Document:

Loan Agreement dated May 5, 2008

 Exhibit 4.34 
 Date 5 May 2008 
 DALIAN STAR OWNERS INC. 
 as Borrower 
 - and - 
 THE BANKS AND FINANCIAL INSTITUTIONS 
 listed in Schedule 1 
 as Lenders 
 - and - 
 DRESDNER BANK AG in HAMBURG 
 as Agent
and Security Trustee 
 - and - 
 DRESDNER BANK AG in HAMBURG and WESTLB AG 
 as Swap Banks and Joint Arrangers 
  
  
 LOAN AGREEMENT 
  
  
 relating to a term loan facility
of up to US$90,000,000 
 to finance the acquisition of one 170,500 dwt bulk carrier with Hull No. 1001 
 currently under construction at Daehan Shipbuilding Co., Ltd, South Korea 
 WATSON, FARLEY & WILLIAMS 
 Piraeus 

 INDEX 
  

					
	Clause	  	Page
			
	   1
	  	INTERPRETATION	  	1
			
	   2
	  	FACILITY	  	14
			
	   3
	  	POSITION OF THE LENDERS, SWAP BANKS AND MAJORITY LENDERS	  	14
			
	   4
	  	DRAWDOWN	  	15
			
	   5
	  	INTEREST	  	16
			
	   6
	  	INTEREST PERIODS	  	18
			
	   7
	  	DEFAULT INTEREST	  	19
			
	   8
	  	REPAYMENT AND PREPAYMENT	  	20
			
	   9
	  	CONDITIONS PRECEDENT	  	21
			
	 10
	  	REPRESENTATIONS AND WARRANTIES	  	22
			
	 11
	  	GENERAL UNDERTAKINGS	  	24
			
	 12
	  	CORPORATE UNDERTAKINGS	  	27
			
	 13
	  	INSURANCE	  	28
			
	 14
	  	SHIP COVENANTS	  	32
			
	 15
	  	SECURITY COVER	  	36
			
	 16
	  	PAYMENTS AND CALCULATIONS	  	37
			
	 17
	  	APPLICATION OF RECEIPTS	  	39
			
	 18
	  	APPLICATION OF EARNINGS	  	40
			
	 19
	  	EVENTS OF DEFAULT	  	40
			
	 20
	  	FEES AND EXPENSES	  	44
			
	 21
	  	INDEMNITIES	  	45
			
	 22
	  	NO SET-OFF OR TAX DEDUCTION	  	47
			
	 23
	  	ILLEGALITY, ETC	  	48
			
	 24
	  	INCREASED COSTS	  	48
			
	 25
	  	SET-OFF	  	50
			
	 26
	  	TRANSFERS AND CHANGES IN LENDING OFFICES	  	50

					
	 27
	  	VARIATIONS AND WAIVERS	  	53
			
	 28
	  	NOTICES	  	54
			
	 29
	  	SUPPLEMENTAL	  	55
			
	 30
	  	LAW AND JURISDICTION	  	56
		
	SCHEDULE 1 LENDERS AND COMMITMENTS	  	57
		
	SCHEDULE 2 DRAWDOWN NOTICE	  	58
		
	SCHEDULE 3 CONDITION PRECEDENT DOCUMENTS	  	59
		
	SCHEDULE 4 TRANSFER CERTIFICATE	  	62
		
	SCHEDULE 5 MANDATORY COST FORMULA	  	66
		
	EXECUTION PAGES	  	68

 THIS AGREEMENT is made on 5 May 2008 
 BETWEEN 
  

	(1)	DALIAN STAR OWNERS INC. as Borrower; 

  

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

  

	(3)	DRESDNER BANK AG in HAMBURG, as Agent; 

  

	(4)	DRESDNER BANK AG in HAMBURG, as Security Trustee; 

  

	(5)	WESTLB AG and DRESDNER BANK AG in HAMBURG as Swap Banks; and 

  

	(6)	WESTLB AG and DRESDNER BANK AG in HAMBURG, as Joint Arrangers. 

 BACKGROUND 
  

	(A)	The Lenders have agreed to make available to the Borrower a facility of up to the lesser of (i) US$90,000,000 (Ninety million United States Dollars) and (ii) 65 per
cent, of the Market Value of the Ship as determined in accordance with paragraph 5 of Part B of Schedule 3, Part B, for the purpose of financing the acquisition cost of the Ship (as such cost is determined by reference to the purchase price
payable pursuant to the MO A). 

  

	(B)	The Borrower may, if it wishes, from time to time hedge its exposure under this Agreement to interest rate fluctuations by entering into interest rate swap transactions with the
Swap Banks. 

  

	(C)	The Lenders and the Swap Banks have agreed to share pari passu in security to be granted to the Security Trustee pursuant to this Agreement. 

 IT IS AGREED as follows: 
  

	1	INTERPRETATION 

  

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

 “Account Pledge” means the pledge creating security in respect of the Earnings Account in such form as the Agent may approve or require; 
 “Affected Lender” has the meaning given in Clause 5.6; 
 “Agency and Trust
Deed” means the agency and trust deed executed or to be executed between the Borrower, the Lenders, the Swap Banks, the Agent and the Security Trustee in such form as the Agent may approve or require; 
 “Agent” means Dresdner Bank AG in Hamburg, acting in such capacity through its office at Jungfernstieg 22, 20354 Hamburg, Germany, or any
successor of it appointed under clause 5 of the Agency and Trust Deed; 
 “Approved Broker” means each of Clarksons of St.
Magnus House, 3 Lower Thames Street, London EC3R 6HE, England, or Fearnley AS, PO Box 1158, Sentrum, N-0107, Oslo, Norway and Ingenieubuero Weselmann of Steinhoeft 11,20459, Hamburg, Germany or any other company which the Agent may, with the
authorisation of the Majority Lenders, approve from time to time as an Approved Broker under this Agreement; 
  

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 “Approved Flag” means the Greek flag, the Maltese flag, the Cyprus flag, the Bahamas
flag, the Panamanian flag, the Liberian flag, the Marshall Islands flag or such other flag as the Agent may, acting upon the instructions of all the Lenders, approve as the flag on which the Ship shall be registered; 
 “Approved Flag State” means Greece, Malta, Cyprus, Bahamas, Panama, Liberia, the Marshall Islands or any other country in which the Agent
may, acting upon the instructions of all the Lenders, approve that the Ship be registered; 
 “Approved Manager” means
Cardiff Marine Inc., a corporation incorporated in the Republic of Liberia and maintaining a ship management office at Omega Building, 80 Kifissias Avenue, Maroussi 151 25, Greece, or any other company which the Agent may, with the authorisation of
the Majority Lenders, approve from time to time as the manager of the Ship; 
 “Availability Period” means the period
commencing on the date of this Agreement and ending on: 
  

	 	(a)	the earlier to occur of (i) 31 July 2008 and (ii) the date falling 6 months from the date of this Agreement (or such later date as the Agent may, with the
authorisation of the Lenders, agree with the Borrower); or 

  

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

 “Borrower” means Dalian Star Owners Inc., being a corporation incorporated in the Marshall Islands whose registered office is at Trust
Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960; 
 “Business Day” means a day on which
banks are open in Athens, London and Hamburg and, in respect of a day on which a payment is required to be made under a Finance Document, also in New York City; 
 “Commitment” means, in relation to a Lender, the amount set opposite its name in Schedule 1, or, as the case may require, the amount specified in the relevant Transfer Certificate, as that amount may
be reduced, cancelled or terminated in accordance with this Agreement (and “Total Commitments” means the aggregate of the Commitments of all the Lenders); 
 “Confirmation” and “Early Termination Date”, in relation to any continuing Designated Transaction, have the meanings given in each Master Agreement; 
 “Contractual Currency” has the meaning given in Clause 21.4; 
 “Contribution” means, in relation to a Lender, the part of the Loan which is owing to that Lender; 
 “Creditor Party” means the Agent, the Security Trustee, either Swap Bank or any Lender, whether as at the date of this Agreement or at
any later time; 
 “Designated Transaction” means a Transaction which fulfils the following requirements: 
  

	 	(a)	it is entered into by the Borrower pursuant to a Master Agreement with a Swap Bank which, at the time the Transaction is entered into, is also a Lender; 

  

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	 	(b)	its purpose is the hedging of the Borrower’s exposure under this Agreement to fluctuations in LIBOR arising from the funding of the Loan (or any part thereof) for a period
expiring no later than the final Repayment Date; and 

  

	 	(c)	it is designated by the Borrower, by delivery by the Borrower to the Agent of a notice of designation, as a Designated Transaction for the purposes of the Finance Documents;

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

	 	(a)	all freight, hire and passage moneys, compensation payable to the Borrower or the Security Trustee 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) 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 Agent in Hamburg designated “Dalian Star Owners Inc. - Earnings Account” and any other account (with that or another office of the Agent or with a bank or financial
institution other than the Agent) which is designated by the Agent as the Earnings Account for the purposes of this Agreement; 
 “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; 
  

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 “Environmental Incident” means: 
  

	 	(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 and/or the Borrower 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 Borrower 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; 
 “Event of Default” means any of the events or circumstances described in Clause 19.1; 
 “Finance Documents” means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	the Master Agreements; 

  

	 	(c)	the Agency and Trust Deed; 

  

	 	(d)	the Guarantee; 

  

	 	(e)	the Master Agreement Assignments; 

  

	 	(f)	the Deed of Covenant; 

  

	 	(g)	the General Assignment; (h) the Mortgage; 

  

	 	(i)	the Account Pledge; and 

  

	 	(j)	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 Lenders under this Agreement or any of the other 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; 

  

 4 

	 	(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 or dematerialised equivalent 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 foreign exchange transaction, any interest or currency swap or any other kind of derivative transaction entered into by the debtor or, if the agreement under which any
such transaction is entered into requires netting of mutual liabilities, the liability of the debtor for the net amount; 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 paragraphs (a) to (e) if
the references to the debtor referred to the other person; 

 “Financial Year” means, in relation to the Group,
each period of 1 year commencing on 1 January in respect of which its consolidated accounts are or ought to be prepared; 
 “GAAP” means generally accepted accounting principles as from time to time in effect in the United States of America; 
 “General Assignment” means a deed containing a general assignment of the Earnings, the Insurances, any Requisition Compensation of the Ship and an assignment by the Borrower of its rights under any charter and the
charterer’s assignment of insurances in respect of the Ship in such form as the Agent may approve or require; 
 “Group”
means the Guarantor and its subsidiaries (whether direct or indirect and including, but not limited to, the Borrower) from time to time during the Security Period and “member of the Group” shall be construed accordingly;

 “Guarantee” means a guarantee issued by the Guarantor in such form as the Agent may approve or require; 
 “Guarantor” means Dryships Inc., a corporation incorporated in the Marshall Islands and having its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, The Marshall Islands MH 96960; 
 “IACS” means the International Association
of Classification Societies;  
 “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, its
Earnings or otherwise in relation to it; and 

  

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

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

	 	(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.74I(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

  

 5 

	 	(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 Organisations pursuant to Resolution A.788(I9) 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 Agent may require; and 

  

	 	(c)	any other documents which are prepared or which are otherwise relevant to establish and maintain the Ship’s or the compliance of the Borrower with the ISM Code which the Agent
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; 
 “ISPS Code” means the International Ship and Port Facility Security
Code constituted pursuant to resolution A.924(22) of the International Maritime Organisation (“IMO”) now set out in Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS) 1974 (as amended) and the mandatory ISPS Code as adopted by a
Diplomatic Conference of the IMO on Maritime Security in December 2002 and includes any amendments or extensions to it and any regulation issued pursuant to it but shall only apply insofar as it is applicable law in the Approved Flag State and any
jurisdiction on which the Ship is operated; 
 “ISPS Code Documentation” includes: 
  

	 	(a)	the International Ship Security Certificate issued pursuant to the ISPS Code in relation to the Ship within the period specified in the ISPS Code; and 

  

	 	(b)	all other documents and data which are relevant to the ISPS Code and its implementation and verification which the Agent may require; 

 “Joint Arrangers” means, together, WestLB AG having its registered office at Herzogstrasse 15 in 40217 Duesseldorf, Germany and acting
through its London branch at 

  

 6 

 
Woolgate Exchange, 25 Basinghall Street, London EC2V 5HA, England and Dresdner Bank AG in Hamburg, acting in such capacity through its office at
Jungfernstieg 22, 20354 Hamburg, Germany; 
 “Lender” means, subject to Clause 26.6: 
  

	 	(a)	a bank or financial institution listed in Schedule 1 and acting through its branch indicated in Schedule 1 (or through another branch notified to the Borrower under Clause 26.14)
unless it has delivered a Transfer Certificate or Certificates covering the entire amounts of its Commitment and its Contribution; and 

  

	 	(b)	the holder for the time being of a Transfer Certificate; 

  

	 	“LIBOR”	means, for an Interest Period: 

  

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

  

	 	(b)	if no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum determined by the Agent to be the arithmetic mean of the rates per annum notified to the Agent by each
Reference Bank to be the rate per annum at which deposits in Dollars are offered to that Reference Bank by leading banks 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; 

 “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 $500,000 or the equivalent in any other
currency; 
 “Majority Lenders” means: 
  

	 	(a)	before the Loan has been made, Lenders whose commitments total 50.01 per cent, of the Total Commitments; and 

  

	 	(b)	after the Loan has been made Lenders whose contributions total 50,01 per cent, of the Loan; 

 “Mandatory Cost” means the percentage rate per annum calculated by the Lender in accordance with Schedule 5; 
 “Margin” means 1.20 per cent, per annum; 
 “Master Agreement” means each master agreement (on the 1992 ISDA (Multicurrency—Crossborder) form and including the Schedule thereto) made or to be made between the Borrower and a Swap Bank and
includes all Designated Transactions from time to time entered into and Confirmations from time to time exchanged thereunder; 
  

 7 

 “Master Agreement Assignment” means in relation to each Master Agreement, the
assignment of the Master Agreement in favour of the Security Trustee executed or to be executed by the Borrower, in such form as the Agent may approve or require; 
 “Market Value” means the market value of the Ship determined from time to time in accordance with Clause 15.3; 
 “MOA” means the memorandum of agreement dated 1 October 2007 made between the Seller and the Borrower pursuant to which the Seller has agreed to sell, and the Borrower has agreed to purchase, the
Ship; 
 “Mortgage” means the first priority or, as the case may be, preferred ship mortgage on the Ship under the Approved
Flag and deed of covenant collateral thereto (if applicable) in such form as the Agent may approve or require; 
 “Negotiation
Period” has the meaning given in Clause 5.9;  
 “Payment Currency” has the meaning given in Clause 21.4;
 
 “Permitted Security Interests” means: 
  

	 	(a)	Security Interests created by the Finance Documents; 

  

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

  

	 	(c)	liens for salvage; 

  

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

 

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

  

	 	(f)	any Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses while the Borrower is actively prosecuting
or defending such proceedings or arbitration in good faith; and 

  

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

 “Pertinent Document” means: 
  

	 	(a)	any Finance Document; 

  

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

  

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

  

 8 

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

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

	 	(a)	England and Wales; 

  

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

  

	 	(c)	a country in which the company has the centre of its main interests or 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); 

 “Pertinent
Matter” means: 
  

	 	(a)	any transaction or matter contemplated by, arising out of, or in connection with a Pertinent Document; or 

  

	 	(b)	any statement relating to a Pertinent Document or to a transaction or matter falling within paragraph (a); 

 and covers any such transaction, matter or statement, whether entered into, arising or made at any time before the signing of this Agreement or on or at
any time after that signing; 
 “Potential Event of Default” means an event or circumstance which, with the giving of any
notice, the lapse of time, a determination of the Majority Lenders and/or the satisfaction of any other condition, would constitute an Event of Default; 
 “Reference Banks” means, subject to Clause 26.16, the London branch of WestLB AG and Dresdner Bank AG in Hamburg; 
 “Relevant Person” has the meaning given in Clause 19.9; 
 “Repayment Date”
means a date on which a repayment is required to be made under Clause 8; 
 “Requisition Compensation” includes all
compensation or other moneys payable by reason of any act or event such as is referred to in paragraph (b) of the definition of “Total Loss”; 
 “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 in 

  

 9 

 
connection with any Finance Document or any judgment relating to any Finance Document; and for this purpose, there shall be disregarded any total or partial
discharge of these liabilities, or variation of their terms, which is effected by, or in connection with, any bankruptcy, liquidation, arrangement or other procedure under the insolvency laws of any country; 
 “Security Interest” means: 
  

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

  

	 	(b)	the security rights of a plaintiff under an action in rem; 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 this paragraph (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 Guarantor, the Approved Manager and any other person (except a Creditor Party)
who, as a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes a document falling within the last paragraph of the definition of “Finance Documents”; 
 “Security Period” means the period commencing on the date of this Agreement and ending on the date on which the Agent notifies the
Borrower, the Security Parties and the Lenders 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 20, 21 or 22 or any other provision of this Agreement or another Finance Document;
and 

  

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

 “Security Trustee” Dresdner Bank AG in
Hamburg, acting in such capacity through its office at Jungfernstieg 22, 20354 Hamburg, Germany, or any successor of it appointed under clause 5 of the Agency and Trust Deed; 
 “Seller” means Golden Nassim Inc., a corporation incorporated in Liberia whose registered office is at 80 Broad Street, Monrovia,
Liberia; 
 “Ship” means the Capesize bulk carrier newbuilding of approximately 170,500 metric tons deadweight with Hull
No. 1001 currently under construction by Daehan Shipbuilding Co., Ltd, South Korea and which is to be purchased by the Borrower pursuant to the MOA and registered in the name of the Borrower under an Approved Flag with the name
“MYSTIC”; 
  

 10 

 “Swap Bank” means each of WestLB AG having its registered office at Herzogstrasse
15 in 40217 Duesseldorf, Germany and acting through its London branch at Woolgate Exchange, 25 Basinghall Street, London EC2V 5HA, England and Dresdner Bank AG in Hamburg, acting in such capacity through its office at Jungfernstieg 22, 20354
Hamburg, Germany, or any successor of it appointed under clause 5 of the Agency and Trust Deed; 
 “Swap Exposure” means, as
at any relevant date, the amount certified by the Swap Banks to the Agent to be the aggregate net amount in Dollars which would be payable by the Borrower to the Swap Banks under (and calculated in accordance with) section 6(e) (Payments on Early
Termination) of each Master Agreement if an Early Termination Date had occurred on the relevant date in relation to all continuing Designated Transactions entered into between the Borrower and the Swap Banks; 
 “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 its proper value, a nominal consideration or
without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period not exceeding 1
year without any right to an extension) unless it is within 1 month redelivered to the full control of the Borrower; and 

  

	 	(c)	any arrest, capture, seizure or detention of the Ship (including any hijacking or theft) unless it is within 1 month redelivered to the full control of the Borrower;

 “Total Loss Date” means: 
  

	 	(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 Borrower 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 Agent that the event constituting the total loss occurred;

 “Transfer Certificate” has the meaning given in Clause 26.2;  
 “Transaction” has the meaning given in each Master Agreement; and  
 “Trust Property” has the meaning given in clause 3.1 of the Agency and Trust Deed. 
  

	1.2	Construction of certain terms. In this Agreement: 

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

 11 

 “asset” includes every kind of property, asset, interest or right, including any
present, future or contingent right to any revenues or other payment; 
 “company” includes any partnership, joint venture
and unincorporated association; 
 “consent” includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration, notarisation and legalisation; 
 “contingent liability” means a liability which is not certain to
arise and/or the amount of which remains unascertained; 
 “document” includes a deed; also a letter, 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 its 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 order or decree, any form of delegated legislation, any treaty or international convention
and any regulation or resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council; 
 “legal or administrative action” means any legal proceeding or arbitration and any administrative or regulatory action or investigation; 
 “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 Borrower is obliged to effect, under Clause 13 or any other provision of mis Agreement or another Finance Document; 
 “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 in them of clause 1 of the Institute Time Clauses (Hulls)(l/10/83) or clause 8 of the Institute Time Clauses (Hulls)(l/l1/1995) or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision; 
 “regulation” includes any regulation, rule, official directive, request or guideline whether or not having the force of law of any
governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 
  

 12 

 “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)(l/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 

  

	(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. In this Agreement: 

  

	(a)	references in Clause 1.1 to a Finance Document or any other document being in a particular form include references to that form with any modifications to that form which the Agent
(with the authorisation of the Majority Lenders in the case of substantial modifications) approves or reasonably requires; 

  

	(b)	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; 

  

	(c)	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;

  

	(d)	words denoting the singular number shall include the plural and vice versa; and 

  

	(e)	Clauses 1.1 to 1.5 apply unless the contrary intention appears. 

  

 13 

	1.6	Headings. In interpreting a Finance Document or any provision of a Finance Document, all clause, sub-clause and other headings in that and any other Finance Document shall be
entirely disregarded. 

  

	2	FACILITY 

  

	2.1	Amount of facility. Subject to the other provisions of this Agreement, the Lenders shall make available to the Borrower a loan facility in a single advance of up to the
lesser of (i) US$90,000,000 (Ninety million United States Dollars) and (ii) 65 per cent, of the Market Value of the Ship as determined in accordance with paragraph 5 of Schedule 3, Part B for the purpose of part-financing the
acquisition cost of the Ship under the MOA. 

  

	2.2	Lenders’ participations in the Loan. Subject to the other provisions of this Agreement, each Lender shall participate in the Loan in the proportion which, as at the
Drawdown Date, its Commitment bears to the Total Commitments. 

  

	2.3	Purpose of Loan. The Borrower undertakes with each Creditor Party to use the Loan only for the purpose stated in the preamble to this Agreement. 

  

	3	POSITION OF THE LENDERS, SWAP BANKS AND MAJORITY LENDERS 

  

	3.1	Interests of Lenders and Swap Banks several. The rights of the Lenders and the Swap Banks under this Agreement and each Master Agreement are several; accordingly:

  

	(a)	each Lender shall be entitled to sue for any amount which has become due and payable by the Borrower to it under this Agreement; and 

  

	(b)	each Swap Bank shall be entitled to sue for any amount which has become due and payable by the Borrower to it under the Master Agreement to which that Swap Bank is a party,

 without joining the Agent, the Security Trustee, any other Lender or the other Swap Bank as additional parties in the
proceedings. 
  

	3.2	Proceedings by individual Lender or Swap Bank. However, without the prior consent of the Majority Lenders, no Lender and neither Swap Bank may bring proceedings in respect
of: 

  

	(a)	any other liability or obligation of the Borrower or a Security Party under or connected with a Finance Document or a Master Agreement; or 

  

	(b)	any misrepresentation or breach of warranty by the Borrower or a Security Party in or connected with a Finance Document or a Master Agreement. 

  

	3.3	Obligations several. The obligations of the Lenders under this Agreement and of the Swap Banks under the Master Agreements are several; and a failure of a Lender to perform
its obligations under this Agreement or of a Swap Bank to perform its obligations under the Master Agreement to which it is a party shall not result in: 

  

	(a)	the obligations of the other Lenders being increased; nor 

  

	(b)	the Borrower, any Security Party or any other Creditor Party being discharged (in whole or in part) from its obligations under any Finance Document; 

  

 14 

 and in no circumstances shall a Lender or a Swap Bank have any responsibility for a failure of another
Lender or Swap Bank to perform its obligations under this Agreement or any Master Agreement. 
  

	3.4	Parties bound by certain actions of Majority Lenders. Every Lender, each Swap Bank, the Borrower and each Security Party shall be bound by: 

 

	(a)	any determination made, or action taken, by the Majority Lenders under any provision of a Finance Document; 

  

	(b)	any instruction or authorisation given by the Majority Lenders to the Agent or the Security Trustee under or in connection with any Finance Document; and 

 

	(c)	any action taken (or in good faith purportedly taken) by the Agent or the Security Trustee in accordance with such an instruction or authorisation. 

  

	3.5	Reliance on action of Agent. However, the Borrower and each Security Party: 

  

	(a)	shall be entitled to assume that the Majority Lenders have duly given any instruction or authorisation which, under any provision of a Finance Document, is required in relation to
any action which the Agent has taken or is about to take; and 

  

	(b)	shall not be entitled to require any evidence that such an instruction or authorisation has been given. 

  

	3.6	Construction. In Clauses 3.4 and 3.5 references to action taken include (without limitation) the granting of any waiver or consent, an approval of any document and an
agreement to any matter. 

  

	4	DRAWDOWN 

  

	4.1	Request for Loan. Subject to the following conditions, the Borrower may request the Loan to be made by ensuring that the Agent receives a completed Drawdown Notice not later
than 11.00 a.m. (Hamburg time) 2 Business Days prior to the intended Drawdown Date. 

  

	4.2	Availability. The conditions referred to in Clause 4.1 are that: 

  

	(a)	the Drawdown Date has to be a Business Day during the Availability Period; 

  

	(b)	the Loan shall be made available in a single amount and any amount undrawn in respect of the Loan shall be cancelled and may not be borrowed by the Borrower at a later date; and

  

	(c)	the aggregate amount of the Loan shall not exceed the Total Commitments; 

  

	4.3	Notification to Lenders of receipt of the Drawdown Notice. The Agent shall promptly notify the Lenders that it has received the Drawdown Notice and shall inform each Lender
of: 

  

	(a)	the amount of the Loan and the Drawdown Date; 

  

	(b)	the amount of that Lender’s participation in the Loan; and 

  

	(c)	the duration of the first Interest Period. 

  

 15 

	4.4	Drawdown Notice irrevocable. The Drawdown Notice must be signed by a director, an officer or an authorised attorney in fact of the Borrower; and once served, the Drawdown
Notice cannot be revoked without the prior consent of the Agent, acting on the authority of the Majority Lenders. 

  

	4.5	Lenders to make available Contributions. Subject to the provisions of this Agreement, each Lender shall, on and with value on the Drawdown Date, make available to the Agent
the amount due from that Lender on the Drawdown Date under Clause 2.2. 

  

	4.6	Disbursement of Loan. Subject to the provisions of this Agreement, the Agent shall on the Drawdown Date pay to the Borrower the amounts which the Agent receives from the
Lenders under Clause 4.5; and that payment to the Borrower shall be made: 

  

	(a)	to the account which the Borrower specifies in the Drawdown Notice; and 

  

	(b)	in the like funds as the Agent received the payments from the Lenders. 

  

	4.7	Disbursement of Loan to third party. The payment by the Agent under Clause 4.6 to a third party specified in the Drawdown Notice shall constitute the making of the Loan and
the Borrower shall at that time become indebted, as principal and direct obligors, to each Lender in an amount equal to that Lender’s Contribution. 

  

	5	INTEREST 

  

	5.1	Payment of normal interest. Subject to the provisions of this Agreement, interest on the Loan in respect of each Interest Period shall be paid by the Borrower on the last day
of that 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 an Interest Period shall be the aggregate of (i) the
Margin, (ii) the Mandatory Cost (if any) and (iii) LIBOR for that Interest Period, 

  

	5.3	Payment of accrued interest. In the case of an Interest Period longer than 6 months, accrued interest shall be paid every 6 months during that Interest Period and on the last
day of that Interest Period. 

  

	5.4	Notification of Interest Periods and rates of normal interest. The Agent shall notify the Borrower and each Lender of: 

  

	(a)	each rate of interest; and 

  

	(b)	the duration of each Interest Period; 

 as soon as
reasonably practicable after each is determined. 
  

	5.5	Obligation of Reference Banks to quote. A Reference Bank which is a Lender shall use all reasonable efforts to supply the quotation required of it for the purposes of fixing
a rate of interest under this Agreement. 

  

	5.6	Market disruption. The following provisions of this Clause 5 apply if: 

  

	(a)	no rate is quoted on Reuters BBA Page LIBOR 01 and neither Reference Bank, before 1.00 p.m. (Hamburg time) on the second Business Day before the commencement of an Interest Period,
provides a quotation to the Agent in order to fix LIBOR; 

  

	(b)	 at least 1 Business Day before the start of an Interest Period, Lenders having Contributions together amounting to more than 50 per cent, of the Loan (or, if
the Loan has not been made, Commitments amounting to more than 50 per cent, of the Total 

  

 16 

	 	 
Commitments) notify the Agent that LIBOR fixed by the Agent would not accurately reflect the cost to those Lenders of funding their respective Contributions
(or any part of them) during the Interest Period in the London Interbank Market at or about 11.00 a.m. (London time) on the second Business Day before the commencement of the Interest Period; or 

  

	(c)	at least 1 Business Day before the start of an Interest Period, the Agent is notified by a Lender (the “Affected Lender”) that for any reason it is unable to obtain
Dollars in the London Interbank Market in order to fund its Contribution (or any part of it) during the Interest Period. 

  

	5.7	Notification of market disruption. The Agent shall promptly notify the Borrower and each of the Lenders stating the circumstances falling within Clause 5.6 which have caused
its notice to be given. 

  

	5.8	Suspension of drawdown. If the Agent’s notice under Clause 5.7 is served before the Loan is made: 

  

	(a)	in a case falling within Clauses 5.6(a) or (b), the Lenders’ obligations to make the Loan; 

  

	(b)	in a case falling within Clause 5.6(c), the Affected Lender’s obligation to participate in the Loan; 

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

	5.9	Negotiation of alternative rate of interest. If the Agent’s notice under Clause 5.7 is served after the Loan is made, the Borrower, the Agent and the Lenders or (as the
case may be) the Affected Lender shall use reasonable endeavours to agree, within the 30 days after the date on which the Agent serves its notice under Clause 5.7 (the “Negotiation Period”), an alternative interest rate or (as the
case may be) an alternative basis for the Lenders or (as the case may be) the Affected Lender to fund or continue to fund their or its Contribution during the Interest Period concerned. 

  

	5.10	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. 

  

	5.11	Alternative rate of interest in absence of agreement. If an alternative interest rate or alternative basis is not agreed within the Negotiation Period, and the relevant
circumstances are continuing at the end of the Negotiation Period, then the Agent shall, with the agreement of each Lender or (as the case may be) the Affected Lender, set an interest period and interest rate representing the cost of funding of the
Lenders or (as the case may be) the Affected Lender in Dollars or in any available currency of their or its Contribution plus the Margin and the Mandatory Cost (if any); and the procedure provided for by this Clause 5.11 shall be repeated if the
relevant circumstances are continuing at the end of the interest period so set by the Agent. 

  

	5.12	Notice of prepayment. If the Borrower does not agree with an interest rate set by the Agent under Clause 5.11, the Borrower may give the Agent not less than 10 Business Days*
notice of its intention to prepay at the end of the interest period set by the Agent. 

  

	5.13	Prepayment; termination of Commitments. A notice under Clause 5.12 shall be irrevocable; the Agent shall promptly notify the Lenders or (as the case may require) the Affected
Lender of the Borrower’s notice of intended prepayment; and: 

  

	(a)	on the date on which the Agent serves that notice, the Total Commitments or (as the case may require) the Commitment of the Affected Lender shall be cancelled; and

  

 17 

	(b)	on the last Business Day of the interest period set by the Agent, the Borrower shall prepay (without premium or penalty) the Loan or, as the case may be, the Affected Lender’s
Contribution, together with accrued interest thereon at the applicable rate plus the Margin and the Mandatory Cost (if any). 

  

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

  

	5.15	Designated Transactions under the Master Agreements. The Borrower and each Swap Bank agree that: 

  

	(a)	the Borrower shall provide one or the other Swap Bank with a right of first refusal at any time to conclude Designated Transactions for the purpose of hedging the Borrower’s
interest payment obligations under this Agreement. The Borrower agrees that signature of a Master Agreement does not commit either Swap Bank to conclude Designated Transactions, or even to offer terms for doing so, but does provide a contractual
framework within which Designated Transactions may be concluded and secured, assuming that, in relation to each proposed Designated Transaction, mutually acceptable terms can then be agreed at the relevant time; 

  

	(b)	Designated Transactions shall be concluded only for the purpose of hedging the Borrower’s interest payment obligations under this Clause 5 from LIBOR-based funding to
longer-term fixed rate funding; 

  

	(c)	the Borrower shall pay amounts required to meet its obligations under the maturing Designated Transactions and use the sums derived from such Designated Transactions to meet its
interest payment obligations under this Clause 5; and 

  

	(d)	no Designated Transaction shall be concluded which would result, at any time during the Security Period, in the notional principal amount of all Designated Transactions then current
exceeding the amount of the Loan. 

  

	6	INTEREST PERIODS 

  

	6.1	Commencement of Interest Periods. The first Interest Period applicable to the Loan 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)	1, 3, 6 or 12 months as notified by the Borrower to the Agent not later than 11.00 a.m. (Hamburg time) 2 Business Days before the commencement of the Interest Period; or

  

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

  

	(c)	such other period as the Agent may, with the authorisation of all the Lenders, 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 Lenders have agreed an Interest Period longer
than 6 months, any Lender notifies the Agent by 11.00 a.m. (Hamburg time) on the third Business Day before the commencement of the Interest Period that it is not satisfied that 

  

 18 

	 	 
deposits in Dollars for a period equal to the Interest Period will be available to it in the London Interbank Market when the Interest Period commences, the
Interest Period shall be of 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 Agent, the Security Trustee or the other designated payee 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 Agent 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 

  

	(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 applicable to it);

  

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

  

	 	(i)	LIBOR; or 

  

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

  

	7.4	Notification of interest periods and default rates. The Agent shall promptly notify the Lenders and the Borrower of each interest rate determined by the Agent under Clause
7.3 and of each period selected by the Agent for the purposes of paragraph (b) of that Clause; 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 Agent’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; and the payment shall be made to the Agent for the account of the Creditor Party to which the overdue amount is due. 

  

 19 

	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.

  

	7.7	Application to Master Agreements. For the avoidance of doubt this Clause 7 does not apply to any amount payable under a Master Agreement in respect of any continuing
Designated Transaction as to which section 2(e) (Default Interest, Other Amounts) of each Master Agreement shall apply. 

  

	8	REPAYMENT AND PREPAYMENT 

  

	8.1	Amount of repayment instalments. The Borrower shall repay the Loan by 15 consecutive six-monthly repayment instalments: 

  

	(i)	in the case of the first to the third repayment instalments (inclusive), in the amount of $10,000,000 each; 

  

	(ii)	in the case of the fourth to the fourteenth repayment instalments (inclusive), in the amount of $3,000,000 each; and 

  

	(iii)	in the case of the fifteenth repayment instalment, in the amount of $27,000,000 

 Provided that if the principal amount of the Loan drawdown by the Borrower is less than $90,000,000 each repayment instalment shall be reduced pro rata by an amount in aggregate equal to such undrawn amount.

  

	8.2	Repayment Dates. The first instalment shall be repaid on the date falling 6 months after the Drawdown Date and the last instalment on the date falling 90 months after the
Drawdown Date. 

  

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

  

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

  

	8.5	Conditions for voluntary prepayment. The conditions referred to in Clause 8.4 are that: 

  

	(a)	a partial prepayment shall be $500,000 or a multiple of $500,000; 

  

	(b)	the Agent has received from the Borrower at least 5 days’ prior written notice specifying the amount to be prepaid and the date on which the prepayment is to be made (such date
shall be the last day of an Interest Period); and 

  

	(c)	the Borrower has provided evidence satisfactory to the Agent that any 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 regulation relevant to this Agreement which affects the Borrower or any Security Party has been complied with. 

  

	8.6	Effect of notice of prepayment. A prepayment notice may not be withdrawn or amended without the consent of the Agent, given with the authorisation of the Majority Lenders,
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. 

  

	8.7	Notification of notice of prepayment. The Agent shall notify the Lenders promptly upon receiving a prepayment notice, and shall provide any Lender which so requests with a
copy of any document delivered by the Borrower under Clause 8.5(c). 

  

 20 

	8.8	Mandatory prepayment. The Borrower shall be obliged to prepay the Loan in full 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 120 days after the Total Loss Date and the date of receipt by the Security Trustee of the proceeds of insurance
relating to such Total Loss. 

  

	8.9	Amounts payable on prepayment. A prepayment shall be made together with accrued interest (and any other amount payable under Clause 21 or otherwise) in respect of the amount
prepaid and, if the prepayment is not made on the last day of an Interest Period together with any sums payable under Clause 21.1(b) but without premium or penalty. 

  

	8.10	Application of partial prepayment. Each partial prepayment made pursuant to Clause 8,4 shall be applied pro rata against the then outstanding repayment instalments.

  

	8.11	No reborrowing. No amount prepaid in respect of the Loan may be reborrowed. 

  

	8.12	Unwinding of Designated Transactions. On or prior to any repayment or prepayment of the Loan under this Clause 8 or any other provision of this Agreement, the Borrower shall
wholly or partially reverse, offset, unwind or otherwise terminate one or more of the continuing Designated Transactions to the extent necessary to ensure that the notional principal amount of the continuing Designated Transactions thereafter
remaining does not and will not in the future (taking into account the scheduled amortisation) exceed the amount of the Loan as reducing from time to time thereafter pursuant to Clause 8.1. 

  

	9	CONDITIONS PRECEDENT 

  

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

  

	(a)	that, at least 2 Business Days before the service of the Drawdown Notice, the Agent receives the documents described in Part A of Schedule 3 in form and substance satisfactory to
the Agent and its lawyers; 

  

	(b)	that, on the Drawdown Date but prior to the making of the Loan, the Agent receives the documents described in Part B of Schedule 3 in form and substance satisfactory to it and its
lawyers; 

  

	(c)	that, on or before the service of the Drawdown Notice, the Agent receives the arrangement fee referred to in Clause 20.1 (a), (if any) accrued commitment fee payable pursuant to
Clause 20.1(b) and has received payment of the expenses referred to in Clause 20.2; 

  

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

  

	 	(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 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; and 

  

 21 

	 	(iii)	none of the circumstances contemplated by Clause 5.6 has occurred and is continuing; 

  

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

  

	(i)	that the Agent has received, and found to be acceptable to it, any further opinions, consents, agreements and documents in connection with the Finance Documents which the Agent may,
with the authorisation of the Majority Lenders, request by notice to the Borrower prior to the Drawdown Date. 

  

	9.2	Waiver of conditions precedent. If the Majority Lenders, at their discretion, permit 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 Agent may, with the authorisation of the Majority Lenders, specify). 

  

	10	REPRESENTATIONS AND WARRANTIES 

  

	10.1	General. The Borrower represents and warrants to each Creditor Party as follows. 

  

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

  

	10.3	Share capital and ownership. The aggregate number of shares of stock that the Borrower is authorised to issue is 500 registered shares with a par value of twenty Dollars
($20) per share, all of which have been issued fully paid up and the legal title and beneficial ownership of all those shares is held, free of any Security Interest or other claim, by Dalian Star Shareholdings Inc. 

  

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

  

	(a)	to execute the MOA, to purchase and pay for the Ship under the MOA and register the Ship in its name under the Approved Flag; 

  

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

  

	(c)	to borrow under this Agreement, to enter into Designated Transactions under each Master Agreement and to make all the payments contemplated by, and to comply with, those Finance
Documents and each Master Agreement. 

  

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

  

	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 

  

	(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. 
  

 22 

	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 the Security Interests which that Finance Document purports to create; and 

  

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

  

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

  

	(a)	any law or regulation; 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 to which it is a party may be made without deduction or withholding for or
on account of any tax payable under any law of any Pertinent Jurisdiction. 

  

	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 any Creditor Party in connection with any Finance
Document satisfied the requirements of Clause 11.5; all audited and unaudited accounts which have been so provided satisfied the requirements of Clause 11.7; 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 (including action relating to any alleged or actual breach of the ISM Code) 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. The MOA constitutes valid, binding and enforceable obligations of the parties thereto in accordance with its terms and:

  

	(a)	the copy of the MOA delivered to the Agent before the date of this Agreement is a true and complete copy; and 

  

	(b)	no amendments or additions to the MOA have been agreed nor has any party thereto waived any of their respective rights under the MOA. 

  

	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 Seller or any third party in connection with the purchase by the Borrower of the Ship, other than as disclosed to the Lenders 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 11.14. 

  

 23 

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

  

	10.17	ISM Code and ISPS Code compliance. All requirements of the ISM Code and the ISPS Code as they relate to the Borrower, the Approved Manager and the Ship have been complied
with. 

  

	10.18	No money laundering. Without prejudice to the generality of Clause 2.3, in relation to the borrowing by the Borrower of the Loan, the performance and discharge of its
obligations and liabilities under the Finance Documents, and the transactions and other arrangements effected or contemplated by the Finance Documents to which the Borrower is a party, the Borrower confirms that it is acting for its own account and
that the foregoing will not involve or lead to contravention of any law, official requirement or other regulatory measure or procedure implemented to combat “money laundering” (as defined in Article 1 of the Directive (91/308/EEC) of
the Council of the European Communities). 

  

	10.19	Provision of “know your customer” information. The Borrower will, as soon as practicable after receiving a request from the Agent, provide the Agent with any
information required by it in relation to its “know your customer” regulations. 

  

	11	GENERAL UNDERTAKINGS 

  

	11.1	General. The Borrower undertakes with each Creditor Party to comply with the following provisions of this Clause 11 at all times during the Security Period except as the
Agent may, with the authorisation of the Majority Lenders, otherwise permit. 

  

	11.2	Title; negative pledge. The Borrower will: 

  

	(a)	hold the legal title to, and own the entire beneficial interest in the Ship, its Insurances and Earnings, free from all Security Interests and other interests and rights of every
kind, except for those created by the Finance Documents and the effect of assignments contained in the Finance Documents and except for Permitted Security Interests; and 

  

	(b)	not create or permit to arise any Security Interest (except for Permitted Security Interests) over any other asset, present or future including, but not limited to, the
Borrower’s rights against a Swap Bank under a Master Agreement or all or any part of the Borrower’s interest in any amount payable to the Borrower by a Swap Bank under a Master Agreement; 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, 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 under the MOA and the Finance
Documents to which it is a party and liabilities or obligations reasonably incurred in the ordinary course of operating and chartering the Ship. 

  

 24 

	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 Agent or procure that there is sent to the Agent: 

  

	(a)	as soon as possible, but in no event later than 180 days after the end of each Financial Year of the Borrower (commencing with the Financial Year ended 31 December 2007), the
audited consolidated accounts of the Group for that Financial Year and the unaudited management accounts of the Borrower (for the year ending in December 2008) and annually thereafter; and 

  

	(b)	promptly after each reasonable request by the Agent, such further financial information about the Group, the Borrower, the Guarantor and/or the Ship including, but not limited to,
charter arrangements, Financial Indebtedness, operating expenses and loan repayments profiles, as the Agent may require, to be prepared by a director or officer of the Borrower in a form acceptable to the Agent. 

  

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

  

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

  

	(b)	give a true and fair view of the state of affairs of the Group at the date of those accounts and of their profit for the period to which those accounts relate; and

  

	(c)	fully disclose or provide for all significant liabilities of the Group, 

  

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

  

	11.9	Consents. The Borrower will maintain in force and promptly obtain or renew, and will promptly send certified copies to the Agent of, all 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 to which it is a party; 

  

	(c)	for the Borrower to continue to own and operate the Ship, and the Borrower will comply with the terms of all such 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), at its own cost, promptly register, file, record or enrol any Finance Document with any court or authority in all Pertinent
Jurisdictions, pay any stamp, registration or similar tax in all Pertinent Jurisdictions in respect of any Finance Document, give any notice or take any other step which, in the opinion of the Majority Lenders, is or has become necessary or
desirable for any Finance Document to be valid, enforceable or admissible in evidence or to ensure or protect the priority of any Security Interest which it creates. 

  

 25 

	11.11	Notification of litigation. The Borrower will provide the Agent with details of any legal or administrative action involving the Borrower, any Security Party, the Approved
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 administrative action cannot be considered
material in the context of any Finance Document. 

  

	11.12	No amendment to MOA. The Borrower will not agree to any amendment or supplement to, or waive or fail to enforce, the MOA or any of its provisions. 

 

	11.13	No amendment to Master Agreements; Transactions. The Borrower will not: 

  

	(a)	agree to any amendment or supplement to, or waive or fail to enforce, either Master Agreement or any of its provisions; or 

  

	(b)	enter into any Transaction pursuant to a Master Agreement except Designated Transactions. 

  

	11.14	Principal place of business. The Borrower will maintain its place of business, and keep its corporate documents and records, at the address stated at the commencement of this
Agreement; 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 country other than the Marshall Islands. 

  

	11.15	Confirmation of no default. The Borrower will, within 2 Business Days after service by the Agent of a written request, serve on the Agent a notice which is signed by an
authorised signatory 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.

 The Agent may serve requests under this Clause 11.15 from time to time but only if asked to do so by a Lender or Lenders
having Contributions exceeding 10 per cent, of the Loan or (if the Loan has not been made) Commitments exceeding 10 per cent of the Total Commitments; and this Clause 11.15 does not affect the Borrower’s obligations under Clause
11.16. 
  

	11.16	Notification of default. The Borrower will notify the Agent as soon as it 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 keep the Agent fully up-to-date with all developments. 
  

	11.17	Provision of further information. The Borrower will, as soon as practicable after receiving the request, provide the Agent with any additional financial or other information
relating: 

  

	(a)	to it, any Security Party, the Ship, the Earnings or the Insurances; or 

  

 26 

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

 which may be requested by the Agent, the Security Trustee or any Lender at any time. 
  

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

  

	11.19	General and administrative costs. The Borrower shall ensure that the payment of all the general and administrative costs of the Borrower in connection with the ownership and
operation of the Ship (including, without limitation, the payment of the management fees) shall be fully subordinated to the payment obligations of the Borrower under this Agreement and the other Finance Documents throughout the Security Period.

  

	12	CORPORATE UNDERTAKINGS 

  

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

  

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

  

	12.3	Negative undertakings. The Borrower will not: 

  

	(a)	carry on any business other than the ownership, chartering and operation of the Ship; or 

  

	(b)	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; 
  

	(c)	open or maintain any account with any bank or financial institution except accounts with the Agent and the Security Trustee for the purposes of the Finance Documents;

  

	(d)	issue, allot or grant any person a right to any shares in its capital or repurchase or reduce its issued share capital; 

  

	(e)	acquire any shares or other securities other than US or UK Treasury bills and certificates of deposit issued by major North American or European banks, or enter into any transaction
in a derivative other than Designated Transactions; and 

  

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

  

 27 

	13	INSURANCE 

  

	13.1	General. The Borrower also undertakes with each Creditor Party to comply with the following provisions of this Clause 13 at all times during the Security Period except as the
Agent may, with the authorisation of the Majority Lenders, otherwise permit. 

  

	13.2	Maintenance of obligatory insurances. The Borrower shall keep the Ship insured at its own expense against: 

  

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

  

	(b)	war risks (including protection and indemnity war risks);; 

  

	(c)	protection and indemnity risks; and 

  

	(d)	any other risks against which the Majority Lenders consider, having regard to practices and other circumstances prevailing at the relevant time, it would in the opinion of the
Majority Lenders be reasonable for the Borrower to insure and which are specified by the Security Trustee by notice to the Borrower. 

  

	13.3	Terms of obligatory insurances. The Borrower 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) the Market Value of the Ship and (ii) an amount
which is equal to 120 per cent, of the Loan; 

  

	(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 under basic protection and indemnity club entry
(with the international group of protection and indemnity clubs) and the international marine insurance market (currently $1,000,000,000); 

  

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

  

	(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 Creditor Parties. In addition to the terms set out in Clause 13.3, the Borrower shall procure that the obligatory insurances shall:

  

	(a)	whenever the Security Trustee requires, name (or be amended to name) the Security Trustee as additional named assured for its rights and interests, warranted no operational interest
and with full waiver of rights of subrogation against the Security Trustee, but without the Security Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such insurance;

  

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

  

	(c)	provide that all payments by or on behalf of the insurers under the obligatory insurances to the Security Trustee shall be made without set-off, counterclaim or deductions or
condition whatsoever; 

  

 28 

	(d)	provide that the insurers shall waive, to the fullest extent permitted by English law, their entitlement (if any) (whether by statute, common law, equity, or otherwise) to be
subrogated to the rights and remedies of the Security Trustee in respect of any rights or interests (secured or not) held by or available to the Security Trustee in respect of the Secured Liabilities, until the Secured Liabilities shall have been
fully repaid and discharged, except that the insurers shall not be restricted by the terms of this paragraph (d) from making personal claims against persons (other than the Borrower or any Creditor Party) in circumstances where the insurers
have fully discharged their liabilities and obligations under the relevant obligatory insurances; 

  

	(e)	provide that such obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Security Trustee or any other Creditor
Party; 

  

	(f)	provide that the Security Trustee may make proof of loss if the Borrower fails to do so; and 

  

	(g)	provide that if any obligatory insurance is cancelled, or if any substantial change is made in the coverage which adversely affects the interest of the Security Trustee, or if any
obligatory insurance is allowed to lapse for non-payment of premium, such cancellation, charge or lapse shall not be effective with respect to the Security Trustee for 30 days (or 7 days in the case of war risks) after receipt by the Security
Trustee of prior written notice from the insurers of such cancellation, change or lapse. 

  

	13.5	Renewal of obligatory insurances. The Borrower shall: 

  

	(a)	at least 14 days before the expiry of any obligatory insurance effected by it: 

  

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

  

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

  

	(b)	at least 14 days before the expiry of any obligatory insurance effected by it, renew that obligatory insurance in accordance with the Security Trustee’s approval pursuant to
paragraph (a); 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
Security Trustee in writing of the terms and conditions of the renewal. 

  

	13.6	Copies of policies; letters of undertaking. The Borrower shall ensure that all approved brokers provide the Security Trustee with pro forma copies of all policies relating to
the obligatory insurances which they are to effect or renew and of a letter or letters or undertaking in a form required by the Security Trustee 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 Security Trustee in accordance with the said loss payable clause; 

  

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

  

 29 

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

  

	(e)	they will not 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 Security Trustee. 

  

	13.7	Copies of certificates of entry. The Borrower shall ensure that any protection and indemnity and/or war risks associations in which the Ship is entered provides the
Security Trustee 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 Security Trustee; 

  

	(c)	where required to be issued under the terms of insurance/indemnity provided by the Borrower’s protection and indemnity association, a certified copy of each United States of
America voyage quarterly declaration (or other similar document or documents) made by the Borrower 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. 

  

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

  

	13.9	Payment of premiums. The Borrower shall punctually pay all premiums or other sums payable in respect of the obligatory insurances effected by it and produce all relevant
receipts when so required by the Security Trustee. 

  

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

  

	13.11	Compliance with terms of insurances. The Borrower shall not do nor omit to do (nor permit to be done or not to be done) any act or thing which would or might render any
obligatory insurance invalid, void, voidable or unenforceable or render any sum payable under an obligatory insurance repayable in whole or in part; and, in particular: 

  

	(a)	the Borrower 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)) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Security Trustee has not given its prior approval; 

  

	(b)	the Borrower 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; 

  

 30 

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

  

	(d)	the Borrower 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 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 not settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty, and shall do all
things necessary and provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any time become payable in respect of the obligatory insurances. 

  

	13.14	Provision of copies of communications. The Borrower shall provide the Security Trustee, at the time of each such communication, copies of all written communications between
it and: 

  

	(a)	the approved brokers; and 

  

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

  

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

  

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

  

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

  

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

  

	(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 or dealing with or considering any matters relating to any such insurances;

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

	13.16	 Mortgagee’s interest and additional perils (pollution) insurances. The Security Trustee shall be entitled from time to time to effect, maintain and
renew a mortgagee’s marine insurance in respect of the Ship and a mortgagee’s interest additional perils (pollution) insurance in respect of the Ship, each in such amounts, on such terms, through 

  

 31 

	 	 
such insurers and generally in such manner as the Security Trustee may from time to time consider appropriate and the Borrower shall upon demand fully
indemnify the Security Trustee in respect of all premiums and other expenses which are incurred in connection with or with a view to effecting, maintaining or renewing any such insurance or dealing with, or considering, any matter arising out of any
such insurance. 

  

	13.17	Review of insurance requirements. The Majority Lenders 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 Majority Lenders, significant and capable of affecting the Borrower 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 Borrower may be subject), and may appoint insurance consultants in relation to this review at the cost of the Borrower. 

  

	13.18	Modification of insurance requirements. The Security Trustee shall notify the Borrower of any proposed modification under Clause 13.17 to the requirements of this Clause 13
which the Majority Lenders consider appropriate in the circumstances, and such modification shall take effect on and from the date it is notified in writing to the Borrower as an amendment to this Clause 13 and shall bind the Borrower accordingly.

  

	13.19	Compliance with mortgagee’s instructions. The Security Trustee shall be entitled (without prejudice to or limitation of any other rights which it may have or acquire
under any Finance Document) to require the Ship to remain at any safe port or to proceed to and remain at any safe port designated by the Security Trustee until the Borrower implements any amendments to the terms of the obligatory insurances and any
operational changes required as a result of a notice served under Clause 13.18. 

  

	14	SHIP COVENANTS 

  

	14.1	General. The Borrower also undertakes with each Creditor Party to comply with the following provisions of this Clause 14 at all times during the Security Period except as the
Agent, with the authorisation of the Majority Lenders, may otherwise permit. 

  

	14.2	Ship’s name and registration. The Borrower shall keep the Ship registered in its name under the Approved Flag; 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 Borrower 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 highest class applicable to vessels of the same age, type and specification as such Ship at (or such other first-class classification society which is a member
of IACS acceptable to the Agent) free of recommendations and conditions; and 

  

	(c)	so as to comply with all laws and regulations applicable to vessels registered at ports where the Ship is registered 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, the ISPS Code, the ISM Code Documentation and the ISPS Code Documentation. 

  

 32 

	14.4	Classification society undertaking. The Borrower shall instruct the classification society referred to in Clause 14.3(a) (and procure that the classification society
undertakes with the Security Trustee): 

  

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

  

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

  

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

  

	 	(i)	receives notification from the Borrower or any 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 Borrower’s or the Ship’s membership of the classification society; 

  

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

  

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

  

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

  

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

  

	14.6	Removal of parts. The Borrower 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 Security Trustee and becomes on
installation on the Ship the property of the Borrower and subject to the security constituted by the Mortgage Provided that the Borrower 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 submit the Ship regularly to all periodical or other surveys which may be required for classification purposes and, if so required by the Security
Trustee provide the Security Trustee, with copies of all survey reports and shall allow the Security Trustee’s representatives to conduct a comprehensive inspection of the Ship’s records when and if required by the Security Trustee.

  

 33 

	14.8	Inspection. The Borrower shall permit the Security Trustee (by surveyors or other persons appointed by it for that purpose) to board the Ship at all reasonable times to
inspect its condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections and all costs and expenses in relation thereto shall be for the account of the Borrower Provided
that so long as no Event of Default has occurred and is continuing at the relevant time and the Ship is found to be in a satisfactory condition (in the opinion of the Security Trustee) the Borrower shall be obliged to pay the fees and expenses
of one inspection of the Ship in any calendar year. 

  

	14.9	Prevention of and release from arrest. The Borrower 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 its detention in exercise or purported exercise of any lien or claim, the Borrower shall within 10 Business Days procure its release by providing
bail or otherwise as the circumstances may require. 
  

	14.10	Compliance with laws etc. The Borrower shall: 

  

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

  

	(b)	not employ the Ship nor allow its employment in any manner contrary to any law or regulation in any relevant jurisdiction including but not limited to the ISM Code and the ISPS
Code; and 

  

	(c)	in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit the Ship 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 the prior written consent of the Security Trustee has been given and the Borrower has (at its expense) effected any special, additional or modified insurance cover which the Security Trustee
may require. 

  

	14.11	Provision of information. The Borrower shall promptly provide the Security Trustee with any information which it requests regarding: 

  

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

  

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

  

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

  

 34 

	 	 
and, upon the Security Trustee’s request, provide copies of any current charter relating to the Ship, of any current charter guarantee and copies of the
ISM Code Documentation and the ISPS Code Documentation, 

  

	14.12	Notification of certain events. The Borrower shall immediately notify the Security Trustee by fax, 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; 

  

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

  

	(e)	any intended dry docking of the Ship; 

  

	(f)	any Environmental Claim made against the Borrower or in connection with the Ship, or any Environmental Incident; 

  

	(g)	any claim for breach of the ISM Code or of the ISPS Code being made against the Borrower, the Approved 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 or the ISPS Code not being complied with, 

and the Borrower shall keep the Security Trustee advised in writing on a regular basis and in such detail as the Security Trustee shall require of the
Borrower’s, the Approved 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 not: 

  

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

  

	(b)	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, 12 months;

  

	(c)	enter into any charter in relation to the Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; 

  

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

  

	(e)	appoint a manager of the Ship other than the Approved Manager or agree to any alteration to the terms of the Approved Manager’s appointment; 

  

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

  

	(g)	put the Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $500,000 (or the equivalent in any other
currency) unless that person has first given to the Security Trustee and in terms satisfactory to it a written undertaking not to exercise any lien on the Ship or its Earnings for the cost of such work or for any other reason.

  

 35 

	14.14	Notice of Mortgage. The Borrower 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 Borrower to the Security Trustee. 

  

	14.15	Sharing of Earnings. The Borrower shall not enter into any agreement or arrangement for the sharing of any Earnings. 

  

	15	SECURITY COVER 

  

	15.1	Minimum required security cover. Clause 15,2 applies if the Agent notifies the Borrower that: 

  

	(a)	the Market Value of the Ship; plus 

  

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

 is below 125 per cent, of the aggregate of the Loan and the Swap Exposure. 
  

	15.2	Provision of additional security; prepayment. If the Agent serves a notice on the Borrower under Clause 15.1, the Borrower shall, within 1 month after the date on which the
Agent’s notice is served, either: 

  

	(a)	provide, or ensure that a third party provides, additional security which, in the opinion of the Majority Lenders, has a net realisable value at least equal to the shortfall and is
documented in such terms as the Agent may, with the authorisation of the Majority Lenders, approve or require; or 

  

	(b)	prepay such part (at least) of the Loan as will eliminate the shortfall. 

  

	15.3	Valuation of Ship. The Market Value of the Ship at any date is that shown by the average of two valuations prepared: 

  

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

  

	(b)	by an Approved Broker; 

  

	(c)	with or without physical inspection of the Ship (as the Agent 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; 

  

	(e)	with or without charter or other contract of employment at the reasonable option of the Agent; and 

  

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

  

	15.4	Value of additional vessel security. The net realisable value of any additional security which is provided under Clause 15.2 and which consists of a Security Interest over a
vessel shall be that shown by a valuation complying with the requirements of Clause 15,3. 

  

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

  

 36 

	15.6	Provision of information. The Borrower shall promptly provide the Agent and any Approved Broker acting under Clause 15.3 or 15.4 with any information which the Agent or the
Approved Broker may 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 Approved Broker or the
Majority Lenders (or the expert appointed by them) consider prudent. 

  

	15.7	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 Agent the amount of the fees and expenses of any Approved Broker instructed by the Agent under this Clause and all legal and other expenses incurred by any Creditor Party in connection with any matter arising out of this Clause Provided that
prior to an Event of Default or Potential Event of Default the Borrower shall not be obliged to reimburse the Agent for more than one set of valuations of the Ship per calendar year and Provided further that such valuations show that the Borrower
complies with the terms of Clause 15.1. 

  

	15.8	Application of prepayment. Clause 8 shall apply in relation to any prepayment pursuant to Clause 15.2(b). 

  

	16	PAYMENTS AND CALCULATIONS 

  

	16.1	Currency and method of payments. All payments to be made by the Lenders or by the Borrower under a Finance Document shall be made to the Agent or to the Security Trustee, in
the case of an amount payable to it: 

  

	(a)	by not later than 11.00 a.m. (New York City time) on the due date; 

  

	(b)	in same day Dollar funds settled through the New York Clearing House Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the Agent shall
specify as being customary at the time for the settlement of international transactions of the type contemplated by this Agreement); 

  

	(c)	in the case of an amount payable by a Lender to the Agent or by the Borrower to the Agent or any Lender, to the account of the Agent at Dresdner Bank AG in Frankfurt for Dresdner
Bank AG in Hamburg (swift code DRES DE FF 200, reference: Dalian Star Owners Inc.), or to such other account with such other bank as the Agent may from time to time notify to the Borrower and the other Creditor Parties; and 

 

	(d)	in the case of an amount payable to the Security Trustee, to such account as it may from time to time notify to the Borrower and the other Creditor Parties.

  

	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; 

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

  

 37 

	16.4	Distribution of payments to Creditor Parties. Subject to Clauses 16.5,16.6 and 16.7: 

  

	(a)	any amount received by the Agent under a Finance Document for distribution or remittance to a Lender, a Swap Bank or the Security Trustee shall be made available by the Agent to
that Lender, that Swap Bank or, as the case may be, the Security Trustee by payment, with funds having the same value as the funds received, to such account as the relevant Lender, the relevant Swap Bank or the Security Trustee may have notified to
the Agent not less than 5 Business Days previously; and 

  

	(b)	amounts to be applied in satisfying amounts of a particular category which are due to the Lenders or a Swap Bank generally shall be distributed by the Agent to each Lender or each
Swap Bank pro rata to the amount in that category which is due to it. 

  

	16.5	Permitted deductions by Agent. Notwithstanding any other provision of this Agreement or any other Finance Document, the Agent may, before making an amount available to a
Lender or a Swap Bank, deduct and withhold from that amount any sum which is then due and payable to the Agent from that Lender or that Swap Bank under any Finance Document or any sum which the Agent is then entitled under any Finance Document to
require that Lender or that Swap Bank to pay on demand. 

  

	16.6	Agent only obliged to pay when monies received. Notwithstanding any other provision of this Agreement or any other Finance Document, the Agent shall not be obliged to make
available to the Borrower or any Lender or any Swap Bank any sum which the Agent is expecting to receive for remittance or distribution to the Borrower, that Lender or that Swap Bank until the Agent has satisfied itself that it has received that
sum. 

  

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

  

	(a)	refund the sum in full to the Agent; and 

  

	(b)	pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding or other loss, liability or expense incurred by the Agent as a result of
making the sum available before receiving it. 

  

	16.8	Agent may assume receipt. Clause 16.7 shall not affect any claim which the Agent has under the law of restitution, and applies irrespective of whether the Agent had any form
of notice that it had not received the sum which it made available. 

  

	16.9	Creditor Party accounts. Each Creditor Party shall maintain accounts showing the amounts owing to it by 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. 

  

	16.10	Agent’s memorandum account. The Agent shall maintain a memorandum account showing the amounts advanced by the Lenders and all other sums owing to the Agent, the Security
Trustee and each Lender from the 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. 

  

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

  

 38 

	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 any Creditor Party under or by virtue of any
Finance Document shall be applied:- 

  

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

  

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

  

	 	(ii)	secondly, in or towards satisfaction pro rata of any and all amounts of interest or default interest payable to the Creditor Parties under the Finance Documents (and, for this
purpose, the expression “interest” shall include any net amount which the Borrower shall have become liable to pay or deliver under section 2(e) (Obligations) of either Master Agreement but shall have failed to pay or deliver to the
relevant Swap Bank at the time of application or distribution under this Clause 17); and 

  

	 	(iii)	thirdly, in or towards satisfaction pro rata of the Loan and the Swap Exposure of each Swap Bank (in the case of the latter, calculated as at the actual Early Termination Date
applying to each particular Designated Transaction, or if no such Early Termination Date shall have occurred, calculated as if an Early Termination Date occurred on the date of application or distribution hereunder); 

  

	(b)	SECONDLY: in retention of an amount equal to any amount not then due and payable under any Finance Document but which the Agent, by notice to the Borrower, the Security Parties and
the other Creditor 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 provisions of Clause 17.1 (a); and

  

	(c)	THIRDLY: any surplus shall be paid to the Borrower. 

  

	17.2	Variation of order of application. The Agent may, with the authorisation of the Majority Lenders, by notice to the Borrower, the Security Parties and the other Creditor
Parties provide for a different manner of application from that set out in Clause 17.1 either as regards a specified sum or sums or as regards sums in a specified category or categories. 

  

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

  

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

  

 39 

	18	APPLICATION OF EARNINGS 

  

	18.1	Payment of Earnings. The Borrower undertakes with each Creditor Party to ensure that throughout the Security Period: 

  

	(a)	(subject only to provisions of the General Assignment), all the Earnings of the Ship are paid to the Earnings Account; and 

  

	(b)	all payments by a Swap Bank to the Borrower under a Designated Transaction are paid to the Earnings Account. 

  

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

  

	18.3	Location of accounts. The Borrower shall promptly: 

  

	(a)	comply with any reasonable requirement of the Agent as to the location or re-location of the Earnings Account 

  

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

  

	18.4	Debits for expenses etc. The Agent shall be entitled (but not obliged) from time to time to debit the Earnings Account with prior notice to the Borower in order to discharge
any amount due and payable under Clause 20 or 21 to a Creditor Party or payment of which any Creditor Party has become entitled to demand under Clause 20 or 21. 

  

	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;
or 

  

	(b)	any breach occurs of Clause 9.2, 11.2, 11.3, 12.2, 12.3 or 15.1 or clauses 11.16 or 11.17 of the Guarantee; 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 paragraphs (a) or (b)) if, in the opinion of the
Majority Lenders, such default is capable of remedy, and such default continues unremedied 10 days after written notice from the Agent requesting action to remedy the same; or 

  

	(d)	(subject to any applicable grace period specified in the Finance Document) any breach by the Borrower or any Security Party occurs of any provision of a Finance Document (other than
a breach covered by paragraphs (a), (b) or (c)); or 

  

	(e)	any representation, warranty or statement 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: 

  

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

  

 40 

	 	(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 Majority Lenders, unable to pay its debts as they fall due; or 

  

	 	(ii)	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress in respect of a sum of, or sums aggregating, $500,000 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 or the Guarantor which is, or is to be, effected for the purposes of an amalgamation or reconstruction previously approved by the Majority Lenders
and effected not later than 3 months after the commencement of the winding up; or 

  

	 	(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 (or such longer period as the Agent may, in its sole and absolute discretion, agree or specify) 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
debt (or substantial part of its debt) or arrangement with all or a substantial proportion (by number or value) of its creditors or of any class of them (save for in the case of the Corporate Guarantor non judicial suspension or deferral of
payments, reorganisation of its debt (or substantial part of its debt) or arrangement which occurs in its ordinary course of its business and not as a result 

  

 41 

	 	 
of the Corporate Guarantor’s inability to meet its obligations and/or liabilities and having been indicated a priori to the Lenders) 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); or 

  

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

  

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

  

	(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 Majority Lenders consider material under
a Finance Document; or 

  

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

  

	(j)	any consent necessary to enable the Borrower to own, operate or charter the Ship or to enable the Borrower or any Security Party to comply with any provision which the Majority
Lenders consider material of a Finance Document or the MOA 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)	it appears to the Majority Lenders that, without their 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 Borrower or in the ultimate control of the voting rights attaching to any of those shares; or 

  

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

  

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

  

	(n)	the Ship ceases to be managed by the Approved Manager unless prior to such cessation the Borrower has appointed a substitute manager acceptable to the Lenders in all respects;

  

	(o)	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 Guarantor; or 

  

 42 

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

 in the light of which the Majority Lenders consider that there is a significant risk that the Borrower or the Guarantor are, or will later become, unable
to discharge its or his liabilities under the Finance Documents as they fall due; or 
  

	(p)	an Event of Default (as defined in Section 14 of each Master Agreement) occurs; or 

  

	(q)	either Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in the full force and effect for any reason except with the consent
of the Majority Lenders. 

  

	19.2	Actions following an Event of Default. On, or at any time after, the occurrence of an Event of Default: 

  

	(a)	the Agent may, and if so instructed by the Majority Lenders, the Agent shall: 

  

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

  

	 	(ii)	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 or are due and
payable on demand; and/or 

  

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

  

	(b)	the Security Trustee may, and if so instructed by the Agent, acting with the authorisation of the Majority Lenders, the Security Trustee shall take any action which, as a result of
the Event of Default or any notice served under paragraph (a) (i) or (ii), the Security Trustee, the Agent and/or the Lenders and/or the Swap Banks are entitled to take under any Finance Document or any applicable law.

  

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

  

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

  

	19.5	Multiple notices; action without notice. The Agent may serve notices under Clauses 19.2(a)(i) or (ii) simultaneously or on different dates and it and/or the Security
Trustee may take any action referred to in Clause 19.2 if no such notice is served or simultaneously with or at any time after the service of both or either of such notices. 

  

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

  

 43 

	19.7	Lender’s rights unimpaired. Nothing in this Clause shall be taken to impair or restrict the exercise of any right given to individual Lenders or each Swap Bank under a
Finance Document or the general law; and, in particular, this Clause is without prejudice to Clause 3.1. 

  

	19.8	Exclusion of Creditor Party liability. No Creditor Party, and no receiver or manager appointed by the Security Trustee, 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 a Creditor Party or a receiver
or manager from liability for losses shown to have been directly and mainly caused by the dishonesty or the wilful misconduct of such Creditor Party’s own officers and employees or (as the case may be) such receiver’s or manager’s own
partners or employees. 
  

	19.9	Relevant Persons. In this Clause 19 a “Relevant Person” means the Borrower or any other Security Party. 

  

	19.10	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. 

  

	20	FEES AND EXPENSES 

  

	20.1	Arrangement, commitment, agency fees. The Borrower shall pay to the Agent: 

  

	(a)	on the date of this Agreement, an arrangement fee of an amount previously agreed in writing between the Agent and the Borrower, for distribution among the Lenders in the proportions
agreed by the Agent and the Lenders; and 

  

	(b)	in relation to the Loan, quarterly in arrears during the period from (and including) the date falling one month after the date of the Agreement to the earlier of (i) the
Drawdown Date and (ii) the last day of the Availability Period and on the last day of that period for the account of the Lenders, a commitment fee at the rate of zero point two five per cent. (0.25%) per annum on the undrawn amount of the Loan,
for distribution among the Lenders pro rata to their Commitments. 

  

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

  

	20.3	Costs of variations, amendments, enforcement etc. The Borrower shall pay to the Agent on the Agent’s demand, for the account of the Creditor Party concerned the amount
of all expenses incurred by a Creditor Party in connection with: 

  

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

  

 44 

	(b)	any consent or waiver by the Lenders, the Majority Lenders or the Creditor Party 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; 

  

	(d)	the opinion of the independent insurance consultant referred to in paragraph 7 of Part B of Schedule3; or 

  

	(e)	any step taken by the Creditor Party concerned 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 (e) 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 Agent’s demand, fully indemnify each
Creditor Party against any claims, expenses, liabilities and losses 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 2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party
under this Clause 20 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

  

	21	INDEMNITIES 

  

	21.1	Indemnities regarding borrowing and repayment of Loan. The Borrower shall fully indemnify the Agent and each Lender on the Agent’s demand and the Security Trustee on its
demand in respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by that Creditor Party, or which that Creditor Party reasonably and with due diligence estimates that it will incur, as a result of or in
connection with: 

  

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

  

	(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 a Creditor Party is liable in connection with any amount paid or payable
to that Creditor Party (whether for its own account or otherwise) under any Finance Document. 
  

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

  

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

  

 45 

	(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 concerned) to hedge any exposure arising under this Agreement or that part which the Lender concerned determines is fairly attributable to this Agreement of the amount of the liabilities, expenses or losses (including losses
of prospective profits) incurred by it in terminating, or otherwise in connection with, a number of transactions of which this Agreement is one. 

  

	21.3	Miscellaneous indemnities. The Borrower shall fully indemnify each Creditor Party severally on their respective demands 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 relevant Creditor Party, 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 Agent, the Security Trustee or any other Creditor Party 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 the wilful misconduct of the relevant Creditor Party’s own
officers or employees. 
 Without prejudice to its generality, this Clause 21.3 covers any claims, expenses, liabilities and losses which
arise, or are asserted, under or in connection with any law relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law. 
  

	21.4	Currency indemnity. If any sum due from the Borrower or any Security Party to a Creditor Party 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:

  

	(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 Creditor Party concerned against the loss arising when the amount of the payment actually received by that Creditor Party is converted at the available rate of exchange into the Contractual Currency. 
 In this Clause 21.4 the “available rate of exchange” means the rate at which the Creditor Party concerned is able at the opening of
business (London time) on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the Payment Currency. 
  

 46 

 This Clause 21.4 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. 
  

	21.5	Application of Master Agreements. For the avoidance of doubt, Clause 21.4 does not apply in respect of sums due from the Borrower to a Swap Bank under or in connection with a
Master Agreement as to which sums the provisions of Section 8 (Contractual Currency) of each Master Agreement shall apply. 

  

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

  

	21.7	Sums deemed due to a Lender. For the purposes of this Clause 21, a sum payable by the Borrower to the Agent or the Security Trustee for distribution to a Lender shall be
treated as a sum due to that Lender. 

  

	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 Agent 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 each Creditor Party 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 1 month after making any tax deduction, the Borrower concerned shall deliver to the Agent documentary evidence satisfactory to the Agent
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 a Creditor Party’s overall net income. 

  

	22.5	Application of Master Agreements. For the avoidance of doubt, Clause 22 does not apply in respect of sums due from the Borrower to a Swap Bank under or in connection with a
Master Agreement as to which sums the provisions of Section 2(d) (Deduction or Withholding for Tax) of each Master Agreement shall apply. 

  

 47 

	23	ILLEGALITY, ETC 

  

	23.1	Illegality. This Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent that it has become, or will with effect from a specified date,
become: 

  

	(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, any regulation, 

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

	23.2	Notification of illegality. The Agent shall promptly notify the Borrower, the Security Parties, the Security Trustee and the other Lenders of the notice under Clause 23.1
which the Agent receives from the Notifying Lender. 

  

	23.3	Prepayment; termination of Commitment. On the Agent notifying the Borrower under Clause 23.2, the Notifying Lender’s Commitment shall terminate; and thereupon or, if
later, on the date specified in the Notifying Lender’s notice under Clause 23.1 as the date on which the notified event would become effective the Borrower shall prepay the Notifying Lender’s Contribution in accordance with Clause 8.

  

	23.4	Mitigation. If circumstances arise which would result in a notification under Clause 23.1 then, without in any way limiting the rights of the Notifying Lender under Clause
23.3, the Notifying Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement and the Finance Documents to another office or financial institution not affected by the circumstances but the
Notifying Lender shall not be under any obligation to take any such action if, in its opinion, to do would or might: 

  

	(a)	have an adverse effect on its business, operations or financial condition; or 

  

	(b)	involve it in any activity which is unlawful or prohibited or any activity that is contrary to, or inconsistent with, any regulation; or 

	(c)	involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage. 

  

	24	INCREASED COSTS 

  

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

  

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

  

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

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

	24.2	Meaning of “increase cost”. In this Clause 24, “increased cost” means, in relation to a Notifying Lender: 

  

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

  

 48 

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

  

	(c)	an additional or increased cost of funding all or maintaining all or any of the advances comprised in a class of advances formed by or including the Notifying Lender’s
Contribution or (as the case may require) the proportion of that cost attributable to the Contribution; or 

  

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

 but not an item attributable to a change in the rate of tax on the overall net Income of the Notifying Lender (or a parent
company of it) or an item covered by the indemnity for tax in Clause 21.1 or by Clause 22 or an item arising directly out of the Implementation by the applicable authorities having jurisdiction over the Notifying Lender of the matters 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 Standards”, to the extent and according to the timetable provided
for in the statement. 
 For the purposes of this Clause 24.2 the Notifying Lender may in good faith allocate or spread costs and/or losses
among its assets and liabilities (or any class of its assets and liabilities) on such basis as it considers appropriate. 
  

	24.3	Notification to Borrower of claim for increased costs. The Agent shall promptly notify the Borrower and the Security Parties of the notice which the Agent received from the
Notifying Lender under Clause 24.1. 

  

	24.4	Payment of increased costs. The Borrower shall pay to the Agent, on the Agent’s demand, for the account of the Notifying Lender the amounts which the Agent from time to
time notifies the Borrower that the Notifying Lender has specified to be necessary to compensate the Notifying Lender for the increased cost. 

  

	24.5	Notice of prepayment. If the Borrower is not willing to continue to compensate the Notifying Lender for the increased cost under Clause 24.4, the Borrower may give the Agent
not less than 14 days’ notice of its intention to prepay the Notifying Lender’s Contribution at the end of an Interest Period. 

  

	24.6	Prepayment; termination of Commitment. A notice under Clause 24.5 shall be irrevocable; the Agent shall promptly notify the Notifying Lender of the Borrower’s notice of
intended prepayment; and: 

  

	(a)	on the date on which the Agent serves that notice, the Commitment of the Notifying Lender shall be cancelled; and 

  

	(b)	on the date specified in its notice of intended prepayment, the Borrower shall prepay (without premium or penalty) the Notifying Lender’s Contribution, together with accrued
interest thereon at the applicable rate plus the Margin and the Mandatory Cost (if any). 

  

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

  

 49 

	25	SET-OFF 

  

	25.1	Application of credit balances. Each Creditor Party may without prior notice: 

  

	(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 that Creditor Party in
or towards satisfaction of any sum then due from the Borrower to that Creditor Parry 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 Creditor Party concerned considers appropriate. 

  

	25.2	Existing rights unaffected. No Creditor Party shall be obliged to exercise any of its rights under Clause 25.1; and those rights shall be without prejudice and in addition to
any right of set-off, combination of accounts, charge, lien or other right or remedy to which a Creditor Party is entitled (whether under the general law or any document). 

  

	25.3	Sums deemed due to a Lender. For the purposes of this Clause 25, a sum payable by the Borrower to the Agent or the Security Trustee for distribution to, or for the account
of, a Lender shall be treated as a sum due to that Lender; and each Lender’s proportion of a sum so payable for distribution to, or for the account of, the Lenders shall be treated as a sum due to such Lender. 

  

	25.4	No Security Interest. This Clause 25 gives the Creditor Parties a contractual right of set-off only, and does not create any equitable change or other Security Interest over
any credit balance of the Borrower. 

  

	26	TRANSFERS AND CHANGES IN LENDING OFFICES 

  

	26.1	Transfer by Borrower. The Borrower may not, without the consent of the Agent, given on the instructions of all the Lenders transfer any of its rights, liabilities or
obligations under any Finance Document. 

  

	26.2	Transfer by a Lender. Subject to Clause 26.4, a Lender (the “Transferor Lender”) may at any time after consultation with the Borrower, cause:

  

	(a)	its rights in respect of all or part of its Contribution; or 

  

	(b)	its obligations in respect of all or part of its Commitment; or 

  

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

 to be (in the case of
its rights) transferred to, or (in the case of its obligations) assumed by, another bank or financial institution (a “Transferee Lender”) by delivering to the Agent a completed certificate in the form set out in Schedule 4 with any
modifications approved or required by the Agent (a “Transfer Certificate”) executed by the Transferor Lender and the Transferee Lender. 
 However any rights and obligations of the Transferor Lender in its capacity as Agent or Security Trustee will have to be dealt with separately in accordance with the Agency and Trust Deed. 
  

 50 

	26.3	Transfer Certificate, delivery and notification. As soon as reasonably practicable after a Transfer Certificate is delivered to the Agent, it shall (unless it has reason to
believe that the Transfer Certificate may be defective): 

  

	(a)	sign the Transfer Certificate on behalf of itself, the Borrower, the Security Parties, the Security Trustee and each of the other Lenders and each Swap Bank;

  

	(b)	on behalf of the Transferee Lender, send to the Borrower and each Security Party letters or faxes notifying them of the Transfer Certificate and attaching a copy of it;

  

	(c)	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b) above. 

  

	26.4	Effective Date of Transfer Certificate. A Transfer Certificate becomes effective on the date, if any, specified in the Transfer Certificate as its effective date, Provided
that it is signed by the Agent under Clause 26.3 on or before that date. 

  

	26.5	No transfer without Transfer Certificate. No assignment or transfer of any right or obligation of a Lender under any Finance Document is binding on, or effective in relation
to, the Borrower, any Security Party, the Agent or the Security Trustee unless it is effected, evidenced or perfected by a Transfer Certificate, 

  

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

  

	26.7	Effect of Transfer Certificate. A Transfer Certificate takes effect in accordance with English law as follows: 

  

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

 

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

  

	(c)	the Transferee Lender becomes a Lender with the Contribution previously held by the Transferor Lender and a Commitment of an amount specified in the Transfer Certificate;

  

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

  

	(e)	any part of the Loan which the Transferee Lender advances after the Transfer Certificate’s effective date ranks in point of priority and security in the same way as it would
have ranked had it been advanced by the transferor, assuming that any defects in the transferor’s title and any rights or equities of the Borrower or any Security Party against the Transferor Lender had not existed; 

  

 51 

	(f)	the Transferee Lender becomes entitled to all the rights under the Finance Documents which are applicable to the Lenders generally, including but not limited to those relating to
the Majority Lenders and those under Clause 5.6 and Clause 20, and to the extent that the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to be entitled to them; and 

  

	(g)	in respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document or any misrepresentation made in or in connection with a Finance Document,
the Transferee Lender shall be entitled to recover damages by reference to the loss incurred by it as a result of the breach or misrepresentation, irrespective of whether the original Lender would have incurred a loss of that kind or amount.

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

	26.8	Maintenance of register of Lenders. During the Security Period the Agent shall maintain a register in which it shall record the name, Commitment, Contribution and
administrative details (including the lending office) from time to time of each Lender holding a Transfer Certificate and the effective date (in accordance with Clause 26.4) of the Transfer Certificate; and the Agent shall make the register
available for inspection by any Lender, the Security Trustee and the Borrower during normal banking hours, subject to receiving at least 3 Business Days prior notice. 

  

	26.9	Reliance on register of Lenders. The entries on that register shall, in the absence of manifest error, be conclusive in determining the identities of the Lenders and the
amounts of their Commitments and Contributions and the effective dates of Transfer Certificates and may be relied upon by the Agent and the other parties to the Finance Documents for all purposes relating to the Finance Documents.

  

	26.10	Authorisation of Agent to sign Transfer Certificates. The Borrower, the Security Trustee, each Lender and each Swap Bank irrevocably authorise the Agent to sign Transfer
Certificates on its behalf. 

  

	26.11	Registration fee. In respect of any Transfer Certificate, the Agent shall be entitled to recover a registration fee of $2,000 from the Transferor Lender or (at the
Agent’s option) the Transferee Lender. 

  

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

  

	26.13	Disclosure of information. A Lender may disclose to a potential Transferee Lender 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, 

  

	26.14	Change of lending office. A Lender may change its lending office by giving notice to the Agent and the change shall become effective on the later of:

  

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

  

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

  

 52 

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

  

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

  

	27	VARIATIONS AND WAIVERS 

  

	27.1	Variations, waivers etc. by Majority Lenders. Subject to Clause 27.2, a document shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or
any Creditor Party’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, by the Agent on behalf of the Majority Lenders, by the Agent and the
Security Trustee in their own rights, and, if the document relates to a Finance Document to which a Security Party is party, by that Security Party. 

  

	27.2	Variations, waivers etc. requiring agreement of all Lenders. However, as regards the following, Clause 27.1 applies as if the words “by the Agent on behalf of the
Majority Lenders” were replaced by the words “by or on behalf of every Lender and every Swap Bank”: 

  

	(a)	a change in the Margin or in the definition of LIBOR; 

  

	(b)	a change to the date for, the amount of, any payment of principal, interest, fees, or other sum payable under this Agreement; 

  

	(c)	a change to any Lender’s Commitment; 

  

	(d)	an extension of the Availability Period; 

  

	(e)	a change to the definition of “Majority Lenders” or “Finance Documents”; 

  

	(f)	a change to the preamble or to Clause 2, 3, 4, 5.1,17,18 or 30; 

  

	(g)	a change to this Clause 27; 

  

	(h)	any release of, or material variation to, a Security Interest, guarantee, indemnity or subordination arrangement set out in a Finance Document; and 

  

	(i)	any other change or matter as regards which this Agreement or another Finance Document expressly provides that each Lender’s consent is required. 

  

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

  

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

  

 53 

	(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. 
  

	28	NOTICES 

  

	28.1	General. Unless otherwise specifically provided, any notice under or in connection with any Finance Document shall be given by letter, fax or telex; 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)	 	to the Borrower:	  	 c/o Cardiff Marine Inc.
 Omega Building
 80 Kifissias Avenue
 151 25 Maroussi
 Athens

			
		 		  	 Fax No: +30 210809 0575
 Attn: the Chief Financial
Officer

			
	(b)	 	to a Lender:	  	At the address below its name in Schedule 1 or (as the case may require) in the relevant Transfer Certificate,
			
	(c)	 	to the Agent and Security Trustee:	  	 Dresdner Bank AG in Hamburg
 Jungfernstieg
22
 20354 Hamburg
 Germany

			
		 		  	 Fax No: +49 (0)3501 4007
 Attn: Anke
Grahn

			
	(d)	 	to the Swap Banks:	  	 Dresdner Bank AG in Hamburg
 Jungfernstieg
22
 20354 Hamburg
 Germany

			
		 		  	 Fax No: +49 (0)3501 4007
 Attn: Anke
Grahn

			
		 		  	and
			
		 		  	 WestLB AG, London Branch
 Woolgate Exchange

25 Basinghall Street
 London EC 2V 5HA

			
		 		  	 United Kingdom
  
 Fax No:+44 207 020 2002
 Attn: Shipping Transportation

  

 54 

 or to such other address as the relevant party may notify the Agent or, if the relevant party is the
Agent or the Security Trustee, the Borrower, the Lenders, the Swap Banks and the Security Parties, 
  

	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 telex or 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 1 hour after the time at which the notice would otherwise be
deemed to be served that the notice has been received in a form which is illegible in a material respect. 

  

	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 

  

	(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 28, “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 each Creditor Party are: 

  

	(a)	cumulative; 

  

 55 

	(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 Creditor Parties. Clause 30.2 is for the exclusive benefit of the Creditor Parties, each of which reserves the right:

  

	(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 Ince Process Agents Ltd. at its registered office for the time being, presently at International House, 1 St Katherine’s
Way, London E1N 1UN, London, United Kingdom, to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with this Agreement. 

 

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

  

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

 THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement. 
  

 56 

 EXECUTION PAGES 
  

							
	BORROWER	  		  		  	
				
	 SIGNED by 

 for and on behalf of
 DALIAN STAR OWNERS INC.
	  	 )
 )
 )
	  	

	  	
				
	LENDERS	  		  		  	
				
	 SIGNED by 

 for and on behalf of
 DRESDNER BANK AG in
 HAMBURG
	  	 )
 )
 )
 )
	  	

	  	
				
	 SIGNED by 

 for and on behalf of
 WESTLB AG
	  	 )
 )
 )
	  	

	  	
				
	SWAP BANKS	  		  		  	
				
	 SIGNED by 

 for and on behalf of
 DRESDNER BANK AG in
 HAMBURG
	  	 )
 )
 )
 )
	  	

	  	
				
	 SIGNED by 

 for and on behalf of
 WESTLB AG
	  	 )
 )
 )
	  	

	  	
				
	AGENT	  		  		  	
				
	 SIGNED by 

 for and on behalf of
 DRESDNER BANK AG in
 HAMBURG
	  	 )
 )
 )
 )
	  	

	  	
				
	SECURITY TRUSTEE	  		  		  	
				
	 SIGNED by 

 for and on behalf of
 DRESDNER BANK AG in
 HAMBURG
	  	 )
 )
 )
 )
	  	

	  	

  

 68 

							
	JOINT ARRANGERS	  		  		  	
				
	 SIGNED by 

 for and on behalf of
 DRESDNER BANK AG in
 HAMBURG
	  	 )
 )
 )
 )
	  	

	  	
				
	 SIGNED by 

 for and on behalf of
 WESTLB AG
	  	 )
 )
 )
	  	

	  	
				
	 Witness to all the
 above signatures
	  	 )
 )
	  	

	  	

  

	
	Name: JOANNA DAVEY
	Address:
	

  

 69International Swap Dealers Association Inc. Master Agreement dated May 7, 2008

 Exhibit 4.35 
 (Multicurrency-Cross Border) 
 

 
 MASTER AGREEMENT 
 dated as of 7th May, 2008 
 EFG EUROBANK ERGASIAS SA (Party A) 
 and 
 DRYSHIPS INC. (Party B) 

have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that are or will be governed by this Master Agreement, which
includes the schedule (the “Schedule”), and the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties confirming those Transactions. 
 Accordingly, the parties agree as follows:- 
  

	1.	Interpretation 

 (a) Definitions. The terms defined in
Section 14 and in the Schedule will have the meanings therein specified for the purpose of this Master Agreement. 
 (b) Inconsistency. In
the event of any inconsistency between the provisions of the Schedule and the other provisions of this Master Agreement, the Schedule will prevail. In the event of any inconsistency between the provisions of any Confirmation and this Master
Agreement (including the Schedule), such Confirmation will prevail for the purpose of the relevant Transaction. 
 (c) Single Agreement. All
Transactions are entered into in reliance on the fact that this Master Agreement and all Confirmations form a single agreement between the parties (collectively referred to as this “Agreement”), and the parties would not otherwise enter
into any Transactions. 
  

	2.	Obligations 

 (a) General Conditions.

  

	 	(i)	Each party will make each payment or delivery specified in each Confirmation to be made by it, subject to the other provisions of this Agreement. 

  

	 	(ii)	Payments under this Agreement will be made on the due date for value on that date in the place of the account specified in the relevant Confirmation or otherwise pursuant to this
Agreement, in freely transferable funds and in the manner customary for payments in the required currency. Where settlement is by delivery (that is, other than by payment), such delivery will be made for receipt on the due date in the manner
customary for the relevant obligation unless otherwise specified in the relevant Confirmation or elsewhere in this Agreement. 

  

	 	(iii)	Each obligation of each party under Section 2(a)(i) is subject to (1) the condition precedent that no Event of Default or Potential Event of Default with respect to the
other party has occurred and is continuing, (2) the condition precedent that no Early Termination Date in respect of the relevant Transaction has occurred or been effectively designated and (3) each other applicable condition
precedent specified in this Agreement. 

 Copyright © 1992 by International Swap Dealers Association, Inc. 
  

 1 

 (b) Change of Account. Either party may change its account for receiving a payment or delivery by giving
notice to the other party at least five Local Business Days prior to the scheduled date for the payment or delivery to which such change applies unless such other party gives timely notice of a reasonable objection to such change. 
 (c) Netting. If on any date amounts would otherwise be payable:- 
  

	 	(i)	in the same currency; and 

  

	 	(ii)	in respect of the same Transaction, 

 by each party to the other, then, on
such date, each party’s obligation to make payment of any such amount will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been payable by one party exceeds the aggregate amount that would
otherwise have been payable by the other party, replaced by an obligation upon the party by whom the larger aggregate amount would have been payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate
amount. 
 The parties may elect in respect of two or more Transactions that a net amount will be determined in respect of all amounts payable on the same
date in the same currency in respect of such Transactions, regardless of whether such amounts are payable in respect of the same Transaction. The election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election, together with the starting date (in which case subparagraph (ii) above will not, or will cease to, apply to such Transactions from such date). This election may be
made separately for different groups of Transactions and will apply separately to each pairing of Offices through which the parties make and receive payments or deliveries. 
 (d) Deduction or Withholding for Tax. 
  

	 	(i)	Gross-Up. All payments under this Agreement will be made without any deduction or withholding for or on account of any Tax unless such deduction or withholding is
required by any applicable law, as modified by the practice of any relevant governmental revenue authority, then in effect. If a party is so required to deduct or withhold, then that party (“X”) will:- 

  

	 	(1)	promptly notify the other party (“Y”) of such requirement; 

  

	 	(2)	pay to the relevant authorities the full amount required to be deducted or withheld (including the full amount required to be deducted or withheld from any additional amount paid by
X to Y under this Section 2(d)) promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that such amount has been assessed against Y; 

  

	 	(3)	promptly forward to Y an official receipt (or a certified copy), or other documentation reasonably acceptable to Y, evidencing such payment to such authorities; and

  

	 	(4)	if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which Y is otherwise entitled under this Agreement, such additional amount as is necessary to ensure
that the net amount actually received by Y (free and clear of Indemnifiable Taxes, whether assessed against X or Y) will equal the full amount Y would have received had no such deduction or withholding been required. However, X will not be required
to pay any additional amount to Y to the extent that it would not be required to be paid but for:- 

 (A) the failure by Y to
comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d); or 
 (B) the failure of a representation made by
Y pursuant to Section 3(f) to be accurate and true unless such failure would not have occurred but for (I) any action taken by a taxing authority, or brought in a court of competent jurisdiction, on or after the
date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (II) a Change in Tax Law. 
  

 2 

	 	(ii)	Liability. If:- 

  

	 	(1)	X is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, to make any deduction or withholding in respect of which X would not
be required to pay an additional amount to Y under Section 2(d)(i)(4); 

  

	 	(2)	X does not so deduct or withhold; and 

  

	 	(3)	a liability resulting from such Tax is assessed directly against X, 

 then, except to the extent Y has satisfied or then satisfies the liability resulting from such Tax, Y will promptly pay to X the amount of such liability (including any related liability for interest,
but including any related liability for penalties only if Y has failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)). 
 (e) Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction, a party that defaults in the performance of any
payment obligation will, to the extent permitted by law and subject to Section 6(c), be required to pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same currency as such overdue amount,
for the period from (and including) the original due date for payment to (but excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed. If,
prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction, a party defaults in the performance of any obligation required to be settled by delivery, it will compensate the other party on
demand if and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement. 
  

	3.	Representations 

 Each party represents to the other party (which
representations will be deemed to be repeated by each party on each date on which a Transaction is entered into and, in the case of the representations in Section 3(f), at all times until the termination of this Agreement) that:- 
 (a) Basic Representations. 
  

	 	(i)	Status. It is duly organised and validly existing under the laws of the jurisdiction of its organisation or incorporation and, if relevant under such laws, in good
standing; 

  

	 	(ii)	Powers. It has the power to execute this Agreement and any other documentation relating to this Agreement to which it is a party, to deliver this Agreement and any
other documentation relating to this Agreement that it is required by this Agreement to deliver and to perform its obligations under this Agreement and any obligations it has under any Credit Support Document to which it is a party and has taken all
necessary action to authorise such execution, delivery and performance; 

  

	 	(iii)	No Violation or Conflict. Such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional
documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets; 

  

	 	(iv)	Consents. All governmental and other consents that are required to have been obtained by it with respect to this Agreement or any Credit Support Document to which it
is a party have been obtained and are in full force and effect and all conditions of any such consents have been complied with; and 

  

 3 

	 	(v)	Obligations Binding. Its obligations under this Agreement and any Credit Support Document to which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of
general application (regardless of whether enforcement is sought in a proceeding in equity or at law)). 

 (b) Absence of Certain Events.
No Event of Default or Potential Event of Default or, to its knowledge, Termination Event with respect to it has occurred and is continuing and no such event or circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or any Credit Support Document to which it is a party. 
 (c) Absence of Litigation. There is not pending or,
to its knowledge, threatened against it or any of its Affiliates any action, suit or proceeding at law or in equity or before any court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect the legality,
validity or enforceability against it of this Agreement or any Credit Support Document to which it is a party or its ability to perform its obligations under this Agreement or such Credit Support Document. 
 (d) Accuracy of Specified Information. All applicable information that is furnished in writing by or on behalf of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the date of the information, true, accurate and complete in every material respect. 
 (e) Payer Tax Representation. Each representation specified in the Schedule as being made by it for the purpose of this Section 3(e) is accurate and true. 
 (f) Payee Tax Representations. Each representation specified in the Schedule as being made by it for the purpose of this Section 3(f) is accurate and true. 
  

	4.	Agreements 

 Each party agrees with the other that, so long as
either party has or may have any obligation under this Agreement or under any Credit Support Document to which it is a party:- 
 (a) Furnish Specified
Information. It will deliver to the other party or, in certain cases under subparagraph (iii) below, to such government or taxing authority as the other party reasonably directs:- 
 (i) any forms, documents or certificates relating to taxation specified in the Schedule or any Confirmation; 
 (ii) any other documents specified in the Schedule or any Confirmation; and 
 (iii) upon reasonable demand by such other party, any form or document that may be required or reasonably requested in writing in order to allow such other party or its Credit Support Provider to make a payment under
this Agreement or any applicable Credit Support Document without any deduction or withholding for or on account of any Tax or with such deduction or withholding at a reduced rate (so long as the completion, execution or submission of such form or
document would not materially prejudice the legal or commercial position of the party in receipt of such demand), with any such form or document to be accurate and completed in a manner reasonably satisfactory to such other party and to be executed
and to be delivered with any reasonably required certification, 
 in each case by the date specified in the Schedule or such Confirmation or, if none is
specified, as soon as reasonably practicable. 
 (b) Maintain Authorisations. It will use all reasonable efforts to maintain in full force and
effect all consents of any governmental or other authority that are required to be obtained by it with respect to this Agreement or any Credit Support Document to which it is a party and will use all reasonable efforts to obtain any that may become
necessary in the future. 
  

 4 

 (c) Comply with Laws. It will comply in all material respects with all applicable laws and orders to which
it may be subject if failure so to comply would materially impair its ability to perform its obligations under this Agreement or any Credit Support Document to which it is a party. 
 (d) Tax Agreement. It will give notice of any failure of a representation made by it under Section 3(f) to be accurate and true promptly upon learning of such failure. 
 (e) Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon it or in respect of its execution or performance of
this Agreement by a jurisdiction in which it is incorporated, organised, managed and controlled, or considered to have its seat, or in which a branch or office through which it is acting for the purpose of this Agreement is located (“Stamp Tax
Jurisdiction”) and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or in respect of the other party’s execution or performance of this Agreement by any such Stamp Tax Jurisdiction which is not
also a Stamp Tax Jurisdiction with respect to the other party. 
  

	5.	Events of Default and Termination Events 

 (a) Events of
Default. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of such party or any Specified Entity of such party of any of the following events constitutes an event of default (an “Event of
Default”) with respect to such party:- 
 (i) Failure to Pay or Deliver. Failure by the party to make, when due, any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such failure is not remedied on or before the third Local Business Day after notice of such failure is given to the party; 
 (ii) Breach of Agreement. Failure by the party to comply with or perform any agreement or obligation (other than an obligation to make any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the
party in accordance with this Agreement if such failure is not remedied on or before the thirtieth day after notice of such failure is given to the party; 
 (iii) Credit Support Default. 
 (1) Failure by the party or any Credit Support Provider
of such party to comply with or perform any agreement or obligation to be complied with or performed by it in accordance with any Credit Support Document if such failure is continuing after any applicable grace period has elapsed; 
 (2) the expiration or termination of such Credit Support Document or the failing or ceasing of such Credit Support Document to be in full force and effect
for the purpose of this Agreement (in either case other than in accordance with its terms) prior to the satisfaction of all obligations of such party under each Transaction to which such Credit Support Document relates without the written consent of
the other party, or 
 (3) the party or such Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole or in part, or
challenges the validity of, such Credit Support Document; 
 (iv) Misrepresentation. A representation (other than a
representation under Section 3(e) or (f)) made or repeated or deemed to have been made or repeated by the party or any Credit Support Provider of such party in this Agreement or any Credit Support Document proves to have been incorrect or
misleading in any material respect when made or repeated or deemed to have been made or repeated; 
  

 5 

 (v) Default under Specified Transaction. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party (1) defaults under a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, there occurs a liquidation of, an acceleration of obligations
under, or an early termination of, that Specified Transaction, (2) defaults, after giving effect to any applicable notice requirement or grace period, in making any payment or delivery due on the last payment, delivery or exchange date of, or
any payment on early termination of, a Specified Transaction (or such default continues for at least three Local Business Days if there is no applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in
whole or in part, a Specified Transaction (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf); 
 (vi) Cross Default. If “Cross Default” is specified in the Schedule as applying to the party, the occurrence or existence of (1) a default, event of default or other similar condition or
event (however described) in respect of such party, any Credit Support Provider of such party or any applicable Specified Entity of such party under one or more agreements or instruments relating to Specified Indebtedness of any of them
(individually or collectively) in an aggregate amount of not less than the applicable Threshold Amount (as specified in the Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable at such time of being declared, due
and payable under such agreements or instruments, before it would otherwise have been due and payable or (2) a default by such party, such Credit Support Provider or such Specified Entity (individually or collectively) in making one or more
payments on the due date thereof in an aggregate amount of not less than the applicable Threshold Amount under such agreements or instruments (after giving effect to any applicable notice requirement or grace period); 
 (vii) Bankruptcy. The party, any Credit Support Provider of such party or any applicable Specified Entity of such party:- 
 (1) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (2) becomes insolvent or is unable to pay its debts or fails or
admits in writing its inability generally to pay its debts as they become due; (3) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (4) institutes or has instituted against it a proceeding
seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any
such proceeding or petition instituted or presented against it, such proceeding or petition (A) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or
(B) is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (5) has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (6) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its
assets; (7) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and
such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; (8) causes or is subject to any event with respect to it which, under the applicable laws
of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (7) (inclusive); or (9) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the
foregoing acts; or 
 (viii) Merger Without Assumption. The party or any Credit Support Provider of such party consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all its assets to, another entity and, at the time of such consolidation, amalgamation, merger or transfer:- 
 (1) the resulting, surviving or transferee entity fails to assume all the obligations of such party or such Credit Support Provider under this Agreement
or any Credit Support Document to which it or its predecessor was a party by operation of law or pursuant to an agreement reasonably satisfactory to the other party to this Agreement; or 
  

 6 

 (2) the benefits of any Credit Support Document fail to extend (without the consent of the other party)
to the performance by such resulting, surviving or transferee entity of its obligations under this Agreement. 
 (b) Termination Events. The
occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of such party or any Specified Entity of such party of any event specified below constitutes an Illegality if the event is specified in (i) below, a
Tax Event if the event is specified in (ii) below or a Tax Event Upon Merger if the event is specified in (iii) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified pursuant to (iv) below or
an Additional Termination Event if the event is specified pursuant to (v) below:- 
 (i) Illegality. Due to the adoption
of, or any change in, any applicable law after the date on which a Transaction is entered into, or due to the promulgation of, or any change in, the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any
applicable law after such date, it becomes unlawful (other than as a result of a breach by the party of Section 4(b)) for such party (which will be the Affected Party):- 
 (1) to perform any absolute or contingent obligation to make a payment or delivery or to receive a payment or delivery in respect of such Transaction or
to comply with any other material provision of this Agreement relating to such Transaction; or 
 (2) to perform, or for any Credit Support
Provider of such party to perform, any contingent or other obligation which the party (or such Credit Support Provider) has under any Credit Support Document relating to such Transaction; 
 (ii) Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of competent jurisdiction, on or after the
date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (y) a Change in Tax Law, the party (which will be the Affected Party) will, or there is a
substantial likelihood that it will, on the next succeeding Scheduled Payment Date (1) be required to pay to the other party an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is required to be deducted or withheld for or on account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no
additional amount is required to be paid in respect of such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B)); 
 (iii) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding Scheduled Payment Date will either (1) be required to pay an additional amount in respect of an
Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been deducted or withheld for or on account of any Indemnifiable Tax in
respect of which the other party is not required to pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or amalgamating with, or merging with or into, or
transferring all or substantially all its assets to, another entity (which will be the Affected Party) where such action does not constitute an event described in Section 5(a)(viii); 
 (iv) Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as applying to the party, such party
(“X”), any Credit Support Provider of X or any applicable Specified Entity of X consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, another entity and such action does not
constitute an event described in Section 5(a)(viii) but the creditworthiness of the resulting, surviving or transferee entity is materially weaker than that of X, such Credit Support Provider or such Specified Entity, as the case may be, immediately
prior to such action (and, in such event, X or its successor or transferee, as appropriate, will be the Affected Party); or 
  

 7 

 (v) Additional Termination Event. If any “Additional Termination Event” is
specified in the Schedule or any Confirmation as applying, the occurrence of such event (and, in such event the Affected Party or Affected Parties shall be as specified for such Additional Termination Event in the Schedule or such Confirmation).

 (c) Event of Default and Illegality. If an event or circumstance which would otherwise constitute or give rise to an Event of Default also
constitutes an Illegality, it will be treated as an Illegality and will not constitute an Event of Default. 
  

	6.	Early Termination 

 (a) Right to Terminate Following Event of
Default. If at any time an Event of Default with respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the “Non-defaulting Party”) may, by not more than 20 days notice to the
Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early
Termination” is specified in the Schedule as applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur immediately upon the occurrence with respect to such party of an Event of Default specified
in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding the institution of the relevant proceeding or the presentation of the relevant petition upon the
occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8). 
 (b)
Right to Terminate Following Termination Event. 
 (i) Notice. If a Termination Event occurs, an Affected
Party will, promptly upon becoming aware of it, notify the other party, specifying the nature of that Termination Event and each Affected Transaction and will also give such other information about that Termination Event as the other party may
reasonably require. 
 (ii) Transfer to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(l) or a Tax
Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the Affected Party, the Affected Party will, as a condition to its right to designate an Early Termination Date under
Section 6(b)(iv), use all reasonable efforts (which will not require such party to incur a loss, excluding immaterial, incidental expenses) to transfer within 20 days after it gives notice under Section 6(b)(i) all its rights and
obligations under this Agreement in respect of the Affected Transactions to another of its Offices or Affiliates so that such Termination Event ceases to exist. 
 If the Affected Party is not able to make such a transfer it will give notice to the other party to that effect within such 20 day period, whereupon the other party may effect such a transfer within 30 days after the
notice is given under Section 6(b)(i). 
 Any such transfer by a party under this Section 6(b)(ii) will be subject to and
conditional upon the prior written consent of the other party, which consent will not be withheld if such other party’s policies in effect at such time would permit it to enter into transactions with the transferee on the terms proposed.

 (iii) Two Affected Parties. If an Illegality under Section 5(b)(i)(l) or a Tax Event occurs and there are two Affected
Parties, each party will use all reasonable efforts to reach agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to avoid that Termination Event. 
  

 8 

 (iv) Right to Terminate. If:- 
 (1) a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the case may be, has not been effected with respect to all
Affected Transactions within 30 days after an Affected Party gives notice under Section 6(b)(i), or 
 (2) an Illegality under
Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened Party is not the Affected Party, 
 either party in the case of an Illegality, the Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event or an
Additional Termination Event if there is more than one Affected Party, or the party which is not the Affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only one Affected Party may,
by not more than 20 days notice to the other party and provided that the relevant Termination Event is then continuing, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all Affected
Transactions. 
 (c) Effect of Designation. 
 (i) If notice designating an Early Termination Date is given under Section 6(a) or (b), the Early Termination Date will occur on the date so designated, whether or not the relevant Event of Default or Termination
Event is then continuing. 
 (ii) Upon the occurrence or effective designation of an Early Termination Date, no further payments or deliveries
under Section 2(a)(i) or 2(e) in respect of the Terminated Transactions will be required to be made, but without prejudice to the other provisions of this Agreement. The amount, if any, payable in respect of an Early Termination Date shall be
determined pursuant to Section 6(e). 
 (d) Calculations. 
 (i) Statement. On or as soon as reasonably practicable following the occurrence of an Early Termination Date, each party will make the calculations on its part, if any, contemplated by Section 6(e)
and will provide to the other party a statement (1) showing, in reasonable detail, such calculations (including all relevant quotations and specifying any amount payable under Section 6(e)) and (2) giving details of the relevant
account to which any amount payable to it is to be paid. In the absence of written confirmation from the source of a quotation obtained in determining a Market Quotation, the records of the party obtaining such quotation will be conclusive evidence
of the existence and accuracy of such quotation. 
 (ii) Payment Date. An amount calculated as being due in
respect of any Early Termination Date under section 6(e) will be payable on the day that notice of the amount payable is effective (in the case of an Early Termination Date which is designated or occurs as a result of an Event of Default) and on the
day which is two Local Business Days after the day on which notice of the amount payable is effective (in the case of an Early Termination Date which is designated as a result of a Termination Event). Such amount will be paid together with (to the
extent permitted under applicable law) interest thereon (before as well as after judgment) in the Termination Currency, from (and including) the relevant Early Termination Date to (but excluding) the date such amount is paid, at the Applicable Rate.
Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed. 
 (e) Payments on Early Termination.
If an Early Termination Date occurs, the following provisions shall apply based on the parties’ election in the Schedule of a payment measure, either “Market Quotation” or “Loss”, and a payment method, either the
“First Method” or the “Second Method”. If the parties fail to designate a payment measure or payment method in the Schedule, it will be deemed that “Market Quotation” or the “Second Method”, as the case may
be, shall apply. The amount, if any, payable in respect of an Early Termination Date and determined pursuant to this Section will be subject to any Set-off. 
 (i) Events of Default. If the Early Termination Date results from an Event of Default:- 
 (1)
First Method and Market Quotation. If the First Method and Market Quotation apply, the Defaulting Party will pay to the Non-defaulting Party the excess, if a positive number, of (A) the sum of the Settlement
Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid
Amounts owing to the Defaulting Party. 
  

 9 

 (2) First Method and Loss. If the First Method and Loss apply,
the Defaulting Party will pay to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss in respect of this Agreement. 
 (3) Second Method and Market Quotation. If the Second Method and Market Quotation apply, an amount will be payable equal to (A) the sum of the Settlement Amount (determined by the
Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the
Defaulting Party. If that amount is a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting Party. 

(4) Second Method and Loss. If the Second Method and Loss apply, an amount will be
payable equal to the Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the
absolute value of that amount to the Defaulting Party. 
 (ii) Termination Events. If the Early Termination Date results from a
Termination Event:- 
 (1) One Affected Party. If there is one Affected Party, the amount payable
will be determined in accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies, except that, in either case, references to the Defaulting Party and to the Non-defaulting Party will be deemed
to be references to the Affected Party and the party which is not the Affected Party, respectively, and, if Loss applies and fewer than all the Transactions are being terminated, Loss shall be calculated in respect of all Terminated Transactions.

 (2) Two Affected Parties. If there are two Affected Parties:- 
 (A) if Market Quotation applies, each party will determine a Settlement Amount in respect of the Terminated Transactions, and an amount
will be payable equal to (I) the sum of (a) one-half of the difference between the Settlement Amount of the party with the higher Settlement Amount (“X”) and the Settlement Amount of the party with the lower Settlement Amount
(“Y”) and (b) the Termination Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid Amounts owing to Y; and 
 (B) if Loss applies, each party will determine its Loss in respect of this Agreement (or, if fewer than all the Transactions are being terminated, in
respect of all Terminated Transactions) and an amount will be payable equal to one-half of the difference between the Loss of the party with the higher Loss (“X”) and the Loss of the party with the lower Loss (“Y”). 

If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of that amount to Y.

 (iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because “Automatic Early
Termination” applies in respect of a party, the amount 

  

 10 

 
determined under this Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to reflect any payments or deliveries
made by one party to the other under this Agreement (and retained by such other party) during the period from the relevant Early Termination Date to the date for payment determined under Section 6(d)(ii). 
 (iv) Pre-Estimate. The parties agree that if Market Quotation applies an amount recoverable under this Section 6(e) is a reasonable
pre-estimate of loss and not a penalty. Such amount is payable for the loss of bargain and the loss of protection against future risks and except as otherwise provided in this Agreement neither party will be entitled to recover any additional
damages as a consequence of such losses. 
  

	7.	Transfer 

 Subject to Section 6(b)(ii), neither this Agreement
nor any interest or obligation in or under this Agreement may be transferred (whether by way of security or otherwise) by either party without the prior written consent of the other party, except that:- 
 (a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer of all or substantially all
its assets to, another entity (but without prejudice to any other right or remedy under this Agreement); and 
 (b) a party may make such a transfer of all
or any part of its interest in any amount payable to it from a Defaulting Party under Section 6(e). 
 Any purported transfer that is not in compliance
with this Section will be void. 
  

	8.	Contractual Currency 

 (a) Payment in the Contractual
Currency. Each payment under this Agreement will be made in the relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the extent permitted by applicable law, any obligation to make payments
under this Agreement in the Contractual Currency will not be discharged or satisfied by any tender in any currency other than the Contractual Currency, except to the extent such tender results in the actual receipt by the party to which payment is
owed, acting in a reasonable manner and in good faith in converting the currency so tendered into the Contractual Currency, of the full amount in the Contractual Currency of all amounts payable in respect of this Agreement. If for any reason the
amount in the Contractual Currency so received falls short of the amount in the Contractual Currency payable in respect of this Agreement, the party required to make the payment will, to the extent permitted by applicable law, immediately pay such
additional amount in the Contractual Currency as may be necessary to compensate for the shortfall. If for any reason the amount in the Contractual Currency so received exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of such excess. 
 (b) Judgments. To the extent permitted by
applicable law, if any judgment or order expressed in a currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in respect of this Agreement, (ii) for the payment of any amount relating to any early
termination in respect of this Agreement or (iii) in respect of a judgment or order of another court for the payment of any amount described in (i) or (ii) above, the party seeking recovery, after recovery in full of the aggregate
amount to which such party is entitled pursuant to the judgment or order, will be entitled to receive immediately from the other party the amount of any shortfall of the Contractual Currency received by such party as a consequence of sums paid in
such other currency and will refund promptly to the other party any excess of the Contractual Currency received by such party as a consequence of sums paid in such other currency if such shortfall or such excess arises or results from any variation
between the rate of exchange at which the Contractual Currency is converted into the currency of the judgment or order for the purposes of such judgment or order and the rate of exchange at which such party is able, acting in a reasonable manner and
in good faith in converting the currency received into the Contractual Currency, to purchase the Contractual Currency with the amount of the currency of the judgment or order actually received by such party. The term “rate of exchange”
includes, without limitation, any premiums and costs of exchange payable in connection with the purchase of or conversion into the Contractual Currency. 
  

 11 

 (c) Separate Indemnities. To the extent permitted by applicable law, these indemnities constitute separate
and independent obligations from the other obligations in this Agreement, will be enforceable as separate and independent causes of action, will apply notwithstanding any indulgence granted by the party to which any payment is owed and will not be
affected by judgment being obtained or claim or proof being made for any other sums payable in respect of this Agreement. 
 (d) Evidence of Loss.
For the purpose of this Section 8, it will be sufficient for a party to demonstrate that it would have suffered a loss had an actual exchange or purchase been made. 
  

	9.	Miscellaneous 

 (a) Entire Agreement. This Agreement
constitutes the entire agreement and understanding of the parties with respect to its subject matter and supersedes all oral communication and prior writings with respect thereto. 
 (b) Amendments. No amendment, modification or waiver in respect of this Agreement will be effective unless in writing (including a writing evidenced by a facsimile transmission) and executed by each of
the parties or confirmed by an exchange of telexes or electronic messages on an electronic messaging system. 
 (c) Survival of Obligations.
Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties under this Agreement will survive the termination of any Transaction. 
 (d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and privileges provided in this Agreement are cumulative and not exclusive of any rights, powers, remedies and privileges provided by
law. 
 (e) Counterparts and Confirmations. 
 (i) This Agreement (and each amendment, modification and waiver in respect of it) may be executed and delivered in counterparts (including by facsimile transmission), each of which will be deemed an original.

 (ii) The parties intend that they are legally bound by the terms of each Transaction from the moment they agree to those terms (whether
orally or otherwise). A Confirmation shall be entered into as soon as practicable and may be executed and delivered in counterparts (including by facsimile transmission) or be created by an exchange of telexes or by an exchange of electronic
messages on an electronic messaging system, which in each case will be sufficient for all purposes to evidence a binding supplement to this Agreement. The parties will specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation. 
 (f) No Waiver of Rights. A failure or delay in exercising any right, power or
privilege in respect of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or
privilege or the exercise of any other right, power or privilege. 
 (g) Headings. The headings used in this Agreement are for convenience of
reference only and are not to affect the construction of or to be taken into consideration in interpreting this Agreement. 
  

	10.	Offices; Multibranch Parties 

 (a) If Section 10(a) is
specified in the Schedule as applying, each party that enters into a Transaction through an Office other than its head or home office represents to the other party that, notwithstanding the place of booking office or jurisdiction of incorporation or
organisation of such party, the obligations of such party are the same as if it had entered into the Transaction through its head or home office. This representation will be deemed to be repeated by such party on each date on which a Transaction is
entered into. 
  

 12 

 (b) Neither party may change the Office through which it makes and receives payments or deliveries for the purpose of a
Transaction without the prior written consent of the other party. 
 (c) If a party is specified as a Multibranch Party in the Schedule, such Multibranch
Party may make and receive payments or deliveries under any Transaction through any Office listed in the Schedule, and the Office through which it makes and receives payments or deliveries with respect to a Transaction will be specified in the
relevant Confirmation. 
  

	11.	Expenses 

 A Defaulting Party will, on demand, indemnify and hold
harmless the other party for and against all reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party by reason of the enforcement and protection of its rights under this Agreement or any Credit Support
Document to which the Defaulting Party is a party or by reason of the early termination of any Transaction, including, but not limited to, costs of collection. 
  

	12.	Notices 

 (a) Effectiveness. Any notice or other
communication in respect of this Agreement may be given in any manner set forth below (except that a notice or other communication under Section 5 or 6 may not be given by facsimile transmission or electronic messaging system) to the address or
number or in accordance with the electronic messaging system details provided (see the Schedule) and will be deemed effective as indicated:- 
 (i) if in writing and delivered in person or by courier, on the date it is delivered; 
 (ii) if sent by telex, on the date the
recipient’s answerback is received; 
 (iii) if sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender’s facsimile machine); 
 (iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date that mail is delivered or
its delivery is attempted; or 
 (v) if sent by electronic messaging system, on the date that electronic message is received, 
 unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a Local Business Day or that communication is delivered (or attempted) or
received, as applicable, after the close of business on a Local Business Day, in which case that communication shall be deemed given and effective on the first following day that is a Local Business Day. 
 (b) Change of Addresses. Either party may by notice to the other change the address, telex or facsimile number or electronic messaging system details at
which notices or other communications are to be given to it. 
  

	13.	Governing Law and Jurisdiction 

 (a) Governing Law.
This Agreement will be governed by and construed in accordance with the law specified in the Schedule. 
 (b) Jurisdiction. With
respect to any suit, action or proceedings relating to this Agreement (“Proceedings”), each party irrevocably:- 
 (i) submits to
the jurisdiction of the English courts, if this Agreement is expressed to be governed by English law, or to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of
Manhattan in New York City, if this Agreement is expressed to be governed by the laws of the State of New York; and 
  

 13 

 (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought
in any such court, waives any claim that such Proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party.

 Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction (outside, if this Agreement is expressed to be
governed by English law, the Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or re-enactment thereof for the time being in force) nor will the bringing of Proceedings in
any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 
 (c) Service of Process. Each party irrevocably
appoints the Process Agent (if any) specified opposite its name in the Schedule to receive, for it and on its behalf, service of process in any Proceedings. If for any reason any party’s Process Agent is unable to act as such, such party will
promptly notify the other party and within 30 days, appoint a substitute process agent acceptable to the other party. The parties irrevocably consent to service of process given in the manner provided for notices in Section 12. Nothing in this
Agreement will affect the right of either party to serve process in any other manner permitted by law. 
 (d) Waiver of Immunities. Each party
irrevocably waives, to the fullest extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from
(i) suit, (ii) jurisdiction of any court, (iii) relief by way of injunction, order for specific performance or for recovery of property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or
enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any Proceedings in the courts of any jurisdiction and irrevocably agrees, to the extent permitted by applicable law, that it will not claim any such
immunity in any Proceedings. 
  

	14.	Definitions 

 As used in this Agreement:- 
 “Additional Termination Event” has the meaning specified in Section 5(b). 
 “Affected Party” has the meaning specified in Section 5(b). 
 “Affected
Transactions” means (a) with respect to any Termination Event consisting of an Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such Termination Event and (b) with respect to any
other Termination Event, all Transactions. 
 “Affiliate” means, subject to the Schedule, in relation to any person, any entity
controlled, directly or indirectly, by the person, any entity that controls, directly or indirectly, the person or any entity directly or indirectly under common control with the person. For this purpose, “control” of any entity or person
means ownership of a majority of the voting power of the entity or person. 
 “Applicable Rate” means:- 
  

	(a)	in respect of obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate; 

  

	(b)	in respect of an obligation to pay an amount under Section 6(e) of either party from and after the date (determined in accordance with Section 6(d)(ii)) on which that
amount is payable, the Default Rate; 

  

 14 

 (c) in respect of all other obligations payable or deliverable (or which would have been but for Section 2(a)(iii))
by a Non-defaulting Party, the Non-default Rate; and 
 (d) in all other cases, the Termination Rate. 
 “Burdened Party” has the meaning specified in Section 5(b). 
 “Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change in or amendment to, any law (or in the application or official interpretation of any law) that
occurs on or after the date on which the relevant Transaction is entered into. 
 “consent” includes a consent, approval, action,
authorisation, exemption, notice, filing, registration or exchange control consent. 
 “Credit Event Upon Merger” has the meaning
specified in Section 5(b). 
 “Credit Support Document” means any agreement or instrument that is specified as such in this
Agreement. 
 “Credit Support Provider” has the meaning specified in the Schedule. 
 “Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the relevant payee (as certified by it)
if it were to fund or of funding the relevant amount plus 1% per annum. 
 “Defaulting Party” has the meaning specified in
Section 6(a). 
 “Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv). 

 “Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule.  

 “Illegality” has the meaning specified in Section 5(b). 
 “Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a payment under this Agreement but for a present or former connection between the jurisdiction of the
government or taxation authority imposing such Tax and the recipient of such payment or a person related to such recipient (including, without limitation, a connection arising from such recipient or related person being or having been a citizen or
resident of such jurisdiction, or being or having been organised, present or engaged in a trade or business in such jurisdiction, or having or having had a permanent establishment or fixed place of business in such jurisdiction, but excluding a
connection arising solely from such recipient or related person having executed, delivered, performed its obligations or received a payment under, or enforced, this Agreement or a Credit Support Document). 
 “law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by the practice of any relevant governmental revenue
authority) and “lawful” and “unlawful” will be construed accordingly. 
 “Local Business Day”
means, subject to the Schedule, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to any obligation under Section 2(a)(i), in the place(s)
specified in the relevant Confirmation or, if not so specified, as otherwise agreed by the parties in writing or determined pursuant to provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any other payment,
in the place where the relevant account is located and, if different, in the principal financial centre, if any, of the currency of such payment, (c) in relation to any notice or other communication, including notice contemplated under
Section 5(a)(i), in the city specified in the address for notice provided by the recipient and, in the case of a notice contemplated by Section 2(b), in the place where the relevant new account is to be located and (d) in relation to
Section 5(a)(v)(2), in the relevant locations for performance with respect to such Specified Transaction. 
  

 15 

 “Loss” means, with respect to this Agreement or one or more Terminated Transactions, as the case
may be, and a party, the Termination Currency Equivalent of an amount that party reasonably determines in good faith to be its total losses and costs (or gain, in which case expressed as a negative number) in connection with this Agreement or that
Terminated Transaction or group of Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at the election of such party but without duplication, loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position (or any gain resulting from any of them). Loss includes losses and costs (or gains) in respect of any payment or delivery required to have been made (assuming
satisfaction of each applicable condition precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid duplication, if Section 6(e)(i)(l) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a party’s
legal fees and out-of-pocket expenses referred to under Section 11. A party will determine its Loss as of the relevant Early Termination Date, or, if that is not reasonably practicable, as of the earliest date thereafter as is reasonably
practicable. A party may (but need not) determine its Loss by reference to quotations of relevant rates or prices from one or more leading dealers in the relevant markets. 
 “Market Quotation” means, with respect to one or more Terminated Transactions and a party making the determination, an amount determined on the basis of quotations from Reference Market-makers.
Each quotation will be for an amount, if any, that would be paid to such party (expressed as a negative number) or by such party (expressed as a positive number) in consideration of an agreement between such party (taking into account any existing
Credit Support Document with respect to the obligations of such party) and the quoting Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of preserving for such party the economic
equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated
Transaction or group of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have been required after that date. For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of
Terminated Transactions are to be excluded but, without limitation, any payment or delivery that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early
Termination Date is to be included. The Replacement Transaction would be subject to such documentation as such party and the Reference Market-maker may, in good faith, agree. The party making the determination (or its agent) will request each
Reference Market-maker to provide its quotation to the extent reasonably practicable as of the same day and time (without regard to different time zones) on or as soon as reasonably practicable after the relevant Early Termination Date. The day and
time as of which those quotations are to be obtained will be selected in good faith by the party obliged to make a determination under Section 6(e), and, if each party is so obliged, after consultation with the other. If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of the quotations, without regard to the quotations having the highest and lowest values. If exactly three such quotations are provided, the Market Quotation will be the
quotation remaining after disregarding the highest and lowest quotations. For this purpose, if more than one quotation has the same highest value or lowest value, then one of such quotations shall be disregarded. If fewer than three quotations are
provided, it will be deemed that the Market Quotation in respect of such Terminated Transaction or group of Terminated Transactions cannot be determined. 
 “Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant amount. 
 “Non-defaulting Party” has the meaning specified in Section 6(a). 
 “Office” means a branch or office of a party, which may be such party’s head or home office. 
 “Potential Event of Default” means any event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default. 
 “Reference Market-makers” means four leading dealers in the relevant market selected by the party determining a Market Quotation in good faith (a) from among dealers of the highest credit
standing which satisfy all the criteria that such party applies generally at the time in deciding whether to offer or to make an extension of credit and (b) to the extent practicable from among such dealers having an office in the same city.

  

 16 

 “Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the
party is incorporated, organised, managed and controlled or considered to have its seat, (b) where an Office through which the party is acting for purposes of this Agreement is located, (c) in which the party executes this Agreement and
(d) in relation to any payment, from or through which such payment is made. 
 “Scheduled Payment Date” means a date on which a
payment or delivery is to be made under Section 2(a)(i) with respect to a Transaction. 
 “Set-off” means set-off, offset,
combination of accounts, right of retention or withholding or similar right or requirement to which the payer of an amount under Section 6 is entitled or subject (whether arising under this Agreement, another contract, applicable law or
otherwise) that is exercised by, or imposed on, such payer. 
 “Settlement Amount” means, with respect to a party and any Early
Termination Date, the sum of:- 
 (a) the Termination Currency Equivalent of the Market Quotations (whether positive or negative) for each Terminated
Transaction or group of Terminated Transactions for which a Market Quotation is determined; and 
 (b) such party’s Loss (whether positive or negative
and without reference to any Unpaid Amounts) for each Terminated Transaction or group of Terminated Transactions for which a Market Quotation cannot be determined or would not (in the reasonable belief of the party making the determination) produce
a commercially reasonable result. 
 “Specified Entity” has the meaning specified in the Schedule. 
 “Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise, as principal or
surety or otherwise) in respect of borrowed money. 
 “Specified Transaction” means, subject to the Schedule, (a) any
transaction (including an agreement with respect thereto) now existing or hereafter entered into between one party to this Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of such party) and the other party
to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is a rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity
index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or
any other similar transaction (including any option with respect to any of these transactions), (b) any combination of these transactions and (c) any other transaction identified as a Specified Transaction in this Agreement or the relevant
confirmation. 
 “Stamp Tax” means any stamp, registration, documentation or similar tax. 
 “Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature (including interest, penalties and additions
thereto) that is imposed by any government or other taxing authority in respect of any payment under this Agreement other than a stamp, registration, documentation or similar tax. 
 “Tax Event” has the meaning, specified in Section 5(b). 
 “Tax Event Upon
Merger” has the meaning specified in Section 5(b). 
 “Terminated Transactions” means with respect to any Early
Termination Date (a) if resulting from a Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all Transactions (in either case) in effect immediately before the effectiveness of the notice designating
that Early Termination Date (or, if “Automatic Early Termination” applies, immediately before that Early Termination Date). 
  

 17 

 “Termination Currency” has the meaning specified in the Schedule. 
 “Termination Currency Equivalent” means, in respect of any amount denominated in the Termination Currency, such Termination Currency amount and,
in respect of any amount denominated in a currency other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency determined by the party making the relevant determination as being required to purchase
such amount of such Other Currency as at the relevant Early Termination Date, or, if the relevant Market Quotation or Loss (as the case may be), is determined as of a later date, that later date, with the Termination Currency at the rate equal to
the spot exchange rate of the foreign exchange agent (selected as provided below) for the purchase of such Other Currency with the Termination Currency at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on such date
as would be customary for the determination of such a rate for the purchase of such Other Currency for value on the relevant Early Termination Date or that later date. The foreign exchange agent will, if only one party is obliged to make a
determination under Section 6(e), be selected in good faith by that party and otherwise will be agreed by the parties. 
 “Termination
Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be applicable, a Credit Event Upon Merger or an Additional Termination Event. 
 “Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof or evidence of any actual cost) to each party (as certified by such party) if it were to fund
or of funding such amounts. 
 “Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate of
(a) in respect of all Terminated Transactions, the amounts that became payable (or that would have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early Termination Date and which
remain unpaid as at such Early Termination Date and (b) in respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or would have been but for Section 2(a)(iii)) required to be settled by delivery
to such party on or prior to such Early Termination Date and which has not been so settled as at such Early Termination Date, an amount equal to the fair market value of that which was (or would have been) required to be delivered as of the
originally scheduled date for delivery, in each case together with (to the extent permitted under applicable law) interest, in the currency of such amounts, from (and including) the date such amounts or obligations were or would have been required
to have been paid or performed to (but excluding) such Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated on the basis of daily compounding and the actual number of days elapsed. The fair market value of any
obligation referred to in clause (b) above shall be reasonably determined by the party obliged to make the determination under Section 6(e) or, if each party is so obliged, it shall be the average of the Termination Currency Equivalents of
the fair market values reasonably determined by both parties. 
 IN WITNESS WHEREOF the parties have executed this document on the respective dates specified
below with effect from the date specified on the first page of this document. 
  

									
	EFG EUROBANK ERGASIAS SA (“Party A”)	 		 	DRYSHIPS INC. (“Party B”)
					
	By	 	  
	 		 	By:	 	  

	Name:	 	Marina Tzoutzouraki	 		 	Name:	 	
	Title:	 	Authorised Officer	 		 	Title:	 	Attorney-in-fact
	Date:	 	7th May, 2008	 		 	Date:	 	7th May, 2008

  

 18 

			
	By	 	  

	Name:	 	Stavroula-Sotiria Ydreou
	Title:	 	Authorised Officer
	Date:	 	7th May, 2008

  

 19 

 EFG EUROBANK ERGASIAS S.A. 
 AND 
 DRYSHIPS INC 
  
  
 SCHEDULE TO THE 1992 ISDA MASTER AGREEMENT 
 (ENGLISH LAW) 
  
  

 THIS IS AN IMPORTANT DOCUMENT: YOU SHOULD TAKE 
 INDEPENDENT LEGAL ADVICE BEFORE SIGNING AND SIGN ONLY IF 
 YOU WANT TO BE LEGALLY BOUND BY THE TERMS OF THE 
 DOCUMENT 
 ENGLISH LAW ISDA SCHEDULE 
 SCHEDULE 
 TO THE ISDA MASTER AGREEMENT (THE “AGREEMENT”) 
 dated as of 7th May, 2008 BETWEEN: 
  

	(1)	EFG EUROBANK ERGASIAS S.A., whose registered office is at 8 Othonos Street, Athens 105 57 Greece (“PARTY A”) 

 AND 
  

	(2)	DRYSHIPS INC. whose registered office is at 80 Broad Street, Monrovia, Liberia (“PARTY B”). 

 PART 1 - TERMINATION PROVISIONS 
  

	(a)	“Specified Entity” means: 

  

	 	(i)	in relation to Party A for the purpose of the following Sections of this Agreement: 

  

			
	 Section 5(a)(v)
	  	Not applicable
	 Section 5(a)(vi)
	  	Not applicable
	 Section 5(a)(vii)
	  	Not applicable
	 Section 5(b)(iv)
	  	Not applicable

  

	 	(ii)	in relation to Party B for the purpose of the following Sections of this Agreement: 

  

			
	 Section 5(a)(v)
	  	Any Affiliate
	 Section 5(a)(vi)
	  	Any Affiliate
	 Section 5(a)(vii)
	  	Any Affiliate
	 Section 5(b)(iv)
	  	Any Affiliate

  

	(b)	“Specified Transaction” will have the meaning specified in Section 14 of this Agreement. 

  

	(c)	The “Cross Default” provisions of Section 5(a)(vi) of this Agreement will not apply to Party A and will apply to Party B. 

 If such provisions apply: 
 “Specified Indebtedness” will have the meaning specified in Section 14 of the Agreement. 
 “Threshold Amount” means, in relation to Party B, zero (0). 
  

	(d)	The “Credit Event upon Merger” provisions of Section 5(b)(iv) will not apply to Party A and will apply to Party B. 

  

	(e)	The “Automatic Early Termination” provisions of Section 6(a) will not apply to Party A but will apply to Party B. 

  

	(f)	“Payments on Early Termination”. For the purpose of Section 6(e) of this Agreement: 

  

	 	(i)	Market Quotation will apply. 

  

	 	(ii)	The Second Method will apply. 

  

	(g)	“Termination Currency” means the currency selected by the Non-Defaulting Party or, as the case may be, the Non-Affected Party or, in circumstances where there are
two Affected Parties, as agreed by both Party A and Party B, provided, however, that the Termination Currency shall be one of the currencies in which payments in respect of the Transactions are required to be made by the Confirmations. If such
currency is not freely available or, in circumstances where there are two Affected Parties, if both Party A and Party B cannot agree on a Termination Currency, the Termination Currency shall be Euros and/or United Stated Dollars.

  

	(h)	Additional Termination Event. The following events shall constitute Additional Termination Events in relation to Party B only:- 

  

	 	(a)	Any circumstances arise which, in the opinion of Party A acting in good faith, give reasonable grounds for belief that Party B or any Credit Support Provider of Party B may not, or
may be unable to, perform its respective obligations under this Agreement or the relevant Credit Support Document and this opinion has not been cured within 30 (thirty) days after party A has given notice thereof to Party B.

  

	 	(b)	Party B or any Credit Support Provider of Party B fails to give adequate assurances of its ability to perform its respective obligations under this Agreement or any Credit Support
Document on or before the third Business Day after a written request to do so has been given to Party B by Party A and this failure has not been cured within 30 (thirty) days after party A has given notice thereof to Party B.

 For the purpose of the foregoing Additional Termination Events, Party B shall be the Affected Party. 
  

 -2- 

 PART 2 - TAX REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS 
  

	a)	Payer Tax Representations. 

 For the purposes of
Section 3(e), Party A will make the following representation and Party B will make the following representation: 
 It is not required by
any applicable law as modified by the practice of any relevant governmental revenue authority, of any Relevant jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under
Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this Agreement. In making representation, it may rely on: 
  

	 	(i)	the accuracy of any representation made by the other party pursuant to Section 3(f) of this Agreement; 

  

	 	(ii)	the satisfaction of the agreement of the other party contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by
the other party pursuant to Section 4(a)(i) or (a)(iii) of this Agreement; and 

  

	 	(iii)	the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, 

 provided that it shall not be a breach of this representation where reliance is placed on Clause (ii) and the other party does not deliver a form or
document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position. 
  

	b)	Payee Tax Representations. For the purpose of Section 3(f) of this Agreement: 

 Party A and Party B make no representation. 
  

 -3- 

 PART 3 - AGREEMENT TO DELIVER DOCUMENTS 
 For the purpose of Sections 4(a)(i) and (ii) of the Agreement, each party agrees to deliver the following documents, as applicable: 
  

							
	 Party
required to
Deliver
document
	  	 Form/Document/ Certificate
	  	 Date by which
 to be delivered
	  	Covered by
Section 3(d)
Representation
	Party A and Party B	  	Such evidence of the due authorisation of the person(s) signing this Agreement and each Confirmation on its behalf as either Party may reasonably request	  	Date of execution of this Agreement	  	No
				
	Party B	  	A copy of the Memorandum and Articles of Association and Certificate of Incorporation (or other constitutive documents) of Party B	  	Date of execution of this Agreement	  	Yes
				
	Party B	  	A copy of the resolution of the board of directors of Party B approving this Agreement and the Transactions contemplated hereby and authorising a specified person or persons to execute this
Agreement and any Confirmation on behalf of Party B	  	Date of execution of this Agreement	  	Yes
				
	Party B	  	Copies of such statutory and/or regulatory consents, approvals and authorisations as may be necessary for Party B to enter into this Agreement and the Transactions contemplated
hereby	  	Upon execution of this Agreement	  	Yes
				
	Party B	  	Legal opinion(s) in form and substance satisfactory to Party A from solicitor(s)/ law firm(s) approved by Party A	  	Date of execution of this Agreement	  	Yes
				
	Party B	  	A copy of the written acceptance by Party B’s Process Agent (as defined in Part 4(b) of the Schedule to this Agreement) of its appointment to receive for Party B and on its behalf service
of process in any Proceedings under this Agreement	  	Date of execution of this Agreement	  	Yes

  

 -4- 

							
	 Party
required to
Deliver
document
	  	 Form/Document/ Certificate
	  	 Date by which
 to be delivered
	  	Covered by
Section 3(d)
Representation
	Party B	  	The annual financial statements of Party B	  	Upon demand in respect of those which became publicly available prior to the date of this Agreement and, in respect of those statements, which are not publicly available as at the date hereof,
within 30 days of becoming publicly available	  	Yes

 Any copy documents required to be delivered by Party B and/or its Credit Support Provider shall be certified by a
competent senior official of Party B or the respective Credit Support Provider of Party B, as the case may be, as being correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. 
  

 -5- 

 PART 4 - MISCELLANEOUS 
  

	(a)	“Addresses for Notices”. For the purposes of Section 12(a) of this Agreement: 

 Address for notices or communications to Party A: 
  

			
	 Address:
	  	 EFG Eurobank Ergasias S.A.
 8, Othonos Street, Athens
105 57, Greece
 Attention: Ms. Sofia Tatsi/ Ms. Elli Hudaverdi
 Telephone no.: 210-3337957
 Fax no.: 210-3337281

 Address for notices or communications to Party B: 
  

			
	 Address:
	  	 Dryships Inc.
 Omega House
 80 Kifissias Avenue
 Amaroussion, Athens, Greece,
 Facsimile No: (+30)210 8090205

  

	(b)	“Process Agent”. For the purpose of Section 13(c) of this Agreement: 

 Party A appoints as its Process Agent: Party A’s London Branch of 24 Grafton Street, London W1S 4EZ, England. 
 Party B appoints as its Process Agent: 
 Messrs. Ince & Co., (Attention: Mr. Michael Volikas) currently located at International House, 1, St. Katharine’s Way, London E1W lUN, England 
  

	(c)	“Offices”. The provisions of Section 10(a) will apply to this Agreement. 

  

	(d)	“Multibranch Party”. For the purpose of Section 10(c) of this Agreement: 

  

	 	(i)	Party A is a Multibranch Party and may act through the following offices: (a) its Head Office at 8 Othonos Street, Athens 105 57, Greece and (b) its London Branch at 24
Grafton Street, London W1S 4EZ, England; 

  

	 	(ii)	Party B is not a Multibranch Party 

  

	(e)	“Calculation Agent”. The Calculation Agent is Party A, unless otherwise specified in a Confirmation in relation to the relevant Transaction.

  

	(f)	“Credit Support Document”. Details of any Credit Support Document(s): None 

  

	(g)	“Credit Support Provider”. Credit Support Provider does not apply in relation to Party A and in relation to Party B. 

  

 -6- 

	(h)	“Governing Law”. This Agreement will be governed by and construed in accordance with English law. 

  

	(i)	“Netting of Payments”. The limitation set forth in Section 2(c)(ii) of this Agreement will apply. 

  

	(j)	“Affiliate” will have the meaning specified in Section 14 of this Agreement. 

 PART 5 - OTHER PROVISIONS 
 Set Off 
  

	(1)	Section 6 of this Agreement is hereby amended by the addition of the following as a new Section 6(f): 

 “(f) Set-off. Upon the designation of any Early Termination Date, the party that is not the Defaulting Party or Affected Party (“X”)
may, without prior notice to the Defaulting or Affected Party (“Y”), set off any sum or obligation (whether or not arising under this Agreement, whether matured or unmatured, whether or not contingent and irrespective of the currency,
place of payment or booking office of the sum or obligation) owed by Y to X or any Affiliate of X (the “X Set Off Amount”) against any sum or obligation (whether or not arising under this Agreement, whether matured or unmatured, whether or
not contingent and irrespective of the currency, place of payment or booking office of the sum or obligation) owed by X or any Affiliate of X to Y (the “Y Set Off Amount”). X will give notice to the other party of any set off effected
under this Section 6(f). 
 For this purpose, either the X Set Off Amount or the Y Set Off Amount (or the relevant portion of such set
off amounts) may be converted by X into the currency in which the other set off amount is denominated at the rate of exchange at which X would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such
currency. 
 If a sum or obligation is unascertained, X may in good faith estimate that obligation and set-off in respect of the estimate,
subject to the relevant party accounting to the other when the obligation is ascertained. 
 Nothing in this Section 6(f) shall be
effective to create a charge or other security interest. This Section 6(f) shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other rights to which any party is at any time otherwise entitled
(whether by operation of law, contract or otherwise).” 
  

 -7- 

 Incorporation and Interpretation of Definitions 
  

	(2)	Any definitions published by the International and Swaps Derivatives Association Inc., and amended from time to time which shall apply to this Agreement will be referred to in the
relevant Confirmation. In the event and to the extent that the relevant Confirmation does not refer to any definitions, the following applies: 

 Reference is made to the following definitions: 
  

	 	(i)	the 2000 ISDA Definitions (the “Definitions”); 

  

	 	(ii)	the 1998 FX and Currency Option Definitions and its Annex A in its current version (the “FX Definitions”); 

  

	 	(iii)	the 1997 Government Bond Option Definitions; and 

  

	 	(iv)	the 2002 Equity Derivatives Definitions. 

 Any terms used
and not otherwise defined in the Confirmation shall have the meaning set forth therein. 
 In the case of any conflict between the Definitions
and the FX Definitions, the FX Definitions shall prevail with respect to any FX Transaction or any Currency Option. In the case of any conflict between the Definitions and the 1997 Government Bond Option Definitions, the 1997 Government Bond Options
definitions shall prevail with respect to any Bond Option Transaction. In the case of any conflict between the Definitions and the 2002 Equity Derivatives Definitions, the latter shall prevail with respect to any Equity Derivatives Transaction.

 Confirmations 
  

	(3)	With reference to the introductory paragraph of this Agreement, the parties expect that Transactions will usually be entered into through binding oral agreements concluded over the
telephone by their authorised representatives. 

 Party A shall promptly send to Party B a Confirmation of each Transaction
between them, and Party B shall promptly confirm the accuracy of that Confirmation by fax or any other means agreed to by the parties. Failure to confirm the accuracy within 5 Local Business Days of being sent the relevant Confirmation will be
deemed to be a confirmation of accuracy by Party B. Confirmations shall be substantially in the form of Exhibit I to the 2000 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc.) (the “Definitions”)
with the relevant additional provisions of Exhibits II-A through II-G to the Definitions or such other form as may be acceptable to the parties. 
 Change of Account 
  

	(4)	Section 2(b) of this Agreement is hereby amended by the addition of the following at the end thereof: 

 “; provided that, following a change occurring, if any new account of one party is not in the same jurisdiction as the original account, the other
party shall not be obliged to pay any greater amount and shall not receive any lesser amount as a result of such change than would have been the case if such change had not taken place”. 
  

 -8- 

 Relationship Between Parties 
  

	(5)	The following provision shall be added as a new Section 15 to this Agreement: 

 “Relationship Between Parties 
 Each party will be deemed to represent to the other party on the
date on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction): 
  

	 	(a)	Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate
or proper for it based upon its own judgement and upon advice from such advisors as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into that
Transaction, it being understood that information and explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction. No communication (written or oral)
received from the other party shall be deemed to be an assurance or guarantee as to the expected results of that Transaction. 

  

	 	(b)	Assessment and Understanding. It is capable of assessing the merits of an understanding (on its own behalf or through independent professional advice) and understands and
accepts the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the risks of that Transaction. 

  

	 	(c)	Status of Parties. The other party is not acting as a fiduciary for or an adviser to it in respect of that Transaction.” 

 Consent to Recordings 
  

	(6)	Each party (i) consents to the recording of the telephone conversations of trading, marketing and operations personnel of the parties and their Affiliates in connection with
this Agreement or any potential Transaction and (ii) agrees to obtain any necessary consent of, and give further notice of such recording to, such personnel of it and its Affiliates. 

 Severability 
  

	(7)	 If any term, provision, covenant or condition of the Agreement, or the application thereof to any party or circumstance, shall be held to be illegal, invalid or
unenforceable (in whole or in part) for any reason, the remaining terms, provisions, covenants and conditions hereof shall continue in full force and effect as if the Agreement had been executed with the illegal, invalid or unenforceable portion
eliminated, so long as the Agreement so modified continues to express, without material change, the original intentions of the Parties as to the subject matter of this Agreement and the deletion of such portion of this Agreement will not
substantially impair the respective benefits or 

  

 -9- 

	 	 
expectations of the Parties of this Agreement. It shall in particular be understood that this severability clause shall not affect the single agreement
concept of Section 1(c) of this Agreement. 

 Contracts (Rights of Third Parties) Act 1999 
  

	(8)	Nothing in this Agreement is intended to confer on any person any right to enforce any provision of this Agreement, which that person would not have had, but for the Contracts
(Rights of Third Parties) Act 1999. 

 IN WITNESS WHEREOF the parties have executed this document with effect from the date specified on
the first page of this document. 
 EFG EUROBANK ERGASIAS S.A. 
  

									
	By:	 	  
	 		 	By:	 	  

	Name:	 	Marina Tzoutzouraki	 		 	Name:	 	Stavroula-Sotiria Ydreou
	Title:	 	Authorised Officer	 		 	Title:	 	Authorised Officer
	Dated as of: 7th May 2008	 		 	Dated as of: 7th May 2008
				
	DRYSHIPS INC.	 		 		 	
					
	By:	 	 

	 		 		 	
	Name:	 	Eugenia Papapontikou	 		 		 	
	Title:	 	Attorney-in-fact	 		 		 	
	Dated as of: 7th May 2008	 		 		 	

  

 -10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]