	(f)	 	put the Ship into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed $700,000 (or the equivalent in any other
currency) unless that person has first given to the Lender and in terms satisfactory to it a written undertaking not to exercise any lien on the Ship or her Earnings for the cost of such work or otherwise or other arrangements satisfactory to the
Lender are made to ensure that no such lien will be exercised. 

  

	14.14	 	Notice of Mortgage. The Borrower shall procure that the Owner shall keep the Mortgage registered against the Ship as a valid first priority mortgage, carry on board
the Ship a certified copy of the Mortgage and place and maintain in a conspicuous place in the navigation room and the Master’s cabin of the Ship a framed printed notice stating that the Ship is mortgaged by the Owner to the Lender.

  

	14.15	 	Sharing of Earnings. The Borrower shall procure that the Owner shall not: 

  

	(a)	 	enter into any agreement or arrangement for the sharing of any Earnings; 

  

	(b)	 	enter into any agreement or arrangement for the postponement of any date on which any Earnings are due; the reduction of the amount of any Earnings or otherwise for the release or
adverse alteration of any right of the Owner to any Earnings; or 

  

	(c)	 	enter into any agreement or arrangement for the release of, or adverse alteration to, any guarantee or Security Interest relating to any Earnings. 

  

	15	 	SECURITY COVER 

  

	15.1	 	Provision of additional security cover; prepayment of Loan. The Borrower undertakes with the Lender that if the Lender notifies the Borrower that:

  

	(a)	 	the market value (determined as provided below) of the Ship; plus 

  

	(b)	 	the net realisable value of any additional security previously provided under this Clause 15, 

  
 is below 120 per cent. of the Loan, the Borrower will, within 10 Business Days after the date on which the Lender’s
notice is served, either: 
  

	 	(i)	 	provide, or ensure that a third party provides, additional security acceptable to the Lender which, in the opinion of the Lender, has a net realisable value at least equal to the
shortfall and which, if it consists of or includes a Security Interest, covers such asset or assets and is documented in such terms as the Lender may approve or require; or 

  

	 	(ii)	 	prepay in accordance with Clause 8 such part (at least) of the Loan as will eliminate the shortfall. 

  

 32 

	15.2	 	Meaning of additional security. In Clause 15.1 “security” means a Security Interest over an asset or assets acceptable to the Lender (whether securing
the Borrower’s liabilities under the Finance Documents or a guarantee in respect of those liabilities), or a guarantee, letter of credit or other security in respect of the Borrower’s liabilities under the Finance Documents.

  

	15.3	 	Requirement for additional documents. The Borrower shall not be deemed to have complied with Clause 15.1 (i) above until the Lender has received in connection with the
additional security certified copies of documents of the kinds referred to in paragraphs 3, 4 and 5 of Schedule 2, Part A and such legal opinions in terms acceptable to the Lender from such lawyers as it may select. 

  

	15.4	 	Valuation of Ship. The market value of the Ship at any date is that shown by taking a valuation prepared: 

  

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

  

	(b)	 	by an independent sale and purchase shipbroker appointed, or approved, by the Lender; 

  

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

  

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

  

	(e)	 	after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale. 

  

	15.5	 	Value of additional security. The net realisable value of any additional security which is provided under Clause 15.1 and which consists of a Security Interest over a
vessel shall be that shown by a valuation complying with the requirements of Clause 15.4. 

  

	15.6	 	Valuations binding. Any valuation under Clause 15.1(i), 15.4 or 15.5 shall, in the absence of manifest error, be binding and conclusive as regards the Borrower, as
shall be any valuation which the Lender make of a security which does not consist of or include a Security Interest. 

  

	15.7	 	Provision of information. The Borrower shall promptly provide the Lender and any shipbroker or expert acting under Clause 15.4 or 15.5 with any information which the
Lender or the shipbroker or expert may reasonably request for the purposes of the valuation; and, if the Borrower fails to provide the information by the date specified in the request, the valuation may be made on any basis and assumptions which the
shipbroker or the Lender (or the expert appointed by them) consider prudent. 

  

	15.8	 	Payment of valuation expenses. Without prejudice to the generality of the Borrower’s obligations under Clauses 20.2, 20.3 and 21.3, the Borrower shall, on demand,
pay the Lender the amount of the reasonable fees and expenses of any shipbroker or expert instructed by the Lender under this Clause and all legal and other expenses reasonably incurred by the Lender in connection with any matter arising out of this
Clause. 

  

	15.9	 	Frequency of valuations. The Lender may commission valuations of the Ship at any such time as it considers appropriate and not less than once in each calendar year.

  

	16	 	PAYMENTS AND CALCULATIONS 

  

	16.1	 	Currency and method of payments. All payments to be made by the Borrower to the Lender under a Finance Document shall be made to the Lender: 

 

 33 

	(a)	 	if in Dollars, by not later than 11.00 a.m. (New York City time) and if in an Optional Currency, by not later than 11.00 a.m. (in the principal financial centre for that Optional
Currency), in each case on the due date; 

  

	(b)	 	if in Dollars, in same day Dollar funds settled through the New York Clearing House Interbank Payments System and if in an Optional Currency, in immediately available funds (or in
each case in such other funds and/or settled in such other manner as the Lender shall specify as being customary at the time for the settlement of international transactions of the type contemplated by this Agreement denominated in Dollars or the
relevant Optional Currency); and 

  

	(c)	 	in the case of an amount payable by the Borrower to the Lender, if in Dollars, to the account of the Lender at Bank of New York, New York (Account No. 80-33-13-86-29), if in an
Optional Currency to such account of the Lender with such bank as the Lender shall have notified to the Borrower, or in each case to such other account with such other bank as the Lender may from time to time notify to the Borrower.

  

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

  

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

  

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

 

	(c)	 	if the due date falls on the first of two successive non-Business Days, the due date shall be bought forward to the immediately preceding Business Day; or 

 

	(d)	 	if the due date falls on the second of two successive non-Business Days, the due date shall be extended to the next succeeding Business Day, 

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

	16.3	 	Basis for calculation of periodic payments. All interest and any other payments under any Finance Document which are of an annual or periodic nature shall accrue from
day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year. 

  

	16.4	 	Currency of Interest Payments. All payments of interest in respect of the Loan or any part thereof shall be made in the currency in which the Loan is outstanding at
the relevant time. 

  

	16.5	 	Lender accounts. The Lender shall maintain an account showing the amounts advanced by the Lender and all other sums owing to the Lender from the Borrower and each
Security Party under the Finance Documents and all payments in respect of those amounts made by the Borrower and any Security Party. 

  

	16.6	 	Accounts prima facie evidence. If the account maintained under Clause 16.5 shows an amount to be owing by the Borrower or a Security Party to the Lender, that account
shall be prima facie evidence (save in the case of manifest error) that that amount is owing to the Lender. 

  

	17	 	APPLICATION OF RECEIPTS 

  

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

  

 34 

	  	 	FIRST: in or towards satisfaction of any amounts then due and payable under the Finance Documents (or any of them) in such order of application and/or such proportions as the Lender
may specify by notice to the Borrower and the Security Parties; 

  

	  	 	SECONDLY: (following the occurrence of an Event of Default or Potential Event of Default which is continuing) in retention of an amount equal to any amount not then due and payable
under any Finance Document but which the Lender, by notice to the Borrower and the Security Parties, states in its opinion will or may become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction
of them in accordance with the foregoing provisions of this Clause; and 

  

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

  

	17.2	 	Variation of order of application. The Lender may (following the occurrence of an Event of Default or Potential Event of Default which is continuing), by notice to the
Borrower and the Security Parties, provide for a different manner of application from that set out in Clause 17.1 either as regards a specified sum or sums or as regards sums in a specified category or categories. 

  

	17.3	 	Notice of variation of order of application. The Lender may give notices under Clause 17.2 from time to time in respect of sums which may be received or recovered in
the future. 

  

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

  

	18	 	EARNINGS 

  

	18.1	 	Payment of Earnings. The Borrower undertakes with the Lender to ensure that, throughout the Security Period (and subject only to the provisions of the General
Assignment), all the Earnings are paid to the Earnings Account. 

  

	18.2	 	Monthly retentions. The Borrower undertakes with the Lender to ensure that, throughout the Security Period commencing on the date falling one month after the Drawdown
Date and on the same day in each subsequent month, there is transferred to the Retention Account out of the Earnings received in the Earnings Account during the preceding calendar month: 

  

	(a)	 	one-sixth of the Original Dollar Amount of the repayment instalment falling due under Clause 8 on the next Repayment Date; and 

  

	(b)	 	the relevant fraction of the aggregate Original Dollar Amount of interest on the Loan which is payable on the next due date for payment of interest under this Agreement.

  
 The “relevant fraction” is a
fraction of which the numerator is 1 and the denominator the number of months comprised in the then current Interest Period (or, if the period is shorter, the number of months from the later of the commencement of the current Interest Period or the
last due date for payment of interest to the next date for payment of interest under this Agreement). 
  

	18.3	 	Shortfall in Earnings. If the aggregate Earnings received in the Earnings Account are insufficient in any month for the required amount to be transferred to the
Retention Account under Clause 18.2, the Borrower shall on demand from the Lender make up the amount of the insufficiency by payment in Dollars to the Retention Account; but, without thereby prejudicing the Lender’s right to make such demand at
any time, the Lender may permit the Borrower to make up all or part of the insufficiency by increasing the amount 

  

 35 

	  	 	of any transfer under Clause 18.2 from the Earnings received in the next or subsequent months. 

  

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

  

	18.5	 	Release of accrued interest. Interest accruing under Clause 18.4 shall be released to the Borrower on each Repayment Date unless an Event of Default or a Potential
Event of Default has occurred or the then credit balance on the Retention Account is less than what would have been the balance had the full amount required by Clause 18.2 (and Clause 18.3, if applicable) been transferred in that and each previous
month. 

  

	18.6	 	Location of accounts. The Borrower shall promptly: 

  

	(a)	 	comply with any requirement of the Lender as to the location or re-location of the Earnings Account and the Retention Account (or either of them); 

  

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

  

	18.7	 	Debits for expenses etc. The Lender shall be entitled (but not obliged) from time to time to debit the Earnings Account without prior notice in order to discharge any
amount due and payable under Clause 20 or 21 to the Lender or payment of which the Lender has become entitled to demand under Clause 20 or 21. 

  

	18.8	 	Borrower’s obligations unaffected. The provisions of this Clause 18 (as distinct from a distribution effected under Clause 18.4) do not affect:

  

	(a)	 	the liability of the Borrower to make payments of principal and interest on the due dates; or 

  

	(b)	 	any other liability or obligation of the Borrower or any Security Party under any Finance Document. 

  

	19	 	EVENTS OF DEFAULT 

  

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

  

	(a)	 	the Borrower or any Security Party fails to pay when due or (if so payable) on demand any sum payable under a Finance Document or under any document relating to a Finance Document;
save that such failure shall not constitute an Event of Default if (i) such failure is due to a bank payment transmission error and (ii) the Borrower or relevant Security Party remedies such failure within 2 Business Days of notice from the Lender;
or 

  

	(b)	 	any breach occurs of Clause 9.2, 11.2, 11.3, 11.17, 12.2, 12.3, 13.2, 15.1 or 18.1; or 

  

	(c)	 	any breach by the Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach covered by paragraph (a) or (b) above) unless, in the opinion of
the Lender, such default is capable of remedy and such default is remedied within 10 Business Days after written notice from the Lender requesting action to remedy the same; or 

  

	(d)	 	(subject to any applicable grace period specified in any Finance Document) any breach (which the Lender considers, in its discretion, to be material) by the Borrower or any Security
Party occurs of any provision of a Finance Document (other than a breach covered by paragraph (a), (b) or (c) above); or 

  

 36 

	(e)	 	any representation, warranty or statement (which the Lender considers, in its discretion, to be material) made by, or by an officer of, the Borrower or a Security Party in a Finance
Document or in the Drawdown Notice or any other notice or document relating to a Finance Document is untrue or misleading when it is made; or 

  

	(f)	 	any of the following occurs in relation to any Financial Indebtedness of a Relevant Person exceeding $200,000 (or the equivalent in any other currency) in aggregate:

  

	 	(i)	 	any Financial Indebtedness of a Relevant Person is not paid when due or, if so payable, on demand; or 

  

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

  

	 	(iii)	 	a lease, hire purchase agreement or charter creating any Financial Indebtedness of a Relevant Person is terminated by the lessor or owner or becomes capable of being terminated as a
consequence of any termination event; or 

  

	 	(iv)	 	any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee, foreign exchange or other facility, or any swap or other derivative contract or transaction,
relating to any Financial Indebtedness of a Relevant Person ceases to be available or becomes capable of being terminated as a result of any event of default, or cash cover is required, or becomes capable of being required, in respect of such a
facility as a result of any event of default; or 

  

	 	(v)	 	any Security Interest securing any Financial Indebtedness of a Relevant Person becomes enforceable; or 

  

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

  

	 	(i)	 	a Relevant Person becomes, in the opinion of the Lender, unable to pay its debts as they fall due; or 

  

	 	(ii)	 	any assets of a Relevant Person are subject of any form of execution, attachment, arrest, sequestration or distress in respect of a sum of, or sums aggregating, $250,000 or more or
the equivalent in another currency; or 

  

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

  

	 	(iv)	 	a Relevant Person makes any formal declaration of bankruptcy or any formal statement to the effect that it is insolvent or likely to become insolvent, or a winding up or
administration order is made in relation to a Relevant Person, or the members or directors of a Relevant Person pass a resolution to the effect that it should be wound up, placed in administration or cease to carry on business, save that this
paragraph does not apply to a fully solvent winding up of a Relevant Person other than the Borrower which is, or is to be, effected for the purposes of an amalgamation or reconstruction previously approved by the Lender and effected not later than 3
months after the commencement of the winding up; or 

  

	 	(v)	 	a petition is presented in any Pertinent Jurisdiction for the winding up or administration, or the appointment of a provisional liquidator, of a Relevant Person unless the petition
is being contested in good faith and on substantial grounds and is dismissed or withdrawn within 30 days of the presentation of the petition; or 

  

	 	(vi)	 	a Relevant Person petitions a court, or presents any proposal for, any form of judicial or non-judicial suspension or deferral of payments, reorganisation of its

  

 37 

	 	  	 	debt (or certain of its debt) or arrangement with all or a substantial proportion (by number or value) of its creditors or of any class of them or any such suspension or deferral of
payments, reorganisation or arrangement is effected by court order, contract or otherwise; or 

  

	 	(vii)	 	any meeting of the members or directors of a Relevant Person is summoned for the purpose of considering a resolution or proposal to authorise or take any action of a type described
in paragraphs (iii), (iv), (v) or (vi) above; or 

  

	 	(viii)	 	in a Pertinent Jurisdiction other than England, any event occurs or any procedure is commenced which, in the opinion of the Lender, is similar to any of the foregoing; or

  

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

  

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

  

	 	(i)	 	for the Borrower or any Security Party to discharge any liability under a Finance Document or to comply with any other obligation which the Lender considers material under a Finance
Document; or 

  

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

  

	(j)	 	any official consent necessary to enable the Owner to own, operate or charter the Ship or to enable the Borrower, the Owner or any Security Party to comply with any provision which
the Lender considers material of a Finance Document, the MOA or the Time Charter is not granted, expires without being renewed, is revoked or becomes liable to revocation or any condition of such a consent is not fulfilled; or

  

	(k)	 	any party (or parties acting in concert) acquires beneficial ownership or control of the voting rights of 40 per cent. or more of the issued share capital of the Borrower or it
appears to the Lender that, without its prior consent, a change has occurred or probably has occurred after the date of this Agreement in the ultimate beneficial ownership of any of the shares in the Owner or a majority of the shares in the Approved
Manager, the Approved Technical Sub-Manager or in the ultimate control of the voting rights attaching to any of those shares; or 

  

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

  

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

  

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

  

	 	(i)	 	a change in the financial position, state of affairs or prospects of the Borrower or the Owner or the Borrower’s Group; or 

  

	 	(ii)	 	any accident or other event involving the Ship or another vessel owned, chartered or operated by a Relevant Person, 

  

 38 

	  	 	in the light of which the Lender considers that there is a significant risk that the Borrower or the Owner is, or will later become, unable to discharge its liabilities under the
Finance Documents as they fall due. 

  

	19.2	 	Actions following an Event of Default. On, or at any time after, the occurrence of an Event of Default which is continuing the Lender may: 

  

	(a)	 	serve on the Borrower a notice stating that all obligations of the Lender to the Borrower under this Agreement are terminated; and/or 

  

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

  

	(c)	 	take any other action which, as a result of the Event of Default or any notice served under paragraph (a) or (b) above, the Lender is entitled to take under any Finance Document or
any applicable law. 

  

	19.3	 	Termination of obligations. On the service of a notice under paragraph (a) of Clause 19.2, all the obligations of the Lender to the Borrower under this Agreement shall
terminate. 

  

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

  

	19.5	 	Multiple notices; action without notice. The Lender may serve notices under paragraphs (a) and (b) of Clause 19.2 simultaneously or on different dates and it may take
any action referred to in that Clause if no such notice is served or simultaneously with or at any time after the service of both or either of such notices. 

  

	19.6	 	Exclusion of Lender liability. Neither the Lender nor any receiver or manager appointed by the Lender, shall have any liability to the Borrower or a Security Party:

  

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

  

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

  
 except that this does not exempt the Lender or a receiver or manager from liability for losses shown to have been caused by the gross negligence or the wilful misconduct of the Lender’s own officers and employees
or (as the case may be) such receiver’s or manager’s own partners or employees. 
  

	19.7	 	Relevant Persons. In this Clause 19 “a Relevant Person” means the Borrower, the Owner, any other Security Party and any other company in the
Borrower’s Group but excluding any company which is dormant and the value of whose gross assets is $50,000 or less. 

  

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

  

 39 

	20	 	FEES AND EXPENSES 

  

	20.1	 	Arrangement fee and commitment commission. The Borrower: 

  

	(a)	 	has paid to the Lender on 25 April 2002, being the date on which it accepted the Lender’s commitment letter dated 25 April 2002, an arrangement fee of $76,250; and

  

	(b)	 	shall pay to the Lender quarterly in arrears (and on the earlier of the dates referred to at (i) and (ii) below) during the period from 25 April 2002 to the earlier of (i) the
Drawdown Date and (ii) the date on which the Lender’s obligation to advance the Loan shall be terminated and cancelled, commitment commission at the rate of 0.3 per cent. per annum on the undrawn amount of the Loan. 

  

	20.2	 	Costs of negotiation, preparation etc. The Borrower shall pay to the Lender on its demand the amount of all expenses reasonably incurred by the Lender in connection
with the negotiation, preparation, execution or registration of any Finance Document or any related document or with any transaction contemplated by a Finance Document or a related document. 

  

	20.3	 	Costs of variation, amendments, enforcement etc. The Borrower shall pay to the Lender, on the Lender’s demand, the amount of all expenses incurred (which, in the
case of paragraph (a), (b) and (c) below shall be reasonably incurred) by the Lender in connection with: 

  

	(a)	 	any amendment or supplement to a Finance Document, or any proposal for such an amendment to be made; 

  

	(b)	 	any consent or waiver by the Lender concerned under or in connection with a Finance Document, or any request for such a consent or waiver; 

  

	(c)	 	the valuation of any security provided or offered under Clause 15 or any other matter relating to such security; or 

  

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

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

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

  

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

  

	21	 	INDEMNITIES 

  

	21.1	 	Indemnities regarding borrowing and repayment of Loan. The Borrower shall fully indemnify the Lender on its demand in respect of all expenses, liabilities and losses
which are incurred by the Lender, or which the Lender reasonably and with due diligence estimates that it will incur, as a result of or in connection with: 

  

 40 

	(a)	 	the Loan not being borrowed on the date specified in the Drawdown Notice for any reason other than a default by the Lender; 

  

	(b)	 	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the last day of an Interest Period or other relevant period; 

  

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

  

	(d)	 	the occurrence and/or continuance of an Event of Default or a Potential Event of Default and/or the acceleration of repayment of the Loan under Clause 19; 

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

	21.2	 	Breakage costs. Without limiting its generality, Clause 21.1 covers any liability, expense or loss, including a loss of a prospective profit, incurred by the Lender:

  

	(a)	 	in liquidating or employing deposits from third parties acquired or arranged to fund or maintain all or any part of the Loan and/or any overdue amount (or an aggregate amount which
includes the Loan or any overdue amount); and 

  

	(b)	 	in terminating, or otherwise in connection with, any interest and/or currency swap or any other transaction entered into (whether with another legal entity or with another office or
department of the Lender) to hedge any exposure arising under this Agreement or a number of transactions of which this Agreement is one. 

  

	21.3	 	Miscellaneous indemnities. The Borrower shall fully indemnify the Lender on its demand in respect of all claims, demands, proceedings, liabilities, taxes, losses and
expenses of every kind (“liability items”) which may be made or brought against, or incurred by, the Lender, in any country, in relation to: 

  

	(a)	 	any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Lender or by any receiver appointed under a Finance Document;

  

	(b)	 	any other event, matter or question which occurs or arises at any time during the Security Period and which has any connection with, or any bearing on, any Finance Document, any
payment or other transaction relating to a Finance Document or any asset covered (or previously covered) by a Security Interest created (or intended to be created) by a Finance Document; 

  
 other than liability items which are shown to have been caused by the gross
negligence or wilful misconduct of the Lender’s own officers or employees. 
  

	21.4	 	Environmental indemnity. Without prejudice to its generality, Clause 21.3 covers any liability items which arise, or are asserted, under or in connection with any law
relating to safety at sea, pollution or the protection of the environment. 

  

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

  

 41 

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

 

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

  

	(c)	 	enforcing any such order or judgment; 

  
 the Borrower shall indemnify the Lender against the loss arising when the amount of the payment actually received by the Lender is converted at the
available rate of exchange into the Contractual Currency. 
  
 In
this Clause 21.5, the “available rate of exchange” means the rate at which the Lender is able at the opening of business (London time) on the Business Day after it receives the sum concerned to purchase the Contractual Currency with
the Payment Currency. 
  

	21.6	 	Separate Liability. Clause 21.5 creates a separate liability of the Borrower which is distinct from its other liabilities under the Finance Documents and which shall
not be merged in any judgment or order relating to those other liabilities. 

  

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

  

	22	 	NO SET-OFF OR TAX DEDUCTION 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

 42 

	23	 	ILLEGALITY, ETC 

  

	23.1	 	Illegality. This Clause 23 applies if the Lender notifies the Borrower that it has become, or will with effect from a specified date, become: 

 

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

  

	(b)	 	contrary to, or inconsistent with, an official requirement, 

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

	23.2	 	Notification and effect of illegality. On the Lender notifying the Borrower under Clause 23.1, the Lender’s obligation to make the Loan shall terminate; and
thereupon or, if later, on the date specified in the Lender’s notice under Clause 23.1 as the date on which the notified event would become effective the Borrower shall prepay the Loan in full in accordance with Clause 8.

  

	24	 	INCREASED COSTS 

  

	24.1	 	Increased costs. This Clause 24 applies if the Lender notifies the Borrower that it considers that as a result of: 

  

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

  

	(b)	 	the effect of complying with any official requirement (including any which relates to capital adequacy or liquidity controls or which affects the manner in which the Lender
allocates capital resources to its obligations under this Agreement) (including, without limitation, the implementation of any regulations which shall replace those set out in the statement of the Basle Committee on Banking Regulations and
Supervisory Practices dated July 1988 and entitled “International Convergence of Capital Measurement and Capital Structures”) which is introduced, or altered, or the interpretation or application of which is altered, after the date of this
Agreement, 

  
 is that the Lender (or a parent
company of it) has incurred or will incur an “increased cost”, that is to say: 
  

	 	(i)	 	an additional or increased cost incurred as a result of, or in connection with, the Lender having entered into, or being a party to, this Agreement or having taken an assignment of
rights under this Agreement, of funding or maintaining the Loan or performing its obligations under this Agreement, or of having outstanding all or any part of the Loan or other unpaid sums; or 

  

	 	(ii)	 	a reduction in the amount of any payment to the Lender under this Agreement or in the effective return which such a payment represents to the Lender or on its capital;

  

	 	(iii)	 	an additional or increased cost of funding all or maintaining all or any of the advances comprised in a class of advances formed by or including the Loan or (as the case may
require) the proportion of that cost attributable to the Loan; or 

  

	 	(iv)	 	a liability to make a payment, or a return foregone, which is calculated by reference to any amounts received or receivable by the Lender under this Agreement;

  

 43 

 but not an item attributable to a change in the rate of tax on the overall net income of the Lender (or a
parent company of it) or an item covered by the indemnity for tax in Clause 21.1 or by Clause 22. 
  
 For the purposes of this Clause 24.1 the Lender may in good faith allocate or spread costs and/or losses among its assets and liabilities (or any class
thereof) on such basis as it considers appropriate. 
  

	24.2	 	Payment of increased costs. The Borrower shall pay to the Lender, on its demand, the amounts which the Lender from time to time notifies the Borrower that it has
specified to be necessary to compensate it for the increased cost (but not for any loss of profit). 

  

	24.3	 	Notice of prepayment. If the Borrower is not willing to continue to compensate the Lender for the increased cost under Clause 24.2, the Borrower may give the Lender
not less than 3 days’ notice of its intention to prepay the Loan at the end of an Interest Period. 

  

	24.4	 	Prepayment. A notice under Clause 24.3 shall be irrevocable; and on the date specified in its notice of intended prepayment, the Borrower shall prepay (without premium
or penalty) the Loan, together with accrued interest thereon at the applicable rate plus the Margin. 

  

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

  

	25	 	SET-OFF 

  

	25.1	 	Application of credit balances. The Lender may without prior notice but following the occurrence of an Event of Default which is continuing: 

 

	(a)	 	apply any balance (whether or not then due) which at any time stands to the credit of any account in the name of the Borrower at any office in any country of the Lender in or
towards satisfaction of any sum then due from the Borrower to the Lender under any of the Finance Documents; and 

  

	(b)	 	for that purpose: 

  

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

  

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

  

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

  

	25.2	 	Existing rights unaffected. The Lender shall not be obliged to exercise any of its rights under Clause 25.1; and those rights shall be without prejudice and in
addition to any right of set-off, combination of accounts, charge, lien or other right or remedy to which the Lender is entitled (whether under the general law or any document). 

  

	26	 	TRANSFERS AND CHANGES IN LENDING OFFICES 

  

	26.1	 	Transfer by Borrower. The Borrower may not, without the consent of the Lender: 

  

	(a)	 	transfer any of its rights or obligations under any Finance Document; or 

  

	(b)	 	enter into any merger, de-merger or other reorganisation, or carry out any other act, as a result of which any of its rights or liabilities would vest in, or pass to, another
person. 

  

 44 

	26.2	 	Assignment by Lender. The Lender may assign all or any of the rights and interests which it has under or by virtue of the Finance Documents with the consent of the
Borrower, such consent not to be unreasonably withheld or delayed. 

  

	26.3	 	Rights of assignee. In respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document, or any misrepresentation made in or in
connection with a Finance Document, a direct or indirect assignee of any of the Lender’s rights or interests under or by virtue of the Finance Documents shall be entitled to recover damages by reference to the loss incurred by that assignee
(excluding any loss of profit) as a result of the breach or misrepresentation irrespective of whether the Lender would have incurred a loss of that kind or amount.  

  

	26.4	 	Sub-participation; subrogation assignment. The Lender may sub-participate all or any part of its rights and/or obligations under or in connection with the Finance
Documents without the consent of, or any notice to, the Borrower; and the Lender may assign, in any manner and terms agreed by it, all or any part of those rights to an insurer or surety who has become subrogated to them. 

 

	26.5	 	Disclosure of information. The Lender may disclose to a potential assignee or sub-participant any information which the Lender has received in relation to the
Borrower, any Security Party or their affairs under or in connection with any Finance Document, unless the information is clearly of a confidential nature. 

  

	26.6	 	Change of lending office. The Lender may change its lending office by giving notice to the Borrower and the change shall become effective on the later of:

  

	(a)	 	the date on which the Borrower receives the notice; and 

  

	(b)	 	the date, if any, specified in the notice as the date on which the change will come into effect. 

  

	27	 	VARIATIONS AND WAIVERS 

  

	27.1	 	Variations, waivers etc. by Lender. A document shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or the Lender’s rights or
remedies under such a provision or the general law, only if the document is signed, or specifically agreed to by fax or telex, by the Borrower and the Lender and, if the document relates to a Finance Document to which a Security Party is party, by
that Security Party. 

  

	27.2	 	Exclusion of other or implied variations. Except for a document which satisfies the requirements of Clause 27.1, no document, and no act, course of conduct, failure or
neglect to act, delay or acquiescence on the part of the Lender (or any person acting on its behalf) shall result in the Lender (or any person acting on its behalf) being taken to have varied, waived, suspended or limited, or being precluded
(permanently or temporarily) from enforcing, relying on or exercising: 

  

	(a)	 	a provision of this Agreement or another Finance Document; or 

  

	(b)	 	an Event of Default; or 

  

	(c)	 	a breach by the Borrower or a Security Party of an obligation under a Finance Document or the general law; or 

  

	(d)	 	any right or remedy conferred by any Finance Document or by the general law; 

  

and there shall not be implied into any Finance Document any term or condition requiring any such provision to be enforced, or such right or remedy to
be exercised, within a certain or reasonable time. 
  

 45 

	28	 	NOTICES 

  

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

  

	28.2	 	Addresses for communications. A notice shall be sent: 

  

	 (a)    the Borrower:
	  	 c/o the Approved Manager
 Macedonia
House
 367 Syngrou Avenue
 175 64 P. Faliro
 Greece

		
	 	  	Fax No: +(3010) 948 0710
		
	 (b)    to the Lender:
	  	 Shipping Division
 114 Kolokotroni &
15 II Merarchias Str.
 185 35 Piraeus
 Greece

		
	 	  	 Fax No: +(3010) 422 6779
 Attn: the
Manager

  
 or to such other
address as the relevant party may notify the other. 
  

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

  

	(a)	 	a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered; 

  

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

  

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

  

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

  

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

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

  

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

  

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

  

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

  

 46 

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

  

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

  

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

  

	29	 	SUPPLEMENTAL 

  

	29.1	 	Rights cumulative, non-exclusive. The rights and remedies which the Finance Documents give to the Lender are: 

  

	(a)	 	cumulative; 

  

	(b)	 	may be exercised as often as appears expedient; and 

  

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

  

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

  

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

  

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

  

	30	 	LAW AND JURISDICTION 

  

	30.1	 	English law. This Agreement shall be governed by, and construed in accordance with, English law. 

  

	30.2	 	Exclusive English jurisdiction. Subject to Clause 30.3, the courts of England shall have exclusive jurisdiction to settle any disputes which may arise out of or in
connection with this Agreement. 

  

	30.3	 	Choice of forum for the exclusive benefit of the Lender. Clause 30.2 is for the exclusive benefit of the Lender, which reserves the rights: 

 

	(a)	 	to commence proceedings in relation to any matter which arises out of or in connection with this Agreement in the courts of any country other than England and which have or claim
jurisdiction to that matter; and 

  

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

  
 The Borrower shall not commence any proceedings
in any country other than England in relation to a matter which arises out of or in connection with this Agreement. 
  

	30.4	 	Process agent. The Borrower irrevocably appoints HFW Nominees Limited at its office for the time being (presently Marlow House, Lloyds Avenue, London EC3) to act as
its 

  

 47 

 agent to receive and accept on its behalf any process or other document relating to any proceedings in
the English courts which are connected with this Agreement. 
  

	30.5	 	Lender’s rights unaffected. Nothing in this Clause 30 shall exclude or limit any right which the Lender may have (whether under the law of any country, an
international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction. 

  

	30.6	 	Meaning of “proceedings”. In this Clause 30, “proceedings” means proceedings of any kind, including an application for a provisional or
protective measure. 

  
 AS WITNESS the hands of the duly
authorised officers or attorneys of the parties the day and year first before written. 
  

 48 

 SCHEDULE 1 
  
 DRAWDOWN NOTICE 
  

	To:	 	Commercial Bank of Greece 

 114 Kolokotroni & 15
Defteras Merarchias Street 
 Piraeus 185 35 
 Greece 
  
 Attention: Loans Administration 
  
 [·] May 2002 
  
 DRAWDOWN NOTICE 
  

	1	 	We refer to the loan agreement (the “Loan Agreement”) dated [·]2002 and made between ourselves, as Borrower, and yourselves, as Lender, in connection with a loan facility of up to US$30,500,000. Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice.

  

	2	 	We request to borrow as follows: 

  

	(a)	 	Amount: US$30,500,000; 

  

	(b)	 	Drawdown Date: [·] May 2002; 

  

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

  

	(d)	 	Payment instructions : [·]. 

  

	3	 	We represent and warrant that: 

  

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

  

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

  

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

  

	5	 	We authorise you to deduct from the Loan [the amount of the arrangement fee referred to in Clause 20.1(a)] [and] [all accrued commitment commission payable in accordance with
Clause 20.1(b)]. 

  
 [Name of Signatory] 

 
 ------------------------------ 
  
 for and on behalf of 
 Tsakos Energy Navigation Limited 
  

 49 

 SCHEDULE 2 
  
 CONDITION PRECEDENT DOCUMENTS 
  

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

	1	 	A duly executed original of: 

  

	(a)	 	this Agreement; 

  

	(b)	 	the Guarantee; and 

  

	(c)	 	the Accounts Pledge. 

  

	2	 	Copies of the certificate of incorporation and constitutional documents of the Borrower, the Owner, the Approved Manager and the Approved Technical Sub-Manager.

  

	3	 	Copies of resolutions of the shareholders and directors of each of the Borrower and the Owner authorising the execution of each of the Finance Documents to which each of the
Borrower and the Owner is a party and, in the case of the Borrower, authorising named officers and/or attorneys-in-fact to give the Drawdown Notice and other notices under this Agreement. 

  

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

  

	5	 	Copies of all official consents which the Seller, the Borrower, the Owner or any other Security Party requires to enter into, or make any payment under, any Finance Document,
the MOA, the Time Charter, the Sub-Time Charter or the Seller’s Sub-Charter Assignment. 

  

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

  

	7	 	A copy of the MOA and of all documents signed or issued by the Owner or the Seller (or both of them) under or in connection with it. 

  

	8	 	A copy of the Time Charter signed by the Owner and the Seller. 

  

	9	 	A copy of the Sub-Time Charter signed by the Seller and Mitsubishi Corporation. 

  

	10	 	A copy of the Seller’s Sub-Charter Assignment signed by the Owner and the Seller in form and on terms and conditions acceptable to the Lender. 

 

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

  

	12	 	If the Lender so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Lender.

  

 50 

 PART B 
  
 The following are the documents referred to in Clause 9.1(b). 
  

	1	 	A duly executed original of the Mortgage, the General Assignment, the Reinsurances Assignment and of the Charter Assignment (and of each document to be delivered under each
of them). 

  

	2	 	Evidence, satisfactory to the Lender, that arrangements have been made with the Seller (and the Seller’s bank) to protect the Lender’s right to repayment of the
Loan between the Drawdown Date and the date of delivery of the Ship under the MOA. 

  

	3	 	Documentary evidence that on the delivery of the Ship to the Borrower pursuant to the MOA: 

  

	(a)	 	the Ship has been unconditionally delivered by the Seller to, and accepted by, the Owner under the MOA, and the full purchase price payable under the MOA (in addition to the part to
be financed by the Loan) will be duly paid; 

  

	(b)	 	the Ship has been definitively and permanently registered in the name of the Owner under Panama flag; 

  

	(c)	 	the Ship is in the absolute and unencumbered ownership of the Owner save as contemplated by the Finance Documents; 

  

	(d)	 	the Ship maintains the class specified in Clause 14.3(b) free of all recommendations and qualifications of the relevant Classification Society; 

  

	(e)	 	the Mortgage has been duly registered against the Ship as a valid first preferred Panamanian ship mortgage in accordance with the laws of Panama; and 

  

	(f)	 	the Ship is insured in accordance with the provisions of this Agreement and all requirements therein in respect of insurances have been complied with. 

  

	4	 	Documents establishing that the Ship will, as from the Drawdown Date, be managed by each of the Approved Manager and the Approved Technical Sub-Manager on terms acceptable to
the Lender together with a letter of undertaking executed by each of the Approved Manager and the Approved Technical Sub-Manager, each on terms approved by the Lender agreeing certain matters in relation to the management of the Ship and
subordinating the rights of each of the Approved Manager and the Approved Technical Sub-Manager against the Ship and the Owner to the rights of the Lender under the Finance Documents. 

  

	5	 	Copies of the document of compliance (DOC) and safety management certificate (SMC) referred to in paragraph (a) of the definition of the ISM Code Documentation certified as
true and in effect by the Borrower and the Approved Manager. 

  

	6	 	A satisfactory, in the opinion of the Lender, valuation (at the expense of the Borrower) of the Ship, addressed to the Lender, stated to be for the purposes of this Agreement
and dated not earlier than 15 days (or such longer period as the Lender may agree) before the Drawdown Date from an independent sale and purchase shipbroker selected or approved by the Lender. 

  

	7	 	At the cost of the Borrower, a favourable opinion from an independent insurance consultant acceptable to the Lender on such matters relating to the insurances for the
relevant Ship as the Lender may require. 

  

 51 

	8	 	Favourable legal opinions from lawyers appointed by the Lender on such matters concerning the laws of Bermuda, Liberia, Panama and such other relevant jurisdictions as the
Lender may require. 

  
 Each of the documents specified in
paragraphs 2, 3, 5, 7, 8, 9 and 10 of Part A and paragraph 5 of Part B above and every other copy document delivered under this Schedule shall be certified as a true and up to date copy by a director or the secretary (or equivalent officer) of the
Borrower. 
  

 52 

 EXECUTION PAGE 
  

	 SIGNED by
	  	)	  	 
	 for and on behalf of
	  	)	  	/s/    Thomas Zafiras
	 TSAKOS ENERGY NAVIGATION LIMITED
	  	)	  
	 in the presence of:
	  	)	  	 
	 	  	 	  	 
	 SIGNED by
	  	)	  	 
	 for and on behalf of
	  	)	  	 /s/    S. Kriebardis

	 COMMERCIAL BANK OF GREECE S.A.
	  	)	  
	 in the presence of:
	  	)	  	 

  

 53Loan Agreement Dated June 21, 2002

 Exhibit 4.19 
  
 Dated 21 June 2002 
  
 TSAKOS ENERGY NAVIGATION LIMITED 
 as
Borrower 
  
 -and- 
  
 THE ROYAL BANK OF SCOTLAND plc 
 as Lender 
  

  
 LOAN AGREEMENT 
  

  
 relating to a loan facility of US$32,200,000 
 to finance Hull No. S-137 under
construction by 
 Samho Heavy Industries Co., Ltd. 
  
 WATSON, FARLEY & WILLIAMS 
 London

 INDEX 
  

	CLAUSE

	  	 	  	PAGE

	   1
	  	PURPOSE, DEFINITIONS AND INTERPRETATION	  	1
			
	   2
	  	DRAWDOWN	  	6
			
	   3
	  	INTEREST AND INTEREST PERIODS	  	7
			
	   4
	  	REPAYMENT AND PREPAYMENT	  	8
			
	   5
	  	CONDITIONS PRECEDENT	  	9
			
	   6
	  	REPRESENTATIONS AND WARRANTIES	  	13
			
	   7
	  	UNDERTAKINGS	  	15
			
	   8
	  	APPLICATION OF EARNINGS	  	18
			
	   9
	  	EVENTS OF DEFAULT	  	18
			
	 10
	  	FEES AND EXPENSES	  	21
			
	 11
	  	PAYMENTS AND CALCULATIONS	  	22
			
	 12
	  	NO COUNTERCLAIM, TAXATION	  	22
			
	 13
	  	CHANGES IN CIRCUMSTANCES	  	23
			
	 14
	  	INDEMNITIES	  	25
			
	 15
	  	SET-OFF	  	25
			
	 16
	  	SECURITY AND APPLICATION	  	26
			
	 17
	  	COMMUNICATIONS	  	27
			
	 18
	  	ASSIGNMENTS	  	27
			
	 19
	  	MISCELLANEOUS	  	28
			
	 20
	  	LAW AND JURISDICTION	  	28
		
	 SCHEDULE
	  	30
		
	 APPENDIX NOTICE OF DRAWING
	  	32

  

 THIS LOAN AGREEMENT is made on the 21st day of June 2002 
  
 BETWEEN 
  
 (1) TSAKOS ENERGY NAVIGATION LIMITED, as Borrower; and 
  
 (2) THE ROYAL BANK OF SCOTLAND plc, as Lender. 
  
 WHEREAS the Lender has agreed to make available to the Borrower a loan facility of Thirty two million two hundred thousand United
States Dollars (US$32,200,000) in a single advance to part-finance the acquisition by Romeo Shipping Company Limited, a wholly-owned subsidiary of the Borrower, of the Suezmax tanker of approximately 164,000 tons deadweight currently being
constructed by Samho Heavy Industries Co., Ltd. and having builder hull number S-137 upon and subject to the terms and conditions contained in this Agreement. 
  

WHEREBY IT IS AGREED 
  
 1 PURPOSE, DEFINITIONS AND INTERPRETATION 
  

	1.1	 	The purpose of the Loan shall be to finance 70% of the lesser of (a) the purchase price of the Ship (as evidenced by the shipbuilding contract in respect of the Ship) and (b)
the market value of the Ship (determined in accordance with Clause 7.3(b)). 

  

	1.2	 	In this Agreement, unless the context otherwise requires, the following expressions shall have the following meanings: 

  
 “Account Charge” means the deed containing, inter alia, a
charge in respect of the Operating Account executed or to be executed by the Borrower in favour of the Lender in such form as the Lender may approve or require; 
  

“Approved Manager” means, for the time being, Tsakos Energy Management Limited, a company incorporated under the laws of the Republic
of Liberia and having its principal place of business at Macedonia House, 367 Syngrou Avenue, 175 64 P. Faliro, Athens, Greece, or any other company which the Lender may, in its sole and absolute discretion, approve from time to time as the manager
of the Ship; 
  
 “Approved Sub-Manager” means,
for the time being, Tsakos Shipping & Trading S.A., a company incorporated under the laws of the Republic of Liberia and having its principal place of business at Macedonia House, 367 Syngrou Avenue, 175 64 P. Faliro, Athens, Greece, or any
other company which the Lender may, in its sole and absolute discretion, approve from time to time as the technical manager of the Ship; 
  
 “Availability Period” means the period commencing on the date of this Agreement and ending on: 
  

	 	(a)	 	15 July 2002 (or such later date as the Lender may agree with the Borrower); or 

  

	 	(b)	 	if earlier, the Drawdown Date or the date on which the Lender’s obligation to make the Loan is cancelled or terminated; 

  
 “Borrower” means Tsakos Energy Navigation Limited, a company
organised and existing under the laws of Bermuda and having its registered office at Mintflower Place, 2nd Floor, 8 Par-la-Ville Road, Hamilton HM 08, Bermuda (and includes its successors); 
  
 “Builder” means Samho Heavy Industries Co., Ltd a company
incorporated in Korea whose principal office is at 1700, Yongdang-Ri, Samho-Myun, Youngam-Gun, Chollanam-Do, Korea; 

 “Business Day” means a day (other than a Saturday or Sunday) on which banks and
financial markets in London are open for business and, in respect of a day on which a payment is required to be made hereunder in Dollars, also a day on which banks and financial markets are open for business in New York City; 
  
 “Credit Support Document” has the meaning given to that
expression in section 14 of the Master Agreement; 
  
 “Credit Support Provider” has the meaning given to that expression in section 14 of the Master Agreement; 
  
 “Dollars” and “$” means the lawful currency for the time being of the United States of America; 
  
 “Drawdown Date” means the date upon which the Borrower has
requested that the Loan be advanced pursuant to Clause 2, or (as the context requires) the date on which the Loan is actually advanced hereunder; 
  
 “Early Termination Date” has the meaning given to that expression in section 14 of the Master Agreement; 
  
 “Earnings” means all moneys whatsoever due or to become due
to or for the account of the Guarantor at any time during the Security Period arising out of the use or operation of the Ship including (but not limited to) all freight, hire, compensation payable to the Guarantor in the event of requisition of the
Ship for hire, remuneration for salvage and towage services, demurrage and detention moneys and damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of the Ship and all sums
recoverable under insurances in respect of loss of Earnings (and including, if and whenever the Ship is employed on terms whereby any or all such moneys as aforesaid are pooled or shared with any other person, that proportion of the net receipts of
the relevant pooling or sharing arrangement which is attributable to the Ship); 
  
 “Environmental Claim” and “Environmental Incident” each has the meaning ascribed to such term in the Mortgage; 
  
 “Event of Default” means any one of the events listed in Clause 9.1; 
  
 “General Assignment” means the general assignment of
Earnings, Insurances and Requisition Compensation in respect of the Ship executed or to be executed by the Guarantor in favour of the Lender in such form as the Lender may approve or require; 
  
 “Guarantee” means the guarantee of the obligations of the
Borrower under this Agreement executed or to be executed by the Guarantor in favour of the Lender in such form as the Lender may approve or require; 
  
 “Guarantor” means Romeo Shipping Company Limited, a corporation organised and existing under the laws of the Republic of Liberia and
having its registered office at 80 Broad Street, Monrovia, Liberia; 
  
 “Indebtedness” means, in relation to any person, any obligation (whether present or future, actual or contingent, secured or unsecured, as principal or surety or otherwise) for the payment or repayment of money; 

 
 “Insurances” has the meaning ascribed to such term in the
Mortgage; 
  
 “Interest Period” means, in
relation to the Loan, a period the commencement and length of which shall be determined in accordance with the provisions of Clause 3.3; 
  

 2 

 “ISM Code” means in relation to its application to the Guarantor, the Approved Manager,
the Approved Sub-Manager, the Ship and its operation: 
  

	 	(a)	 	‘The International Management Code for the Safe Operation of Ships and for Pollution Prevention’, currently known or referred to as the ‘ISM Code’, adopted by
the Assembly of the International Maritime Organisation by Resolution A.741(18) on 4 November 1993 and incorporated on 19 May 1994 into chapter IX of the International Convention for the Safety of Life at Sea 1974 (SOLAS 1974); and

  

	 	(b)	 	all further resolutions, circulars, codes, guidelines, regulations and recommendations which are now or in the future issued by or on behalf of the International Maritime
Organisation or any other entity with responsibility for implementing the ISM Code, including without limitation, the ‘Guidelines on implementation or administering of the International Safety Management (ISM) Code by Administrations’
produced by the International Maritime Organisation pursuant to Resolution A.788(19) adopted on 25 November 1995, 

  
 as the same may be amended, supplemented or replaced from time to time; 
  
 “ISM Code Documentation” includes: 
  

	 	(a)	 	the document of compliance (DOC) and safety management certificate (SMC) issued by a Classification Society in all respects acceptable to the Lender in its absolute discretion
pursuant to the ISM Code in relation to the Ship within the periods specified by the ISM Code; and 

  

	 	(b)	 	all other documents and data which are relevant to the ISM SMS and its implementation and verification which the Lender may require by request; and 

  

	 	(c)	 	any other documents which are prepared or which are otherwise relevant to establish and maintain the Ship’s or the Guarantor’s compliance with the ISM Code which the
Lender may require by request; 

  
 “ISM
SMS” means the safety management system which is required to be developed, implemented and maintained under the ISM Code; 
  
 “Lender” means The Royal Bank of Scotland plc, a company incorporated in Scotland having its registered office at 36 St. Andrew Square,
Edinburgh EH2 2YB, Scotland acting through its branch at 61 Akti Miaouli, 185 10 Piraeus, Greece or through any other branch notified to the Borrower from time to time pursuant to Clause 18.3 (and includes all persons directly or indirectly deriving
title under it (whether by assignment, amalgamation, operation of law or otherwise); 
  
 “Loan” means the principal amount of the borrowing by the Borrower under this Agreement or (as the context requires) the principal amount thereof for the time being advanced and outstanding under this
Agreement; 
  
 “Manager’s Undertaking” means
an undertaking executed or to be executed by the Approved Manager in such form as the Lender may approve or require; 
  
 “Mandatory Cost Rate” means the percentage rate which represents the cost to the Lender, relative to the Loan, of compliance with the
requirements of the Bank of England, the Financial Services Authority or any other regulatory authority, as determined by the Lender in accordance with the formula detailed in the Schedule hereto 
  
 “Margin” means 1.2% per annum; 
  

 3 

 “Master Agreement” means the Master Agreement (on the 1992 ISDA (Multicurrency –
Crossborder) form as modified) made between the Lender and the Borrower of even date herewith, and includes all transactions from time to time entered into and confirmations from time to time exchanged under the Master Agreement and any amending,
supplementing or replacement agreements made from time to time; 
  
 “Master Agreement Liabilities” means, at any relevant time, all liabilities actual or contingent, present or future, of the Borrower to the Lender under the Master Agreement; 
  
 “Master Agreement Security Deed” means the deed containing,
inter alia, a charge in respect of the Master Agreement executed or to be executed by the Borrower in favour of the Lender in such form as the Lender may approve or require; 
  
 “Mortgage” means the first preferred Greek ship mortgage in respect of the Ship executed or to be executed
by the Guarantor in favour of the Lender in such form as the Lender may approve or require; 
  
 “Notice of Drawing” means a notice in the form set out in the Appendix (or in such other form as the Lender may approve or require); 
  
 “Operating Account” means, for the time being, an account opened or to be opened in the name of the
Borrower with the Lender designated “Tsakos Energy Navigation Limited – Operating Account – USD” (or such other account with any other branch of the Lender or with a bank or financial institution other than the Lender (whether
associated with the Lender or not) substituted therefor pursuant to this Agreement); 
  
 “Participating Member State” means each state so described in any EMU legislation; 
  
 “RBS LIBOR” means, for an Interest Period, the rate per annum at which deposits in Dollars in an amount approximately equal to the Loan
(or any part thereof) are (or would have been) offered by the Lender to leading banks in the London Interbank Dollar Market at or about 11.00a.m. (London time) on the second Business Day prior to the commencement of such Interest Period for a period
equal to such Interest Period and for delivery on the first Business Day thereof; 
  
 “Receiving Bank” means State Street Bank & Trust Co. N.A., 61 Broadway, 2nd Floor NY 10006, U.S.A. or such other bank as may from time to time be notified by the Lender to the Borrower;

  
 “Relevant Interest Rate” means RBS LIBOR or,
in the case where a Transaction is to be, or has been, entered into under the Master Agreement and the Borrower has not made an election pursuant to Clause 3.5(b), TELERATE; 
  
 “Repayment Date” means each of the dates specified in Clause 4.1; 
  
 “Requisition Compensation” has the meaning ascribed to such
term in the Mortgage; 
  
 “Security Documents”
means (a) the Guarantee, the General Assignment, the Manager’s Undertaking, the Sub-Manager’s Undertaking, the Mortgage, the Account Charge, the Credit Support Documents and the Master Agreement Security Deed and (where the context so
permits) this Agreement and (b) any other agreement or document that may be executed at any time by the Borrower or any other person as security for all or any part of the Loan, interest thereon, Master Agreement Liabilities and any other moneys
payable to the Lender under or in connection with this Agreement and/or the Master Agreement and/or any of the documents referred to in this definition; 
  

 4 

 “Security Interest” means a mortgage, charge (whether fixed or floating), pledge, lien,
hypothecation, encumbrance, assignment, trust arrangement, title retention or other distress, execution, attachment, arrangement or process of any kind having the effect of conferring security; 
  
 “Security Period” means the period commencing on the
Drawdown Date and terminating on the date upon which all moneys payable or to become payable at any time and from time to time pursuant to the terms of this Agreement and/or any of the Security Documents shall have been paid and discharged in full;

  
 “Ship” means the Suezmax tanker which is
being constructed by the Builder for, and to be purchased by, the Guarantor pursuant to the Shipbuilding Contract having builder’s hull number S-137 and upon delivery to be registered in the ownership of the Guarantor under Greek flag with the
name “SILIA T.” (or such other name as the Guarantor may decide); 
  
 “Shipbuilding Contract” means the shipbuilding contract dated 10 April 2000 made between the Builder and the Guarantor for the construction by the Builder of the Ship and its purchase by the
Guarantor, as the same may be supplemented and amended from time to time; 
  
 “Sub-Manager’s Undertaking” means an undertaking executed or to be executed by the Approved Sub-Manager in such form as the Lender may approve or require; 
  
 “Subsidiary” means a body corporate from time to time of
which another (a) has direct or indirect control, or (b) owns directly or indirectly more than fifty (50) per cent of the share capital or similar right of ownership (and in this definition “control” means the power to direct the
management and the policies of a body corporate, whether through the ownership of voting capital, by contract or otherwise); 
  
 “Taxes” includes all present and future income, corporation 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 with respect thereto, if any, and charges, fees or other amounts made on or in respect thereof (and references to “Taxation” shall
be construed accordingly) excluding tax on the net income of the Lender; 
  
 “TELERATE” means, for an Interest Period: 
  

	 	(a)	 	the rate per annum equal to the offered quotation for deposits in Dollars for a period equal to, or as near as possible equal to, the relevant Interest Period which appears on
Telerate Page 3750 at or about 11.00 a.m. (London time) on the second Business Day prior to the commencement of that Interest Period (and, for the purposes of this Agreement, “Telerate Page 3750” means the display designated as “page
3750” on the Telerate Service or such other page as may replace Page 3750 on that service for the purpose of displaying rates comparable to that rate or on such other service as may be nominated by the British Bankers’ Association as the
information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for Dollars); or 

  

	 	(b)	 	if no rate is quoted on Telerate Page 3750, the rate per annum determined by the Lender to be the rate per annum which leading banks in the London Interbank Market offer for
deposits in Dollars in the London Interbank Market at or about 11.00 a.m. (London time) on the second Business Day prior to the commencement of that Interest Period for a period equal to that Interest Period and for delivery on the first Business
Day of it; 

  
 “Total Loss” has the
meaning ascribed to such term in the Mortgage; and 
  

 5 

 “Transaction” means a Transaction as defined in the introductory paragraph of the Master
Agreement. 
  

	1.3	 	In this Agreement, references to periods of “months” shall mean a period beginning in one calendar month and ending in the relevant calendar month on the day
numerically corresponding to the day of the calendar month in which such period started, provided that (a) if such period started on the last Business Day in a calendar month, or if there is no such numerically corresponding day, such period shall
end on the last Business Day in the relevant calendar month and (b) if such numerically corresponding day is not a Business Day, such period shall end on the next following Business Day in the same calendar month, or if there is no such Business
Day, such period shall end on the preceding Business Day (and “month” and “monthly” shall be construed accordingly). 

  

	1.4	 	In this Agreement: 

  

	(a)	 	Clause headings are inserted for convenience only and shall not affect the construction of this Agreement and unless otherwise specified, all references to Clauses and Appendices
are to Clauses of, and Appendices to, this Agreement; 

  

	(b)	 	unless the context otherwise requires, words denoting the singular number shall include the plural and vice versa; 

  

	(c)	 	references to persons include bodies corporate and unincorporate; 

  

	(d)	 	references to assets include property, rights and assets of every description; 

  

	(e)	 	references to any document are to be construed as references to such document as amended or supplemented from time to time; and 

  

	(f)	 	references to any enactment include re-enactments, amendments and extensions thereof. 

  

	2	 	DRAWDOWN 

  

	2.1	 	Subject to the terms of this Agreement, and in reliance (inter alia) on the representations and warranties of the Borrower set out in Clauses 6.1 and 6.2 and the
representations and warranties of the Borrower and the other parties to the Security Documents set out in the Security Documents, the Lender agrees to make available to the Borrower a loan facility of Thirty two million two hundred thousand Dollars
($32,200,000) in a single advance for the purposes described in Clause 1.1. 

  

	2.2	 	The Borrower may make a request for the advance of the Loan by sending to the Lender a duly completed Notice of Drawing (which shall be irrevocable) to be received by the
Lender not later than 11.00 a.m. (London time) two (2) Business Days prior to the Drawdown Date provided that: 

  

	(a)	 	the Loan may only be advanced to the Borrower on a Business Day during the Availability Period; and 

  

	(b)	 	if the Loan has not been advanced prior to the end of the Availability Period the Lender shall be under no further obligation to advance the Loan (or the undrawn part thereof) under
this Agreement. 

  

	2.3	 	Subject to the terms of this Agreement, the Lender shall on the Drawdown Date advance the Loan to the Borrower by paying the proceeds thereof to the Operating Account for
onward payment (in the case of that part of the Loan which is equal to the fourth instalment of the purchase price of the Ship payable pursuant to Article X, 3(d) of the Shipbuilding Contract) to an account nominated by the Builder pursuant to the

  

 6 

 Shipbuilding Contract to finance the payment of the fourth instalment under the Shipbuilding Contract
and, as to any balance, to refinance in part the other instalments paid by the Guarantor under the Shipbuilding Contract. 
  

	3	 	INTEREST AND INTEREST PERIODS 

  

	3.1	 	Subject to the terms of this Agreement, the rate of interest applicable to the Loan for each Interest Period relating thereto shall be the rate per annum determined by the
Lender to be the aggregate of (a) the Margin, (b) the Relevant Interest Rate and (c) the Mandatory Cost Rate. 

  

	3.2	 	Subject to the terms of this Agreement, the Borrower shall pay interest in respect of the Loan for each Interest Period relating thereto in arrears on the last day of such
Interest Period, provided that where such Interest Period is of a duration of longer than six (6) months, accrued interest in respect of the Loan shall be paid every six (6) months during such Interest Period and on the last day of such Interest
Period. 

  

	3.3	 	The duration of each Interest Period shall be three (3), six (6) or twelve (12) as notified by the Borrower to the Lender not later than 11.00 a.m. (London time) two (2)
Business Days prior to the commencement of such Interest Period (or such other period as the Lender, in its sole and absolute discretion, may agree), provided that: 

  

	(a)	 	the first Interest Period in relation to the Loan shall commence on the Drawdown Date and each subsequent Interest Period shall commence on the expiry of the preceding Interest
Period; 

  

	(b)	 	if the Borrower fails to select an Interest Period then, subject as provided in this Clause 3.3, the Borrower shall be deemed to have selected an Interest Period of six (6) months;

  

	(c)	 	the selection of Interest Periods under this Clause 3.3 shall be made in such manner as to ensure that the expiry of an Interest Period in respect of an amount of the Loan equal to
the repayment instalment which is then due to be repaid under Clause 4.1 shall coincide with each Repayment Date relating to the Loan; and 

  

	(d)	 	the Lender, in its sole and absolute discretion, is satisfied that deposits in Dollars for a period equal to such Interest Period will be available to the Lender in the London
Interbank Market at the commencement of such Interest Period and, if the Lender is not so satisfied, such Interest Period shall be of such duration as the Lender and the Borrower shall agree (or, in the absence of such agreement, as the Lender shall
specify). 

  

	3.4	 	In the event that the Lender does not receive on the due date any sum due under this Agreement or any of the Security Documents to which the Borrower is a party (or any
agreement entered into by the Borrower in connection herewith or therewith), the Borrower shall pay to the Lender on demand interest on such sum from and including the due date therefor to the date of actual payment (as well after as before
judgment) at the rate per annum determined by the Lender to be, if such sum is principal, 1.2% above the higher of the rates set out at (a) and (b) below and, if such sum is other than principal, 1.2% above the rate set out at (b) below:

  

	(a)	 	the rate (inclusive of the Margin) applicable to such overdue principal immediately prior to the due date (and in any event only for the unexpired part of any Interest Period
relative to such overdue principal) together with the Mandatory Cost Rate; 

  

	(b)	 	the Margin plus the rate per annum at which deposits in Dollars in an amount equal to such overdue amount are offered by the Lender to leading banks in the London Interbank Dollar
Market on call or for successive periods of any duration up to three months, as the Lender may determine from time to time together with the Mandatory Cost Rate. Such interest rate shall be determined on the commencement of each such period. If the

  

 7 

 Lender determines that deposits in Dollars are not being made available by it to leading banks in the
London Interbank Dollar Market in the ordinary course of business, such interest rate shall be determined by reference to the cost of funds to the Lender from such other sources as the Lender may from time to time determine. 
  
 Any such interest which is not paid when due shall be compounded at the end
of each such Interest Period or other period as the case may be (both before and after any notice of demand by the Lender under Clause 9.2). 
  
 3.5 
  

	(a)	 	In the event that a Transaction is to be entered into under the Master Agreement then (subject to Clause 3.5(b) below) the Relevant Interest Rate for each and every Interest Period
applicable to that part of the Loan the subject of the Transaction (commencing with the first Interest Period relating to such Transaction) shall be TELERATE. 

  

	(b)	 	The Borrower may elect for the Relevant Interest Rate for each and every Interest Period applicable to that part of the Loan the subject of a Transaction (commencing with the first
Interest Period relating to such Transaction) to be RBS LIBOR rather than TELERATE provided that such election (which shall be irrevocable) is notified in writing by the Borrower to the Lender not later than 11.00 a.m. (London time) two Business
Days prior to the commencement of such first Interest Period (or such other period as the Lender, in its sole and absolute discretion, may agree). 

  

	4	 	REPAYMENT AND PREPAYMENT 

  

	4.1	 	The Borrower shall repay the Loan to the Lender by (a) 20 consecutive six-monthly instalments of $895,000 each and (b) a balloon instalment (the “Balloon
Instalment”) of $14,300,000, the first such instalment shall be repaid on 31 January 2003, each subsequent instalment shall be repaid at six-monthly intervals thereafter and the last such instalment together with the Balloon Instalment
shall be repaid on the date falling 9 years and 6 months after 31 January 2003. On the final Repayment Date, the Borrower additionally shall pay to the Lender all other sums then outstanding or payable hereunder. 

  

	4.2	 	The Borrower may prepay the whole or any part of the Loan on any Business Day, provided that: 

  

	(a)	 	the Lender shall have received from the Borrower not less than fourteen (14) days’ prior notice (which shall be irrevocable) of its intention to make such prepayment and
specifying the amount and date on which such prepayment is to be made; 

  

	(b)	 	the amount of any such partial prepayment shall be not less than $350,000 (or a higher integral multiple thereof); 

  

	(c)	 	no amount prepaid under this Agreement may be reborrowed; 

  

	(d)	 	each prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and all other sums payable thereon under the terms of this Agreement and, if
such prepayment is not made on the last day of an Interest Period relating to the amount prepaid, together with any sums payable pursuant to Clause 14.1(d) but without premium or other payment; and 

  

	(e)	 	each partial prepayment under this Agreement shall be applied firstly against the Balloon Instalment and thereafter against the repayment instalments specified in Clause 4.1 in
inverse order of maturity. 

  

	4.3	 	If for any reason any part of the Loan is not drawn down under this Agreement but nonetheless a Transaction has been entered into under the Master Agreement then,

  

 8 

 subject to Clause 4.6, the Lender shall be entitled but not obliged to amend, supplement, cancel, net
out, terminate, liquidate, transfer or assign all or any part of the rights, benefits and obligations created by the Master Agreement and/or to obtain or re-establish any hedge or related trading position in any manner and with any person the Lender
in its absolute discretion decides, and in the event of the Lender exercising any part of its entitlement aforesaid the Borrower’s continuing obligations under the Master Agreement shall, unless agreed otherwise by the Lender, be calculated so
far as the Lender considers it practicable by reference to the repayment schedule for the Loan taking into account the fact that less than the full amount of the Loan has been advanced. 
  

	4.4	 	In the case of a prepayment of all or part of the Loan under this Agreement then, subject to Clause 4.6, the Lender shall be entitled but not obliged to amend, supplement,
cancel, net out, transfer or assign all or such part of the rights, benefits and obligations created by the Master Agreement which equate or relate to the part of the Loan so prepaid and/or to obtain or re-establish any hedge or related trading
position in any manner and with any person the Lender in its absolute discretion decides, and in the case of a partial prepayment and the Lender exercising any part of its entitlement as aforesaid the Borrower’s continuing obligations under the
Master Agreement shall, unless agreed otherwise by the Lender, be calculated so far as the Lender considers it practicable by reference to the amended repayment schedule for the Loan taking account of the fact that less than the full amount of the
Loan remains outstanding. 

  

	4.5	 	If: 

  

	(a)	 	less than the full amount of the Loan remains outstanding following a prepayment under this Agreement; or 

  

	(b)	 	less than the full amount of the Loan is drawndown under this Agreement, 

  
 and the Lender in its absolute discretion agrees, following a written request of the Borrower, that the Borrower may be permitted to maintain all or part
of a Transaction in an amount not wholly matched with or linked to all or part of the Loan, the Borrower shall within ten (10) days of being notified by the Lender of such requirement provide the Lender with, or procure the provision to the Lender
of, such additional security as shall in the opinion of the Lender be adequate to secure the performance of such Transaction, which additional security shall take such form, be constituted by such documentation, and be entered into between such
parties, as the Lender in its absolute discretion may approve or require, and each document comprising such additional security shall constitute a Credit Support Document. 
  

	4.6	 	The Borrower shall on the first written demand of the Lender indemnify the Lender in respect of all loss, cost and expense (including the fees of legal advisers) incurred or
sustained by the Lender as a consequence of or in relation to the effecting of any matters or transactions referred to in Clauses 4.4, 4.5 and 4.6. 

  

	4.7	 	Without prejudice to or limitation of the obligation of the Borrower under Clause 4.7, in the event that the Lender exercises any of its rights under Clauses 4.4 or 4.5 and
such exercise results in all or part of a Transaction being terminated such termination shall be treated under the Master Agreement in the same manner as if it were a Terminated Transaction (as defined in section 14 of the Master Agreement) effected
by the Lender after an Event of Default by the Borrower, and, accordingly, the Lender shall be permitted to recover from the Borrower a payment for early termination calculated in accordance with the provisions of section 6(e)(i) of the Master
Agreement. 

  

	5	 	CONDITIONS PRECEDENT 

  

	5.1	 	The obligation of the Lender to advance the Loan to the Borrower shall be subject to the condition that the Lender shall have received the following documents and evidence in
all 

  

 9 

 respects in form and substance satisfactory to the Lender and its legal advisers, in the case of those
referred to in sub-clauses (a) to (g) (inclusive) below, on or before the date of this Agreement and, in the case of the remainder, on or before the date on which the Notice of Drawing is served by the Borrower: 
  

	(a)	 	copies of the Memorandum and Articles of Association (or equivalent documents) (and all amendments thereto) of each of the Borrower and the Guarantor and any other documents
required to be filed or registered or issued under the laws of its country of incorporation to establish the incorporation and good standing of each of the Borrower and the Guarantor; 

  

	(b)	 	copies of resolutions passed at meetings of the board of directors and shareholders of each of the Borrower and the Guarantor evidencing approval of such of this Agreement, the
Master Agreement and the Security Documents to which it is a party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given hereunder or thereunder on its behalf or other evidence of such
approvals and authorisations as shall be acceptable to the Lender; 

  

	(c)	 	the original of any power of attorney issued in favour of any person executing this Agreement, the Master Agreement or any of the Security Documents on behalf of each of the
Borrower and the Guarantor; 

  

	(d)	 	in relation to each of the Borrower and the Guarantor, a list specifying the directors and officers of such company and specifying the authorised and issued share capital of such
company; 

  

	(e)	 	copies of all governmental and other consents, licences, approvals and authorisations as may be necessary to authorise the performance by each of the Borrower and the Guarantor of
its obligations under those of this Agreement, the Shipbuilding Contract, the Master Agreement and the Security Documents to which it is a party and the execution, validity and enforceability of this Agreement, the Shipbuilding Contract, the Master
Agreement and the Security Documents; 

  

	(f)	 	a copy of the Shipbuilding Contract and of all documents signed or issued by the Guarantor or the Builder (or either of them) under or in connection with the Shipbuilding Contract;

  

	(g)	 	a written confirmation from the Borrower as to which individuals are authorised to give verbal and/or written instructions to the Lender on behalf of the Borrower in respect of the
selection of any Interest Period pursuant to Clause 3.3; 

  

	(h)	 	a copy of the protocol of delivery and acceptance in respect of the Ship duly signed by the Borrower and the Builder; 

  

	(i)	 	a copy of the duly issued Builder’s Certificate in respect of the Ship; 

  

	(j)	 	a copy of the duly notarised and apostilled bill of sale signed by the Builder; 

  

	(k)	 	the Master Agreement and all the Security Documents duly executed and delivered by the parties thereto together with all other items and documents required to be delivered pursuant
to the terms thereof, including (but without limitation) insurance notices of assignment, acknowledgements and letters of undertaking pursuant to the General Assignment; 

  

	(l)	 	evidence that: 

  

	 	(i)	 	the Ship has been unconditionally delivered by the Builder to, and accepted by, the Guarantor under the Shipbuilding Contract, and the full purchase price 

 

 10 

 payable under the Shipbuilding Contract (in addition to the part to be financed by the
Loan) has been duly paid; 
  

	 	(ii)	 	the Ship is permanently registered in the name of the Guarantor under the Greek flag; 

  

	 	(iii)	 	the Ship is in the absolute and unencumbered ownership of the Guarantor save as contemplated by this Agreement and the Security Documents; 

  

	 	(iv)	 	the Ship maintains the highest classification for vessels of the same type, age and specification as the Ship with Lloyd’s Register of Shipping (or such other first-class
classification society as the Lender may, in its absolute discretion, approve) free of all recommendations and qualifications of such classification society; 

  

	 	(v)	 	the Mortgage has been duly registered against the Ship as a valid first preferred Greek ship mortgage in accordance with the laws of the Republic of Greece; and

  

	 	(vi)	 	the Ship is insured in accordance with the provisions of the Mortgage and that all requirements therein in respect of insurances have been complied with; 

 

	(m)	 	evidence that the Operating Account has been opened by the Borrower and that all board resolutions, mandates, signature cards and other documents or evidence required in connection
with the opening, maintenance and operation of the Operating Account have been duly delivered to the Lender; 

  

	(n)	 	a certificate from the Borrower, the Approved Manager and the Approved Sub-Manager confirming the representations and warranties in Clause 2.2 of the Mortgage;

  

	(o)	 	evidence that the Ship will, as from the Drawdown Date, be managed by the Approved Manager and sub-managed by the Approved Sub-Manager, in each case on terms acceptable to the
Lender together with: 

  

	 	(i)	 	the Manager’s Undertaking duly executed and delivered by the Approved Manager; 

  

	 	(ii)	 	the Sub-Manager’s Undertaking duly executed and delivered by the Approved Sub-Manager; and 

  

	 	(iii)	 	copies of the document of compliance (DOC) and safety management certificate (SMC) referred to in paragraph (a) in the definition of the ISM Code Documentation certified as true and
in effect by the Borrower and the Approved Manager; 

  

	(p)	 	such evidence as the Lender and its legal advisers shall require that such part of the acquisition cost of the Ship which has not been funded out of the proceeds of the Loan and
which has been borrowed by the Borrower is subordinated to the obligations of the Borrower to the Lender under this Agreement and the Master Agreement in terms satisfactory to the Lender in its absolute discretion; 

  

	(q)	 	a letter from the Guarantor to the protection and indemnity association in which the Ship is or is to be entered instructing it to provide the Lender with a copy of the certificate
of entry of the Ship and any other information relating to the entry of the Ship in such protection and indemnity association; 

  

	(r)	 	evidence satisfactory to the Lender that the Borrower and the Guarantor maintain with the Lender freely available cash deposits of not less than $1,000,000 in aggregate;

  

 11 

	(s)	 	evidence satisfactory to the Lender that the lightweight displacement tonnage of the Ship is not less than 21,000 tons; 

  

	(t)	 	evidence satisfactory to the Lender that the Tsakos family (either directly or through companies beneficially owned by the Tsakos family or trusts or foundations of which the Tsakos
family are beneficiaries) own not less than 20% of the issued share capital of the Borrower; 

  

	(u)	 	evidence that the agent for service of process named in Clause 20.5 has accepted its appointment for the purposes of this Agreement and the Security Documents;

  

	(v)	 	favourable legal opinions from lawyers appointed by the Lender on such matters concerning the laws of Bermuda, Greece and such other relevant jurisdictions as the Lender may require
in relation to, or in connection with, the Master Agreement, the Security Documents, or any of them; 

  

	(w)	 	evidence that the Lender has received the arrangement fee referred to in Clause 10.1; 

  

	(x)	 	a favourable opinion from an independent insurance consultant acceptable to the Lender on such matters relating to the insurances for the Ship as the Lender may require,

  
 each of the documents specified in sub-clauses
(a), (b), (e), (f), (h), (i), (j) and (o)(iii) and (iii) above shall be certified as a true and up-to-date copy by a Director or Secretary (or equivalent officer) of the Borrower. 
  

	5.2	 	Without prejudice to any of the other provisions of this Agreement, in the event that the Lender, in its sole and absolute discretion, advances the Loan to the Borrower prior
to the satisfaction of all or any of the conditions referred to in Clause 5.1, the Borrower hereby covenants and undertakes to satisfy or procure the satisfaction of such condition or conditions within fourteen (14) days after the Drawdown Date (or
such longer period as the Lender may, in its sole and absolute discretion, agree or specify). 

  

	5.3	 	The obligation of the Lender to advance the Loan is subject to the following further conditions: 

  

	(a)	 	that both at the date of the Notice of Drawing and on the Drawdown Date: 

  

	 	(i)	 	no Event of Default (or event which, with the giving of notice and/or lapse of time or other applicable condition, might constitute an Event of Default) has occurred and is
continuing or might result from the advance of the Loan; and 

  

	 	(ii)	 	the representations and warranties of the Borrower in Clause 6.1 and the representations and warranties of the Borrower and other parties to the Security Documents set out in the
Security Documents are true and accurate as of each such date, as if made on each such date with reference to the facts then subsisting; 

  

	 	(iii)	 	none of the circumstances specified in Clause 13.3 has occurred and is continuing; and 

  

	(b)	 	that on the Drawdown Date the representations and warranties of the Borrower in Clause 6.2 are true and accurate; 

  

	(c)	 	that, if the test set out in Clause 7.3 were applied immediately following the advance of the Loan, the Borrower would not be obliged to provide additional security or prepay part
of the Loan as therein provided; and 

  

	(d)	 	the Lender has received, and found to be satisfactory to it in all respects, such further opinions, consents, agreements and documents in connection with this Agreement, the

  

 12 

 Master Agreement and the Security Documents as the Lender may request by notice to the Borrower prior to
the Drawdown Date. 
  

	6	 	REPRESENTATIONS AND WARRANTIES 

  

	6.1	 	The Borrower hereby represents and warrants to the Lender that: 

  

	(a)	 	the Borrower is a body corporate duly organised and validly existing and in good standing under the laws of Bermuda and has an authorised share capital of $40,000,000 divided into
40,000,000 shares of $1 each, 16,978,857 such shares have been issued, each fully paid. The whole of the authorised and issued share capital of the Guarantor is owned by the Borrower; 

  

	(b)	 	the Borrower has full power and authority (i) to execute and deliver this Agreement, the Master Agreement and the Security Documents to which the Borrower is a party, (ii) to borrow
under this Agreement and (iii) to comply with the provisions of, and perform all its obligations under, this Agreement, the Master Agreement and the Security Documents to which the Borrower is a party; 

  

	(c)	 	each of the Borrower, the Guarantor, the Approved Manager and the Approved Sub-Manager has complied with the ISM Code and all other statutory and other requirements relative to its
business and in particular, each of the Approved Manager and the Approved Sub-Manager, has obtained and maintains a valid DOC and, in the case of the Guarantor, will, on the Drawdown Date, obtain and maintain a valid SMC and the Borrower does not
have an established place of business in any part of the United Kingdom or the United States of America; 

  

	(d)	 	the Borrower has taken all necessary action to authorise the borrowing of the Loan and the execution and delivery of this Agreement, the Master Agreement and the Security Documents
to which the Borrower is a party, and this Agreement, the Master Agreement and the Security Documents to which the Borrower is a party, constitute or, as the case may be, will, upon execution and delivery thereof (and, where applicable, registration
thereof as provided for in this Agreement and the Security Documents), constitute the Borrower’s legal, valid and binding obligations enforceable against the Borrower in accordance with their respective terms, except as such enforcement may be
limited by any relevant bankruptcy, insolvency, administration or similar laws affecting creditors’ rights generally; 

  

	(e)	 	the entry into and performance by the Borrower of this Agreement, the Master Agreement and the Security Documents to which the Borrower is a party, do not, and will not during the
Security Period, violate in any respect (i) any law or regulation of any governmental or official authority or body, or (ii) the constitutional documents of the Borrower, or (iii) any agreement, contract or other undertaking to which the Borrower is
a party or which is binding on the Borrower or any of its assets; 

  

	(f)	 	any consents, licences, approvals and authorisations required in connection with the entry into, performance, validity and enforceability of this Agreement, the Master Agreement and
the Security Documents have been obtained and are in full force and effect; 

  

	(g)	 	the copy of the Shipbuilding Contract delivered to the Lender before the date of this Agreement is a true and complete copy thereof, the Shipbuilding Contract constitutes valid,
binding and enforceable obligations of the Builder and the Guarantor respectively in accordance with its terms and no amendments or additions to the Shipbuilding Contract have been agreed nor has the Builder or the Guarantor waived any of their
respective rights under the Shipbuilding Contract; 

  

	(h)	 	there is no agreement or understanding to allow or pay any rebate, premium, commission, discount or other benefit or payment (howsoever described) to the Guarantor, the Builder

  

 13 

 or a third party in connection with the purchase by the Guarantor of the Ship, other than as disclosed to
the Lender in writing on or prior to the date of this Agreement; 
  

	(i)	 	save for such registrations and filings as are referred to in this Agreement and the Security Documents, it is not necessary for the legality, validity, enforceability or
admissibility in evidence of this Agreement, the Master Agreement and the Security Documents that any of them or any document relating thereto be registered, filed, recorded or enrolled with any court or authority in any relevant jurisdiction or
that any stamp, registration or similar Taxes be paid on or in relation to this Agreement, the Master Agreement or any of the Security Documents; 

  

	(j)	 	no action, suit, proceeding, litigation or dispute against the Borrower is currently taking place or pending or, to the Borrower’s knowledge, threatened nor is there subsisting
any judgment or award given against the Borrower before any court, board of arbitration or other body which, in either case, could or might result in any material adverse change in the business or condition (financial or otherwise) of the Borrower;

  

	(k)	 	the Borrower is not in default under the Master Agreement or any other agreement by which it is bound and no Event of Default (or event which, with the giving of notice and/or lapse
of time or other applicable condition might constitute an Event of Default) has occurred and is continuing nor will such a default or Event of Default (or such event) result from the entry by the Borrower into this Agreement, the Master Agreement
and the Security Documents to which the Borrower is a party, the making of the Loan to the Borrower or the performance by the Borrower of any of its obligations under this Agreement, the Master Agreement and the Security Documents to which the
Borrower is a party; 

  

	(l)	 	all financial and other information furnished by or on behalf of the Borrower in connection with the negotiation of this Agreement and the Security Documents or delivered to the
Lender pursuant to this Agreement or any of the Security Documents was true and accurate when given and there are no other facts or matters the omission of which would have made any statement or information contained therein misleading;

  

	(m)	 	all payments made or to be made by the Borrower under or pursuant to this Agreement, the Master Agreement and the Security Documents to which the Borrower is a party may be made
free and clear of, and without deduction or withholding for or in account of, any Taxes; 

  

	(n)	 	the Borrower’s place of business and offices are located, and the corporate documents and records of the Borrower are kept, at the registered office of the Borrower in Bermuda;

  

	(o)	 	at the date of this Agreement, the Borrower is not liable under or in respect of any Indebtedness other than under this Agreement, the Master Agreement and the Security Documents to
which it is a party and such Indebtedness as shall have been notified to, and approved in writing by, the Lender on or prior to the date of this Agreement; and 

  

	(p)	 	the Borrower has paid all Taxes applicable to, or imposed on or in relation to, the Borrower and its business. 

  

	6.2	 	The Borrower hereby further represents and warrants to the Lender that on the Drawdown Date: 

  

	(a)	 	the Ship will be unconditionally delivered by the Builder to, and accepted by, the Guarantor under the Shipbuilding Contract, and the full purchase price payable under the
Shipbuilding Contract (in addition to the part to be financed by the Loan) shall have been duly paid; 

  

 14 

	(b)	 	the Ship will be permanently registered in the name of the Guarantor under the Greek flag at the port of Piraeus; 

  

	(c)	 	the Ship will be in the absolute and unencumbered ownership of the Guarantor save as contemplated by this Agreement and the Security Documents; 

  

	(d)	 	the Ship will maintain the class highest classification for vessels of the same type, age and specification as the Ship with Lloyd’s Register of Shipping (or such other
first-class classification society as the Lender may, in its absolute discretion, approve) free of all recommendations and qualifications of such classification society; 

  

	(e)	 	the Ship will be operationally seaworthy; 

  

	(f)	 	the Ship will comply with all relevant laws, regulations and requirements (statutory or otherwise) as are applicable to (i) ships registered under the Greek flag and (ii) engaged in
the same or a similar service as the Ship is or is to be engaged; 

  

	(g)	 	the Mortgage will have been duly registered against the Ship as a valid first preferred Greek ship mortgage in accordance with the laws of Greece; 

  

	(h)	 	the Ship will be insured in accordance with the provisions of the Mortgage and the requirements therein in respect of insurances will have been complied with; and

  

	(i)	 	the Ship will be managed by the Approved Manager and sub-managed by the Approved Sub-Manager, in each case on terms acceptable to the Lender. 

  

	6.3	 	The representations and warranties of the Borrower set out in Clauses 6.1 and 6.2 shall survive the execution of this Agreement and the advance of Loan hereunder and the
representations and warranties set out in Clause 6.1 shall be deemed to be repeated at the commencement of each Interest Period, with respect to the facts and circumstances existing at each such time, as if made at each such time.

  

	7	 	UNDERTAKINGS 

  

	7.1	 	The Borrower undertakes that, as and from the date of this Agreement and throughout the Security Period, it will comply in full with the following undertakings:

  

	(a)	 	the Borrower will send (or procure that there is sent) to the Lender: 

  

	 	(i)	 	as soon as available, and in any event within one hundred and twenty (120) days after the end of each financial year of the Borrower, the consolidated accounts and financial
statements of the Borrower and its Subsidiaries and the individual accounts and financial statements of the Guarantor, such accounts and financial statements to be prepared in accordance with generally accepted international accounting principles
consistently applied and certified as to their correctness by a firm of chartered accountants acceptable to the Lender; 

  

	 	(ii)	 	as soon as available, and in any event within ninety (90) days after the end of each 3-month period in each financial year of the Borrower, quarterly financial information of the
Borrower (including, without limitation, a list of vessels owned at that time by all the Subsidiaries of the Borrower) in form and substance acceptable to the Lender; 

  

	 	(iii)	 	as soon as the same is instituted (or, to the knowledge of the Borrower, threatened), details of any litigation, arbitration or administrative proceedings against or involving the
Borrower, the Guarantor, the Approved Manager, the Approved Sub-Manager or the Ship (including any actual breach of the ISM 

  

 15 

 Code) which is likely to have a material adverse effect on the Borrower, the Guarantor or the operation
of the Ship; 
  

	 	(iv)	 	promptly upon being sent, copies of all communications to its shareholders and/or creditors generally (and in their capacities as such); and 

  

	 	(v)	 	from time to time, and on demand, such additional financial or other information (including but not limited to the ISM Code Documentation) relating to the Borrower and/or the
Guarantor and/or the Ship as may be requested by the Lender; 

  

	(b)	 	the Borrower will notify the Lender of any Event of Default (or event which, with the giving of notice and/or lapse of time or other applicable condition, might constitute an Event
of Default) forthwith upon the occurrence thereof; 

  

	(c)	 	the Borrower will maintain its corporate existence as a body corporate duly organised and validly existing and in good standing under the laws of Bermuda and will obtain and
promptly renew from time to time, and will promptly furnish certified copies to the Lender of, all such authorisations, approvals, consents and licences as may be required under any applicable law or regulation to enable the Borrower to perform its
obligations under this Agreement, the Master Agreement and the Security Documents to which the Borrower is a party (or any of them) or required for the validity or enforceability of this Agreement, the Master Agreement and the Security Documents to
which the Borrower is a party (or any of them) and the Borrower shall comply with the terms of the same; 

  

	(d)	 	the Borrower will not without the prior consent of the Lender, create, assume or permit to exist any Security Interest upon any of its assets (whether now owned or hereafter
acquired) (including, but not limited to, the Borrower’s rights against the Lender under the Master Agreement or all or any part of the Borrower’s interest in any amount payable to the Borrower by the Lender under the Master Agreement)
except as contemplated by the Security Documents; 

  

	(e)	 	the Borrower will not (voluntarily or involuntarily) without the prior consent of the Lender, sell, convey, transfer, lease, or otherwise dispose of all or a substantial part of its
assets (whether by one transaction or a series of transactions and whether related or not); 

  

	(f)	 	the Borrower will procure that the Guarantor shall comply with the ISM Code and notify the Lender in writing in the event that either the DOC or SMC is withdrawn, cancelled or
suspended; 

  

	(g)	 	the Borrower will procure the observance and performance by the other Security Parties of the terms of the Security Documents to which they are each respectively a party;

  

	(h)	 	the Borrower will ensure that the Guarantor and the Borrower will maintain at all times with the Lender freely available cash deposits of not less than $1,000,000 in aggregate;

  

	(i)	 	the Borrower will keep the Lender fully informed at the earliest opportunity and, in any event at regular intervals of not more than three (3) months, of any actual or proposed
purchases of any ship, vessel or other asset by any company within the same beneficial ownership or control of the Borrower, the Guarantor, the Approved Manager or the Approved Sub-Manager; and 

  

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

  

 16 

	7.2	 	The Borrower further undertakes that it shall not, as and from the date of this Agreement and throughout the Security Period, without the prior consent of the Lender (such
consent not to be unreasonably withheld): 

  

	(a)	 	change the nature of its business nor make any commitments, other than those occurring in the ordinary course of its business (including, without limitation, commitments in respect
of purchases of ships); or 

  

	(b)	 	assign or otherwise dispose of any of its book debts; or 

  

	(c)	 	reduce its issued share capital; or 

  

	(d)	 	consolidate or amalgamate with, or merge into, any other entity. 

  

	7.3	 	 

  

	(a)	 	The Borrower hereby further undertakes that if (after the Ship has been delivered to it under the Shipbuilding Contract), and so often as, the market value (as determined in
accordance with Clause 7.3(b)) of the Ship (plus the market value of any additional security for the time being actually provided to the Lender pursuant to this Clause 7.3) falls below One hundred and twenty five per cent. (125%) of the Loan plus or
minus (as the case may be) the notional amount determined by the Lender in its absolute discretion as the amount which would become due from or to the Borrower on terminating any Transaction under the Master Agreement in the same manner as if it
were a Terminated Transaction (as defined in Section 14 of the Master Agreement) effected by the Lender after an Event of Default, it will within ten (10) days of being notified by the Lender of such requirement (which notification shall be
conclusive and binding on the Borrower) either: 

  

	 	(i)	 	provide the Lender with, or procure the provision to the Lender of, such additional security as shall in the opinion of the Lender be adequate to make up such deficiency, which
additional security shall take such form, be constituted by such documentation and be entered into between such parties as the Lender in its absolute discretion may approve or require (and, if the Borrower does not make proposals satisfactory to the
Lender in relation to such additional security within five (5) days of the date of the Lender’s notification to the Borrower aforesaid, the Borrower shall be deemed to have elected to prepay in accordance with (ii) below); or

  

	 	(ii)	 	prepay (subject to, and in accordance with, sub-clauses (c), (d) and (e) of Clause 4.2) such part of the Loan as will ensure that the market value (determined as aforesaid) of the
Ship and any such additional security is after such prepayment at least One hundred and twenty five per cent. (125%) of the Loan plus or minus (as the case may be) such notional amount as determined by the Lender in its absolute discretion as the
amount which would become due from or to the Borrower on terminating any Transaction under the Master Agreement in the same manner as if it were a Terminated Transaction (as defined in Section 14 of the Master Agreement) effected by the Lender after
an Event of Default. 

  

	(b)	 	For the purposes of this Clause 7.3, the market value of the Ship shall be determined (at the expense of the Borrower) at any such time as the Lender may request on the basis of a
valuation prepared by an independent sale and purchase shipbroker as may from time to time be appointed by the Lender. For this purpose, each such valuation shall be made with or without physical inspection of the Ship (as the Lender may require),
on the basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment. The Borrower agrees to accept any
valuation made by the independent sale and purchase shipbroker appointed as aforesaid as conclusive evidence of the market value of the Ship at the date of such valuation. The Borrower agrees to supply to the 

  

 17 

 Lender and to any such independent sale and purchase shipbroker such information concerning the Ship and
her condition as such the independent sale and purchase shipbroker may require for the purpose of making such valuation. Subject to no Event of Default having occurred, the Borrower shall only be obliged to pay the fees and expenses of up to one
valuation of the Ship commissioned by the Lender in each calendar year. 
  

	(c)	 	For the purpose of this Clause 7.3, the market value of any additional security provided or to be provided to the Lender shall be determined by the Lender in its absolute discretion
without any necessity for the Lender assigning any reason therefor. 

  

	(d)	 	In connection with any additional security provided in accordance with this Clause 7.3, the Lender shall be entitled to receive certified copies of such documents of the kinds
referred to in sub-clauses (a), (b), (c), (d) and (e) (inclusive) of Clause 5.1 and such favourable legal opinions as the Lender shall in its absolute discretion require. 

  

	8	 	APPLICATION OF EARNINGS 

  

	8.1	 	The Borrower will comply with any written requirement of the Lender from time to time as to the location or re-location of the Operating Account and will from time to time
enter into such documentation as the Lender may require in order to create or maintain in favour of the Lender a Security Interest in the Operating Account, all at the cost and expense of the Borrower. 

  

	8.2	 	The Borrower will procure that, throughout the Security Period (and subject only to the provisions of the General Assignment), all the Earnings shall be paid to the Operating
Account. 

  

	8.3	 	Money from time to time credited to, or for the time being standing to the credit of, the Operating Account shall, unless and until such time as the Lender shall otherwise
require (whereupon the provisions of Clause 8.4 shall be and become applicable), be available for application in the following manner: 

  

	(a)	 	in or towards meeting the costs and expenses from time to time incurred in connection with the operation of the Ship (as such costs and expenses are from time to time substantiated
to the reasonable satisfaction of the Lender); 

  

	(b)	 	in or towards making the payments of principal and interest due to the Lender pursuant to Clause 3.1 and Clause 4.1; and 

  

	(c)	 	any surplus from time to time arising on the Operating Account following application as aforesaid shall be freely available to the Borrower. 

  

	8.4	 	The Lender shall forthwith be and become entitled following the occurrence of an Event of Default (or an event, which with the lapse of time of giving of notice, shall
constitute an Event of Default), then or at any time thereafter, to apply all moneys standing to the credit of, or from time to time credited to, the Operating Account in the manner specified in Clause 16.2. 

  

	9	 	EVENTS OF DEFAULT 

  

	9.1	 	Each of the following events shall constitute an Event of Default (whether such event shall occur or come about voluntarily or involuntarily or by operation of law or regulation or
pursuant to, or in compliance with, any judgment, decree or order of any court or other authority): 

  

	(a)	 	the Borrower or any other party to any of the Security Documents fails to pay on the due date (or, in the case of sums expressed to be payable on demand, within three (3) days of
the Lender’s demand) any sum payable pursuant to this Agreement or any of the Security 

  

 18 

 Documents (or any agreement entered into in connection with this Agreement or any of the Security
Documents); or 
  

	(b)	 	the Borrower breaches any of the undertakings in Clauses 7.1(d) or (e) or 7.2 or the Borrower fails to provide additional security or make a prepayment of part of the Loan in the
circumstances referred to in Clause 7.3 within the time therein prescribed; or 

  

	(c)	 	the Borrower defaults under, or in the due and punctual observance and performance of, any other provision of this Agreement and where, in the opinion of the Lender, such default is
capable of remedy, such default is not remedied within ten (10) days after written notice from the Lender requesting action to remedy the same; or 

  

	(d)	 	the Borrower or any other party to any of the Security Documents (other than the Lender) defaults under, or in the due observance and performance of, any provision of any of the
Security Documents; or 

  

	(e)	 	any representation or warranty made by the Borrower or any other party to any of the Security Documents (other than the Lender) in or pursuant to this Agreement or any of the
Security Documents or in any notice, certificate, instrument or statement contemplated hereby or thereby or made or delivered pursuant hereto or thereto is, or proves to be, untrue or incorrect in any respect when made or deemed to be repeated; or

  

	(f)	 	any Indebtedness of the Borrower is not paid when due or becomes prematurely payable or capable of being prematurely declared payable as a consequence of a default with respect
thereto or any Security Interest over any assets of the Borrower is enforced or becomes capable of being enforced; or 

  

	(g)	 	(i) any preparatory or other steps are taken by any person to convene a meeting of the Borrower for the purposes of considering or passing any resolution or petition for the
winding-up or dissolution of the Borrower, or (ii) a bona fide petition is presented or an order is made or a resolution is passed for the winding-up or dissolution of the Borrower, or (iii) the Borrower becomes insolvent or is deemed unable to pay
its debts within the meaning of Section 123 of the Insolvency Act 1986 or the Borrower becomes unable to pay its debts as they fall due, or (iv) the Borrower stops or threatens to stop making payments generally or declares or threatens to declare a
moratorium or suspension of payments with respect to all or any part of its debts or enters into any composition, scheme, compromise or other arrangement with its creditors generally (or any class of them), or (v) any preparatory or other steps are
taken by any person to appoint an administrative or other receiver or similar official of the Borrower or any of its assets, or (vi) any meeting of the Borrower is convened or any other preparatory or other steps are taken for the purpose of
considering an application for an administration order in relation to the Borrower or such an administration order is made by a court, or (vii) (in the opinion of the Lender) anything analogous to any of the foregoing events occurs in any applicable
jurisdiction; or 

  

	(h)	 	an encumbrancer takes possession of the whole or, in the opinion of the Lender, any material part of the assets of the Borrower or a Security Interest (other than in favour of the
Lender) is levied or enforced upon or sued out against the whole or, in the opinion of the Lender, a material part of the assets of the Borrower; or 

  

	(i)	 	the Borrower ceases or threatens to cease, to carry on all or, in the opinion of the Lender, any material part of its business; or 

  

	(j)	 	any of the circumstances described in sub-clauses (f), (g), (h) or (i) of this Clause 9.1 arises (mutatis mutandis) in relation to any of the Guarantor, the Approved Manager or the
Approved Sub-Manager; or 

  

 19 

	(k)	 	any event occurs which renders it unlawful or impossible for (i) the Borrower or any other party to any of the Security Documents (other than the Lender) to perform or observe, or
to procure the performance or observance of, any of its obligations or undertakings contained in this Agreement or any of the Security Documents, or (ii) the Lender to exercise any of the rights and remedies conferred on the Lender under this
Agreement or any of the Security Documents; or 

  

	(l)	 	any authorisation, approval, consent, licence, exemption, filing or registration or other requirement necessary to enable the Borrower, the Guarantor or any other party to any of
the Security Documents (other than the Lender) to comply with any of its obligations or undertakings contained in this Agreement, or any of the Security Documents is modified, revoked or withheld or does not remain in full force and effect; or

  

	(m)	 	the Ship shall become a Total Loss and the Lender does not receive within one hundred and eighty (180) days (or such longer period as the Lender may agree) following the occurrence
of such Total Loss, insurance proceeds relating to such Total Loss in an amount not less than the amount for which the Ship is required to be insured under Clause 6 of the Mortgage as at the date of the event or circumstances giving rise to such
Total Loss and for the purpose of this Clause 9.1(n), (i) an actual Total Loss of the Ship shall be deemed to have occurred at the date and time when the Ship was lost but if the date of the loss is unknown the actual Total Loss shall be deemed to
have occurred on the date on which the Ship was last reported, (ii) a constructive Total Loss shall be deemed to have occurred at the date and time at which notice of abandonment of the Ship is given to the insurers of the Ship and (iii) a
compromised, agreed or arranged Total Loss shall be deemed to have occurred on the date of the relevant compromise, agreement or arrangement; or 

  

	(n)	 	any Earnings are paid otherwise than to the Operating Account (unless so directed by the Lender); or 

  

	(o)	 	for any reason whatsoever, the Ship ceases to comply with the ISM Code or to be managed by the Approved Manager or sub-managed by the Approved Sub-Manager, in each ease on terms in
all respects approved by the Lender; or 

  

	(p)	 	the security constituted by any of the Security Documents is imperilled or jeopardised in any way whatsoever; or 

  

	(q)	 	this Agreement, the Shipbuilding Contract or any of the other Security Documents ceases at any time to be the legal, valid and binding obligations of the Borrower or any other party
thereto (other than the Lender); 

  

	(r)	 	notice of an Early Termination Date is given by the Lender under section 6(a) of the Master Agreement; or 

  

	(s)	 	a person entitled to do so gives notice of an Early Termination Date under section 6(b)(iv) of the Master Agreement; or 

  

	(t)	 	an Event of Default (as defined in section 14 of the Master Agreement) occurs; or 

  

	(u)	 	the Master Agreement or the Shipbuilding Contract is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in full force and effect for any reason; or

  

	(v)	 	

  

	 	(i)	 	any Indebtedness of the Borrower or any Subsidiary of the Borrower or the Guarantor exceeding $100,000 (or the equivalent in any other currency) in aggregate to any bank or other
financial institution (other than the Lender) is not 

  

 20 

 paid when due or, if so payable, on demand or becomes due and payable prior to its stated maturity as a
consequence of any event of default; or 
  

	 	(ii)	 	the Borrower or any Subsidiary of the Borrower or the Guarantor is at any time in default of any of its other obligations to any bank or other financial institution;

  

	(w)	 	any other event or events (whether related or not) occurs (including, without limitation, a material (in the reasonable opinion of the Lender) adverse change, from the position
applicable as at the date of this Agreement, in the business, affairs or condition (financial or otherwise) of the Borrower, the Guarantor or any other Credit Support Provider) (including any such change resulting from an Environmental Incident) the
effect of which is, in the opinion of the Lender, to impair, delay or prevent the due fulfilment by the Borrower, the Guarantor or any other Credit Support Provider of any of their respective obligations or undertakings contained in this Agreement,
the Master Agreement or any of the Security Documents. 

  
  

	9.2	 	Upon the occurrence of an Event of Default: 

  

	(a)	 	the Lender, by notice to the Borrower, may terminate the obligations of the Lender under this Agreement, whereupon the same shall be so terminated; and/or 

 

	(b)	 	the Lender, by notice to the Borrower, may declare the Loan, accrued interest thereon and all other amounts payable under this Agreement either immediately due and payable or
payable on demand, whereupon the Loan, accrued interest thereon and all other amounts payable under this Agreement shall become immediately due and payable or (as the case may be) payable on demand by the Lender; and/or 

  

	(c)	 	the Lender may take any other action, exercise any other right or pursue any other remedy conferred upon the Lender by this Agreement, the Master Agreement and/or by all or any of
the Security Documents or by any applicable law or regulation or otherwise as a consequence of such Event of Default 

  
 Provided that in the case of the occurrence of an Event of Default referred to in Clause 9.1(g)(i), the Loan, accrued interest thereon and all other
amounts payable under this Agreement shall automatically become immediately due and payable without the need for any demand from the Lender or notice to the Borrower or other action of any kind whatsoever and the obligations of the Lender under this
Agreement shall thereupon automatically terminate. 
  

	10	 	FEES AND EXPENSES 

  

	10.1	 	The Borrower shall pay to the Lender an arrangement fee of US$80,500 on the date of this Agreement and whether or not the Loan is borrowed. 

  

	10.2	 	The Borrower shall reimburse to the Lender on demand all costs, fees and expenses (including, but not limited to, legal fees and expenses) and Taxes thereon incurred by the
Lender in connection with: 

  

	(a)	 	the negotiation, preparation and execution of this Agreement, the Master Agreement and the Security Documents and the insurance consultant’s report referred to in Clause
5.1(w); and/or 

  

	(b)	 	the preserving or enforcing of, or attempting to preserve or enforce, any of its rights under this Agreement, the Master Agreement and the Security Documents (or any of them).

  

	10.3	 	The Borrower shall reimburse to the Lender on demand all costs, fees and expenses (including, but not limited to, legal fees and expenses) and Taxes thereon incurred by the
Lender in connection with: 

  

 21 

	(a)	 	any variation of, or amendment or supplement to, any of the terms of this Agreement, the Master Agreement and the Security Documents (or any of them); and/or

  

	(b)	 	any consent or waiver required from the Lender in relation to this Agreement, the Master Agreement and the Security Documents (or any of them), and in each case, regardless of
whether the same is actually implemented, completed or granted, as the case may be. 

  

	10.4	 	The Borrower shall pay promptly all stamp, documentary and other like duties and Taxes to which this Agreement, the Master Agreement and the Security Documents (or any of
them) may be subject or give rise and shall indemnify the Lender on demand against any and all liabilities with respect to or resulting from any delay or omission on the part of the Borrower to pay any such duties or Taxes. 

 

	10.5	 	The Lender shall, without prejudice to any other of the provisions of this Agreement, be entitled (but not obliged) at any time and from time to time (without prior notice)
to debit the Operating Account in order to satisfy all or any amounts payable by the Borrower to the Lender pursuant to this Clause 10. 

  

	11	 	PAYMENTS AND CALCULATIONS 

  

	11.1	 	All payments to be made by the Borrower to the Lender under this Agreement and any of the Security Documents to which the Borrower is a party shall be made by not later than
11.00 a.m. (New York City time) on the due date in same day Dollar funds settled through the New York Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the Lender shall specify as being customary at the
time for the settlement of international transactions of the type contemplated by this Agreement) to the account of the Lender at the Receiving Bank (Account No 4015790-1), or to such other account with such other bank as the Lender shall from time
to time notify to the Borrower. 

  

	11.2	 	If any sum payable by the Borrower under this Agreement or any of the Security Documents to which the Borrower is a party shall become due on a day which is not a Business
Day, the due date therefor shall be extended to the next succeeding Business Day, unless such Business Day falls in the next calendar month, in which event such due date shall be the immediately preceding Business Day, and interest shall be payable
on such sum during any such extension at the rate payable on the original due date. 

  

	11.3	 	The Lender shall maintain accounts showing the amounts from time to time lent by it under this Agreement and all other sums owing by the Borrower under this Agreement and the
Security Documents and all payments in respect thereof made by the Borrower from time to time. Such accounts, in the absence of manifest error, shall be conclusive evidence as to any amounts from time to time owing by the Borrower under this
Agreement and the Security Documents. 

  

	11.4	 	All payments of interest and any other payments hereunder of an annual or periodic nature shall accrue from day-to-day and shall be calculated on the basis of the actual
number of days elapsed in a three hundred and sixty (360) day year. 

  

	12	 	NO COUNTERCLAIM, TAXATION 

  

	12.1	 	All payments to be made by or on behalf of the Borrower to the Lender pursuant to this Agreement and any of the Security Documents to which the Borrower is a party shall be
made (a) without set-off, counterclaim or condition whatsoever (including, but not limited to, any set-off, counterclaim or condition arising under or in relation to or in connection with the Master Agreement) and (b) free and clear of, and without
deduction for or on account of, any present or future Taxes, unless the Borrower is required by law or regulation to make any such payment subject to any Taxes. 

  

 22 

	12.2	 	In the event that the Borrower is required by any law or regulation to make any deduction or withholding on account of any Taxes which arise as a consequence of any payment
due under this Agreement or any of the Security Documents to which the Borrower is a party, then: 

  

	(a)	 	the Borrower shall notify the Lender promptly as soon as it becomes aware of such requirement; 

  

	(b)	 	the Borrower shall remit promptly the amount of such Taxes to the appropriate taxation authority, and in any event prior to the date on which penalties attach thereto;

  

	(c)	 	such payment shall be increased by such amount as may be necessary to ensure that the Lender receives a net amount which, after deducting or withholding such Taxes, is equal to the
full amount which the Lender would have received had such payment not been subject to such Taxes; and 

  

	(d)	 	the Borrower shall indemnify the Lender against any liability of the Lender in respect of such Taxes. 

  

	12.3	 	Not later than thirty days after each deduction or withholding of any such Taxes, the Borrower shall forward to the Lender evidence satisfactory to the Lender that such Taxes
have been remitted to the appropriate taxation authority. 

  

	13	 	CHANGES IN CIRCUMSTANCES 

  

	13.1	 	In the event that by reason of: 

  

	(a)	 	the introduction of, or any change in, any applicable law or regulation, or any change in the interpretation or application thereof; or 

  

	(b)	 	compliance by the Lender with any directive, request or requirement (whether or not having the force of law) of any central bank, government, fiscal or other authority,

  
 it becomes unlawful or it is prohibited or it
is contrary to such directive, request or requirement for the Lender to maintain or give effect to any of its obligations as contemplated by this Agreement, then the Lender may notify the Borrower thereof and, if the Loan has been advanced by the
Lender, the Borrower shall prepay the Loan forthwith in accordance with the terms of this Agreement and the obligations of the Lender shall thereupon terminate. 
  

	13.2	 	If the Lender shall at any time be of the opinion that: 

  

	(a)	 	the effect of any applicable law, regulation or regulatory requirements, or the interpretation or application thereof, or any change therein (including the imposition of Taxes on
payments hereunder, other than Taxes on the overall net income of the Lender); or 

  

	(b)	 	the effect of complying with any applicable directive, request or requirement (whether or not having the force of law) of any central bank or any governmental, monetary or other
authority (including any type of liquidity, stock or capital adequacy controls or other banking or monetary controls or requirements which affects the manner in which the Lender allocates capital resources to its obligations hereunder), is:

  

	 	(i)	 	to increase the cost to the Lender of making, funding or maintaining its commitment hereunder or the Loan or being a party to this Agreement; or 

  

	 	(ii)	 	to reduce the amount of any payment to the Lender under this Agreement or the effective return to the Lender under this Agreement or on its capital, 

  

 23 

 then, and in any such case, the Lender shall notify the Borrower as soon as practicable thereof and the
Borrower shall from time to time pay to the Lender on demand such amounts as the Lender shall specify to be necessary to compensate the Lender for such increased cost or such reduction. 
  

	13.3	 	If and each time that prior to any Interest Period the Lender shall have determined that, by reason of circumstances affecting the London Interbank Market, either:

  

	(a)	 	adequate and fair means do not exist for ascertaining the rate of interest applicable to the Loan (or any part thereof) during such Interest Period pursuant to Clause 3.1; or

  

	(b)	 	Dollars are not available to the Lender in order to fund the Loan (or any part thereof) during such Interest Period, 

  
 then the Lender shall as soon as practicable give notice of such
determination to the Borrower and, if such notice shall be given prior to the Loan being advanced by the Lender, the Borrower’s right to borrow hereunder shall be suspended during the continuance of such circumstances. In any event, during the
thirty days following the giving of such notice, the Borrower and the Lender shall negotiate in good faith in order to arrive at an alternative interest rate or (as the case may be) an alternative basis for the Lender to fund or continue to fund the
Loan (or the relevant part thereof) during such Interest Period. If within such thirty day period an alternative interest rate or (as the case may be) an alternative basis to fund or to continue to fund the Loan (or the relevant part thereof) is
agreed upon, then such alternative interest rate or (as the case may be) such alternative basis shall take effect in accordance with its terms. If the Borrower and the Lender fail to agree on such an alternative interest rate or (as the case may be)
alternative basis within such thirty day period and such circumstances are continuing at the end of such thirty day period, then the Lender shall set an interest period and interest rate representing the cost of funding of the Lender in Dollars or
in any available currency of the Loan plus the Margin. If the circumstance shall continue at the end of such interest period, the procedure in this Clause 13.3 shall be repeated. If the Borrower shall not agree with such rate then the Borrower may
give not less than fifteen (15) Business Days’ irrevocable notice of prepayment to the Lender in which case the commitment hereunder of the Lender shall thereupon be cancelled and, if the Loan is outstanding, the Borrower shall prepay the Loan
on the first Business Day after such period in accordance with the terms of this Agreement and the obligations of the Lender shall thereupon terminate. 
  

	13.4	 	If at any time any party (or parties acting in concert) which are not members of the Tsakos family (or companies beneficially owned by the Tsakos family or trusts or
foundations of which members of the Tsakos family are beneficiaries) acquire the beneficial ownership or control of the voting rights of the majority of the issued share capital of the Borrower or the Guarantor, the Borrower and the Lender shall
negotiate in good faith in order to vary the terms on which the Loan shall continue to be made available to the Borrower. If the Borrower and the Lender shall fail to reach an agreement within 30 days of the date of the occurrence of the
circumstances referred to in this Clause 13.4, the Loan will become repayable on the Lender’s demand. 

  

	13.5	 	If the Tsakos family (either directly and/or through companies beneficially owned by the Tsakos family and/or trusts or foundations of which the Tsakos family are
beneficiaries) (i) own less than 20% of the issued share capital of the Borrower at any time or (ii) do not have a substantial (in the opinion of the Lender) representation in the senior executive management of the Borrower or the Borrower ceases to
own the whole of the issued share capital of the Guarantor, the Borrower and the Lender shall negotiate in good faith in order to vary the terms on which the Loan shall continue to be made available to the Borrower. If the Borrower and the Lender
shall fail to reach an agreement within 30 days of the date of the occurrence of the circumstances referred to in this Clause 13.5, the Loan will become repayable on the Lender’s demand. 

  

 24 

	14	 	INDEMNITIES 

  

	14.1	 	The Borrower shall indemnify the Lender on demand against all costs, expenses, liabilities and losses sustained or incurred as a result of or in connection with:

  

	(a)	 	any default in payment on the due date of any sum due hereunder (after giving credit for any default interest paid by the Borrower thereon under Clause 3.4); and/or

  

	(b)	 	the occurrence and/or continuance of any Event of Default (or event which, with the giving of notice and/or lapse of time or other applicable condition, might constitute an Event of
Default) and/or the acceleration of repayment of the Loan pursuant to Clause 9.2; and/or 

  

	(c)	 	the Loan not being borrowed on the date specified in the Notice of Drawing, other than as a result of a default by the Lender; and/or 

  

	(d)	 	the payment or other receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the last day of an Interest Period relating thereto or other relevant
period, 

  
 (including, where appropriate, but not
limited to loss of profit and any losses sustained or incurred in liquidating or employing deposits from third parties acquired or arranged to effect or maintain the Loan or any part thereof and, in the applicable circumstances referred to in Clause
14.1(d), an amount equal to the Margin which would, but for prepayment or other receipt or recovery of all or any part of the Loan, have accrued on the Loan from the date of such prepayment, receipt or recovery to the end of the current Interest
Period). 
  

	14.2	 	If, under any applicable law or regulation, and whether pursuant to a judgment being made or registered against the Borrower or the liquidation of the Borrower or for any
other reason, any payment under or in connection with this Agreement is made or falls to be satisfied in a currency (the “payment currency”) other than the currency in which such payment is due under or in connection with this
Agreement (the “contractual currency”), then to the extent that the amount of such payment actually received by the Lender, when converted into the contractual currency at the rate of exchange, falls short of the amount due
under or in connection with this Agreement, the Borrower, as a separate and independent obligation, shall indemnify and hold harmless the Lender against the amount of such shortfall. For the purposes of this Clause 14.2, “rate of
exchange” means the rate at which the Lender is able on or about the date of such payment to purchase the contractual currency with the payment currency and shall take into account any premium and other costs of exchange with respect
thereto. 

  

	14.3	 	The Borrower shall indemnify the Lender on demand against all costs, expenses, liabilities and losses sustained or incurred as a result of or in connection with any
Environmental Claims being made against the Lender or otherwise howsoever arising out of any Environmental Incident. 

  

	14.4	 	The Borrower shall indemnify the Lender on demand against all costs and expenses arising out of the role of the Receiving Bank in relation to the Loan.

  

	15	 	SET-OFF 

  

	15.1	 	The Borrower hereby authorises the Lender (without prior notice) to apply any credit balance (whether or not then due) which is at any time held by the Lender for the account
of the Borrower at any office of the Lender in any country in or towards satisfaction of any sum then due from the Borrower to the Lender under this Agreement, the Master Agreement or any of the Security Documents to which the Borrower is a party
and unpaid. For that purpose: 

  

 25 

	(a)	 	the Lender is authorised to use all or any part of a deposit or other credit balance to buy such other currencies as may be necessary to effect such application; and

  

	(b)	 	break, or alter the maturity of, all or any part of a deposit or other credit balance of the Borrower; and 

  

	(c)	 	enter into any other transaction or make any entry with regard to a deposit or other credit balance as the Lender considers appropriate. 

  

	15.2	 	If the Borrower is the defaulting party under the Master Agreement, the Lender, as the non-defaulting party, may (without prejudice to or limitation of its right of set-off
under section 6(e) of the Master Agreement and its rights under Clause 15.1) at the same time as, or at any time after, the Borrower’s default set-off any amount due from the Borrower to the Lender under this Agreement against any amount due
from the Lender to the Borrower under the Master Agreement, and apply the first amount in discharging the second amount. The effect of any set-off under this Clause 15.2 shall be effective to extinguish or, as the case may require, reduce the
liabilities of the Lender under the Master Agreement. 

  

	15.3	 	The Lender shall not be obliged to exercise any of its rights under Clause 15.1, which shall be without prejudice and in addition to any right of set-off, combination of
accounts, lien or other rights to which the Lender is at any time otherwise entitled (whether by operation of law, contract or otherwise). 

  

	16	 	SECURITY AND APPLICATION 

  

	16.1	 	The Borrower hereby undertakes with the Lender to execute, deliver and perform the provisions of, and procure the execution, delivery and performance by the other parties
thereto (other than the Lender) of, the Security Documents and the provisions thereof at the times and in the manner provided in this Agreement and in the Security Documents so that all such documents shall both at the date of such execution and
delivery and at all times during the Security Period be valid and binding obligations of the Borrower and such other parties enforceable in accordance with their respective terms. 

  

	16.2	 	All moneys received by the Lender under or pursuant to this Agreement or any of the Security Documents and expressed to be applicable in accordance with the provisions of
this Clause 16.2 shall (unless the Lender otherwise requires) be applied by the Lender in the following manner: 

  
 FIRST: in or towards satisfaction of any amounts as are then accrued due and payable under this Agreement, the Master Agreement and the Security Documents
(or any of them) or are then due and payable by virtue of payment demanded under this Agreement, the Master Agreement and the Security Documents (or any of them) in such order of application as the Lender shall think fit; 
  
 SECONDLY: at the option of the Lender (i) in retention of an amount equal to
any amounts which are not then accrued due and payable under this Agreement, the Master Agreement and the Security Documents (or any of them) or are not then due and payable by virtue of payment demanded under this Agreement, the Master Agreement
and the Security Documents (or any of them) but which (in the sole and absolute opinion of the Lender) will or may become due and payable in the future and, upon the same becoming due and payable, in or towards satisfaction thereof in accordance
with the foregoing provisions of this Clause 16.2 and/or (ii) in or towards prepayment of the Loan in accordance with sub-clauses (d) and (e) of Clause 4.2; and 
  
 THIRDLY: the surplus (if any) shall be paid to the Borrower or to whomsoever else may be entitled thereto. 
  

 26 

	17	 	COMMUNICATIONS 

  

	17.1	 	Except as otherwise provided for in this Agreement, all notices or other communications under or in respect of this Agreement to either party hereto shall be in writing and
shall be deemed to be duly given or made when delivered (in the case of personal delivery or letter) and when despatched (in the case of fax) to such party addressed to it at the address appearing below (or at such address as such party may
hereafter specify for such purpose to the other by notice in writing): 

  

	 (a)
	  	in the case of the Borrower:	  	 c/o the Approved Manager
 Macedonia
House
 367 Syngrou Avenue
 Greece
	  	 
	 	  	 	  	 	  	 
	 	  	 	  	Fax No: + 3010 948 0710	  	 
	 	  	 	  	 	  	 
	 (b)
	  	in the case of the Lender:	  	 Akti Miaouli 61
 Piraeus 185 10

Greece
	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 Fax No: + 3010 429 4147
 Attn: Shipping
Department
	  	 

  
 A written notice
includes a notice by fax. A notice or other communication received on a non-working day or after business hours in the place of receipt, shall be deemed to be served on the next following working day in such place. 
  

	17.2	 	All communications and documents delivered pursuant to or otherwise relating to this Agreement or any of the Security Documents shall either be in English or accompanied by a
certified English translation prepared by a translator approved by the Lender. 

  

	17.3	 	A certificate or determination of the Lender as to any matter provided for in this Agreement or any of the Security Documents shall, in the absence of manifest error, be
conclusive and binding on the Borrower. 

  

	18	 	ASSIGNMENTS 

  

	18.1	 	This Agreement shall be binding upon and inure to the benefit of the Lender and the Borrower and their respective successors and permitted assigns. 

 

	18.2	 	The Borrower may not assign or transfer all or any part of its rights and/or obligations under this Agreement. 

  

	18.3	 	The Lender may: 

  

	(a)	 	assign or transfer all or any part of its rights or obligations under this Agreement and the Security Documents with prior consent of the Borrower (which will not be unreasonably
withheld or delayed); and 

  

	(b)	 	sub-participate all or any part of its rights or obligations under this Agreement and the Security Documents or change its lending office, in each such case, without the consent of
the Borrower. 

  

	18.4	 	The Lender may disclose, with the prior written consent of the Borrower, to any potential assignee or transferee of all or any part of its rights or obligations under this
Agreement and the Security Documents or to any such sub-participant or any other person who may otherwise enter into contractual relations with the Lender in relation to this Agreement and the Security Documents, such information about this
Agreement and/or the Security 

  

 27 

	

 Documents (or any of them) and the Borrower and/or its related entities as the Lender
thinks fit. 
  

	19	 	MISCELLANEOUS 

  

	19.1	 	Time shall be of the essence in this Agreement. No delay or omission on the part of the Lender in exercising any right, power or remedy under this Agreement shall impair such
right, power or remedy or be construed as a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy. The rights, powers and
remedies herein provided are cumulative and not exclusive of any rights, powers and remedies provided by law and may be exercised from time to time and as often as the Lender deems expedient. 

  

	19.2	 	Any waiver by the Lender of any provision of this Agreement, or any consent or approval given by the Lender hereunder, shall only be effective if given in writing and then
only for the purpose and upon the terms for which it is given. 

  

	19.3	 	If at any time any one or more of the provisions in this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law or regulation, the validity,
legality and enforceability of the remaining provisions of this Agreement shall not be in any way affected or impaired thereby. 

  

	19.4	 	The obligations of the Borrower under this Agreement shall remain in full force and effect until the Lender shall have received all amounts due or to become due to it
hereunder and under the Security Documents in accordance with the terms hereof and thereof. Without prejudice to the foregoing, the obligations of the Borrower under Clauses 3.4, 10, 12, 13.2 and 14 shall survive the repayment of the Loan.

  

	19.5	 	The terms of this Agreement shall be treated as strictly confidential and no party shall disclose or communicate to any person the existence or the terms of this Agreement
without the prior written consent of the other party. 

  

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

  

	20	 	LAW AND JURISDICTION 

  

	20.1	 	This Agreement shall be governed by, and construed in accordance with, English law. 

  

	20.2	 	Subject to Clause 21.4, the courts of England shall have exclusive jurisdiction in relation to all matters which may arise out of or in connection with this Agreement.

  

	20.3	 	The Borrower shall not commence any proceedings in any country other than England in relation to a matter which arises out of or in connection with this Agreement.

  

	20.4	 	Clause 21.2 is for the exclusive benefit of the Lender which reserves the rights: 

  

	(a)	 	to commence proceedings in relation to any matter which arises out of or in connection with this Agreement in the courts of any country other than England and which have or claim
jurisdiction to that matter; and 

  

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

  

	20.5	 	The Borrower irrevocably appoints HFW Nominees Limited at its office for the time being, presently at Marlow House, Lloyds Avenue, London EC3N 3AL, England, to act

  

 28 

	

 as its agent to receive and accept on its behalf any process or other document relating to
any proceedings in the English courts which are connected with this Agreement. 
  

	20.6	 	In this Clause 21, “proceedings” means proceedings of any kind, including an application for a provisional or protective measure. 

  

 29 

 SCHEDULE 
  

The Mandatory Cost Rate will be calculated in accordance with the following formula: 
  
 F x 0.01 

 300 
  
 where on the day(s)
of application of the formula: 
  
 F.     is the rate of
charge payable by the Lender to the Financial Services Authority pursuant to paragraph 2 of the Fees Regulations (but where for this purpose, the figure at paragraph 2.02b/2.03b shall be deemed to be zero) and expressed in pounds per £1
million of the Fee Base of the Lender. 
  
 For the purposes of this Schedule:

  
 Fee Base has the meaning ascribed to it for the purposes of, and shall be
calculated in accordance with, the Fees Regulations. 
  
 Fees Regulations means,
as appropriate, either the Banking Supervision (Fees) Regulations 2000 or such regulations as from time to time may be in force, relating to the payment of fees for banking supervision in respect of periods subsequent to 31 March 2001. 

 
 Any reference to a provision of any statute, directive, order or regulation herein is a
reference to that provision as amended or re-enacted from time to time. 
  
 If
alternative or additional financial requirements are imposed which in the Lender’s opinion make the formula set out above no longer appropriate, the Lender shall be entitled to stipulate such other formula as shall be suitable to apply in
substitution for the formula set out above. 
  

 30 

 IN WITNESS whereof the parties hereto have entered into this Agreement the date first above written. 

 

	 BORROWER
	  	 	  	 
			
	SIGNED by	  	)	  	 
	 for and on behalf of
	  	)	  	/s/    Alexia Kleonakos
	 TSAKOS ENERGY NAVIGATION LIMITED
	  	)	  
	 in the presence of:
	  	)	  	 
			
	LENDER	  	 	  	 
			
	 SIGNED by
	  	)	  	 
	 for and on behalf of
	  	)	  	/s/    Lambros Varnavides
	 THE ROYAL BANK OF SCOTLAND plc
	  	)	  
	 in the presence of:
	  	)	  	 

  
  

 31 

 APPENDIX 
  

NOTICE OF DRAWING 
  

	 To:
	  	 The Royal Bank of Scotland plc
 61 Akti
Miaouli
 Piraeus 185 10
 Greece
	  	 
			
	 	  	 Attention: Shipping Department
	  	[·] June 2002

  
 Dear
Sirs 
  
 We refer to the loan agreement (the “Loan Agreement”) entered
into between yourselves and ourselves dated [·] June 2002 pursuant to which a loan facility of up to US$32,200,000 has been made available to us.
Terms defined in the Agreement shall have the same meanings when used herein. 
  
 We refer to Clause 2.2 of the Agreement and hereby request to borrow the Loan: 
  

	(a)	 	the amount of the proposed Loan is US$32,200,000; 

  

	(b)	 	the Drawdown Date of the proposed Loan is [·] June 2002;

  

	(c)	 	the duration of the first Interest Period relative to the Loan shall be [            ] months; and

  

	(d)	 	the payment instructions for the Loan are to pay the whole amount thereof to the Operating Account and transfer therefrom
$[            ] to the account of the Builder with [            ] (Account Number
[            ]). 

  
 We confirm that: 
  

	(i)	 	the representations and warranties made by us in Clause 6.1 of the Agreement are true and accurate on the date hereof as if made on such date; 

  

	(ii)	 	the undertakings contained in Clauses 7.1 and 7.2 have at all times been complied with; and 

  

	(iii)	 	no Event of Default (or event which, with the giving of notice and/or lapse of time or any other applicable condition, might constitute an Event of Default) has occurred and is
continuing or would result from the proposed borrowing. 

  
  
 -------------------------------------------------- 
  
 for and on behalf of 
 TSAKOS ENERGY
NAVIGATION LIMITED 
  

 32

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