Document:

Exhibit

Exhibit 4.19
Execution Version
	
	
	Second Supplemental Agreement to a US$87,000,000 Secured Loan Agreement dated 24 June 2015 as amended restated on 22 September 2015 and 15 October 2015 pursuant to a supplemental agreement dated 22 September 2015

	Dated 29 February  2016

	(1)   SBI Macanudo Shipping Company Limited
   (to be renamed STI Grace Shipping Company Limited)
   SBI Cuaba Shipping Company Limited
(to be renamed STI Jermyn Shipping Company Limited)
STI Black Hawk Shipping Company Limited
STI Pontiac Shipping Company Limited
(as Existing Borrowers)
 
(2)        STI Lombard Shipping Company Limited
             STI Osceola Shipping Company Limited
   (as New Borrowers)
(2)   Scorpio Tankers Inc. 
(as Guarantor)
(3)   The Financial Institutions 
listed in Schedule 1 
(as Original Lenders)
(4)   ING Bank N.V., London Branch
(as Arranger)
(5)   ING Bank N.V., London Branch  
(as Agent)
(6)   ING Capital Markets LLC
(as Swap Provider)

(7)   ING Bank N.V., London Branch 
(as Security Agent)   

	
		
	Contents
	 

	 
	 

	1
	Interpretation and definitions

	2
	Conditions Precedent to the Effective Date

	3
	Amendments on the Effective Date

	4
	Representations and Warranties/Undertakings

	5
	Further assurances

	6
	Confirmation and Undertaking

	7
	Waiver

	8
	Miscellaneous

	9
	Governing Law, Enforcement, Patriot Act

	Schedule 1
	The Lenders and the Commitments

	Schedule 2
	Loan Agreement (as amended and restated on the Effective Date)

	Appendix A
	Effective Date Confirmation

Second Supplemental Agreement
Dated    29 February  2016
Between:
		
	(1)
	SBI Macanudo Shipping Company Limited (to be renamed STI Grace Shipping Company Limited) ("Existing Borrower 1"), SBI Cuaba Shipping Company Limited (to be renamed STI Jermyn Shipping Company Limited) ("Existing Borrower 2"), STI Black Hawk Shipping Company Limited ("Existing Borrower 3") and STI Pontiac Shipping Company Limited ("Existing Borrower 4" and together with Existing Borrower 1, Existing Borrower 2, Existing Borrower 3 and Existing Borrower 4, the "Existing Borrowers"), each a company incorporated under the laws of the Republic of the Marshall Islands, with registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; and

		
	(2)
	STI Lombard Shipping Company Limited ("New Borrower 1") and  STI Osceola Shipping Company Limited("New Borrower 2" and together with New Borrower 1, the "New Borrowers"), each a company incorporated under the laws of the Republic of the Marshall Islands, with registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; and

		
	(3)
	Scorpio Tankers Inc., a company incorporated under the laws of the Republic of the Marshall Islands, with registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960 (the "Guarantor"); and

		
	(4)
	The Financial Institutions listed in Schedule 1 (The Lenders), each acting through its Facility Office (together the "Lenders" and each a "Lender"); and

		
	(5)
	ING Bank N.V., London Branch, acting as arranger through its office at 60 London Wall, London, EC2M 5TQ, United Kingdom (in that capacity, the "Arranger"); and

		
	(6)
	ING Bank N.V., London Branch, acting as agent through its office at  60 London Wall, London, EC2M 5TQ, United Kingdom (in that capacity, the "Agent"); and

		
	(7)
	ING Capital Markets LLC acting as swap provider through its office at 1325 Avenue of the Americas, New York, NY 10019, United States (in such capacity the "Swap Provider"); and

		
	(8)
	ING Bank N.V., London Branch, acting as security agent through its office at 60 London Wall, London, EC2M 5TQ, United Kingdom (in that capacity, the "Security Agent").

Whereas
		
	(A)
	By a secured loan agreement dated 24 June 2015 made between STI Grace Shipping Company Limited and STI Jermyn Shipping Company Limited (together the "Initial Borrowers"), the Guarantor, the Lenders, the Agent, the Swap Provider and the Security Agent, each of the Lenders made available to the Initial Borrowers its respective Commitment to a secured loan facility of up to fifty two million Dollars ($52,000,000) (the "Original Loan Agreement") to assist the Group to finance part of the aggregate of the purchase price of two LR2 product tankers.

		
	(B)
	By a first supplemental agreement to the Original Loan Agreement dated 22 September 2015 (the "First Supplemental Agreement" and together with the Original Loan Agreement, the "Loan Agreement"),  among other things (i) the Initial Borrowers were released from their obligations pursuant to the Loan Agreement and the Existing Borrowers irrevocably and unconditionally became joint and several Borrowers for all purposes of the Loan Agreement and (ii) the Maximum Loan Amount was increased to an amount of up to 

1

eighty seven million Dollars ($87,000,000) in order to assist the Group to finance or re-finance two additional product tankers. 
		
	(C)
	The Guarantor, the Existing Borrowers and the New Borrowers have requested that  the New Borrowers pursuant to this Deed, irrevocably and unconditionally become joint and several Borrowers for all purposes of the Loan Agreement ("Request 1").

		
	(D)
	The Guarantor, the Existing Borrowers and the New Borrowers have further requested an increase to the Maximum Loan Amount to an amount of up to one hundred and thirty two million five hundred thousand Dollars ($132,500,000) in order to assist the Group to finance or re-finance two additional product tankers registered or to be registered in the ownership of the New Borrowers ("Request 2" and together with Request 1, the "Requests").

		
	(E)
	The Finance Parties have agreed to give their consent to the Requests, subject to and upon the terms and conditions contained in this Deed.

		
	(F)
	The Existing Borrowers, the New Borrowers, the Guarantor and the Finance Parties have agreed to amend and restate the Loan Agreement on the terms and subject to the conditions set out in this Deed.

It is agreed that:
		
	1
	Interpretation and definitions

		
	1.1
	All words and expressions defined in the Loan Agreement shall have the same meaning when used in this Deed unless the context otherwise requires, and clause 1.2 of the Loan Agreement shall apply to the interpretation of this Supplemental Agreement as if it is set out in full.

		
	1.2
	The Agent and the Security Parties hereby designate this Deed as a Finance Document.

		
	1.3
	In this Deed:

"Effective Date" means the date and time at which the Agent confirms in writing substantially in the form set out in Appendix A (Effective Date Confirmation) that all of the conditions referred to in Clause 2.1 have been satisfied;
"Existing Owners" means:
		
	(a)
	STI Black Hawk Shipping Company Limited as the owner of Vessel C; and

		
	(a)
	STI Pontiac Shipping Company Limited as the owner of Vessel D; and

"Mortgage Amendments" means the mortgage amendments made or to be made (as applicable) to the Mortgages over the Existing Owners' Vessels.
		
	1.4
	In this Deed, each reference to:

		
	1.4.1
	any party to this Deed is, where the context so admits, deemed to include a reference to its successors, assigns and/or transferees; 

		
	1.4.2
	any document (including this Deed) is deemed to include a reference to that document as amended, novated, supplemented, substituted or replaced from time to time; 

		
	1.4.3
	Recitals, Clauses, Schedules and the Appendices are references to recitals and clauses of, and schedules and the appendices to this Deed;

		
	1.4.4
	the singular, where the context so admits, is deemed to include the plural and vice versa; and

2

		
	1.4.5
	a person is deemed to include a reference to a company, partnership, unincorporated body and any other entity and vice versa.

		
	1.5
	The title of any provision of this Deed shall not affect the meaning of that or any other provision.

		
	2
	Conditions Precedent to the Effective Date

		
	2.1
	Before the Effective Date can occur the New Borrowers shall deliver or cause to be delivered to or to the order of the Agent the following documents and evidence:-

		
	2.1.1
	Copies of the constitutional documents of each New Borrower together with such other evidence that each New Borrower is duly incorporated in its country of incorporation and remains in existence with power to enter into, and perform its obligations under, this Deed and the Relevant Documents to which it is or is to become a party.

		
	2.1.2
	A certificate from a duly authorised officer of each of the Security Parties (other than the New Borrowers) confirming that there have been no changes to the documents delivered to the Agent pursuant clause 2 (in the case of the Existing Borrowers) and clause 4 (in the case of the Guarantor) of the First Supplemental Agreement and that such documents remain in full force and effect

		
	2.1.3
	A certificate of good standing in respect of each Security Party.

		
	2.1.4
	A copy, certified by a director or the secretary of each Security Party as true, complete, accurate and neither amended nor revoked, of a resolution of the directors and (where required) of a resolution of their respective shareholders, together, where appropriate, with waivers of notice of any meetings, approving and authorising the execution of this Deed and of all matters incidental thereto or in connection therewith.

		
	2.1.5
	A specimen of the signature of each person authorised by the resolutions referred to in clause 2.1.4.

		
	2.1.6
	An original certificate of a duly authorised officer of each Security Party:

		
	(a)
	certifying that each copy document relating to it specified in this clause 2.1 is correct, complete and in full force and effect;

		
	(b)
	setting out the names of the directors, officers and shareholders of each New Borrower and the proportion of shares held by each shareholder; and

		
	(c)
	confirming that borrowing or guaranteeing or securing, as appropriate, the Loan would not cause any borrowing, guarantee, security or similar limit binding on that New Borrower to be exceeded.

		
	2.1.7
	The Power of Attorney of each Security Party under which any documents are to be executed or transactions undertaken by that New Borrower.

		
	2.1.8
	This Deed duly executed.

		
	2.1.9
	The Mortgage Amendments duly executed and registered through the Registrar of Ships (or equivalent official) at the port of registry of the Existing Owners' Vessels.

		
	2.1.10
	Evidence of payment to the Arranger of an amendment fee of US$728,000.

		
	2.1.11
	Evidence that any process agent appointed by the Security Parties pursuant to Clause 9 has accepted its appointment.

3

		
	2.1.12
	Confirmation satisfactory to the Agent that all legal opinions required by the Agent will be given substantially in the form required by the Agent.

		
	2.2
	Conditions Subsequent  Each Existing Borrower, each New Borrower and the Guarantor undertake to deliver or to cause to be delivered to the Agent such legal opinions as the Agent on behalf of the Lenders shall require pursuant to Clause 2.1.12 of this Deed on, or as soon as practicable after, the Effective Date.

		
	3
	Amendments on the Effective Date

		
	3.1
	With effect from the Effective Date:

		
	3.1.1
	the Loan Agreement is amended so that the New Borrowers shall irrevocable and unconditionally accede to and become Borrowers for all purposes of the Loan Agreement jointly and severally with each other and the Existing Borrowers, such that they shall assume and perform all obligations and liabilities of a Borrower under the Loan Agreement; and

		
	3.1.2
	the Loan Agreement is otherwise amended and restated in the form set out in Schedule 2 and (among other things) the Maximum Loan Amount is increased to one hundred and thirty two million five hundred thousand Dollars ($132,500,000).

		
	4
	Representations and Warranties/Undertakings

		
	4.1
	Each of the representations and warranties contained in clause 19 of the Loan  Agreement shall be deemed:

		
	4.1.6
	repeated by each Existing Borrower and the Guarantor at the date of this Deed and on the Effective Date;

		
	4.1.7
	made by each New Borrower at the date of this Deed and on the Effective Date,

by reference to the facts and circumstances then pertaining, and as if references to the Finance Documents included this Deed. 
		
	4.2
	Each Existing Borrower, each New Borrower and the Guarantor represents and warrants to the Agent that it has the power to enter into and has duly authorised the execution and delivery of this Deed and the performance of this Deed and the Loan Agreement as amended and restated by this Deed.

		
	5
	Further assurances

The parties to this Deed undertake to execute or sign any further documents and to do anything which the Agent may reasonably require to ensure that this Deed is fully implemented. 
		
	6
	Confirmation and Undertaking

Each Existing Borrower and the Guarantor agree that all of their respective obligations under or pursuant to each of the Finance Documents to which it is a party remain in full force and effect, despite the amendments to the Loan Agreement made in this Deed, as if all references in any of the Finance Documents to the Loan Agreement were references to the Loan Agreement as amended and restated by this Deed. The definition of any term defined in any of the Finance Documents shall, to the extent necessary, be modified to reflect the amendments to the Loan Agreement made in or pursuant to this Deed.
		
	7
	Waiver

		
	7.1
	Save to the extent specifically referred to in this Deed, nothing contained in this Deed shall be construed as a waiver, variation or amendment to any provision of the Loan Agreement.

		
	8
	Miscellaneous

4

		
	8.1
	The provisions of clause 31 (Notices) and 38 (Counterparts) of the Loan Agreement will apply mutatis mutandis to this Deed as if references in such clauses to the Loan Agreement were references to this Deed.

		
	8.2
	All documents and evidence delivered to the Agent pursuant to this Deed shall:

		
	8.2.1
	be in form and substance acceptable to the Agent;

		
	8.2.2
	be accompanied, if required by the Agent, by translations into the English language, certified in a manner acceptable to the Agent; and

if required by the Agent, be certified, notarised, legalised or attested in a manner acceptable to the Agent.
		
	9
	Governing Law, Enforcement, Patriot Act

This Deed and any non‐contractual obligations arising out of or in connection with it shall be governed by and will be construed in accordance with English law.  The provisions of clause 40 (Governing Law), clause 41 (Enforcement) and clause 42 (Patriot Act) of the Loan Agreement will apply mutatis mutandis to this Deed as if references in such clauses to the Loan Agreement were references to this Deed.
This Deed was duly signed as a deed and delivered on the date which first appears on page 1.

5

	
			
	The Existing Borrowers
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by SBI Macanudo Shipping Company
	 
	 

	Limited (to be renamed STI Grace
	 
	 

	Shipping Company Limited)
	 
	 

	acting by
	 
	 

	Name: Francesca Gianfranchi
	/s/ Francesca Gianfranchi
	 

	Title: Attorney-in-Fact
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Ross Attfield
	 
	 

	Name: Ross Attfield
	 
	 

	Address: 'Le Millenium'
	 
	 

	9 Boulevard Charles III
	 
	 

	98000 Monaco
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by SBI Cuaba Shipping Company
	 
	 

	Limited (to be renamed STI Jermyn
	 
	 

	Shipping Company Limited)
	 
	 

	acting by
	 
	 

	Name: Francesca Gianfranchi
	/s/ Francesca Gianfranchi
	 

	Title: Attorney-in-Fact
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Ross Attfield
	 
	 

	Name: Ross Attfield
	 
	 

	Address: 'Le Millenium'
	 
	 

	9 Boulevard Charles III
	 
	 

	98000 Monaco
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by STI Black Hawk Shipping Company
	 
	 

	Limited 
	 
	 

	acting by
	 
	 

	Name: Francesca Gianfranchi
	/s/ Francesca Gianfranchi
	 

	Title: Attorney-in-Fact
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Ross Attfield
	 
	 

	Name: Ross Attfield
	 
	 

	Address: 'Le Millenium'
	 
	 

	9 Boulevard Charles III
	 
	 

	98000 Monaco
	 
	 

	 
	 
	 

6

	
			
	Signed and delivered as a Deed 
	 
	 

	by STI Pontiac Shipping Company
	 
	 

	Limited 
	 
	 

	acting by
	 
	 

	Name: Francesca Gianfranchi
	/s/ Francesca Gianfranchi
	 

	Title: Attorney-in-Fact
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Ross Attfield
	 
	 

	Name: Ross Attfield
	 
	 

	Address: 'Le Millenium'
	 
	 

	9 Boulevard Charles III
	 
	 

	98000 Monaco
	 
	 

	 
	 
	 

	 
	 
	 

	The New Borrowers
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by STI Lombard Shipping Company
	 
	 

	Limited 
	 
	 

	acting by
	 
	 

	Name: Francesca Gianfranchi
	/s/ Francesca Gianfranchi
	 

	Title: Attorney-in-Fact
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Ross Attfield
	 
	 

	Name: Ross Attfield
	 
	 

	Address: 'Le Millenium'
	 
	 

	9 Boulevard Charles III
	 
	 

	98000 Monaco
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by STI Osceola Shipping Company
	 
	 

	Limited 
	 
	 

	acting by
	 
	 

	Name: Francesca Gianfranchi
	/s/ Francesca Gianfranchi
	 

	Title: Attorney-in-Fact
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Ross Attfield
	 
	 

	Name: Ross Attfield
	 
	 

	Address: 'Le Millenium'
	 
	 

	9 Boulevard Charles III
	 
	 

	98000 Monaco
	 
	 

	 
	 
	 

	 
	 
	 

7

	
			
	The Guarantor
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by Scorpio Tankers Inc.
	 
	 

	acting by
	 
	 

	Name: Micha Withoft
	/s/ Micha Withoft
	 

	Title: Attorney-in-Fact
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Ross Attfield
	 
	 

	Name: Ross Attfield
	 
	 

	Address: 'Le Millenium'
	 
	 

	9 Boulevard Charles III
	 
	 

	98000 Monaco
	 
	 

	 
	 
	 

	 
	 
	 

	The Arranger
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by ING Bank N.V., London Branch
	 
	 

	(as arranger)
	 
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature:
	 
	 

	Address:
	 
	 

	 
	 
	 

	 
	 
	 

	The Agent
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by ING Bank N.V., London Branch
	 
	 

	(as Agent)
	 
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature:
	 
	 

	Address:
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

8

	
			
	The Guarantor
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by Scorpio Tankers Inc.
	 
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature:
	 
	 

	Name: 
	 
	 

	Address:
	 
	 

	 
	 
	 

	 
	 
	 

	The Arranger
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	/s/ Roderick McGeachy
	 

	by ING Bank N.V., London Branch
	Name: Roderick McGeachy
	 

	(as arranger)
	Title: Attorney-in-Fact
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Manon Sel
	 
	 

	Name:  Manon Sel
	 
	 

	Address: Stephenson Harwood LLP
	 
	 

	1 Finsbury Circus
	 
	 

	London
	 
	 

	EC2M 7SH
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	The Agent
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	/s/ Roderick McGeachy
	 

	by ING Bank N.V., London Branch
	Name: Roderick McGeachy
	 

	(as Agent)
	Title: Attorney-in-Fact
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Manon Sel
	 
	 

	Name:  Manon Sel
	 
	 

	Address: Stephenson Harwood LLP
	 
	 

	1 Finsbury Circus
	 
	 

	London
	 
	 

	EC2M 7SH
	 
	 

	 
	 
	 

	 
	 
	 

9

	
			
	The Security Agent
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	/s/ Roderick McGeachy
	 

	by ING Bank N.V., London Branch
	Name: Roderick McGeachy
	 

	(as Security Agent)
	Title: Attorney-in-Fact
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Manon Sel
	 
	 

	Name:  Manon Sel
	 
	 

	Address: Stephenson Harwood LLP
	 
	 

	1 Finsbury Circus
	 
	 

	London
	 
	 

	EC2M 7SH
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

10

	
			
	The Original Lenders
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	/s/ Roderick McGeachy
	 

	by ING Bank N.V., London Branch
	Name: Roderick McGeachy
	 

	(as a Lender)
	Title: Attorney-in-Fact
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Manon Sel
	 
	 

	Address: Stephenson Harwood LLP
	 
	 

	1 Finsbury Circus
	 
	 

	London
	 
	 

	EC2M 7SH
	 
	 

	 
	 
	 

	 
	 
	 

	The Swap Provider
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by ING Capital Markets LLC
	 
	 

	(as a Swap Provider)
	 
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature:
	 
	 

	Address: 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

11

	
			
	The Original Lenders
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by ING Bank N.V., London Branch
	 
	 

	(as a Lender)
	 
	 

	acting by
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature:
	 
	 

	Address: 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	The Swap Provider
	 
	 

	 
	 
	 

	Signed and delivered as a Deed 
	 
	 

	by ING Capital Markets LLC
	 
	 

	(as a Swap Provider)
	 
	 

	acting by  /s/ Gordon H. Gieseke
	 
	 

	Title: Director
	 
	 

	its duty authorised
	 
	 

	in the presence of:
	 
	 

	Witness signature: /s/ Tammy Milatos
	 
	 

	Name: Tammy Milatos
	 
	 

	Address: 1325 Avenue of the Americas
	 
	 

	New York, NY 10019
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

12

The  Lenders and the Commitments
	
		
	Name of Original Lender
	Commitment

	ING Bank N.V., London Branch
	$87,000,000

13

Schedule 2    Loan Agreement (as amended and restated on the Effective Date)

14

	
	
	Dated 24 June 2015 and as amended and restated pursuant to a first supplemental deed dated 22 September 2015 and as further amended and restated pursuant to a second  supplemental deed dated  29 February 2016

	(1)   SBI Macanudo Shipping Company Limited
   (to be renamed STI Grace Shipping Company Limited)
SBI Cuaba Shipping Company Limited
(to be renamed STI Jermyn Shipping Company Limited) 
STI Black Hawk Shipping Company Limited
STI Pontiac Shipping Company Limited
STI Osceola Shipping Company Limited
STI Lombard Shipping Company Limited
(as Borrowers)
(2)   Scorpio Tankers Inc. 
(as Guarantor)
(3)   The Financial Institutions 
listed in Schedule 1 
(as Original Lenders)
(4)   ING Bank N.V., London Branch
(as Arranger)
(5)   ING Bank N.V., London Branch  
(as Agent)
(6)   ING Capital Markets LLC
(as Swap Provider)
(7)   ING Bank N.V., London Branch 
(as Security Agent)   

     

15

	
		
	Contents
	 

	 
	 

	Section 1
	Interpretation

	1
	Definitions and Interpretation

	Section 2
	The Loan

	2
	The Loan

	3
	Purpose

	4
	Conditions of Utilisation

	Section 3
	Utilisation

	5
	Advance

	Section 4
	Repayment, Prepayment and Cancellation

	6
	Repayment

	7
	Illegality, Prepayment and Cancellation

	Section 5
	Costs of Utilisation

	8
	Interest

	9
	Interest Periods

	10
	Changes to the Calculation of Interest

	11
	Fees

	Section 6
	Additional Payment Obligations

	12
	Tax Gross Up and Indemnities

	13
	Increased Costs

	14
	Other Indemnities

	15
	Mitigation by the Lenders

	16
	Costs and Expenses

	Section 7
	Security and Application of Moneys

	17
	Security Documents and Application of Moneys

	18
	Guarantee and Indemnity

	Section 8
	Representations, Undertakings and Events of Default

	19
	Representations

	20
	Information Undertakings

	21
	Financial Covenants

	22
	General Undertakings

	23
	Events of Default

	Section 9
	Changes to Parties

	24
	Changes to the Lenders

	25
	Changes to the Security Parties

	Section 10
	The Finance Parties

	26
	Role of the Agent, the Security Agent and the Arranger

	27
	Conduct of Business by the Finance Parties

	28
	Sharing among the Finance Parties

	Section 11
	Administration

	29
	Payment Mechanics

	30
	Set-Off

	31
	Notices

	32
	Calculations and Certificates

	33
	Partial Invalidity

LONLIVE\23545000.7

	
		
	34
	Remedies and Waivers

	35
	Amendments and Waivers

	36
	Confidentiality

	37
	Disclosure of Lender Details by Agent

	38
	Counterparts

	39
	Joint and Several Liability

	Section 12
	Governing Law and Enforcement

	40
	Governing Law

	41
	Enforcement

	42
	Patriot Act Notice

	Schedule 1
	The Original Lenders

	Schedule 2
	Part I Conditions Precedent

	 
	Part II Conditions Subsequent

	Schedule 3
	Drawdown Request

	Schedule 4
	Form of Transfer Certificate

	Schedule 5
	Form of Assignment Agreement

	Schedule 6
	Form of Compliance Certificate

	 
	 

LONLIVE\23545000.7

Loan Agreement
Dated 24 June 2015 and as amended and restated pursuant to a first supplemental deed dated 22 September 2015 and as further amended and restated pursuant to a second  supplemental deed dated 29 February 2016
Between:
		
	(1)
	SBI Macanudo Shipping Company Limited (to be renamed STI Grace Shipping Company Limited) ("Borrower A"), SBI Cuaba Shipping Company Limited (to be renamed STI Jermyn Shipping Company Limited) ("Borrower B"), STI Black Hawk Shipping Company Limited ("Borrower C") and STI Pontiac Shipping Company Limited ("Borrower D"), STI Osceola Shipping Company Limited ("Borrower E") and STI Lombard Shipping Company Limited ("Borrower F" and together with Borrower A, Borrower B,  Borrower C, Borrower D and Borrower E, the "Borrowers" and each a "Borrower"), each  a company incorporated under the laws of the Republic of the Marshall Islands, with  registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; and

		
	(2)
	Scorpio Tankers Inc., a company incorporated under the laws of the Republic of the Marshall Islands, with registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960 (the "Guarantor"); and

		
	(3)
	The Financial Institutions listed in Schedule 1 (The Original Lenders), each acting through its Facility Office (together the "Original Lenders" and each an "Original Lender"); and

		
	(4)
	ING Bank N.V., London Branch, acting as arranger through its office at 60 London Wall, London, EC2M 5TQ, United Kingdom (in that capacity, the "Arranger"); and

		
	(5)
	ING Bank N.V., London Branch, acting as agent through its office at  60 London Wall, London, EC2M 5TQ, United Kingdom (in that capacity, the "Agent"); and

		
	(6)
	ING Capital Markets LLC acting as swap provider through its office at 1325 Avenue of the Americas, New York, NY 10019, United States (in such capacity the "Swap Provider"); and

		
	(7)
	ING Bank N.V., London Branch, acting as security agent through its office at 60 London Wall, London, EC2M 5TQ, United Kingdom (in that capacity, the "Security Agent").

Preliminary
		
	(A)
	Borrower A and Borrower B have agreed to purchase the relevant Vessel from the relevant Builder on the terms of the relevant Building Contract and intends to register that Vessel on delivery under an Approved Flag. Borrower C is the owner of Vessel C and Borrower D is the owner of Vessel D, each of which is registered under the flag of the Marshall Islands. Borrower E is the registered owner of Vessel E and Vessel E is registered under the flag of the Marshall Islands. Borrower F has agreed to purchase Vessel F from the Vessel F Seller pursuant to the Vessel F MOA and Vessel F is registered under an Approved Flag.  

		
	(B)
	Each of the Original Lenders has agreed to advance to the Borrowers on a joint and several basis its Commitment (aggregating, with all the other Commitments), up to $132,500,000 to assist the Borrowers to finance or re-finance part of the aggregate of the purchase price of the Vessels.

It is agreed as follows:

LONLIVE\23545000.7    Page 1

		
	Section 1
	Interpretation

		
	1
	Definitions and Interpretation

		
	1.1
	Definitions   In this Agreement:

"Acceptable Bank" means ABN AMRO Bank N.V., or a bank or financial institution which has a rating for its long-term unsecured and non-credit-enhanced debt obligations of BBB- or higher by Standard & Poor's Rating Services or Fitch Ratings Ltd or Baa3 or higher by Moody's Investors Service Limited or a comparable rating from an internationally recognised credit rating agency.
"Administration" has the meaning given to it in paragraph 1.1.3 of the ISM Code. 
"Affiliate" means, as to any person, any other person that, directly or indirectly, controls, is controlled by or is under common control with such person or is a director or officer of such person, and for purposes of this definition, the term "control" (including the terms "controlling", "controlled by" and "under common control with") of a person means the possession, direct or indirect, of the power to vote 20% or more of the voting stock of such person or to direct or cause direction of the management and policies of such person, whether through the ownership of voting stock, by contract or otherwise, and which for the avoidance of doubt includes Scorpio Bulkers Inc and each of its Affiliates.  
"Annex VI" means Annex VI (Regulations for the Prevention of Air Pollution from Ships) to the International Convention for the Prevention of Pollution from Ships 1973 (as modified in 1978 and 1997).
"Approved Classification Society" means, in relation to a Vessel, any of DNV GL, Lloyd’s Register of Shipping, American Bureau of Shipping, Korean Register of Shipping and Bureau Veritas or such other first-class vessel classification society that is a member of IACS that the Agent may, with the consent of the Majority Lenders (such consent not to be unreasonably withheld or delayed), approve from time to time.
"Approved Flag" means the Marshall Islands or Liberian flag or such other flag as the Agent may, with the consent of the Majority Lenders, approve from time to time in writing as the flag on which a Vessel shall be registered.
"Approved Pooling Arrangement" means, in relation to a Vessel, the Scorpio LR2 Pool and any other pooling arrangement:
		
	(a)
	proposed by the Borrowers;

		
	(a)
	run by any Affiliate of the Commercial Manager; and

		
	(b)
	approved in writing by the Agent prior to that Vessel's entry into such pooling arrangement.

"Approved Shipbroker" means each of Arrow Brokers, Braemar Seascope Limited, Clarkson PLC, RS Platou, Maersk Broker, Compass Maritime Services, Astrup Fearnleys AS, Galbraith's Ltd. and Affinity Shipbrokers.
"Approved Sub-manager" means any sub-manager as the Agent may approve in writing which, at the date of this Agreement, includes V. Ships Ship Management, D'Amico International Shipping, Hellespont Shipping, Anglo-Eastern Ship Management, Fleet Management, Zenith Ship Management, Astor Shipmanagement, Synergy Marine, C.P. Offen, Univan Ship Management Limited, Optimum Ship Services Ltd and any Affiliates or Subsidiary of the Technical Manager and the Commercial Manager or subsidiary of the Guarantor. 
"Assignments" means all the forms of assignment referred to in Clause 17.1.2 (Security Documents).
"Assignment Agreement" means an agreement substantially in the form set out in Schedule 5 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and assignee.

LONLIVE\23545000.7    Page 2

"Authorisation" means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.
"Availability Period" means:
		
	(a)
	in respect of each Tranche A and Tranche B, the period from and including the date of this Agreement to and including the date that is ten (10) Business Days after the Delivery Date of the relevant Vessel; 

		
	(b)
	in respect of Tranche C, the period from and including the Effective Time to and including the date that is forty five (45) Business Days after the Delivery Date of Vessel C; 

		
	(c)
	in respect of Tranche D, the period from the Effective Time up to and including the date that is thirty (30) days after the Effective Time;

		
	(d)
	in respect of Tranche E, the period from the Upsize Effective Date up to and including the date that is forty five (45) days after the Upsize Effective Date; and 

		
	(e)
	in respect of Tranche F, the period from the Upsize Effective Date up to and including 15 May 2016.  

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

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

"Builder" means:
		
	(a)
	in respect of Vessel A and Vessel B, Daehan Shipbuilding Co., a corporation organised and existing under the laws of the Republic of Korea whose principal office is at 887 Gurimri Hwawon-myun Haenam-gun, Jeollanam-do, Republic of Korea ("Builder A");  and

		
	(b)
	in respect of Vessel C and Vessel D, Hyundai Mipo Dockyard Co. Ltd., a corporation organised and existing under the laws of the Republic of Korea whose principal office is at 100, Bangeojinsunhwan-Doro, Dong-Gu, Ulsan 682-712, Republic of Korea ("Builder B").

"Building Contracts" means:
		
	(a)
	in respect of Vessel A, the contract dated 8 November 2013 (as amended and restated pursuant to an addendum dated 12 January 2015 and as further amended, novated and supplemented from time to time) entered into by, among others, Builder A and SBI Macanudo Shipping Company Limited (as original buyer) and Scorpio Bulkers Inc. on the terms and subject to the conditions of which Builder A has agreed to construct Vessel A for, and deliver Vessel A to, Borrower A (as nominee of the original buyer); 

		
	(b)
	in respect of Vessel B, the contract dated 8 November 2013 (as amended and restated pursuant to an addendum dated 12 January 2015 and as further amended, novated and supplemented from time 

LONLIVE\23545000.7    Page 3

to time) entered into by, among others, Builder A and SBI Cuaba Shipping Company Limited (as original buyer) on the terms and subject to the conditions of which Builder A has agreed to construct Vessel B for, and deliver Vessel B to, Borrower B (as nominee of the original buyer; 
		
	(c)
	in respect of Vessel C, the contract dated 23 May 2013 (as amended and restated pursuant to an addendum dated 19 July 2013 and as further amended, novated and supplemented from time to time) entered into by, among others, Builder B and Dong-A-Tanker Corporation (as original buyer) on the terms and subject to the conditions of which Builder B has agreed to construct Vessel C for, and deliver Vessel C to, Borrower C (as nominee of the original buyer); and

		
	(d)
	in respect of Vessel D, the contract dated 29 May 2013 as amended, novated and supplemented from time to time) entered into by, among others, the Builder and York Maritime Holdings II LLC (as original buyer) on the terms and subject to the conditions of which Builder B agreed to construct Vessel D for, and deliver Vessel D to, Borrower D (as nominee of the original buyer);

and "Building Contract" means any one of them.
"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in London, New York, Amsterdam.
"Capitalized Lease" means, as applied to any person, any lease of any property (whether real, personal or mixed) of which the discounted present value of the rental obligations of such person, as lessee, in conformity with IFRS, is required to be capitalized on the balance sheet of such person and "Capitalized Lease Obligation" is defined to mean the rental obligations, as aforesaid, under a Capitalized Lease.
"Change of Control" means:
		
	(a)
	in respect of the Borrowers, the occurrence of any act, event or circumstance that without prior written consent of the Majority Lenders results in the Guarantor owning directly or indirectly less than 100% of the issued and outstanding equity in a Borrower; and

		
	(b)
	in respect of the Guarantor:

		
	(i)
	a "person" or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act), other than any director or officer or any holders of 5% or more of the Guarantor's equity as of the date of this Agreement, becomes the ultimate "beneficial owner" (as defined in Rule 13(d)-3 under the Exchange Act and including by reason of any change in the ultimate "beneficial ownership" of the equity of the Guarantor) of more than 35% of the total voting rights of the Guarantor (calculated on a fully diluted basis); or

		
	(i)
	individuals who at the beginning of any period of two consecutive calendar years constituted the Board of Directors or equivalent governing body of the Guarantor (together with any new directors (or equivalent) whose election by such Board of Directors or equivalent governing body or whose nomination for election was approved by a vote of at least two-thirds of the members of such Board of Directors or equivalent governing body then still in office who either were members of such Board of Directors or equivalent governing body at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least 50% of the members of such Board of Directors or equivalent governing body then in office. 

"Charged Property" means all of the assets of the Security Parties which from time to time are, or are expressed to be, the subject of the Security Documents.

LONLIVE\23545000.7    Page 4

"Charter" means any charter or contract of employment in respect of a Vessel that, inclusive of options, is capable of exceeding 12 months in duration, but excluding:
		
	(a)
	any charter pursuant to an Approved Pooling Arrangement; and

		
	(b)
	any other charter or contract of employment in respect of a Vessel that a Borrower enters into with a company within the Group.

"Code" means the US Internal Revenue Code of 1986.
"Commercial Manager" means Scorpio Commercial Management S.A.M., a company incorporated under the laws of Monaco with its registered office at Le Millenium, 9, Boulevard Charles III, MC-98000 Monaco. 
"Commitment" means:
		
	(a)
	in relation to an Original Lender, the amount set opposite its name under the heading "Commitment" in Schedule 1 (The Original Lenders) and the amount of any other Commitment transferred to it under this Agreement; and 

		
	(b)
	in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.
"Commitment Fee" means the commitment fee to be paid by the Borrowers to the Agent under Clause 11.1 (Commitment Fee).
"Compliance Certificate" means a certificate substantially in the form set out in Schedule 6 (Form of Compliance Certificate).
"Confidential Information" means all information relating to any Security Party, the Finance Documents or the Loan of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the Loan from either:
		
	(a)
	any Security Party or any of its advisers; or

		
	(b)
	another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any Security Party or any of its advisers,

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:
		
	(i)
	is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 36 (Confidentiality); or

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

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

LONLIVE\23545000.7    Page 5

"Confidentiality Undertaking" means a confidentiality undertaking substantially in a recommended form of the Loan Market Association at the relevant time.
"Confirmation" means a Confirmation exchanged or deemed to be exchanged between the Swap Provider and Borrowers as contemplated by a Master Agreement.
"Contract Price" means:
		
	(a)
	in respect of Vessel A, US$51,000,000; 

		
	(b)
	in respect of Vessel B, US$51,000,000;

		
	(c)
	in respect of Vessel C, US$36,700,000; and

		
	(d)
	in respect of Vessel D, US$38,500,000.

"Credit Support Document" means any document described as such in a Master Agreement and any other document referred to in any such document which has the effect of creating security in favour of any of the Finance Parties.
"Credit Support Provider" means any person (other than a Borrower) described as such in a Master Agreement.
"CTA" means the Corporation Tax Act 2009.
"Default" means an Event of Default or any event or circumstance which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.
"Delegate" means any delegate, agent, attorney or co-trustee appointed by the Security Agent.
"Delivery Date" means the date of actual delivery of a Vessel to a Borrower (i) by the relevant Builder under the relevant Building Contract in accordance with that Building Contract or (ii) in the case of Vessel F, by the Vessel F Seller under the Vessel F MOA in accordance with the Vessel F MOA.
"Disruption Event" means either or both of:
		
	(a)
	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Loan (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

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

		
	(i)
	from performing its payment obligations under the Finance Documents; or

		
	(ii)
	from communicating with other Parties in accordance with the terms of the Finance Documents,

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.
"DOC" means, in relation to the ISM Company, a valid Document of Compliance issued for the ISM Company by the Administration under paragraph 13.2 of the ISM Code.
"Drawdown Date" means the date on which the relevant Tranche is advanced under Clause 5 (Advance).

LONLIVE\23545000.7    Page 6

"Drawdown Request" means a notice substantially in the form set out in Schedule 3 (Drawdown Request).
"Earnings" means all hires, freights, pool income and other sums payable to or for the account of a Borrower in respect of a Vessel including (without limitation) all remuneration for salvage and towage services, demurrage and detention moneys, contributions in general average, compensation in respect of any requisition for hire, and damages and other payments (whether awarded by any court or arbitral tribunal or by agreement or otherwise) for breach, termination or variation of any contract for the operation, employment or use of a Vessel.
"Effective Time" means the "Second Effective Time" as defined in the First Supplemental Agreement.
"Encumbrance" means a mortgage, charge, assignment, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.
"Environmental Approval" means any present or future permit, ruling, variance or other Authorisation required under Environmental Laws.
"Environmental Claim" means any claim, proceeding, formal notice or investigation by any governmental, judicial or regulatory authority or any other person which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to any Environmental Law and, for this purpose,  "claim" includes a claim for damages, compensation, contribution, injury, fines, losses and penalties or any other payment of any kind, including in relation to clean-up and removal, whether or not similar to the foregoing; an order or direction to take, or not to take, certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the arrest or attachment of any asset.
"Environmental Incident" means:
		
	(a)
	any release, emission, spill or discharge into a Vessel or into or upon the air, sea, land or soils (including the seabed) or surface water of Environmentally Sensitive Material within or from a Vessel; or

		
	(b)
	any incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged into or upon the air, sea, land or soils (including the seabed) or surface water from a vessel other than a Vessel and which involves a collision between a Vessel and such other vessel or some other incident of navigation or operation, in either case, in connection with which a Vessel is actually or potentially liable to be arrested, attached, detained or injuncted and/or a Vessel and/or any Security Party and/or any operator or manager of a Vessel 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, emitted, spilled or discharged into or upon the air, sea, land or soils (including the seabed) or surface water otherwise than from a Vessel and in connection with which a Vessel is actually or potentially liable to be arrested and/or where any Security Party and/or any operator or manager of a Vessel is at fault or allegedly at fault or otherwise liable to any legal or administrative action, other than in accordance with an Environmental Approval.

"Environmental Law" means any present or future law or regulation relating to pollution or protection of human health or the environment, to conditions in the workplace, to the carriage, generation, handling, storage, use, release or spillage of Environmentally Sensitive Material or to actual or threatened releases of Environmentally Sensitive Material.
"Environmentally Sensitive Material" means and includes all contaminants, oil, oil products, toxic substances 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.

LONLIVE\23545000.7    Page 7

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended, and any successor thereto.
"ERISA Affiliate" means each person (and defined in Section 3(9) of ERISA) which together with a Borrower or the Guarantor would be deemed to be a "single employer" within the meaning of Section 414(b), (c), (m) or (o) of the Uniform Commercial Code (as from time to time in effect in any applicable jurisdiction).
"Event of Default" means any event or circumstance specified as such in Clause 23 (Events of Default).
"Facility Office" means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement.
"Facility Period" means the period beginning on the date of this Agreement and ending on the date when the whole of the Indebtedness has been paid in full and the Security Parties have ceased to be under any further actual or contingent liability to the Finance Parties under or in connection with the Finance Documents.
"FATCA" means:
		
	(a)
	sections 1471 to 1474 of the Code or any associated regulations;

		
	(b)
	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in (a); or

		
	(c)
	any agreement pursuant to the implementation of any treaty, law or regulation referred to in (a) or (b) with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

"FATCA Application Date" means:
		
	(a)
	in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

		
	(b)
	in relation to a "withholdable payment" described in section 1473(1)(A)(ii) of the Code (which relates to "gross proceeds" from the disposition of property of a type that can produce interest from sources within the US), 1 January 2017; or

		
	(c)
	in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within (a)(a) or (b), 1 January 2017,

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Agreement.
"FATCA Deduction" means a deduction or withholding from a payment under a Finance Document required by FATCA.
"FATCA Exempt Party" means a Party that is entitled to receive payments free from any FATCA Deduction.
"Fee Letter" means any letter or letters dated on or about the date of this Agreement or on or about the date of the First Supplemental Agreement between the Arranger, the Borrowers and the Guarantor (or the Agent, the Borrowers and the Guarantor or the Security Agent, the Borrowers and the Guarantor) setting out any of the fees referred to in Clause 11 (Fees).

LONLIVE\23545000.7    Page 8

"Finance Documents" means this Agreement, the First Supplemental Agreement, the Second Supplemental Agreement, the Master Agreement, the Security Documents, the Fee Letter and any other document designated as such by the Agent and the Borrowers and "Finance Document" means any one of them.
"Finance Parties" means the Arranger, the Agent, the Security Agent, the Swap Provider and the Lenders and "Finance Party" means any one of them.
"Financial Indebtedness" means, with respect to any person (the "Debtor") at any date of determination (without duplication):
		
	(a)
	all obligations of the Debtor for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the Debtor;

		
	(b)
	all obligations of the Debtor evidenced by bonds, debentures, notes or other similar instruments;

		
	(c)
	all obligations of the Debtor in respect of any acceptance credit, guarantee or letter of credit facility or equivalent made available to the Debtor (including reimbursement obligations with respect thereto) which in accordance with IFRS would be shown on the liability side of a balance sheet;

		
	(d)
	all obligations of the Debtor to pay the deferred purchase price of property or services, which purchase price is due more than six months after the date of placing such property in service or taking delivery thereto or the completion of such services, except trade payables;

		
	(e)
	all Capitalized Lease Obligations of the Debtor as lessee;

		
	(f)
	all such Financial Indebtedness as described in sub paragraphs (a) to (e) of persons other than the Debtor secured by an Encumbrance on any asset of the Debtor, whether or not such Financial Indebtedness is assumed by the Debtor, provided that the amount of such Financial Indebtedness shall be the lesser of (i) the fair market value of such asset at such date of determination and (ii) the amount of such Financial Indebtedness; and

		
	(g)
	all such Financial Indebtedness as described in sub-paragraphs (a) to (e) of persons other than the Debtor under any guarantee, indemnity to similar obligation entered into by the Debtor to the extent such Financial Indebtedness is guaranteed, indemnified, etc. by the Debtor. 

The amount of Financial Indebtedness of any Debtor at any date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to contingent obligations described in (f) and (g) above, the maximum liability upon the occurrence of the contingency giving rise to the obligation, provided that (i) the amount outstanding at any time of any Financial Indebtedness issued with an original issue discount is the face amount of such Financial Indebtedness less the remaining unamortized portion of such original issue discount of such Financial Indebtedness at such time, and (ii) Financial Indebtedness shall not include any liability for taxes.
"FMV" means the fair market value of a Vessel as conclusively determined by the arithmetic average of valuations addressed to the Agent and issued by two Approved Shipbrokers on the basis of a charter-free sale for prompt delivery for cash at arm's length on normal commercial terms as between a willing seller and a willing buyer.
"First Supplemental Agreement" means a first supplemental agreement to this Agreement entered into by the parties to this Agreement.
"Group" means the Guarantor and its Subsidiaries.
"Guarantee" means the guarantee and indemnity of the Guarantor contained in Clause 18 (Guarantee and Indemnity) and referred to in Clause 17.1.3 (Security Documents).

LONLIVE\23545000.7    Page 9

"Holding Company" means, in relation to a person, any other person in respect of which it is a Subsidiary.
"IACS" means the International Association of Classification Societies.
"IAPPC" means a valid international air pollution prevention certificate for a Vessel issued under Annex VI.
"IFRS" means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements. 
"Impaired Agent" means the Agent at any time when:
		
	(a)
	it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment;

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

		
	(c)
	an Insolvency Event has occurred and is continuing with respect to the Agent;

unless, in the case of (a)(a):
		
	(i)
	its failure to pay is caused by:

(A)    administrative or technical error; or
(B)    a Disruption Event; and
payment is made within three Business Days of its due date; or
		
	(ii)
	the Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

"Indebtedness" means the aggregate from time to time of: the amount of the Loan outstanding; all accrued and unpaid interest on the Loan; and all other sums of any nature (together with all accrued and unpaid interest on any of those sums) payable to any of the Finance Parties under all or any of the Finance Documents.
"Insolvency Event" in relation to an entity means that the entity:
		
	(a)
	is dissolved (other than pursuant to a consolidation, amalgamation or merger);

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

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

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

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

LONLIVE\23545000.7    Page 10

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

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

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

		
	(g)
	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than, for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a person or entity described in (d));

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

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

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

"Insurances" means all policies and contracts of insurance (including all entries in protection and indemnity or war risks associations) which are from time to time taken out or entered into in respect of or in connection with a Vessel or her increased value or her Earnings and (where the context permits) all benefits under such contracts and policies, including all claims of any nature and returns of premium.
"Interest Payment Date" means each date for the payment of interest in accordance with Clause 8.2 (Payment of interest).
"Interest Period" means each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest).
"Interpolated Screen Rate" means, in relation to LIBOR for any Tranche, the rate which results from interpolating on a linear basis between:
		
	(a)
	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Tranche; and

		
	(b)
	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Tranche,

each as of 11.00 a.m. on the Quotation Day for dollars.
"ISM Code" means the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention.
"ISM Company" means, at any given time, the company responsible for a Vessel's compliance with the ISM Code under paragraph 1.1.2 of the ISM Code.
"ISPS Code" means the International Ship and Port Facility Security Code.
"ISSC" means a valid international ship security certificate for a Vessel issued under the ISPS Code.

LONLIVE\23545000.7    Page 11

"ITA" means the Income Tax Act 2007.
"Joint Venture" means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity.
"Legal Opinion" means any legal opinion delivered to the Agent under Clause 4.1 (Initial conditions precedent) or Clause 4.3 (Conditions subsequent).
"Legal Reservations" means:
		
	(a)
	the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors;

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

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

any other matters which are set out as qualifications or reservations as to matters of law of general application in the Legal Opinions.
"Lender" means:
		
	(a)
	any Original Lender; and 

		
	(b)
	any bank, financial institution or other entity which has become a Party as a Lender in accordance with Clause 24 (Changes to the Lenders),

which in each case has not ceased to be a Lender in accordance with the terms of this Agreement.
"LIBOR" means, in relation to any Tranche:
		
	(a)
	the applicable Screen Rate; or 

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

		
	(c)
	(if (i) no Screen Rate is available for the currency of that Tranche or (ii) no Screen Rate is available for the relevant Interest Period and it is not possible to calculate the Interpolated Screen Rate for that Tranche) the Reference Bank Rate,

as of 11.00 a.m. (London time) on the Quotation Day for the offering of deposits in dollars in an amount comparable to that Tranche (or any relevant part of that Tranche) and for a period comparable to the relevant Interest Period and, if that rate is less than zero, LIBOR shall be deemed to be zero. 
"Loan" means the aggregate amount of the Tranches advanced or to be advanced by the Lenders to the Borrowers under Clause 2 (The Loan) or, where the context permits, the principal amount of the Tranches advanced and for the time being outstanding.
"Majority Lenders" means a Lender or Lenders whose Commitments aggregate more than 662/3% of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3% of the Total Commitments immediately prior to the reduction).  

LONLIVE\23545000.7    Page 12

"Management Agreement" means the master agreement dated 24 January 2013 (as amended, restated, supplemented, novated or modified from time to time) entered into between Scorpio Tankers Inc., the Technical Manager and the Commercial Manager:
		
	(a)
	as to be acceded to in respect of the commercial management of the Vessels pursuant to confirmation letters to be made between the relevant Borrower, Scorpio Tankers Inc. and the Commercial Manager; and

		
	(b)
	as to be acceded to in respect of the technical management of the Vessels pursuant to confirmation letters to be between the relevant Borrower, Scorpio Tankers Inc. and the Technical Manager.

"Managers" means:
		
	(a)
	in relation to the commercial management of the Vessels, the Commercial Manager; and

		
	(b)
	in relation to the technical management of the Vessels, the Technical Manager,

or any Approved Sub-manager, and such other commercial and/or technical managers of a Vessel nominated by the Borrowers as the Agent (acting on the instructions of the Majority Lenders) may approve (such consent not to be unreasonably withheld). 
"Managers' Undertakings" means the written undertakings of the Managers whereby, throughout the Facility Period unless otherwise agreed by the Agent:
		
	(a)
	they will remain the commercial or technical managers of the Vessels (as the case may be);

		
	(b)
	they will not, without the prior written consent of the Agent, subcontract or delegate the commercial or technical management of the Vessels (as the case may be) to any third party other than an Approved Sub-manager provided that the Borrowers shall procure from such Approved Sub-manager a Manager's Undertaking; 

		
	(c)
	if required by the Agent, the interests of the Managers in the Insurances will be assigned to the Security Agent with first priority; and 

		
	(d)
	(following the occurrence of an Event of Default) all claims of the Managers against the Borrowers shall be subordinated to the claims of the Finance Parties under the Finance Documents.

"Margin" means 1.95% per annum.
"Master Agreement" means any ISDA Master Agreement (or any other form of master agreement relating to interest or currency exchange transactions) entered into between the Swap Provider and the Borrowers during the Facility Period, including each Schedule to any Master Agreement and each Confirmation exchanged under any Master Agreement.
"Master Agreement Proceeds" means any and all sums due and payable to the Borrowers or any of them under the Master Agreement following an Early Termination Date (subject always to all rights of netting and set-off contained in a Master Agreement) and all rights to require and enforce the payment of those sums.
"Master Agreement Proceeds Assignment" means the deed of assignment referred to in Clause 17.1.5 (Security Documents).
"Material Adverse Effect" means in the reasonable opinion of the Majority Lenders a material adverse effect on:
		
	(a)
	the business, property or financial condition of a Borrower or the Guarantor; or

LONLIVE\23545000.7    Page 13

		
	(b)
	the ability of any Security Party to perform its obligations under any Finance Document; or

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

		
	(d)
	the rights or remedies of any Finance Party under any of the Finance Documents.

"Maximum Tranche Amount" means the Maximum Tranche A Amount, the Maximum Tranche B Amount, the Maximum Tranche C Amount and the Maximum Tranche D Amount.
"Maximum Tranche A Amount" means the amount up to the lesser of (i) $26,000,000; and (ii) 47.5% of the FMV of Vessel A as evidenced by the valuation received by the Agent under Clause 4.1 (Initial conditions precedent).
"Maximum Tranche B Amount" means the amount up to the lesser of (i) $26,000,000; and (ii) 47.5% of the FMV of Vessel B as evidenced by the valuation received by the Agent under Clause 4.1 (Initial conditions precedent).
"Maximum Tranche C Amount" means the amount up to the lesser of (i) $17,500,000; and (ii) 47.5% of the FMV of Vessel C as evidenced by the valuation received by the Agent under Clause 4.1 (Initial conditions precedent).
"Maximum Tranche D Amount" means the amount up to the lesser of (i) $17,500,000; and (ii) 47.5% of the FMV of Vessel D as evidenced by the valuation received by the Agent under Clause 4.1 (Initial conditions precedent).
"Maximum Tranche E Amount" means the amount up to the lesser of (i) $17,500,000; and (ii) 47.5% of the FMV of Vessel E as evidenced by the valuation received by the Agent under Clause 4.1 (Initial conditions precedent).
"Maximum Tranche F Amount" means the amount up to the lesser of (i) $28,000,000; and (ii) 47.5% of the FMV of Vessel F as evidenced by the valuation received by the Agent under Clause 4.1 (Initial conditions precedent).
"Maximum Loan Amount" means the aggregate of the Maximum Tranche A Amount, the Maximum Tranche B Amount, the Maximum Tranche C Amount, the Maximum Tranche D Amount, the Maximum Tranche E Amount and the Maximum Tranche F Amount.
"Mortgages" means the first preferred mortgages referred to in Clause 17.1.1 (Security Documents) and "Mortgage" means any one of them.
"New Lender" has the meaning given to that term in Clause 24.1 (Assignments and transfers by the Lenders).
"Non-Consenting Lender" has the meaning given to that term in Clause 35.3.4 (Replacement of Lender).
"Original Financial Statements" means the audited consolidated financial statements of the Guarantor for the financial year ended 31 December 2014. 
"Original Jurisdiction" means, in relation to a Security Party, the jurisdiction under whose laws that Security Party is incorporated as at the date of this Agreement.
"Party" means a party to this Agreement.
"Patriot Act" means the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Improvement and Reauthorization Act of 2005 (H.R. 3199).

LONLIVE\23545000.7    Page 14

"Permitted Disposal" means any sale, lease, licence, transfer or other disposal which is on arm's length terms:
		
	(a)
	of assets in exchange for other assets comparable or superior as to type, value and quality;

		
	(b)
	of obsolete or redundant vehicles, plant and equipment for cash; and

		
	(c)
	arising as a result of any Permitted Encumbrance.

"Permitted Encumbrance" means:
		
	(a)
	any Encumbrance which has the prior written approval of the Agent;

		
	(b)
	any Encumbrance created pursuant to a Finance Document;

		
	(c)
	any Encumbrance arising by operation of law and in the ordinary course of trading and not as a result of any default or omission by a Security Party;

		
	(d)
	any Quasi-Security arising as a result of a disposal which is a Permitted Disposal; or

		
	(e)
	any liens for current crews' wages and salvage and liens incurred in the ordinary course of trading a Vessel up to an aggregate amount at any time not exceeding $1,000,000.

"Plan" means any "employee benefit plan" as defined in Section 3(3) of ERISA that is subject to Title IV of ERISA which is or was sponsored, maintained or contributed to by, or required to be contributed to by any Security Party or any of their respective ERISA Affiliates.
"Prohibited Person" means any person (whether designated by name or by reason of being included in a class of persons) against whom Sanctions are directed.
"Quasi-Security" has the meaning given to that term in Clause 22.9 (Negative pledge).
"Quotation Day" means, in relation to any period for which an interest rate is to be determined three Business Days before the first day of that period, unless market practice differs in the Relevant Interbank Market, in which case the Quotation Day will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).
"Receiver" means a receiver or receiver and manager or administrative receiver of the whole or any part of the Charged Property.
"Reference Bank Rate" means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks as the rate at which the relevant Reference Banks could borrow funds in the London interbank market in dollars and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in dollars and for that period.
"Reference Banks" means, in relation to LIBOR, the principal London office of ING Bank N.V., London Branch or such other banks as may be appointed by the Agent in consultation with the Borrower.
"Related Fund" in relation to a fund (the "first fund"), means a fund which is managed or advised by the same investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser of the first fund.
"Relevant Documents" means the Finance Documents, the Building Contracts, the Vessel F MOA, the Management Agreements, and the Manager's Undertakings.

LONLIVE\23545000.7    Page 15

"Relevant Interbank Market" means the London interbank market.
"Relevant Jurisdiction" means, in relation to a Security Party:
		
	(a)
	its Original Jurisdiction;

		
	(b)
	any jurisdiction where any asset subject to or intended to be subject to a Security Document to be executed by it is situated; and

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

"Repayment Date" means the date for payment of any Repayment Instalment in accordance with Clause 6 (Repayment).
"Repayment Instalment" means any instalment of a Tranche to be repaid by the Borrowers under Clause 6 (Repayment).
"Repeating Representations" means each of the representations set out in Clause 19.1.1 (Status) to Clause 19.1.7 (Insolvency), Clause 19.1.10 (No default) to Clause 19.1.19 (Pari passu ranking) and Clause 19.1.24 (Money Laundering) to Clause 19.1.26 (Patriot Act).
"Representative" means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.
"Requisition Compensation" means all compensation or other money which may from time to time be payable to a Borrower as a result of a Vessel being requisitioned for title or in any other way compulsorily acquired (other than by way of requisition for hire).
"Restricted Person" means a person that is (i) listed on, or owned or controlled by a person listed on any Sanctions List; (ii) located in, incorporated under the laws of, or owned or controlled by, or acting on behalf of, a person located in or organised under the laws of a country or territory that is the target of country-wide Sanctions (including, without limitation, at the date of this agreement Cuba, Iran, Myanmar (Burma), North Korea, Syria and Sudan); or (iii) otherwise a target of Sanctions. 
"Sanctions" means any economic sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by: (i) the United States government; (ii) the United Nations; (iii) the European Union or its Member States, including without limitation, the United Kingdom; (iv) any country to which any Security Party or any other member of the Group or any Affiliate of any of them is bound; or (v) the respective governmental institutions and agencies of any of the foregoing, including without limitation, the Office of Foreign Assets Control of the US Department of Treasury ("OFAC"), the United States Department of State, and Her Majesty’s Treasury ("HMT", and together the "Sanctions Authorities"). 
"Sanctions List" means the “Specially Designated Nationals and Blocked Persons” list issued by OFAC, the Consolidated List of Financial Sanctions Targets and Investment Ban List issued by HMT, or any similar list issued or maintained or made public by any of the Sanctions Authorities.
"STI Osceola Existing Loan Agreement" means the secured loan facility agreement dated 2 July 2013 made between, among others, Borrower E as guarantor and Nordea Bank Finland plc, New York Branch as agent and as security trustee. 
"STI Osceola Indebtedness" means the outstanding loan amount (together with any accrued interest) in respect of Vessel E pursuant to the STI Osceola Existing Loan Agreement.    
"STI Osceola Finance Documents" means the "Finance Documents" as such term is defined in the STI Osceola Existing Loan Agreement. 

LONLIVE\23545000.7    Page 16

"Screen Rate" means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters.  If such page or the service ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with the Borrower.
"Second Supplemental Agreement" means a second supplemental agreement to this Agreement entered into by the parties to this Agreement.
"Secured Parties" means each Finance Party from time to time party to this Agreement and any Receiver or Delegate.
"Security Documents" means the Mortgages, the Assignments, the Guarantee, the Share Pledges, the Master Agreement Proceeds Assignment and any other Credit Support Documents or (where the context permits) any one or more of them, and any other agreement or document which may at any time be executed by any person as security for the payment of all or any part of the Indebtedness and "Security Document" means any one of them.
"Security Parties" means each Borrower, the Guarantor, any other Credit Support Provider, and any other person who may at any time during the Facility Period be liable for, or provide security for, all or any part of the Indebtedness (excluding always the Managers), and "Security Party" means any one of them.
"Share Pledges" means the charge of the issued share capital of the Borrowers referred to in Clause 17.1.4 (Security Documents).
"SMC" means a valid safety management certificate issued for a Vessel by or on behalf of the Administration under paragraph 13.7 of the ISM Code.
"Subsidiary" means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006.
"Tax" means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).
"Technical Manager" means Scorpio Ship Management S.A.M., a company incorporated under the laws of Monaco with its registered office at 9, Rue de Gabian, MC-98000 Monaco.
"Termination Date" means:
		
	(a)
	in respect of Tranche A, Tranche B, Tranche C and Tranche D, 24 June 2022; and

		
	(b)
	in respect of Tranche E and Tranche F, five (5) years following the Upsize Effective Date. 

"Total Commitments" means the aggregate of the Commitments.
"Total Loss" means:
		
	(a)
	actual, constructive, compromised, agreed or arranged total loss of that Vessel;

		
	(b)
	any expropriation, confiscation, requisition or acquisition of that Vessel, 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 one (1) year without any right to an extension), unless it is within three (3) months redelivered to the full control of the Borrower owning that Vessel; or

LONLIVE\23545000.7    Page 17

		
	(c)
	any arrest, capture, seizure or detention of that Vessel (including any hijacking, piracy or theft) unless it is within three (3) months redelivered to the full control of the Borrower owning that Vessel;

"Tranche A" means the part of the Loan up to the Maximum Tranche A Amount to be made available in one advance pursuant to Clause 5 (Advance) or where the context permits, the amount thereof advanced and for the time being outstanding.  
"Tranche B" means the part of the Loan up to the Maximum Tranche B Amount to be made available in one advance pursuant to Clause 5 (Advance) or where the context permits, the amount thereof advanced and for the time being outstanding.
"Tranche C" means the part of the Loan up to the Maximum Tranche C Amount to be made available in one advance pursuant to Clause 5 (Advance) or where the context permits, the amount thereof advanced and for the time being outstanding.
"Tranche D" means the part of the Loan up to the Maximum Tranche D Amount to be made available in one advance pursuant to Clause 5 (Advance) or where the context permits, the amount thereof advanced and for the time being outstanding.
"Tranche E" means the part of the Loan up to the Maximum Tranche E Amount to be made available in one advance pursuant to Clause 5 (Advance) or where the context permits, the amount thereof advanced and for the time being outstanding.
"Tranche F" means the part of the Loan up to the Maximum Tranche F Amount to be made available in one advance pursuant to Clause 5 (Advance) or where the context permits, the amount thereof advanced and for the time being outstanding.
"Tranches" means Tranche A, Tranche B, Tranche C, Tranche D, Tranche E and Tranche F and "Tranche" means any of them.
"Transaction" means a transaction entered into between the Swap Provider and the Borrowers governed by a Master Agreement.
"Transfer Certificate" means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate) or any other form agreed between the Agent and the Borrowers.
"Transfer Date" means, in relation to an assignment or a transfer, the later of:
		
	(a)
	the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate; and

		
	(b)
	the date on which the Agent executes the relevant Assignment Agreement or Transfer Certificate.

"Treasury Transactions" means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price.
"Trust Property" means:
		
	(a)
	all benefits derived by the Security Agent from Clause 17 (Security and Application of Moneys); and

		
	(a)
	all benefits arising under (including, without limitation, all proceeds of the enforcement of) each of the Security Documents,

with the exception of any benefits arising solely for the benefit of the Security Agent.

LONLIVE\23545000.7    Page 18

"Unpaid Sum" means any sum due and payable but unpaid by any Security Party under the Finance Documents.
"Upsize Effective Date" means the "Effective Date" as defined in the Second Supplemental Agreement.
"US" means the United States of America.
"US Tax Obligor" means:
		
	(b)
	a Security Party which is resident for tax purposes in the US; or

		
	(c)
	a Security Party some or all of whose payments under the Finance Documents are from sources within the US for US federal income tax purposes.

"VAT" means:
		
	(a)
	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and

		
	(b)
	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in (a), or imposed elsewhere.

"Vessel F MOA" means the memorandum of agreement dated 29 July 2015 on the terms and subject to the conditions of which the Vessel F Seller will sell Vessel F to Borrower F.
"Vessel F Seller" means Flagship Juniper Inc. of the Republic of the Marshall Islands.
"Vessels" means the following vessels each constructed or currently under construction by the relevant Builder with the relevant Builders' hull numbers set out below on the terms of the relevant Building Contract and, on delivery to the relevant Borrower set out below, registered or intended to be registered under an Approved Flag:
	
				
	Designation
	Type of Vessel
	Hull Number / Name
	Borrower

	"Vessel A"
	114,900 dwt LR2 product tanker
	5003
	Borrower A

	"Vessel B"
	114,900 dwt LR2 product tanker
	5004
	Borrower B

	"Vessel C"
	52,000 dwt MR product tanker
	"STI Black Hawk" (ex. Hull No. 2473)
	Borrower C

	"Vessel D"
	52,000 dwt MR product tanker
	"STI Pontiac"
	Borrower D

	"Vessel E"
	52,000 dwt MR product tanker
	"STI Osceola"
	Borrower E

	"Vessel F"
	114,900 dwt LR2 product tanker
	"STI Lombard"
	Borrower F

and "Vessel" means any one of them. 
		
	1.2
	Construction   Unless a contrary indication appears, any reference in this Agreement to: 

		
	1.2.1
	any "Lender", any "Borrower", the "Guarantor", the "Arranger", the "Agent", any "Swap Provider", any "Secured Party", the "Security Agent", any "Finance Party" or any "Party" shall be construed so as to include its successors in title, permitted assignees and permitted transferees;

		
	1.2.2
	"assets" includes present and future properties, revenues and rights of every description; 

LONLIVE\23545000.7    Page 19

		
	1.2.3
	a "Finance Document", a "Security Document", a "Relevant Document" or any other document is a reference to that Finance Document, Security Document, Relevant Document or other document as amended, novated, supplemented, extended or restated from time to time;

		
	1.2.4
	a "group of Lenders" includes all the Lenders;

		
	1.2.5
	"indebtedness" includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

		
	1.2.6
	a "person" includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership or other entity (whether or not having separate legal personality); 

		
	1.2.7
	a "regulation" includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation; 

		
	1.2.8
	a provision of law is a reference to that provision as amended or re-enacted from time to time; and 

		
	1.2.9
	a time of day (unless otherwise specified) is a reference to London time.

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

		
	1.4
	Defined terms   Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement. 

		
	1.5
	Default   A Default is "continuing" if it has not been remedied or waived.

		
	1.6
	Currency symbols and definitions   "$", "USD" and "dollars" denote the lawful currency of the United States of America.

		
	1.7
	Third party rights 

A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the "Third Parties Act") to enforce or to enjoy the benefit of any term of this Agreement.
		
	1.8
	Offer letter   This Agreement supersedes the terms and conditions contained in any correspondence relating to the subject matter of this Agreement exchanged between any Finance Party and the Borrowers or their representatives before the date of this Agreement.

		
	1.9
	Contractual recognition of bail-in

		
	1.9.1
	In this Clause 1.9:

"Bail-In Action" means the exercise of any Write-down and Conversion Powers.
"Bail-In Legislation" means:
		
	(a)
	in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

LONLIVE\23545000.7    Page 20

		
	(b)
	in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation.

"EEA Member Country" means any member state of the European Union, Iceland, Liechtenstein and Norway.
"EU Bail-In Legislation Schedule" means the document described as such and published by the Loan Market Association (or any successor person) from time to time. 
"Resolution Authority" means any body which has authority to exercise any Write-down and Conversion Powers.
"Write-down and Conversion Powers" means:
		
	(c)
	in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule; and

		
	(d)
	in relation to any other applicable Bail-In Legislation:

		
	(i)
	any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers; and

		
	(ii)
	any similar or analogous powers under that Bail-In Legislation.

		
	1.9.2
	Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:

		
	(a)
	any Bail-In Action in relation to any such liability, including (without limitation):

		
	(i)
	a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability;

		
	(ii)
	a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

		
	(iii)
	a cancellation of any such liability; and

		
	1.10
	a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.

		
	Section 2
	The Loan

		
	2
	The Loan

		
	2.1
	Amount   Subject to the terms of this Agreement, the Lenders agree to make available to the Borrowers on a joint and several basis a term loan comprising the Tranches and not exceeding in aggregate the Maximum Loan Amount.

		
	2.2
	Finance Parties' rights and obligations

		
	2.2.1
	The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

		
	2.2.2
	The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from a Security Party shall be a separate and independent debt.

		
	2.2.3
	A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents.

		
	3
	Purpose

		
	3.1
	Purpose   The Borrowers shall apply the Loan for the purposes referred to in Preliminary (B).

		
	3.2
	Monitoring   No Finance Party is bound to monitor or verify the application of any amount borrowed under this Agreement.

		
	4
	Conditions of Utilisation

		
	4.1
	Initial conditions precedent

		
	4.1.1
	The Lenders will only be obliged to comply with Clause 5.3 (Lenders' participation) in relation to the advance of a Tranche if, on or before the relevant Drawdown Date, the Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent and the proposed Drawdown Date coincides with the Delivery Date of the Vessel specified in the relevant Drawdown Request, save that references in Section 2 of that Part I to "the Vessel" or to any person or document relating to a Vessel shall be deemed to relate solely to the Vessel specified in the relevant Drawdown Request or to any person or document relating to that Vessel respectively. The Agent shall notify the Borrowers and the Lenders promptly upon being so satisfied.

		
	4.1.2
	Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in Clause 4.1.1, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

		
	4.2
	Further conditions precedent

		
	4.2.1
	The Lenders will only be obliged to advance a Tranche if on the date of the relevant Drawdown Request and on the proposed Drawdown Date:

		
	(a)
	no Default has occurred and is continuing or would result from the advance of that Tranche; and

		
	(b)
	the representations made by each Borrower and the Guarantor under Clause 19 (Representations) are true.

		
	4.2.2
	The Lenders will only be obliged to advance a Tranche if that Tranche is not in excess of the relevant Maximum Tranche Amount

		
	4.2.3
	The Lenders will only be obliged to advance a Tranche if that Tranche will not increase the Loan to a sum in excess of the Maximum Loan Amount.

		
	4.2.4
	In respect of Tranche A and Tranche B, the Lenders will only be obliged to advance a Drawing if the proposed Drawdown Date of that Drawing coincides either with (i) the due date for payment by the relevant Borrower of the final instalment of the Contract Price of the relevant Vessel under the relevant Building Contract or (ii) the due date for prepositioning payment by the relevant Borrower of the final instalment of the Contract Price of the relevant Vessel under the relevant Building Contract.

		
	4.3
	Conditions subsequent   The Borrowers undertake to deliver or to cause to be delivered to the Agent within seven days after each Drawdown Date the additional documents and other evidence listed in Part II of Schedule 2 (Conditions Subsequent), save that references in that Part II to "the Vessel" or to any person or document relating to a Vessel shall be deemed to relate solely to the Vessel specified in the relevant Drawdown Request or to any person or document relating to that Vessel respectively.

		
	4.4
	No waiver   If the Lenders in their sole discretion agree to advance a Tranche to the Borrowers before all of the documents and evidence required by Clause 4.1 (Initial conditions precedent) have been delivered to or to the order of the Agent, the Borrowers undertake to deliver all outstanding documents and evidence to or to the order of the Agent no later than seven days after the Drawdown Date or such other date specified by the Agent (acting on the instructions of all the Lenders).

The advance of all or any part of a Tranche under this Clause 4.4 shall not be taken as a waiver of the Lenders' right to require production of all the documents and evidence required by Clause 4.1 (Initial conditions precedent).
		
	4.5
	Form and content   All documents and evidence delivered to the Agent under this Clause shall:

		
	4.5.1
	be in form and substance acceptable to the Agent; and

		
	4.5.2
	if required by the Agent, be certified, notarised, legalised or attested in a manner acceptable to the Agent.

		
	Section 3
	Utilisation

		
	5
	Advance

		
	5.1
	Delivery of a Drawdown Request   The Borrowers may request a Tranche to be advanced, in a single advance, by delivery to the Agent of a duly completed Drawdown Request not more than ten and not fewer than three Business Days before the proposed Drawdown Date.  Any Drawdown Request which becomes effective, in accordance with Clause 31.3, after 10.00 a.m. in the place of receipt shall be deemed only to become effective on the following day. 

		
	5.2
	Completion of a Drawdown Request   A Drawdown Request is irrevocable and will not be regarded as having been duly completed unless:

		
	5.2.1
	it is signed by an authorised signatory of each Borrower;

		
	5.2.2
	the proposed Drawdown Date is a Business Day within the Availability Period; and

		
	5.2.3
	the proposed Interest Period complies with Clause 9 (Interest Periods).

		
	5.3
	Lenders' participation

		
	5.3.1
	Subject to Clauses 2 (The Loan), 3 (Purpose) and 4 (Conditions of Utilisation), each Lender shall make its participation in any Tranche available by the relevant Drawdown Date through its Facility Office.

		
	5.3.2
	The amount of each Lender's participation in any Tranche will be equal to the proportion borne by its Commitment to the Total Commitments.

		
	5.4
	Cancellation of Commitment   The Total Commitments shall be cancelled on the earlier of (i) the Drawdown Date of the final Tranche to be advanced and (ii) the end of the Availability Period of the final Tranche to be advanced, to the extent that it is unutilised at that time.

		
	5.5
	Prepositioning of funds

		
	5.5.3
	If applicable the Agent shall, subject to the Agent having received (or being satisfied it will receive) all of the documents and evidence listed in Part I of Schedule 2 (Conditions precedent) or which are waived pursuant to this Agreement and/or waived on the basis of satisfaction of such requirements within a specified period of time, at the request of the Borrowers and in accordance with the terms of the relevant Building Contract (or, in respect of Vessel F, the Vessel F MOA) and on terms and conditions reasonably acceptable to all the Lenders, preposition such part of the Loan as is to be used to finance the amount of the instalment of (i) the Contract Price payable on the Delivery Date of the relevant Vessel under the relevant Building Contract to the relevant Builder or (ii) in respect of Vessel F, the applicable purchase price of Vessel F under the  Vessel F MOA, in each case as has been received by it from the Lenders.  Prepositioning of such funds shall constitute a Drawing of the Loan.

		
	5.5.4
	Simultaneously with the prepositioning of the relevant part of the Loan, the Agent shall (and the Borrowers and all Finance Parties agree that the Agent shall) send to the relevant Builder's bank by authenticated SWIFT a conditional payment order (in a form acceptable to the Agent) in respect of such prepositioned funds.

		
	Section 4
	Repayment, Prepayment and Cancellation

		
	6
	Repayment

		
	6.1
	Repayment of each Tranche   The Borrowers agree to repay each Tranche to the Agent for the account of the Lenders by consecutive quarterly instalments, each in the sum of:

		
	6.1.4
	in respect of Tranche A and Tranche B, $433,333.33;

		
	6.1.5
	in respect of Tranche C and Tranche D, $291,666.66;

		
	6.1.6
	in respect of Tranche E, $312,500; and

		
	6.1.7
	in respect of Tranche F, $500,000,

the first instalment falling due on the date which is three calendar months after the Drawdown Date in respect of that Tranche, subsequent instalments falling due at consecutive intervals of three calendar months thereafter and a final payment (the "Balloon") falling due on the relevant Termination Date, which shall reduce the amount outstanding in respect of that Tranche to nil.  
		
	6.2
	Termination Date  On the relevant Termination Date the Indebtedness shall be repaid in full.

		
	6.3
	Reduction of Repayment Instalments   If the aggregate amount advanced to the Borrowers is less than:

		
	6.3.3
	in respect of Tranche A or Tranche B, US$26,000,000; 

		
	6.3.4
	in respect of Tranche C, Tranche D or Tranche E, $17,500,000;

		
	6.3.5
	in respect of Tranche F, $28,000,000,

		
	6.4
	the amount of each Repayment Instalment shall be reduced pro rata to the amount actually advanced.

		
	6.5
	Reborrowing   The Borrowers may not reborrow any part of a Tranche which is repaid or prepaid.

		
	7
	Illegality, Prepayment and Cancellation

		
	7.1
	Illegality   If it becomes unlawful in any jurisdiction (other than by reason of Sanctions) for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in the Loan or it becomes unlawful for any Affiliate of a Lender for that Lender to do so:

		
	7.1.3
	that Lender shall promptly notify the Agent upon becoming aware of that event; 

		
	7.1.4
	upon the Agent notifying the Borrowers, the Commitment of that Lender will be immediately cancelled; and 

		
	7.1.5
	the Borrowers shall repay that Lender's participation in each Tranche on the last day of its current Interest Period or, if earlier, the date specified by that Lender in the notice delivered to the Agent and notified by the Agent to the Borrowers (being no earlier than the last day of any applicable grace period permitted by law).

		
	7.2
	Voluntary cancellation   The Borrowers may, if they give the Agent not less than 5 Business Days' (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being an amount which is an integral multiple of $1,000,000 of the undrawn amount of a Tranche.  Any cancellation under this Clause 7.2 shall reduce the Commitments of the Lenders rateably.

		
	7.3
	Voluntary prepayment of the Loan   The Borrowers may prepay the whole or any part of the Loan (but, if in part, being an amount which is an integral multiple of $1,000,000) subject as follows:

		
	7.3.5
	they give the Agent not less than 5 Business Days' (or such shorter period as the Majority Lenders may agree) prior notice; and

		
	7.3.6
	any prepayment under this Clause 7.3 shall be applied in prepayment of the remaining Repayment Instalments in respect of each Tranche (including the Balloon) on a pro rata basis.

		
	7.4
	Right of cancellation and prepayment in relation to a single Lender

		
	7.4.1
	If:

		
	(b)
	any sum payable to any Lender by the Borrowers is required to be increased under Clause 12.2.2 (Tax gross-up); or

		
	(c)
	any Lender claims indemnification from the Borrowers under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs),

the Borrowers may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment(s) of that Lender and their intention to procure the repayment of that Lender's participation in the Loan.
		
	7.4.2
	On receipt of a notice referred to in Clause 7.4.1 in relation to a Lender, the Commitment(s) of that Lender shall immediately be reduced to zero.

		
	7.4.3
	On the last day of the Interest Period in respect of each Tranche which ends after the Borrowers have given notice under Clause 7.4.1 in relation to a Lender (or, if earlier, the date specified by the Borrowers in that notice), the Borrowers shall repay that Lender's participation in that Tranche together with all interest and other amounts accrued under the Finance Documents.

		
	7.5 
	Mandatory prepayment on sale or Total Loss   If a Vessel is sold by a Borrower or becomes a Total Loss, the Borrowers shall, simultaneously with any such sale or on the earlier of the date falling 180 days after any such Total Loss and the date on which the proceeds of any such Total Loss are realised, prepay the whole of the Tranche in respect of that Vessel then outstanding.  Any such prepayment shall be applied in prepayment of the remaining Repayment Instalments in respect of that Tranche (including the Balloon) in inverse order of maturity.

		
	7.6
	Mandatory prepayment on Change of Control     If a Change of Control occurs:

		
	7.6.1
	the relevant Borrower and/or the Guarantor (as the case may be) shall promptly notify the Agent upon having knowledge of that event;

		
	7.6.2
	no Lender shall be obliged to fund or continue to fund the relevant Tranche; and

		
	7.6.3 
	the Agent, acting on the instructions of the Majority Lenders, may, by not less than 10 Business Days' notice to the Borrowers:

		
	(a) 
	in the case of a Change of Control in respect of a Borrower, cancel the Commitments in respect of the Tranche relating to the Vessel owned by that Borrower and declare all amounts outstanding under that Tranche immediately due and payable together with accrued interest (and any other amount payable under Clause 14  or otherwise); and

		
	(b) 
	in the case of a Change of Control in respect of the Guarantor, cancel the loan facility provided for under this Agreement and declare the Loan, together with accrued interest (and any other amount payable under Clause 14 or otherwise), and all other amounts accrued under the Finance Documents, immediately due and payable, whereupon the Total Commitments shall be cancelled and all such outstanding amounts will become immediately due and payable by the Borrowers.

		
	7.7
	Restrictions   Any notice of prepayment or cancellation given under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant prepayment or cancellation is to be made and the amount of that prepayment or cancellation.

Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs and subject to Clause 7.3 (Voluntary prepayment of a Tranche), without premium or penalty.
In the event of a prepayment under this Agreement the Borrowers shall, if applicable, terminate such Transactions as to ensure compliance with the provisions of Clause 22.28 (Permitted Transactions).
The Borrowers shall not repay, prepay or cancel all or any part of the Tranche except at the times and in the manner expressly provided for in this Agreement.
No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.
If the Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice to the Borrowers or the affected Lender, as appropriate.
		
	Section 5
	Costs of Utilisation

		
	8
	Interest

		
	8.1
	Calculation of interest   The rate of interest on each Tranche for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:

		
	8.1.6
	Margin; and

		
	8.1.7
	LIBOR.

		
	8.2
	Payment of interest  Interest shall accrue day to day, shall be calculated on the basis of a 360 day year, and the Borrowers shall pay accrued interest on each Tranche on the last day of each Interest Period (and, if the Interest Period is longer than three months, on the dates falling at three monthly intervals after the first day of the Interest Period).

		
	8.3
	Default interest   If the Borrowers fail to pay any amount payable by them under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which is two per cent higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted the Tranche in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this Clause 8.3 shall be immediately payable by the Borrowers on demand by the Agent.

Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.
		
	8.4
	Notification of rates of interest   The Agent shall promptly notify the Borrowers of the determination of a rate of interest under this Agreement.

		
	9
	Interest Periods

		
	9.1
	Selection of Interest Periods   The Borrowers may select in a written notice to the Agent the duration of an Interest Period for each Tranche subject as follows:

		
	9.1.7
	each notice is irrevocable and must be delivered to the Agent by the Borrowers not later than 11.00 a.m. on the Quotation Day; 

		
	9.1.8
	if the Borrowers fail to give a notice in accordance with Clause 9.1.1, the relevant Interest Period will, subject to Clauses 9.2 (Interest Periods to meet Repayment Dates) and 9.3 (Non-Business Days), be three months;

		
	9.1.9
	subject to this Clause 9, the Borrowers may select an Interest Period of three or six months;

		
	9.1.10
	an Interest Period for a Tranche shall not extend beyond the Termination Date in relation to the relevant Tranche; and

		
	9.1.11
	each Interest Period shall start on the Drawdown Date of the Tranche or (if the Tranche is already made) on the last day of the preceding Interest Period of that Tranche and end on the date which numerically corresponds to the Drawdown Date of that Tranche or the last day of the preceding Interest Period of that Tranche in the relevant calendar month except that, if there is no numerically corresponding date in that calendar month, the Interest Period of that Tranche shall end on the last Business Day in that month.

		
	9.2
	Interest Periods to meet Repayment Dates   If an Interest Period will expire after the next Repayment Date in respect of the relevant Tranche, there shall be a separate Interest Period for a part of that Tranche equal to the Repayment Instalment due in respect of the relevant Tranche on that next Repayment Date of that Tranche and that separate Interest Period shall expire on that next Repayment Date.

		
	9.3
	Non-Business Days   If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

		
	10
	Changes to the Calculation of Interest

		
	10.1
	Absence of quotations   Subject to Clause 10.2 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by 11.00 am on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

		
	10.2
	Market disruption   If a Market Disruption Event occurs for any Interest Period, then the rate of interest on each Lender's share of the relevant Tranche for that Interest Period shall be the percentage rate per annum which is the sum of:

		
	10.2.1
	the Margin; 

		
	10.2.2
	the rate notified to the Agent by that Lender as soon as practicable, and in any event by close of business on the date falling three Business Days after the Quotation Day (or, if earlier, on the date falling three Business Days prior to the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in the relevant Tranche from whatever source it may reasonably select; and

		
	10.2.3
	the Mandatory Cost, if any, applicable to that Lender's participation in the relevant Tranche.

In this Agreement "Market Disruption Event" means:
		
	(a)
	no Screen Rate is available for an Interest Period and two (2) or more of the Reference Banks do not, before 1:00 p.m. (London time) on the Quotation Date, provide quotations to the Agent in order to fix LIBOR; or

		
	(b)
	at least one (1) Business Day before the start of an Interest Period, Lenders having Commitments together amounting to 50% or more of the Loan (or, if an Advance has not been made, Commitments amounting to 50% or more of the Total Commitments) notify the Agent that the cost to those Lenders of funding their respective Commitments (or any part of them) from whatever source such Lenders may reasonably select during the Interest Period in the London Interbank Market at or about 11:00 a.m. (London time) on the Quotation Date for the Interest Period would exceed the LIBOR fixed by the Agent for that Interest Period.

		
	10.3
	Alternative basis of interest or funding

		
	10.3.4
	If a Market Disruption Event occurs and the Agent or the Borrowers so require, the Agent and the Borrowers shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

		
	10.3.5
	Any alternative basis agreed pursuant to Clause 10.3.1 shall, with the prior consent of all the Lenders and the Borrowers, be binding on all Parties.

		
	10.4
	Break Costs   The Borrowers shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Tranche or Unpaid Sum being paid by the Borrowers on a day other than the last day of an Interest Period for that Tranche or Unpaid Sum.

Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.
		
	11
	Fees

LONLIVE\23545000.7    Page 21

		
	11.1
	Commitment Fee   The Borrowers shall pay to the Agent (for the account of the Lenders in proportion to their Commitments) a fee computed at the rate of zero point seven eight per cent. (0.78%) per annum of the undrawn portion of the Total Commitments during the period:

		
	11.1.4
	in the case of Tranche A and Tranche B,  commencing on the date of this Agreement;

		
	11.1.5
	in the case of Tranche C and Tranche D, commencing on the date of the First Supplemental Agreement;

		
	11.1.6
	in the case of Tranche E and Tranche F, commencing on the date of the Second Supplemental Agreement,

to and including the earlier to occur of (i) the Drawdown Date in respect of the final Tranche to be advanced and (ii) the end of the Availability Period.
The accrued commitment fee is payable on the last day of each successive period of three months which ends during the period commencing on the date of this Agreement to and including the earlier to occur of (i) the Drawdown Date in respect of the final Tranche to be advanced and (ii) the end of the Availability Period of the final Tranche; and
		
	11.2
	Upfront fee   The Borrowers shall pay to the Arranger an upfront fee in the amount and at the times agreed in a Fee Letter.

		
	Section 6
	Additional Payment Obligations

		
	12
	Tax Gross Up and Indemnities 

		
	12.1
	Definitions   In this Agreement:

"Protected Party" means a Finance Party which is or will be subject to any liability or required to make any payment for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.
"Tax Credit" means a credit against, relief or remission for, or repayment of any Tax.
"Tax Deduction" means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction. 
"Tax Payment" means either the increase in a payment made by a Security Party to a Finance Party under Clause 12.2 (Tax gross-up) or a payment by a Borrower under Clause 12.3 (Tax indemnity).
Unless a contrary indication appears, in this Clause 12 a reference to "determines" or "determined" means a determination made in the absolute discretion of the person making the determination.
		
	12.2
	Tax gross-up   Each Borrower shall (and shall procure that each other Security Party shall) make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law, subject as follows:

		
	12.2.1
	a Borrower shall promptly upon becoming aware that it or any other Security Party must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly.  Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender.  If the Agent receives such notification from a Lender it shall notify the Borrowers and any such other Security Party; 

		
	12.2.2
	if a Tax Deduction is required by law to be made by a Borrower or any other Security Party, the amount of the payment due from that Borrower or that other Security Party shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required; 

		
	12.2.3
	if a Borrower or any other Security Party is required to make a Tax Deduction, that Borrower shall (and shall procure that such other Security Party shall) make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law; and

		
	12.2.4
	within 30 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrower making that Tax Deduction shall (and shall procure that such other Security Party shall) deliver to the Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

		
	12.3
	Tax indemnity

		
	12.3.1
	Each Borrower shall (within three Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

		
	12.3.2
	Clause 12.3.1 shall not apply: 

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

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

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

if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or
		
	(b)
	to the extent a loss, liability or cost:

		
	(i)
	is compensated for by an increased payment under Clause 12.2 (Tax gross-up); or

		
	(ii)
	relates to a FATCA Deduction required to be made by a Party.

		
	12.3.3
	A Protected Party making, or intending to make a claim under Clause 12.3.1 shall promptly notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the Borrowers.

		
	12.3.4
	A Protected Party shall, on receiving a payment from a Borrower under this Clause 12.3, notify the Agent.

		
	12.4
	Tax Credit   If a Borrower or any other Security Party makes a Tax Payment and the relevant Finance Party determines that: 

		
	12.4.1
	a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and 

		
	12.4.2
	that Finance Party has obtained and utilised that Tax Credit, 

that Finance Party shall pay an amount to that Borrower or to that other Security Party which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been made by that Borrower or that other Security Party.
		
	12.5
	Stamp taxes   The Borrowers shall pay and, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

		
	12.6
	VAT

		
	12.6.1
	All amounts expressed to be payable under a Finance Document by any Party or any Security Party to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to Clause 12.6.2, if  VAT is or becomes chargeable on any supply made by any Finance Party to any Party or any Security Party under a Finance Document and such Finance Party is required to account to the relevant tax authority for the VAT, that Party or Security Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice to the Borrowers).

		
	12.6.2
	If VAT is or becomes chargeable on any supply made by any Finance Party (the "Supplier") to any other Finance Party (the "Recipient") under a Finance Document, and any Party other than the Recipient (the "Relevant Party") is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

		
	(a)
	(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where this Clause 12.6.2(a) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

		
	(b)
	(where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

		
	12.6.3
	Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

		
	12.6.4
	Any reference in this Clause 12.6 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term "representative member" to have the same meaning as in the Value Added Tax Act 1994).

		
	12.6.5
	In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party's VAT registration and such other information as is reasonably requested in connection with such Finance Party's VAT reporting requirements in relation to such supply.

		
	12.7
	FATCA information

		
	12.7.1
	Subject to Clause 12.7.3, each Party shall, within ten Business Days of a reasonable request by another Party:

(c)    confirm to that other Party whether it is:
		
	(i)
	a FATCA Exempt Party; or

		
	(ii)
	not a FATCA Exempt Party;

		
	(d)
	supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA; and

		
	(e)
	supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange of information regime.

		
	12.7.2
	If a Party confirms to another Party pursuant to Clause 12.7.1(a)(i) that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

		
	12.7.3
	Clause 12.7.1 shall not oblige any Finance Party to do anything, and Clause 12.7.1(c) shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

		
	(a)
	any law or regulation;

		
	(b)
	any fiduciary duty; or

		
	(c)
	any duty of confidentiality.

		
	12.7.4
	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with Clause 12.7.1(a) or 12.7.1(b) (including, for the avoidance of doubt, where Clause 12.7.3 applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

		
	12.8
	FATCA Deduction

		
	12.8.1
	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

		
	12.8.2
	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the Party to whom it is making the payment and, in addition, shall notify the Borrowers and the Agent and the Agent shall notify the other Finance Parties.

		
	13
	Increased Costs

		
	13.1
	Increased costs   Subject to Clause 13.3 (Exceptions) the Borrowers shall, within three Business Days of a demand by the Agent, pay to the Agent for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or regulation or any request from or requirement of any central bank or other fiscal, monetary or other authority made after the date of this Agreement (including Basel III and any other which relates to capital adequacy or liquidity controls or which affects the manner in which that Finance Party allocates capital resources to obligations under this Agreement and/or the Master Agreement) or (iii) the implementation or application of or compliance with Basel III, CRR or CRD IV or any other law or regulation which implements Basel III, CRR or CRD IV (whether such implementation, application or compliance is by a government, regulator, a Lender or any Affiliate of a Lender) or (iv) any change in the risk weight allocated by that Finance Party to the Borrowers after the date of this Agreement. 

In this Agreement:
(a)     "Increased Costs" means:
		
	(iii)
	a reduction in the rate of return from the Loan or on a Finance Party's (or its Affiliate's) overall capital;

		
	(iv)
	an additional or increased cost; or

		
	(v)
	a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into any Finance Document or funding or performing its obligations under any Finance Document;
		
	(b)
	"Basel III" means (a)(a) the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated, (b) the rules for global systemically important banks contained in "Global systemically important banks: assessment methodology and the additional loss absorbency requirement – Rules text" published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated and (c) any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III"; 

		
	13.1.5
	"CRR" means Regulation EU No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU No 648/2012), as amended, supplemented or restated; and

		
	13.1.6
	"CRD IV" means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended, supplemented or restated.

		
	13.2
	Increased cost claims

		
	13.2.5
	A Finance Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrowers.

		
	13.2.6
	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs.

		
	13.3
	Exceptions   Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost is:

		
	13.3.3
	attributable to a Tax Deduction required by law to be made by a Borrower;

		
	13.3.4
	attributable to a FATCA Deduction required to be made by a Party;

		
	13.3.5
	compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 but was not so compensated solely because any of the exclusions in Clause 12.3 applied);

		
	13.3.6
	compensated for by the payment of the Mandatory Cost;

		
	13.3.7
	attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation; or

		
	13.3.8
	attributable to the implementation or application of or compliance with the "International Convergence of Capital Measurement and Capital Standards, a Revised Framework" published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement (but excluding any amendment arising out of Basel III) ("Basel II") or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates).

In this Clause 13.3, a reference to a "Tax Deduction" has the same meaning given to the term in Clause 12.1 (Definitions).
		
	14
	Other Indemnities

		
	14.1
	Currency indemnity   If any sum due from a Borrower or the Guarantor  under the Finance Documents (a "Sum"), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the "First Currency") in which that Sum is payable into another currency (the "Second Currency") for the purpose of:

		
	14.1.7
	making or filing a claim or proof against that Borrower or the Guarantor (as the case may be), or 

		
	14.1.8
	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

that Borrower or the Guarantor (as the case may be) shall as an independent obligation, within three Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (a)(a) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (b) the rate or rates of exchange available to that Finance Party at the time of its receipt of that Sum.
Each Borrower and the Guarantor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.
		
	14.2
	Other indemnities

		
	14.2.9
	The Borrowers shall, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of:

		
	(a)
	the occurrence of any Event of Default;

		
	(b)
	a failure by a Borrower to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 28 (Sharing among the Finance Parties);

		
	(c)
	funding, or making arrangements to fund, a Tranche following delivery by the Borrowers of a Drawdown Request but that Tranche not being advanced by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by a Finance Party alone); or

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

		
	14.2.10
	The Borrowers shall promptly indemnify each Finance Party, each Affiliate of a Finance Party and each officer or employee of a Finance Party or its Affiliate (each such person for the purposes of this Clause 14.2 an "Indemnified Person") against any cost, loss or liability incurred by that Indemnified Person pursuant to or in connection with any litigation, arbitration or administrative proceedings or regulatory enquiry, in connection with or arising out of the entry into and the transactions contemplated by the Finance Documents, having the benefit of any Encumbrance constituted by the Finance Documents or which relates to the condition or operation of, or any incident occurring in relation to, a Vessel, unless such cost, loss or liability is caused by the gross negligence or wilful misconduct of that Indemnified Person.

		
	14.2.11
	Subject to any limitations set out in Clause 14.2.2, the indemnity in that Clause shall cover any cost, loss or liability incurred by each Indemnified Person in any jurisdiction:

		
	(a)
	arising or asserted under or in connection with any law relating to safety at sea, the ISM Code, any Environmental Law or any applicable Sanctions; or

		
	(b)
	in connection with any Environmental Claim.

		
	14.3
	Indemnity to the Agent   The Borrowers shall promptly indemnify the Agent against:

		
	14.3.1
	any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

		
	(c)
	investigating any event which it reasonably believes is a Default provided always that the Agent shall: (i) notify the Borrowers of any such investigation in writing and (ii) the Borrowers do not provide the Agent with any documentation or information reasonably requested by the Agent within three (3) Business Days of such request; or

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

		
	(e)
	instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement; and

		
	14.3.2
	any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 29.12 (Disruption to Payment Systems etc.) notwithstanding the Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents.

		
	14.4
	Indemnity to the Security Agent   The Borrowers and the Guarantor shall promptly indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them as a result of:

		
	14.4.6
	any failure by the Borrowers to comply with their obligations under Clause 16 (Costs and Expenses);

		
	14.4.7
	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised;

		
	14.4.8
	the taking, holding, protection or enforcement of the Security Documents;

		
	14.4.9
	the exercise of any of the rights, powers, discretions, authorities and remedies vested in the Security Agent and each Receiver and Delegate by the Finance Documents or by law;

		
	14.4.10
	any default by any Security Party in the performance of any of the obligations expressed to be assumed by it in the Finance Documents; or

		
	14.4.11
	acting as Security Agent, Receiver or Delegate under the Finance Documents or which otherwise relates to any of the Charged Property (otherwise, in each case, than by reason of the relevant Security Agent's, Receiver's or Delegate's gross negligence or wilful misconduct).

		
	14.5
	Indemnity survival   The indemnities contained in this Agreement shall survive repayment of the Loan.

		
	15
	Mitigation by the Lenders

		
	15.1
	Mitigation   Each Finance Party shall, in consultation with the Borrowers, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to any of Clause 7.1 (Illegality), Clause 12 (Tax Gross Up and Indemnities) or Clause 13 (Increased Costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.  The above does not in any way limit the obligations of any Security Party under the Finance Documents.

		
	15.2
	Limitation of liability   The Borrowers shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 15.1 (Mitigation).  A Finance Party is not obliged to take any steps under Clause 15.1 if, in its opinion (acting reasonably), to do so might be prejudicial to it.

		
	16
	Costs and Expenses

		
	16.1
	Transaction expenses   The Borrowers shall promptly on demand pay the Agent, the Security Agent and the Arranger the amount of all costs and expenses (including legal fees) reasonably incurred by any of them (and, in the case of the Security Agent, by any Receiver or Delegate) in connection with:

		
	16.1.3
	the negotiation, preparation, printing, execution, syndication and perfection of this Agreement and any other documents referred to in this Agreement;

		
	16.1.4
	the negotiation, preparation, printing, execution and perfection of any other Finance Documents executed after the date of this Agreement; 

		
	16.1.5
	any other document which may at any time be required by a Finance Party to give effect to any Finance Document or which a Finance Party is entitled to call for or obtain under any Finance Document (including, without limitation, any valuation of a Vessel); and

		
	16.1.6
	any discharge, release or reassignment of any of the Security Documents.

		
	16.2
	Amendment costs   If (a)(a) a Security Party requests an amendment, waiver or consent or (b) an amendment is required under Clause 29.11 (Change of currency), the Borrowers shall, within three Business Days of demand, reimburse each of the Agent and the Security Agent for the amount of all duly documented costs and expenses (including legal fees) reasonably incurred by the Agent and the Security Agent (and, in the case of the Security Agent, by any Receiver or Delegate) in responding to, evaluating, negotiating or complying with that request or requirement.

		
	16.3
	Enforcement and preservation costs   The Borrowers shall, within three Business Days of demand, pay to each Finance Party and each other Secured Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document and any proceedings instituted by or against the Security Agent as a consequence of taking or holding the Security Documents or enforcing those rights including (without limitation) any losses, costs and expenses which that Finance Party or other Secured Party may from time to time sustain, incur or become liable for by reason of that Finance Party or other Secured Party being mortgagee of a Vessel and/or a lender to a Borrower, or by reason of that Finance Party or other Secured Party being deemed by any court or authority to be an operator or controller, or in any way concerned in the operation or control, of a Vessel.  

		
	16.4
	Other costs   The Borrowers shall, within three Business Days of demand, pay to each Finance Party and each other Secured Party the amount of all sums which that Finance Party or other Secured Party may pay or become actually or contingently liable for on account of a Borrower in connection with a Vessel (whether alone or jointly or jointly and severally with any other person) including (without limitation) all sums which that Finance Party or other Secured Party may pay or guarantees which it may give in respect of the Insurances, any expenses incurred by that Finance Party or other Secured Party in connection with the maintenance or repair of a Vessel or in discharging any lien, bond or other claim relating in any way to a Vessel, and any sums which that Finance Party or other Secured Party may pay or guarantees which it may give to procure the release of a Vessel from arrest or detention.

		
	Section 7
	Security and Application of Moneys

		
	17
	Security Documents and Application of Moneys

		
	17.1
	Security Documents   As security for the payment of the Indebtedness, the Borrowers shall execute and deliver to the Security Agent or cause to be executed and delivered to the Security Agent the following documents in such forms and containing such terms and conditions as the Security Agent shall require:

		
	17.1.12
	first preferred mortgages over the Vessels;

		
	17.1.13
	first priority deeds of assignment of the Insurances, Earnings and Requisition Compensation of the Vessels; and the first priority assignments of Insurances from the Managers contained in the Managers' Undertakings;  

		
	17.1.14
	the guarantee and indemnity from the Guarantor;

		
	17.1.15
	first priority charges of all the issued shares of the Borrowers; and

		
	17.1.16
	first priority deed of assignment over the Master Agreement Proceeds.

		
	17.2
	Application of moneys by Security Agent   The Borrowers and the Finance Parties irrevocably authorise the Security Agent or any Receiver or Delegate to apply all moneys which it receives and is entitled to receive:

		
	17.2.5
	pursuant to a sale or other disposition of a Vessel or any right, title or interest in a Vessel; or

		
	17.2.6
	by way of payment of any sum in respect of the Master Agreement Proceeds, the Insurances, Earnings or any Requisition Compensation; or

		
	17.2.7
	otherwise under or in connection with any Security Document,

in or towards satisfaction of the Indebtedness in the following order:
		
	17.2.8
	first, any unpaid fees, costs, expenses and default interest due to the Agent and the Security Agent (and, in the case of the Security Agent, to any Receiver or Delegate) under all or any of the Finance Documents, such application to be apportioned between the Agent and the Security Agent pro rata to the aggregate amount of such items due to each of them;

		
	17.2.9
	second, any unpaid fees, costs, expenses (including any sums paid by the Lenders under Clause 26.11 (Indemnity)) of the Lenders due under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such items due to each of them;

		
	17.2.10
	third, any accrued but unpaid default interest due to the Lenders under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such default interest due to each of them;

		
	17.2.11
	fourth, any other accrued but unpaid interest due to the Lenders under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such interest due to each of them;

		
	17.2.12
	fifth, any principal of the Loan due and payable but unpaid under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such principal due to each of them; and

		
	17.2.13
	sixth, any other sum due and payable to any Finance Party but unpaid under all or any of the Finance Documents, such application to be apportioned between the Finance Parties pro rata to the aggregate amount of any such sum due to each of them, 

Provided that any part of the Indebtedness arising out of the Master Agreement shall be satisfied on a pari passu basis with any repayment of the principal of the Loan.
		
	17.3
	Additional security   If at any time the aggregate of the FMV of the Vessels and the value of any additional security (such value to be the face amount of the deposit (in the case of cash), determined conclusively by appropriate advisers appointed by the Agent (in the case of other charged assets), and determined by the Agent in its discretion (in all other cases)) for the time being provided to the Security Agent under this Clause 17.3 is less than:

		
	(a)
	for the period from the date of this Agreement to, and including, 31 March 2019, 155%;

		
	(b)
	for the period from 1 April 2019 to, and including, 31 March 2020, 150%; and

		
	(c)
	for the period from 1 April 2020 until the end of the Facility Period, 145%,

in each case, of the amount of the Loan then outstanding (the "VTL Coverage"), the Borrowers shall, within 30 days of the Agent's request, at the Borrowers' option:
		
	17.3.3
	pay to the Security Agent or to its nominee a cash deposit in the amount of the shortfall to be secured in favour of the Security Agent as additional security for the payment of the Indebtedness; or 

		
	17.3.4
	give to the Security Agent other additional security in amount and form acceptable to the Security Agent in its discretion; or

		
	17.3.5
	prepay the Loan in the amount of the shortfall. 

Clauses 6.5 (Reborrowing), 7.3.2 (Voluntary prepayment of a Tranche) and 7.7 (Restrictions) shall apply, mutatis mutandis, to any prepayment made under this Clause 17.3 and the value of any additional security provided shall be determined by the Agent in its discretion.
If the Borrowers have provided additional security in accordance with the Agent's request under this Clause 17.3, the Borrowers may no less than 90 days after the Borrowers have provided additional security in accordance with the Agent's request under this Clause 17.3 request that the Agent test compliance with the VTL Coverage. The Borrowers shall bear the cost of valuations obtained by the Agent pursuant to this paragraph to determine the FMV of a Vessel and the value of any additional security provided in accordance with the Agent's request under this Clause 17.3.  If the Agent shall determine when testing compliance with the VTL Coverage pursuant to this paragraph that all or any part of that additional security may be released without resulting in a shortfall in the VTL Coverage, provided that no Event of Default is continuing then the Security Agent shall effect a release of all or any part of that additional security in accordance with the Agent's instructions, but this shall be without prejudice to the Agent's right to make a further request under this Clause 17.3 should the value of the remaining security subsequently merit it.
The Agent may obtain valuations to determine the FMV of a Vessel for the purpose of testing compliance of this Clause 17.3 at any time. Subject to Clause 20.2 (Compliance Certificate), the Agent shall bear the cost of valuations obtained by the Agent to determine the FMV of a Vessel for the purpose of testing compliance of this Clause 17.3 provided that if an Event of Default is continuing the Borrowers shall bear the cost of valuations obtained by the Agent to determine the FMV of a Vessel for the purpose of testing compliance of this Clause 17.3.
		
	17.4
	Contingent Amount   The Borrowers and the Swap Provider have agreed to enter into a Master Agreement for the hedging of the Borrowers' exposure to interest rate fluctuations.   The Borrowers and the Swap Provider have agreed that the Mortgages shall secure any obligations payable by the Borrowers to the Swap Provider at any time pursuant to any Master Agreement in a maximum aggregate amount of up to $53,000,000 and the Swap Provider has further agreed that each of the other Security Documents shall not have any limitation as to the amount payable by the Borrowers to the Swap Provider at any time pursuant to any Master Agreement which is secured by such other Security Documents. 

		
	18
	Guarantee and Indemnity

		
	18.1
	Guarantee and indemnity   The Guarantor irrevocably and unconditionally:

		
	18.1.14
	guarantees to each Finance Party punctual performance by each other Security Party of all that Security Party's obligations under the Finance Documents;

		
	18.1.15
	undertakes with each Finance Party that whenever another Security Party does not pay any amount when due under or in connection with any Finance Document, the Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and

		
	18.1.16
	agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of a Security Party not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by the Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 18 if the amount claimed had been recoverable on the basis of a guarantee.

		
	18.2
	Continuing Guarantee   This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Security Party under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.

		
	18.3
	Reinstatement   If any discharge, release or arrangement (whether in respect of the obligations of any Security Party or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of the Guarantor under this Clause 18 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

		
	18.4
	Waiver of defences   The obligations of the Guarantor under this Clause 18 will not be affected by an act, omission, matter or thing which, but for this Clause 18.4, would reduce, release or prejudice any of its obligations under this Clause 18 (without limitation and whether or not known to it or any Finance Party) including:

		
	18.4.1
	any time, waiver or consent granted to, or composition with, any Security Party or other person;

		
	18.4.2
	the release of any other Security Party or any other person under the terms of any composition or arrangement with any creditor of any Security Party;

		
	18.4.3
	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Security Party or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

		
	18.4.4
	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of a Security Party or any other person;

		
	18.4.5
	any amendment, novation, supplement, extension restatement (however fundamental and whether or not more onerous) or replacement of a Finance Document or any other document or security including, without limitation, any change in the purpose of, any extension of or increase in any facility or the addition of any new facility under any Finance Document or other document or security;

		
	18.4.6
	any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; or

		
	18.4.7
	any insolvency or similar proceedings.

		
	18.5
	Guarantor intent   Without prejudice to the generality of Clause 18.4 (Waiver of defences), the Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in connection with any of the following:  business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing.

		
	18.6
	Immediate recourse   The Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Guarantor under this Clause 18.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

		
	18.7
	Appropriations   Until all amounts which may be or become payable by the Security Parties under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:

		
	18.7.1
	refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Guarantor shall not be entitled to the benefit of the same; and

		
	18.7.2
	hold in an interest-bearing suspense account any moneys received from the Guarantor or on account of the Guarantor's liability under this Clause 18.

		
	18.8
	Deferral of Guarantor's rights   Until all amounts which may be or become payable by the Security Parties under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, the Guarantor will not exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 18:

		
	18.8.1
	to be indemnified by a Security Party;

		
	18.8.2
	to claim any contribution from any other guarantor of any Security Party's obligations under the Finance Documents;

		
	18.8.3
	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

		
	18.8.4
	to bring legal or other proceedings for an order requiring any Security Party to make any payment, or perform any obligation, in respect of which the Guarantor has given a guarantee, undertaking or indemnity under Clause 18.1 (Guarantee and indemnity);

		
	18.8.5
	to exercise any right of set-off against any Security Party; and/or

		
	18.8.6
	to claim or prove as a creditor of any Security Party in competition with any Finance Party.

If the Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Security Parties under or in connection with the Finance Documents to be repaid in full on trust for the Finance Parties and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with Clause 29 (Payment mechanics).
		
	18.9 
	Additional security   This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party.

		
	18.10
	Subordination   The Guarantor agrees and undertakes with the Finance Parties that all claims of whatsoever nature which it has or may have at any time against the Borrowers or any of them or any other Security Party or any of their respective property or assets shall rank after and be in all respects subordinate to any and all claims, whether actual or contingent, which the Finance Parties have or may have at any time against the Borrowers or any of them or such other Security Party or any of its property or assets and that it will not without the prior written consent of the Agent (acting on the instructions of the Majority Lenders):

		
	18.10.1
	demand or accept payment in whole or in part of any moneys owing to it by the Borrowers or any of them or any other Security Party;

		
	18.10.2
	take any steps to enforce its rights to recover any moneys owing to it by the Borrowers or any of them or any other Security Party and more particularly (but without limitation) take or issue any judicial or other legal proceedings against the Borrowers or any of them or other Security Party or any of their respective property or assets; or

		
	18.10.3
	prove in the liquidation or other dissolution of the Borrowers or any of them or other Security Party in competition with a Finance Party.

		
	Section 8
	Representations, Undertakings and Events of Default

		
	19
	Representations

		
	19.1
	Representations   Each Borrower and the Guarantor make the representations and warranties set out in this Clause 19 to each Finance Party.

		
	19.1.6
	Status   Each of the Security Parties:

		
	(a)
	is a corporation duly incorporated and validly existing under the law of its jurisdiction of incorporation; and

		
	(b)
	has the power to own its assets and carry on its business as it is being conducted.

		
	19.1.7
	Binding obligations   Subject to the Legal Reservations:

		
	(c)
	the obligations expressed to be assumed by each of the Security Parties in each of the Relevant Documents to which it is a party are legal, valid, binding and enforceable obligations; and

		
	(d)
	(without limiting the generality of Clause 19.1.2(a)) each Security Document to which it is a party creates the security interests which that Security Document purports to create and those security interests are valid and effective.

		
	19.1.8
	Non-conflict with other obligations   The entry into and performance by each of the Security Parties of, and the transactions contemplated by, the Relevant Documents do not conflict with: 

		
	(a)
	any law or regulation applicable to such Security Party;

		
	(b)
	the constitutional documents of such Security Party; or

		
	(c)
	any agreement or instrument binding upon such Security Party or any of such Security Party's assets or constitute a default or termination event (however described) under any such agreement or instrument.

		
	19.1.9
	Power and authority

		
	(a)
	Each of the Security Parties has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Relevant Documents to which it is or will be a party and the transactions contemplated by those Relevant Documents.

		
	(b)
	No limit on the powers of any Security Party will be exceeded as a result of the borrowing, grant of security or giving of guarantees or indemnities contemplated by the Relevant Documents to which it is a party.

		
	19.1.10
	Validity and admissibility in evidence   All Authorisations required or desirable:

		
	(a)
	to enable each of the Security Parties lawfully to enter into, exercise its rights and comply with its obligations in the Relevant Documents to which it is a party or to enable each Finance Party to enforce and exercise all its rights under the Relevant Documents; and

		
	(b)
	to make the Relevant Documents to which any Security Party is a party admissible in evidence in its Relevant Jurisdictions,

have been obtained or effected and are in full force and effect.
		
	19.1.11
	Governing law and enforcement

		
	(a)
	The choice of governing law of any Finance Document will be recognised and enforced in the Relevant Jurisdictions of each relevant Security Party.

		
	(b)
	Any judgment obtained in relation to any Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in the Relevant Jurisdictions of each relevant Security Party.

		
	19.1.12
	Insolvency   No corporate action, legal proceeding or other procedure or step described in Clause 23.1.7 (Insolvency proceedings) or creditors' process described in Clause 23.1.8 (Creditors' process) has been taken or threatened in relation to a Security Party; and none of the circumstances described in Clause 23.1.6 (Insolvency) applies to a Security Party.

		
	19.1.13
	No filing or stamp taxes   Under the laws of the Relevant Jurisdictions of each relevant Security Party it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in any of those jurisdictions or that any stamp, registration, notarial or similar tax or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except registration of each Mortgage at the Ships Registry where title to the relevant Vessel is registered in the ownership of the relevant Borrower and payment of associated fees, which registration, filing, taxes and fees will be made and paid promptly after the date of the relevant Finance Document.

		
	19.1.14
	Deduction of Tax   None of the Security Parties is required under the law of its jurisdiction of incorporation to make any deduction for or on account of Tax from any payment it may make under any Finance Document to a Lender.

		
	19.1.15
	No default

		
	(a)
	No Event of Default and, on the date of this Agreement and each Drawdown Date, no Default has occurred and is continuing or is reasonably likely to result from the advance of any Tranche or the entry into, the performance of, or any transaction contemplated by, any of the Relevant Documents.

		
	(b)
	No other event or circumstance is outstanding which constitutes (or, with the expiry of a grace period, the giving of notice, the making of any determination or any combination of any of the foregoing, would constitute) a default or termination event (howsoever described) under any other agreement or instrument which is binding on any of the Security Parties or to which its assets are subject which has or is reasonably likely to have a Material Adverse Effect.

		
	19.1.16
	No misleading information   Save as disclosed in writing to the Agent and the Arranger prior to the date of this Agreement:

		
	(a)
	all material information provided to a Finance Party by or on behalf of any of the Security Parties on or before the date of this Agreement and not superseded before that date is accurate and not misleading in any material respect and all projections provided to any Finance Party on or before the date of this Agreement have been prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied; and

		
	(b)
	all other written information provided by any of the Security Parties  (including its advisers) to a Finance Party was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any respect.

		
	19.1.17
	Financial statements

		
	(a)
	The Original Financial Statements were prepared in accordance with IFRS consistently applied.

		
	(b)
	The audited Original Financial Statements give a true and fair view of the Guarantor's financial condition and results of operations during the relevant financial year.

		
	(c)
	There has been no material adverse change in the Guarantor's assets, business or financial condition since the date of the Original Financial Statements.

		
	(d)
	The Guarantor's most recent financial statements delivered pursuant to Clause 20.1 (Financial statements):

		
	(i)
	have been prepared in accordance with IFRS as applied to the Original Financial Statements; and

		
	(ii)
	give a true and fair view of (if audited) or fairly represent (if unaudited) its consolidated financial condition as at the end of, and consolidated results of operations for, the period to which they relate.

		
	(e)
	Since the date of the most recent financial statements delivered pursuant to Clause 20.1 (Financial statements) there has been no material adverse change in the business, assets or financial condition of the Guarantor.

		
	19.1.18
	No proceedings pending or threatened   No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which are reasonably likely to have a Material Adverse Effect have been started or threatened against any of the Security Parties.

		
	19.1.19
	No breach of laws   None of the Security Parties has breached any law or regulation which breach has or is reasonably likely to have a Material Adverse Effect.

		
	19.1.20
	Environmental laws

		
	(a)
	Each of the Security Parties is in compliance with Clause 22.3 (Environmental compliance) and no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or is reasonably likely to have a Material Adverse Effect.

		
	(b)
	No Environmental Claim has been commenced or is threatened against any of the Security Parties where that claim has or is reasonably likely, if determined against that Security Party, to have a Material Adverse Effect.

		
	19.1.21
	Taxation

		
	(a)
	None of the Security Parties is materially overdue in the filing of any Tax returns or is overdue in the payment of any amount in respect of Tax.

		
	(b)
	No claims or investigations are being, or are reasonably likely to be, made or conducted against any of the Security Parties with respect to Taxes.

		
	(c)
	Each of the Security Parties is resident for Tax purposes only in its Original Jurisdiction.

		
	19.1.22
	Anti-corruption law   Each of the Security Parties and each Affiliate of any of them has conducted its businesses in compliance with applicable anti-corruption laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

		
	19.1.23
	No Encumbrance or Financial Indebtedness

		
	(a)
	No Encumbrance exists over all or any of the present or future assets of the Borrowers.

		
	(b)
	The Borrowers do not have any Financial Indebtedness outstanding other than as permitted by this Agreement.

		
	19.1.24
	Pari passu ranking   The payment obligations of each of the Security Parties under the Finance Documents to which it is a party rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

		
	19.1.25
	No adverse consequences

		
	(a)
	It is not necessary under the laws of the Relevant Jurisdictions of any of the Security Parties:

		
	(i)
	in order to enable any Finance Party to enforce its rights under any Finance Document; or

		
	(ii)
	by reason of the execution of any Finance Document or the performance by it of its obligations under any Finance Document,

that any Finance Party should be licensed, qualified or otherwise entitled to carry on business in any of the Relevant Jurisdictions of any of the Security Parties.
		
	(b)
	No Finance Party is or will be deemed to be resident, domiciled or carrying on business in any of the Relevant Jurisdictions of any of the Security Parties by reason only of the execution, performance and/or enforcement of any Finance Document.

		
	19.1.26
	Disclosure of material facts   No Borrower nor the Guarantor is aware of any material facts or circumstances which have not been disclosed to the Agent and which might, if disclosed, have adversely affected the decision of a person considering whether or not to make loan facilities of the nature contemplated by this Agreement available to the Borrowers.

		
	19.1.27
	Completeness of Relevant Documents   The copies of any Relevant Documents provided or to be provided by the Borrowers to the Agent in accordance with Clause 4 (Conditions of Utilisation) are, or will be, true and accurate copies of the originals and represent, or will represent, the full agreement between the parties to those Relevant Documents in relation to the subject matter of those Relevant Documents and there are no commissions, rebates, premiums or other payments due or to become due in connection with the subject matter of those Relevant Documents other than in the ordinary course of business or as disclosed to, and approved in writing by, the Agent.

		
	19.1.28 
	No Immunity   No Security Party or any of its assets is immune to any legal action or proceeding

		
	19.1.29
	Money laundering   Any borrowing by a Borrower under this Agreement, and the performance of its obligations under this Agreement and under the other Finance Documents, will be for its own account and will not involve any breach by it of any law or regulatory measure relating to "money laundering" as defined in Article 1 of the Directive (2005/EC/60) of the European Parliament and of the Council of the European Communities.

		
	19.1.30
	Sanctions   As regards Sanctions:

		
	(a)
	none of the Security Parties or any Affiliate of any of them is a Prohibited Person or is owned or controlled by, or acting directly or indirectly on behalf of or for the benefit of, a Prohibited Person and none of such persons owns or controls a Prohibited Person;

		
	(b)
	no proceeds of the Loan shall be made available, directly or indirectly, to or for the benefit of a Prohibited Person or otherwise shall be, directly or indirectly, applied in a manner or for a purpose prohibited by Sanctions; and

		
	(c)
	each of the Security Parties and each Affiliate of any of them is in compliance with all Sanctions.

		
	19.1.31
	Patriot Act   To the extent applicable the Borrowers and the Guarantor are in compliance with (i) the Trading with the Enemy Act, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R, Subtitle B, Chapter V) and any other enabling legislation or executive order relating thereto and (ii) the Patriot Act.  No part of the proceeds of the Loan will be used, directly or indirectly, for any payments to any government official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

		
	19.2
	Repetition   Each Repeating Representation is deemed to be repeated by each Borrower and the Guarantor by reference to the facts and circumstances then existing on the date of each Drawdown Request, on each Drawdown Date, on the first day of each Interest Period.

		
	20
	Information Undertakings

The undertakings in this Clause 20 remain in force for the duration of the Facility Period.  
		
	20.1
	Financial statements   The Guarantor shall supply to the Agent in sufficient copies for all of the Lenders:

		
	20.1.1
	as soon as the same become available, but in any event within 150 days after the end of each of its financial years, its audited consolidated financial statements for that financial year; and

		
	20.1.2
	as soon as the same become available, but in any event within 90 days after the end of each quarter during each of its financial years, its unaudited consolidated quarterly financial statements for that quarter.

		
	20.2
	Compliance Certificate

		
	20.2.8
	The Guarantor shall supply to the Agent, with each set of its financial statements delivered pursuant to Clause 20.1 (Financial statements) a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 21 (Financial Covenants) as at the date as at which those financial statements were drawn up.

		
	20.2.9
	The Guarantor shall supply to the Agent, with each set of its annual financial statements, and every 6 months thereafter, delivered pursuant to Clause 20.1.1 (Financial statements), valuations issued no more than 30 days prior to such date by two Approved Shipbrokers evidencing the FMV of the Vessels (following the relevant Delivery Date) which the Agent shall use in order to determine compliance with Clause 17.3 (Additional Security), such valuations being at the cost of the Borrowers.

		
	20.2.10 
	Each Compliance Certificate shall be signed by a director or officer of the Guarantor.

		
	20.3
	Requirements as to financial statements

Each set of financial statements delivered by the Guarantor under Clause 20.1 (Financial statements):
		
	20.3.1
	shall be certified by a director of the Guarantor as giving a true and fair view of (in the case of annual financial statements), or fairly representing (in other cases), its financial condition as at the date as at which those financial statements were drawn up; and

		
	20.3.2
	shall be prepared using IFRS, accounting practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements unless, in relation to any set of financial statements, it notifies the Agent that there has been a change in IFRS, the accounting practices or reference periods and its auditors deliver to the Agent:

		
	(e)
	a description of any change necessary for those financial statements to reflect the IFRS, accounting practices and reference periods upon which the Original Financial Statements were prepared; and

		
	(f)
	sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Agent to determine whether Clause 21 (Financial Covenants) has been complied with and make an accurate comparison between the financial position indicated in those financial statements and the Original Financial Statements. If, at any time after the date of this Agreement, the IFRS requirements materially change so as to impact the financial covenants set out in Clauses 21.1, 21.2, 21.3 and 21.4, the Borrowers shall notify the Agent and the Lenders and, if agreed between the Borrowers and the Lenders, this Agreement shall be amended and/or supplemented to reflect these changes.

Any reference in this Agreement to those financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial Statements were prepared.
		
	20.4
	Information: miscellaneous   Each Borrower and the Guarantor shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):

		
	20.4.1
	at the same time as they are dispatched, copies of all documents dispatched by a Security Party to its shareholders generally (or any class of them) or dispatched by any Security Party to its creditors generally (or any class of them);

		
	20.4.2
	promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any Security Party, and which are reasonably likely to have a Material Adverse Effect;

		
	20.4.3
	promptly, such information as the Security Agent may reasonably require about the Charged Property and compliance of the Security Parties with the terms of any Security Documents including without limitation cash flow analyses and details of the operating costs of any Vessel; 

		
	20.4.4
	promptly on request, such further information regarding the financial condition, assets and operations of any Security Party (including any requested amplification or explanation of any item in the financial statements, budgets or other material provided by any Security Party under this Agreement, any changes to management of a Borrower or the Guarantor and an up to date copy of its shareholders' register (or equivalent in its Original Jurisdiction)) as any Finance Party through the Agent may reasonably request; and

		
	20.4.5
	promptly on request, such further information as any Finance Party through the Agent may reasonably request.

		
	20.5
	Notification of default

		
	20.5.3
	Each Borrower and the Guarantor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence.

		
	20.5.4
	Promptly upon a request by the Agent, each Borrower shall supply to the Agent a certificate signed by two of its directors or senior officers on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

		
	20.6
	"Know your customer" checks

		
	20.6.7
	If:

		
	(a)
	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

		
	(b)
	any change in the status of a Security Party after the date of this Agreement; or

		
	(c)
	a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

obliges the Agent or any Lender (or, in the case of Clause 20.6.1(c), any prospective new Lender) to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, each Borrower shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in Clause 20.6.1(c), on behalf of any prospective new Lender) in order for the Agent, such Lender or, in the case of the event described in Clause 20.6.1(c), any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents including without limitation obtaining, verifying and recording certain information and documentation that will allow the Agent and any Lender to identify each Security Party in accordance with the requirements to the Patriot Act.
		
	20.6.8
	Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

		
	21
	Financial Covenants

The following financial covenants shall apply to the Guarantor on a consolidated basis throughout the Facility Period, to be tested by reference to each set of its annual financial statements delivered pursuant to Clause 20.1.1 (Financial statements) and each set of its management accounts delivered pursuant to Clause 20.1.2 (Financial statements):
		
	21.1
	Minimum Liquidity   Cash and Cash Equivalents shall at all times be the greater of (i) $25,000,000 and (ii) the sum of (A) $500,000 per vessel owned by the Group and (B) $250,000 per vessel time chartered in to the Group (the “Minimum Liquidity”). For the purpose of this test, Cash and Cash Equivalents can include unutilised and freely available parts of revolving credit facilities (where no default or termination event has occurred and is continuing and there is no restriction on borrowing under such facilities) with a maturity date in excess of 12 months after the date of the annual financial statements delivered pursuant to Clause 20.1.1 (Financial statements) or the financial statements delivered pursuant to Clause 20.1.2 (Financial statements) (as the case may be) provided that 50% of the Minimum Liquidity shall at all times consist of Cash.

		
	21.2
	Minimum Tangible Net Worth   The Guarantor shall maintain a Consolidated Tangible Net Worth of not less than $1,000,000,000 plus (a) 25% of the Guarantor's cumulative, positive consolidated net income for each fiscal quarter commencing on or after 1 January 2016 and (b) 50% of the value of the equity proceeds realized from any issuance of equity interests in the Guarantor occurring on or after 1 January 2016.

		
	21.3
	Maximum Leverage   A ratio of Net Debt to Consolidated Total Capitalisation of not more than 0.60 to 1.00.

		
	21.4
	Minimum Interest Coverage   A ratio of Consolidated EBITDA to Consolidated Net Interest Expense calculated on a four quarter trailing basis equal to or greater than 2.50 to 1.00. 

Following the date of this Agreement, should IFRS requirements materially change so as to impact the covenants detailed in this Clause 21, the Guarantor and the Agent shall discuss the required amendments to the covenants detailed in this Clause 21 so as to reflect such changes to IFRS.
The following definitions shall apply to this Clause 21:
“Cash” means any credit balance on any deposit, savings, current or other account, and any cash in hand held with banks or other financial institutions of the Group which is:
		
	(a)
	freely withdrawable on demand;

		
	21.4.5
	not subject to any Encumbrance (other than pursuant to any Security Document); 

		
	21.4.6
	denominated and payable in a freely transferable and freely convertible currency; and

		
	21.4.7
	capable of being remitted to the Group.

 “Cash Equivalents” means: 
		
	(a)
	unencumbered securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof);

		
	(b)
	time deposits, certificates of deposit or deposits (in each case, unencumbered) in the interbank market of any commercial bank of recognized standing organized under the laws of the United States of America, any state thereof or any foreign jurisdiction having capital and surplus in excess of $500,000,000; and 

		
	(c)
	such other securities or instruments as the Majority Lenders shall agree in writing,

and in respect of both (a) and (b) above, with a rating category of at least “A-” by Standard & Poor's Rating Services and “A” by Moody's Investors Service Limited (or the equivalent used by another rating agency) (provided that, in the case of (b) above only, such rating category shall not be applicable for time deposits, certificates of deposit or deposits (in each case, unencumbered) in the interbank market of any commercial bank which is a Lender), and in each case having maturities of not more than ninety (90) days from the date of acquisition.
“Consolidated EBITDA” means, for any accounting period, the consolidated net income of the Guarantor for that accounting period:
		
	(a)
	plus, to the extent deducted in computing the net income of the Guarantor for that accounting period, the sum, without duplication, of:

		
	(i)
	    all federal, state, local and foreign income taxes and tax distributions;

		
	(ii)
	Consolidated Net Interest Expense; 

		
	(iii)
	depreciation, depletion, amortization of intangibles and other non-cash charges or non-cash losses (including non-cash transaction expenses and the amortization of debt discounts) and any extraordinary losses not incurred in the ordinary course of business;

		
	(iv)
	expenses incurred in connection with a special or intermediate survey (including any underwater survey done in lieu thereof) of a vessel owned by the Group during such period; and

		
	(v)
	any drydocking expenses; 

		
	(b)
	    minus, to the extent added in computing the consolidated net income of the Guarantor for that accounting period, (i) any non-cash income, non-cash gains and (ii) any extraordinary gains on asset sales not incurred in the ordinary course of business.

“Consolidated Funded Debt” means, for any accounting period, the sum of the following for the Guarantor determined (without duplication) on a consolidated basis for such period and in accordance with IFRS consistently applied: 
		
	(a)
	all Financial Indebtedness; and 

		
	(%3)
	all obligations to pay a specific purchase price for goods or services whether or not delivered or accepted (including take-or-pay and similar obligations which in accordance with IFRS would be shown on the liability side of a balance sheet),

provided that balance sheet accruals for future dry docking expenses shall not be classified as Consolidated Funded Debt.
“Consolidated Net Interest Expense” means the aggregate of all interest, commissions, discounts and other costs, charges or expenses accruing that are due from the Guarantor and all of its Subsidiaries during the relevant accounting period less (i) interest income received, (ii) commitment fees and (iii) amortization of deferred charges and arrangement fees, determined on a consolidated basis in accordance with IFRS and as shown in the consolidated statements of income for the Guarantor.
“Consolidated Tangible Net Worth” means, on a consolidated basis, the total shareholders’ equity (including retained earnings) of the Guarantor, minus goodwill.
“Consolidated Total Capitalization” means Consolidated Tangible Net Worth plus Consolidated Funded Debt.
“Net Debt” means Financial Indebtedness less Cash and Cash Equivalents.
		
	22
	General Undertakings

The undertakings in this Clause 22 remain in force for the duration of the Facility Period.
		
	22.1
	Authorisations   Each Borrower and the Guarantor shall promptly:

		
	22.1.3
	obtain, comply with and do all that is necessary to maintain in full force and effect; and

		
	22.1.4
	supply certified copies to the Agent of, 

any Authorisation required under any law or regulation of a Relevant Jurisdiction to:
		
	(a)
	enable any Security Party to perform its obligations under the Finance Documents to which it is a party;

		
	(b)
	ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document; and

		
	(c)
	enable any Security Party to carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

		
	22.2
	Compliance with laws

Each Borrower and the Guarantor shall comply (and shall procure that each other Security Party and each Affiliate of any of them shall comply), in all respects with all laws to which it may be subject, if (except as regards anti-corruption laws, to which Clause 22.5 applies) failure so to comply has or is reasonably likely to have a Material Adverse Effect.
		
	22.3
	Environmental compliance

Each Borrower and the Guarantor shall:
		
	22.3.8
	comply with all Environmental Laws;

		
	22.3.9
	obtain, maintain and ensure compliance with all requisite Environmental Approvals; and

		
	22.3.10
	implement procedures to monitor compliance with and to prevent liability under any Environmental Law,

where failure to do so has or is reasonably likely to have a Material Adverse Effect.
		
	22.4
	Environmental Claims

Each Borrower and the Guarantor shall promptly upon becoming aware of the same, inform the Agent in writing of:
		
	22.4.9
	any Environmental Claim against any of the Security Parties which is current, pending or threatened; and

		
	22.4.10
	any facts or circumstances which are reasonably likely to result in any Environmental Claim being commenced or threatened against any of the Security Parties,

where the claim, if determined against that Security Party, has or is reasonably likely to have a Material Adverse Effect.
		
	22.5
	Anti-corruption law

		
	22.5.1
	Each Borrower and the Guarantor shall not (and shall procure that no other Security Party will) directly or indirectly use the proceeds of the Loan for any purpose which would breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other similar legislation in other jurisdictions.

		
	22.5.2
	Each Borrower and the Guarantor shall (and shall procure that each other Security Party and each Affiliate of any of them shall):

		
	(a)
	conduct its businesses in compliance with applicable anti-corruption laws; and

		
	(b)
	maintain policies and procedures designed to promote and achieve compliance with such laws.

		
	22.6
	Taxation

		
	22.6.4
	Each Borrower and the Guarantor shall (and shall procure that each other Security Party shall) pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

		
	(d)
	such payment is being contested in good faith;

		
	(e)
	adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered to the Agent under Clause 20.1 (Financial statements); and

		
	(f)
	such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

		
	22.6.5
	No Borrower nor the Guarantor may (and no other Security Party may) change its residence for Tax purposes.

		
	22.7
	Existence and good standing    Each Borrower and the Guarantor shall procure that each Security Party shall do or cause to be done all things necessary to preserve and keep in full force and effect its existence in good standing under the laws of its jurisdiction of incorporation or formation and each Borrower will from time to time if requested by the Agent provide the Agent with evidence in form and substance satisfactory to the Agent that the Security Parties and all corporate shareholders of any of the Security Parties remain in good standing

		
	22.8
	Pari passu ranking   Each Borrower and the Guarantor shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

		
	22.9
	Negative pledge

In this Clause 22.9 "Quasi-Security" means an arrangement or transaction described in Clause 22.9.2.
Except as permitted under Clause 22.9.3:
		
	22.9.1
	no Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will) create nor permit to subsist any Encumbrance over any of its assets; and

		
	22.9.2
	no Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will):

		
	(a)
	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by a Security Party;

		
	(b)
	sell, transfer or otherwise dispose of any of its receivables on recourse terms;

		
	(c)
	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

		
	(d)
	enter into any other preferential arrangement having a similar effect,

		
	(e)
	in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

		
	22.9.3
	Clauses 22.9.1 and 22.9.2 do not apply to any Encumbrance or (as the case may be) Quasi-Security, which is a Permitted Encumbrance.

		
	22.10
	Disposals

		
	22.10.1
	Except as permitted under Clause 22.10.2, no Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will) without the prior written consent of the Agent enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

		
	22.10.2
	Clause 22.10.1 does not apply to any sale, lease, transfer or other disposal which is a Permitted Disposal.

		
	22.11
	Arm's length basis

		
	22.11.1
	Except as permitted under Clause 22.11.2, no Borrower shall (and shall procure that no other Security Party will) enter into any transaction with any person except on arm's length terms and for full market value.

		
	22.11.2
	Fees, costs and expenses payable under the Relevant Documents in the amounts set out in the Relevant Documents delivered to the Agent under Clause 4.1 (Initial conditions precedent) or agreed by the Agent shall not be a breach of this Clause 22.11.

		
	22.12
	Affiliate transactions  None of the Borrowers or the Guarantor shall enter into any transaction or series of related transactions, whether or not in the ordinary course of business, with any Affiliate other than on terms and conditions substantially as favorable to such Borrower or the Guarantor as would be obtainable by it at the time in a comparable arm’s-length transaction with a person other than an Affiliate.  

		
	22.13
	Merger   No Borrower shall (and shall procure that no other Security Party will) enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction.

		
	22.14
	Change of business   No Borrower shall (and shall procure that no other Security Party will) make any substantial change to the general nature of its business from that carried on at the date of this Agreement.

		
	22.15
	No other business   No Borrower shall engage in any business other than the ownership, operation, chartering and management of the relevant Vessel.

		
	22.16
	No acquisitions   No Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will) acquire a company or any shares or securities or a business or undertaking (or, in each case, any interest in any of them) or incorporate a company.

		
	22.17
	No Joint Ventures   No Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will):

		
	22.17.1
	enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

		
	22.17.2
	transfer any assets or lend to or guarantee or give an indemnity for or give security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

		
	22.18
	No borrowings   

		
	22.18.1
	No Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will) incur or allow to remain outstanding any Financial Indebtedness except for:

(a)    the Loan; or
		
	(b)
	under any Master Agreement; or

		
	(c)
	any Financial Indebtedness arising in the ordinary course of business in connection with the chartering, operation or repair of a Vessel; or

		
	(d)
	any Financial Indebtedness existing on the date of this Agreement which has been disclosed to and approved by the Majority Lenders in writing; or

		
	(e)
	subject to Clause 22.19, loans made to a Borrower by an Affiliate, parent or subsidiary.

		
	22.18.2
	None of the Borrowers shall incur unsecured trade credit exceeding $3,000,000 on its Vessel at any time.

		
	22.19
	Subordination of loans  Each of the Borrowers and the Guarantor shall cause all loans made to it or to any other Security Party by any Affiliate and all sums and other obligations (financial or otherwise) owed by it to any Affiliate be unsecured and fully subordinated to the rights of the Finance Parties under the Finance Documents on terms acceptable to the Majority Lenders.

		
	22.20
	No substantial liabilities   Except in the ordinary course of business, no Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will) incur any liability to any third party which is in the Agent's opinion of a substantial nature.

		
	22.21
	No loans or credit   No Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will) be a creditor in respect of any Financial Indebtedness unless it is a loan made in the ordinary course of business in connection with the chartering, operation or repair of the relevant Vessel.

		
	22.22
	No guarantees or indemnities   No Borrower shall (and shall procure that no other Security Party (other than the Guarantor) will) incur or allow to remain outstanding any guarantee in respect of any obligation of any person.

		
	22.23
	Dividends

		
	22.23.1
	    If an Event of Default has occurred and is continuing, or if an Event of Default would result therefrom, or if the Guarantor is not in compliance with any of the covenants in Clause 21 (Financial covenants) hereof or any payment of dividends or any form of distribution or return of capital would result in the Guarantor not being in compliance with any of the covenants in Clause 21 (Financial covenants), the Guarantor shall not declare or pay any dividends or return any capital to its equity holders or authorize or make any other distribution, payment or delivery of property or cash to its equity holders, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for value, any interest of any class or series of its share capital (or acquire any rights, options or warrants relating thereto but not including convertible debt) now or hereafter outstanding, or repay any subordinated loans to equity holders or set aside any funds for any of the foregoing purposes.

		
	22.23.2
	If an Event of Default has occurred and is continuing, or if an Event of Default would result therefrom, no Borrower shall declare or pay any dividends or return any capital to its equity holders or authorize or make any other distribution, payment or delivery of property or cash to its equity holders, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for value, any interest of any class or series of its share capital (or acquire any rights, options or warrants relating thereto but not including convertible debt) now or hereafter outstanding, or repay any subordinated loans to equity holders or set aside any funds for any of the foregoing purposes.

		
	22.24
	Maintenance and Inspection of records   Each of the Borrowers and the Guarantor shall keep separate and proper books of record and account in which full and materially correct entries shall be made of all financial transactions and the assets and business of each of the Guarantor and the Borrowers in accordance with IFRS, and the Agent shall have the right to inspect the books and records of each of the Guarantor and the Borrowers wherever the same may be kept from time to time as it sees fit, in its sole reasonable discretion, or to cause an examination to be made by a firm of accountants selected by it, provided that any examination shall be done without undue interference with the day to day business operations of the Guarantor or the Borrowers, as the case may be.

		
	22.25
	No change in Relevant Documents   No Borrower nor the Guarantor shall (and shall procure that no other Security Party will) amend, vary, novate, supplement, supersede, waive or terminate any term of, any of the Relevant Documents which are not Finance Documents and excluding the Management Agreement, or any other document delivered to the Agent pursuant to Clause 4.1 (Initial conditions precedent) or Clause 4.2 (Further conditions precedent) or Clause 4.3 (Conditions subsequent).

		
	22.26
	Further assurance

		
	22.26.1
	Each Borrower and the Guarantor shall (and shall procure that each other Security Party shall) promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Security Agent may reasonably specify (and in such form as the Security Agent may reasonably require in favour of the Security Agent or its nominee(s)):

		
	(a)
	to perfect any Encumbrance created or intended to be created under or evidenced by the Security Documents (which may include the execution of a mortgage, charge, assignment or other Encumbrance over all or any of the assets which are, or are intended to be, the subject of the Security Documents) or for the exercise of any rights, powers and remedies of the Security Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law;

		
	(b)
	to confer on the Security Agent or confer on the Finance Parties an Encumbrance over any property and assets of that Borrower (or that other Security Party as the case may be) located in any jurisdiction equivalent or similar to the Encumbrance intended to be conferred by or pursuant to the Security Documents; and/or

		
	(c)
	to facilitate the realisation of the assets which are, or are intended to be, the subject of the Security Documents.

		
	22.26.2
	Each Borrower and the Guarantor shall (and shall procure that each other Security Party shall) take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Encumbrance conferred or intended to be conferred on the Security Agent or the Finance Parties by or pursuant to the Finance Documents.

		
	22.27 
	No dealings with Master Agreement   No Borrower shall assign, novate or encumber or in any other way transfer any of its rights or obligations under the Master Agreement (other than the Master Agreement Proceeds Assignment), nor enter into any interest rate exchange or hedging agreement with anyone other than the Swap Provider.

		
	22.28 
	Permitted Transactions  No Borrower shall maintain outstanding Transactions the aggregate notional amount of which shall exceed the amount of the relevant Tranche from time to time.

		
	22.29 
	Employees and ERISA Compliance   No Borrower nor the Guarantor shall employ any individuals, sponsor, maintain or become obligated to contribute to any Plan or any other pension scheme.  Each Borrower and the Guarantor shall provide prompt written notice to the Agent in the event that such Borrower or the Guarantor becomes aware that it has incurred or is reasonably likely to incur any liability with respect to any Plan or any other pension scheme, that, individually or in the aggregate with any other such liability would be reasonably expected to have a Material Adverse Effect.

		
	22.30
	Sanctions

		
	22.30.1
	Each Borrower and the Guarantor:

		
	(a)
	undertakes that it, each Security Party, any other member of the Group, or any Affiliate of any of them, or any director, officer, agent, employee or person acting on behalf of any of the foregoing, is not a Restricted Person and does not act directly or indirectly on behalf of a Restricted Person;

		
	(b)
	shall, and shall procure that each Security Party, each other member of the Group, and each Affiliate of any of them, shall, not use any revenue or benefit derived from any activity or dealing with a Restricted Person in breach of applicable Sanctions in discharging any obligation due or owing to the Finance Parties;

		
	(c)
	shall procure that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with any Finance Party in its name, in the name of any Security Party, in the name of any other member of the Group, or any Affiliate of any of them;

		
	(d)
	undertakes that it, each Security Party, each other member of the Group, and each Affiliate of any of them, has taken reasonable measures to ensure compliance with applicable Sanctions;

		
	(e)
	shall, and shall procure that each Security Party and each other member of the Group shall, to the extent permitted by law promptly upon becoming aware of them supply to the Agent details of any claim, action, suit, proceedings or investigation against it with respect to Sanctions by any Sanctions Authority; and

		
	(f)
	shall not accept, obtain or receive any goods or services from any Restricted Person, except (without limiting Clause 22.2 (Compliance with laws)), to the extent relating to any warranties and/or guarantees given and/or liabilities incurred in respect of an activity or dealing with a Restricted Person by a Security Party in accordance with this Agreement. 

		
	22.31
	Assignment of Claims  The Guarantor shall not assign any claims that it may have against another Security Party, against a Vessel or in respect of a Relevant Document.

		
	22.32
	Use of proceeds

		
	22.32.1
	No Borrower nor the Guarantor shall, and shall procure that each Security Party, any other member of the Group, and any Affiliate of any of them, shall not, permit or authorise any other person to, directly or indirectly, use, lend, make payments of, contribute or otherwise make available, all or any part of the proceeds of the Loan or other transactions contemplated by this Agreement to fund or facilitate trade, business or other activities: (i) involving or for the benefit of any Restricted Person; or (ii) in any other manner that could result in any Security Party or a Finance Party being in breach of any Sanctions or becoming a Restricted Person. 

		
	22.32.2
	Each Party acknowledges and agrees that the Borrowers and the Guarantor do not undertake the requirements under Clause 22.32.1 in favour of any Lender incorporated or having its registered office in the Federal Republic of Germany and no such Lender shall have any right thereunder and shall be deemed not to be a party to the provisions of this Clause 22.32.

		
	22.33
	NYSE listing  The Guarantor shall maintain its listing on the New York Stock Exchange.

		
	22.34
	Vessel Scrapping  Any decision regarding the scrapping of any Vessel shall take into account the environmental impact of such decision and the Borrowers will explore commercially and technically viable opportunities to lessen such impact, including through utilization of "green" scrap yards.

		
	23
	Events of Default

		
	23.1
	Events of Default   Each of the events or circumstances set out in this Clause 23.1 is an Event of Default.

		
	23.1.6
	Non-payment   A Security Party does not pay on the due date any amount payable by it under a Finance Document at the place at and in the currency in which it is expressed to be payable unless:  

(a)    its failure to pay is caused by:
		
	(i)
	administrative or technical error; or

		
	(ii)
	a Disruption Event; and

(b)    payment is made within three Business Days of its due date.
		
	23.1.7
	Other specific obligations

		
	(a)
	Any requirement of Clause 21 (Financial Covenants) is not satisfied.

		
	(b)
	A Security Party does not comply with any obligation in a Finance Document relating to the Insurances or with Clause 17.3 (Additional security).

		
	23.1.8
	Other obligations

		
	(g)
	A Security Party does not comply with any provision of a Finance Document (other than those referred to in Clause 23.1.1 (Non-payment) and Clause 23.1.2 (Other specific obligations).

		
	(h)
	No Event of Default under this Clause 23.1.3 will occur if the failure to comply is capable of remedy and is remedied within ten Business Days of the earlier of (i) the Agent giving notice to the Borrowers and (ii) the Borrowers becoming aware of the failure to comply.

		
	23.1.9
	Misrepresentation   Any representation or statement made or deemed to be repeated by a Security Party in any Finance Document or any other document delivered by or on behalf of a Security Party under or in connection with any Finance Document is or proves to have been incorrect or misleading when made or deemed to be made.

		
	23.1.10
	Cross default   Any Financial Indebtedness of the Borrowers or the Guarantor:

		
	(a)
	is not paid when due nor within any originally applicable grace period; or 

		
	(b)
	is declared to be, or otherwise becomes, due and payable prior to its specified maturity as a result of an event of default (however described); or

		
	(c)
	is capable of being declared by a creditor to be due and payable prior to its specified maturity as a result of such an event.

No Event of Default will occur under this Clause 23.1.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within (a)(a) to (c) is either:
		
	(i)
	in the case of any Borrower, less than $1,000,000 or its equivalent in any other currency or currencies (unless such sum is being contested in good faith and through appropriate proceedings for which adequate reserves in accordance with IFRS have been established and maintained on the books and records of the applicable Borrower); or 

		
	(ii)
	in the case of the Guarantor, less than $50,000,000 or its equivalent in any other currency or currencies (unless such sum is being contested in good faith and through appropriate proceedings for which adequate reserves in accordance with IFRS have been established and maintained on the books and records of the Guarantor). 

		
	23.1.11
	Insolvency

		
	(a)
	A Borrower or the Guarantor is unable or admits inability to pay its debts as they fall due, is deemed to, or is declared to, be unable to pay its debts under applicable law, suspends or threatens to suspend making payments on any of its debts, or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

		
	(b)
	The value of the assets of a Security Party is less than its liabilities (taking into account contingent and prospective liabilities).

		
	(c)
	A moratorium is declared in respect of any indebtedness of a Security Party.  If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.

		
	23.1.12
	Insolvency proceedings   Any corporate action, legal proceedings or other procedure or step is taken for:

		
	(a)
	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration, bankruptcy or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of a Borrower or the Guarantor; 

		
	(b)
	a composition, compromise, assignment or arrangement with any creditor of a Borrower or the Guarantor;

		
	(c)
	the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager, or trustee or other similar officer in respect of a Borrower or the Guarantor or any of its assets; or

		
	(d)
	enforcement of any Encumbrance over any assets of a Borrower or the Guarantor,

or any analogous procedure or step is taken in any jurisdiction.
This Clause 23.1.7 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within five days of commencement.
		
	23.1.13
	Creditors' process   Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of a Security Party.

		
	23.1.14
	Unlawfulness and invalidity

		
	(a)
	It is or becomes unlawful for a Security Party to perform any of its obligations under the Finance Documents or any Encumbrance created or expressed to be created or evidenced by the Security Documents ceases to be effective.

		
	(b)
	Any obligation or obligations of any Security Party under any Finance Documents are not (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.

		
	(c)
	Any Finance Document ceases to be in full force and effect or any Encumbrance created or expressed to be created or evidenced by the Security Documents ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.

		
	23.1.15
	Cessation of business   A Borrower or the Guarantor ceases, or threatens to cease, to carry on all or a substantial part of its business.

		
	23.1.16
	Expropriation   The authority or ability of a Borrower or the Guarantor to conduct its business is limited or wholly or substantially curtailed by any seizure, expropriation, nationalisation, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person in relation to a Borrower or the Guarantor or any of its assets.

		
	23.1.17
	Repudiation and rescission of agreements

		
	(f)
	A Security Party rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or evidences an intention to rescind or repudiate a Finance Document.

		
	(g)
	Subject to Clause 23.1.12(c), any party to any of the Relevant Documents that is not a Finance Document rescinds or purports to rescind or repudiates or purports to repudiate that Relevant Document in whole or in part where to do so has or is, in the reasonable opinion of the Majority Lenders, likely to have a material adverse effect on the interests of the Lenders under the Finance Documents.

		
	(h)
	The Management Agreement is terminated, cancelled or otherwise ceases to remain in full force and effect at any time prior to its contractual expiry date and is not immediately replaced by a similar agreement in form and substance satisfactory to the Majority Lenders.

		
	23.1.18
	Conditions subsequent   Any of the conditions referred to in Clause 4.3 (Conditions subsequent) is not satisfied within the time reasonably required by the Agent.

		
	23.1.19
	Revocation or modification of Authorisation   Any Authorisation of any governmental, judicial or other public body or authority which is now, or which at any time during the Facility Period becomes, necessary to enable any of the Security Parties or any other person (except a Finance Party) to comply with any of their obligations under any Relevant Document is not obtained, is revoked, suspended, withdrawn or withheld, or is modified in a manner which the Agent considers is, or may be, prejudicial to the interests of any Finance Party, or ceases to remain in full force and effect.

		
	23.1.20
	Reduction of capital   A Borrower reduces its authorised or issued or subscribed capital.

		
	23.1.21
	Loss of Vessel   A Vessel suffers a Total Loss or is otherwise destroyed or abandoned, or a similar event occurs in relation to any other vessel which may from time to time be mortgaged to the Security Agent as security for the payment of all or any part of the Indebtedness, except that a Total Loss (which term shall for the purposes of the remainder of this Clause 23.1.16 include an event similar to a Total Loss in relation to any other vessel) shall not be an Event of Default if:

		
	(a)
	that Vessel or other vessel is insured in accordance with the Security Documents and a claim for Total Loss is available under the terms of the relevant insurances; and

		
	(b)
	no insurer has refused to meet or has disputed the claim for Total Loss and it is not apparent to the Agent in its discretion that any such refusal or dispute is likely to occur; and

		
	(c)
	payment of all insurance proceeds in respect of the Total Loss is made in full to the Security Agent within 180 days of the occurrence of the casualty giving rise to the Total Loss in question or such longer period as the Agent may in its discretion agree.

		
	23.1.22
	Challenge to registration   The registration of a Vessel or a Mortgage is contested or becomes void or voidable or liable to cancellation or termination, or the validity or priority of a Mortgage is contested.

		
	23.1.23
	War   The country of registration of a Vessel becomes involved in war (whether or not declared) or civil war or is occupied by any other power and the Agent in its discretion considers that, as a result, the security conferred by any of the Security Documents is materially prejudiced.

No Event of Default under this Clause 23.1.18 will occur if within ten Business Days of the earlier of (i) the Agent giving notice to the Borrowers and (ii) the Borrowers becoming aware of such events and circumstances described in this Clause 23.1.18 occurring, the relevant Borrower registers that Vessel under a different flag acceptable to the Agent (acting reasonably), registers a Mortgage over that Vessel with first priority in favour of the Security Agent (such Mortgage being in a form and substance acceptable to the Agent (acting reasonably)) and provides such supporting corporate authorisations, legal opinions and other supporting documents reasonably requested by the Agent.
		
	23.1.24 
	Master Agreement termination   A notice is given by the Swap Provider under section 6(a) of a Master Agreement, or by any person under section 6(b)(iv) of a Master Agreement, in either case designating an Early Termination Date for the purpose of the relevant Master Agreement, or a Master Agreement is for any other reason terminated, cancelled, suspended, rescinded, revoked or otherwise ceases to remain in full force and effect.

This Clause 23.1.19 shall not apply to any Transactions that are terminated pursuant to Clause 7.7 (Restrictions).
		
	23.1.25 
	Notice of determination   The Guarantor gives notice to the Security Agent to determine any obligations under the Guarantee.

		
	23.1.26
	Litigation   Any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Relevant Documents or the transactions contemplated in the Relevant Documents or against a Security Party or its assets which have or are reasonably likely to have a Material Adverse Effect.

This Clause 23.1.21 shall not apply to any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes which are frivolous or vexatious and is discharged, stayed or dismissed within 30 days of commencement.  
		
	23.1.27
	Material adverse change   Any event or circumstance occurs which the Majority Lenders reasonably believe has or is reasonably likely to have a Material Adverse Effect.

		
	23.1.28
	Sanctions

		
	(a)
	Any of the Security Parties or any Affiliate of any of them becomes a Prohibited Person or becomes owned or controlled by, or acts directly or indirectly on behalf of, a Prohibited Person or any of such persons becomes the owner or controller of a Prohibited Person.

		
	(b)
	Any proceeds of the Loan are made available, directly or indirectly, to or for the benefit of a Prohibited Person or otherwise is, directly or indirectly, applied in a manner or for a purpose prohibited by the applicable Sanctions.

		
	(c)
	Any of the Security Parties or any Affiliate of any of them is not in compliance with all applicable Sanctions.

		
	23.2
	Acceleration   On and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders:

		
	23.2.11
	by notice to the Borrowers cancel the Total Commitments, at which time they shall immediately be cancelled;

		
	23.2.12
	by notice to the Borrowers declare that the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents are immediately due and payable, at which time they shall become immediately due and payable;

		
	23.2.13
	by notice to the Borrowers declare that the Loan is payable on demand, at which time it shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or

		
	23.2.14
	exercise or direct the Security Agent to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

		
	Section 9
	Changes to Parties

		
	24
	Changes to the Lenders

		
	24.1
	Assignments and transfers by the Lenders   Subject to this Clause 24, a Lender (the "Existing Lender") may: 

		
	24.1.15
	assign any of its rights; or

		
	24.1.16
	transfer by novation any of its rights and obligations,

under any Finance Document to another bank or financial institution which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the "New Lender").
		
	24.2
	Conditions of assignment or transfer

		
	24.2.11
	An Existing Lender must obtain the prior written consent of the Borrowers prior to making an assignment or transfer in accordance with Clause 24.1 (Assignments and transfers by the Lenders) unless the assignment or transfer is:

(a)    to another Lender or an Affiliate of a Lender; or
(b)    made at a time when an Event of Default is continuing.
		
	24.2.12 
	The consent of the Borrowers to an assignment or transfer must not be unreasonably withheld or delayed (however it shall be deemed reasonable for the Borrowers to withhold their consent in circumstances where the proposed New Lender is a trust, fund or similar entity which is regularly engaged in or established for the purpose of making, purchasing or investing in securities or other financial assets). The Borrowers will be deemed to have given their consent five Business Days after the Lender has requested it unless consent is expressly refused by the Borrowers within that time.

		
	24.2.13
	An assignment will only be effective on:

		
	(a)
	receipt by the Agent of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender; and

		
	(b)
	performance by the Agent of all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.

		
	24.2.14
	A transfer will only be effective if the procedure set out in Clause 24.5 (Procedure for transfer) is complied with.

		
	24.2.15
	If:

		
	(i)
	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

		
	(j)
	as a result of circumstances existing at the date the assignment, transfer or change occurs, a Borrower would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax Gross Up and Indemnities) or Clause 13 (Increased Costs),

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.  This Clause 24.2.5 shall not apply in respect of an assignment or transfer made in the ordinary course of the primary syndication of the Loan.
		
	24.2.16
	Each New Lender confirms, for the avoidance of doubt, that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

		
	24.3
	Assignment or transfer fee   Unless the Agent otherwise agrees and excluding an assignment or transfer (i) to an Affiliate of a Lender or (ii) made in connection with primary syndication of the Loan, the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of $3,000. 

		
	24.4
	Limitation of responsibility of Existing Lenders

		
	24.4.6
	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

		
	(d)
	the legality, validity, effectiveness, adequacy or enforceability of the Relevant Documents or any other documents;

		
	(e)
	the financial condition of any Security Party;

		
	(f)
	the performance and observance by any Security Party of its obligations under the Relevant Documents or any other documents; or

		
	(g)
	the accuracy of any statements (whether written or oral) made in or in connection with any of the Relevant Documents or any other document,

and any representations or warranties implied by law are excluded.
		
	24.4.7
	Each New Lender confirms to the Existing Lender and the other Finance Parties that it: 

		
	(d)
	has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Security Party and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any of the Relevant Documents; and

		
	(e)
	will continue to make its own independent appraisal of the creditworthiness of each Security Party and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

		
	24.4.8
	Nothing in any Finance Document obliges an Existing Lender to:

		
	(e)
	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 24; or 

		
	(f)
	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Security Party of its obligations under the Relevant Documents or otherwise.

		
	24.5
	Procedure for transfer

		
	24.5.1
	Subject to the conditions set out in Clause 24.2 (Conditions of assignment or transfer) a transfer is effected in accordance with Clause 24.5.3 when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to Clause 24.2.3(b), as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

		
	24.5.2
	The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

		
	24.5.3
	Subject to Clause 24.9 (Pro rata interest settlement), on the Transfer Date:

		
	(i)
	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each Borrower and the Guarantor and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another shall be cancelled (being the "Discharged Rights and Obligations");

		
	(j)
	each Borrower and the Guarantor and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Borrower and the Guarantor and the New Lender have assumed and/or acquired the same in place of that Borrower and the Guarantor and the Existing Lender;

		
	(k)
	the Agent, the Security Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Security Agent, the Arranger, and the Existing Lender shall each be released from further obligations to each other under this Agreement; and

		
	(l)
	the New Lender shall become a Party as a "Lender".

		
	24.6
	Procedure for assignment

		
	24.6.1
	Subject to the conditions set out in Clause 24.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with Clause 24.6.3 when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to Clause 24.6.2, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

		
	24.6.2
	The Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary "know your customer" or similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.

		
	24.6.3
	Subject to Clause 24.9 (Pro rata interest settlement), on the Transfer Date:

		
	(f)
	the Existing Lender will assign absolutely to the New Lender its rights under the Finance Documents and in respect of any Encumbrance created or expressed to be created or evidenced by the Security Documents and expressed to be the subject of the assignment in the Assignment Agreement;

		
	(g)
	the Existing Lender will be released from the obligations (the "Relevant Obligations") expressed to be the subject of the release in the Assignment Agreement (and any corresponding obligations by which it is bound in respect of any Encumbrance created or expressed to be created or evidenced by the Security Documents); and

		
	(h)
	the New Lender shall become a Party as a "Lender" and will be bound by obligations equivalent to the Relevant Obligations.

		
	24.6.4
	Lenders may utilise procedures other than those set out in this Clause 24.6 to assign their rights under the Finance Documents (but not, without the consent of the relevant Security Party or unless in accordance with Clause 24.5 (Procedure for transfer), to obtain a release by that Security Party from the obligations owed to that Security Party by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in Clause 24.2 (Conditions of assignment or transfer).

		
	24.7
	Copy of Transfer Certificate or Assignment Agreement to Borrowers   The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Borrowers a copy of that Transfer Certificate or Assignment Agreement.

		
	24.8
	Security over Lenders' rights   In addition to the other rights provided to Lenders under this Clause 24, each Lender may without consulting with or obtaining consent from any Security Party, at any time charge, assign or otherwise create Encumbrances in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:

		
	24.8.3
	any charge, assignment or other Encumbrance to secure obligations to a federal reserve or central bank; and

		
	24.8.4
	in the case of any Lender which is a fund, any charge, assignment or other Encumbrance granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,

except that no such charge, assignment or Encumbrance shall:
		
	(g)
	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Encumbrance for the Lender as a party to any of the Finance Documents; or

		
	(h)
	require any payments to be made by a Security Party other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

		
	24.9
	Pro rata interest settlement

		
	24.9.3
	If the Agent has notified the Lenders that it is able to distribute interest payments on a "pro rata basis" to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 24.5 (Procedure for transfer) or any assignment pursuant to Clause 24.6 (Procedure for assignment) the Transfer Date of which is after the date of such notification and is not on the last day of an Interest Period):

		
	(i)
	any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date ("Accrued Amounts") and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than three months, on the next of the dates which falls at three monthly intervals after the first day of that Interest Period); and

		
	(j)
	the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt:

		
	(iii)
	when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and

		
	(iv)
	the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 24.9, have been payable to it on that date, but after deduction of the Accrued Amounts.

		
	24.9.4
	In this Clause 24.9 references to "Interest Period" shall be construed to include a reference to any other period for accrual of fees.

		
	25
	Changes to the Security Parties

		
	25.1
	No assignment or transfer by Security Parties   No Security Party may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

		
	Section 10
	The Finance Parties

		
	26
	Role of the Agent, the Security Agent and the Arranger

		
	26.1
	Appointment of the Agent and the Security Agent

		
	26.1.3
	Each of the Arranger and the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents and each of the Arranger, the Lenders and the Agent appoints the Security Agent to act as its security agent for the purpose of the Security Documents.

		
	26.1.4
	Each of the Arranger and the Lenders authorises the Agent and each of the Arranger and the Lenders and the Agent authorises the Security Agent to perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Agent or the Security Agent (as the case may be) under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

		
	26.1.5 
	The Swap Provider appoints the Security Agent to act as its security agent for the purpose of the Security Documents and authorises the Security Agent to exercise the rights, powers, authorities and discretions specifically given to the Security Agent under or in connection with the Security Documents together with any other incidental rights, powers, authorities and discretions.

		
	26.1.6 
	Except in Clause 26.14 (Replacement of the Agent) or where the context otherwise requires, references in this Clause 26 to the "Agent" shall mean the Agent, the Security Agent individually and collectively and references in this Clause 26 to the "Finance Documents" or to any "Finance Document" shall not include the Master Agreement.

		
	26.2
	Instructions

		
	26.2.9
	The Agent shall:

		
	(c)
	unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by:

		
	(i)
	all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and

		
	(ii)
	in all other cases, the Majority Lenders; and

		
	(d)
	not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with Clause 26.2.1(a).

		
	26.2.10
	The Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Lender or group of Lenders, from that Lender or group of Lenders) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion and the Agent may refrain from acting unless and until it receives any such instructions or clarification that it has requested.

		
	26.2.11
	Save in the case of decisions stipulated to be a matter for any other Lender or group of Lenders under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties.

		
	26.2.12
	The Agent may refrain from acting in accordance with any instructions of any Lender or group of Lenders until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with those instructions.

		
	26.2.13
	In the absence of instructions, the Agent may act (or refrain from acting) as it considers to be in the best interest of the Lenders.

		
	26.2.14
	The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender's consent) in any legal or arbitration proceedings relating to any Finance Document.  This Clause 26.2.6 shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Finance Documents or the enforcement of the Finance Documents.

		
	26.3
	Duties of the Agent

		
	26.3.4
	The Agent's duties under the Finance Documents are solely mechanical and administrative in nature.

		
	26.3.5
	Subject to Clause 26.3.3, the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

		
	26.3.6
	Without prejudice to Clause 24.7 (Copy of Transfer Certificate or Assignment Agreement to Borrowers), Clause 26.3.1 shall not apply to any Transfer Certificate or any Assignment Agreement.

		
	26.3.7
	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

		
	26.3.8
	If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the Finance Parties.

		
	26.3.9
	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent, the Arranger or the Security Agent) under this Agreement it shall promptly notify the other Finance Parties.

		
	26.3.10
	The Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied).

		
	26.4
	Role of the Arranger   Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.

		
	26.5
	No fiduciary duties

		
	26.5.4
	Subject to Clause 26.12 (Trust) which relates to the Security Agent only, nothing in any Finance Document constitutes the Agent or the Arranger as a trustee or fiduciary of any other person.

		
	26.5.5
	Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

		
	26.6
	Business with Security Parties   The Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any Borrower and any other Security Party or its Affiliate.

		
	26.7
	Rights and discretions of the Agent

		
	26.7.5
	The Agent may:

		
	(d)
	rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorised;

		
	(e)
	assume that:

		
	(i)
	any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders are duly given in accordance with the terms of the Finance Documents; and

		
	(ii)
	unless it has received notice of revocation, that those instructions have not been revoked; and

		
	(iii)
	rely on a certificate from any person:

		
	(A)
	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or

		
	(B)
	to the effect that such person approves of any particular dealing, transaction, step, action or thing,

as sufficient evidence that that is the case and, in the case of (A), may assume the truth and accuracy of that certificate.
		
	26.7.6
	The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders or security agent for the Finance Parties (as the case may be)) that:

		
	(c)
	no Default has occurred (unless it has actual knowledge of a Default arising under Clause 23.1 (Events of Default));

		
	(d)
	any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised; and

		
	(e)
	any notice or request made by the Borrowers (other than a Drawdown Request) is made on behalf of and with the consent and knowledge of all the Security Parties.

		
	26.7.7
	The Agent may engage and pay for the advice or services of any lawyers, accountants, surveyors or other experts.

		
	26.7.8
	Without prejudice to the generality of Clause 26.7.3 or Clause 26.7.5, the Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent in its reasonable opinion deems this to be desirable.

		
	26.7.9
	The Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.

		
	26.7.10
	The Agent may act in relation to the Finance Documents through its officers, employees and agents and the Agent shall not:

		
	(a)
	be liable for any error of judgment made by any such person; or

		
	(b)
	be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part, of any such person,

unless such error or such loss was directly caused by the Agent's gross negligence or wilful misconduct.
		
	26.7.11
	Unless a Finance Document expressly provides otherwise the Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

		
	26.7.12
	Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor an Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

		
	26.7.13
	The Agent is not obliged to disclose to any Finance Party any details of the rate notified to the Agent by any Lender or the identity of any such Lender for the purpose of Clause 10.2.2 (Market Disruption).

		
	26.7.14
	Notwithstanding any provision of any Finance Document to the contrary, the Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

		
	26.8
	Responsibility for documentation   Neither the Agent nor any Arranger is responsible or liable for:

		
	26.8.1
	the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, an Arranger, a Security Party or any other person given in or in connection with any Relevant Document or the transactions contemplated in the Finance Documents; or

		
	26.8.2
	the legality, validity, effectiveness, adequacy or enforceability of any Relevant Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Relevant Document; or

		
	26.8.3
	any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

		
	26.9
	No duty to monitor   The Agent shall not be bound to enquire:

		
	26.9.1
	whether or not any Default has occurred;

		
	26.9.2
	as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

		
	26.9.3
	whether any other event specified in any Finance Document has occurred.

		
	26.10
	Exclusion of liability

		
	26.10.1
	Without limiting Clause 26.10.2 (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Agent) the Agent shall not be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:

		
	(e)
	any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Finance Document or any Encumbrance created or expressed to be created or evidenced by the Security Documents, unless directly caused by its gross negligence or wilful misconduct;

		
	(f)
	exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document, any Encumbrance created or expressed to be created or evidenced by the Security Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or any Encumbrance created or expressed to be created or evidenced by the Security Documents;

		
	(g)
	any shortfall which arises on the enforcement or realisation of the Trust Property; or

		
	(h)
	without prejudice to the generality of Clauses 26.10.1(a), 26.10.1(b) and 26.10.1(c), any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of:

		
	(i)
	any act, event or circumstance not reasonably within its control; or

		
	(ii)
	the general risks of investment in, or the holding of assets in, any jurisdiction,

including (in each case and without limitation) such damages, costs,  losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action.
		
	26.10.2
	No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Relevant Document and any officer, employee or agent of the Agent may rely on this Clause subject to Clause 1.7 (Third Party Rights) and the provisions of the Third Parties Act.

		
	26.10.3
	The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose.

		
	26.10.4
	Nothing in this Agreement shall oblige the Agent or an Arranger to carry out:

		
	(a)
	any "know your customer" or other checks in relation to any person;

		
	(b)
	any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Lender,

on behalf of any Lender and each Lender confirms to the Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or the Arranger.
		
	26.10.5
	Without prejudice to any provision of any Finance Document excluding or limiting the Agent's liability, any liability of the Agent arising under or in connection with any Finance Document or any Encumbrance created or expressed to be created or evidenced by the Security Documents shall be limited to the amount of actual loss which has been finally judicially determined to have been suffered (as determined by reference to the date of default of the Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent at any time which increase the amount of that loss.  In no event shall the Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Agent has been advised of the possibility of such loss or damages.

		
	26.11
	Lenders' indemnity to the Agent

		
	26.11.1
	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent and every Receiver and Delegate, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by any of them (otherwise than by reason of the relevant Agent's, Receiver's or Delegate's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 29.12 (Disruption to payment systems etc.) notwithstanding the Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent, Receiver or Delegate under, or exercising any authority conferred under, the Finance Documents (unless the relevant Agent, Receiver or Delegate has been reimbursed by a Security Party pursuant to a Finance Document).

		
	26.11.2
	Subject to Clause 26.11.3, the Borrowers shall immediately on demand reimburse any Lender for any payment that Lender makes to the Agent pursuant to Clause 26.11.1

		
	26.11.3
	Clause 26.11.2 shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability of the Agent to a Security Party.

		
	26.12
	Trust   The Security Agent agrees and declares, and each of the other Finance Parties acknowledges, that, subject to the terms and conditions of this Clause 26.12, the Security Agent holds the Trust Property on trust for the Finance Parties absolutely.  Each of the other Finance Parties agrees that the obligations, rights and benefits vested in the Security Agent shall be performed and exercised in accordance with this Clause 26.12.  The Security Agent shall have the benefit of all of the provisions of this Agreement benefiting it in its capacity as security agent for the Finance Parties, and all the powers and discretions conferred on trustees by the Trustee Act 1925 (to the extent not inconsistent with this Agreement).  In addition:

		
	26.12.1
	the Security Agent and any Delegate may indemnify itself or himself out of the Trust Property against all liabilities, costs, fees, damages, charges, losses and expenses sustained or incurred by it or him in relation to the taking or holding of any of the Trust Property or in connection with the exercise or purported exercise of the rights, trusts, powers and discretions vested in the Security Agent or any Delegate by or pursuant to the Security Documents or in respect of anything else done or omitted to be done in any way relating to the Security Documents;

		
	26.12.2
	the other Finance Parties acknowledge that the Security Agent shall be under no obligation to insure any property nor to require any other person to insure any property and shall not be responsible for any loss which may be suffered by any person as a result of the lack or insufficiency of any insurance;

		
	26.12.3
	the Finance Parties agree that the perpetuity period applicable to the trusts declared by this Agreement shall be the period of 125 years from the date of this Agreement;

		
	26.12.4
	the Security Agent shall not be liable for any failure, omission, or defect in perfecting the security constituted or created by any Finance Document including, without limitation, any failure to register the same in accordance with the provisions of any of the documents of title of any Security Party to any of the assets thereby charged or effect or procure registration of or otherwise protect the security created by any Security Document under any registration laws in any jurisdiction and may accept without enquiry such title as any Security Party may have to any asset;

		
	26.12.5
	the Security Agent shall not be under any obligation to hold any title deed, Finance Document or any other documents in connection with the Finance Documents or any other documents in connection with the property charged by any Finance Document or any other such security in its own possession or to take any steps to protect or preserve the same, and may permit any Security Party to retain all such title deeds, Finance Documents and other documents in its possession; and

		
	26.12.6
	save as otherwise provided in the Finance Documents, all moneys which under the trusts therein contained are received by the Security Agent may be invested in the name of or under the control of the Security Agent in any investment for the time being authorised by English law for the investment by trustees of trust money or in any other investments which may be selected by the Security Agent, and the same may be placed on deposit in the name of or under the control of the Security Agent at such bank or institution (including the Security Agent) and upon such terms as the Security Agent may think fit.

The provisions of Part I of the Trustee Act 2000 shall not apply to the Security Agent or the Trust Property.
		
	26.13
	Resignation of the Agent

		
	26.13.3
	The Agent may resign and appoint one of its Affiliates acting through an office as successor by giving notice to the other Finance Parties and the Borrowers. 

		
	26.13.4
	Alternatively the Agent may resign by giving 30 days' notice to the other Finance Parties and the Borrowers, in which case the Majority Lenders (after consultation with the Borrowers) may appoint a successor Agent.

		
	26.13.5
	If the Majority Lenders have not appointed a successor Agent in accordance with Clause 26.13.2 within 20 days after notice of resignation was given, the retiring Agent (after consultation with the Borrowers) may appoint a successor Agent.

		
	26.13.6
	If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is entitled to appoint a successor Agent under Clause 26.13.3, the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent to become a party to this Agreement as Agent) agree with the proposed successor Agent amendments to this Clause 26 and any other term of this Agreement dealing with the rights or obligations of the Agent consistent with then current market practice for the appointment and protection of corporate trustees.

		
	26.13.7
	The retiring Agent shall, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents. The Borrowers shall, within three Business Days of demand, reimburse the retiring Agent for the amount of all costs and expenses (including legal fees) properly incurred by it in making available such documents and records and providing such assistance.

		
	26.13.8
	The Agent's resignation notice shall only take effect upon the appointment of a successor and (in the case of the Security Agent) the transfer of all the Trust Property to that successor.

		
	26.13.9
	Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under Clause 26.13.5) but shall remain entitled to the benefit of Clause 14.3 (Indemnity to the Agent) and this Clause 26.  Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

		
	26.13.10
	The Agent shall resign in accordance with Clause 26.13.2 (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to Clause 26.13.3) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

		
	(d)
	the Agent fails to respond to a request under Clause 12.7 (FATCA information) and a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

		
	(e)
	the information supplied by the Agent pursuant to Clause 12.7 (FATCA information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

		
	(f)
	the Agent notifies the Borrowers and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

and (in each case) a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and that Lender, by notice to the Agent, requires it to resign.
		
	26.14
	Replacement of the Agent

		
	26.14.3
	After consultation with the Borrowers, the Majority Lenders may, by giving 30 days' notice to the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority lenders) replace the Agent by appointing a successor Agent.

		
	26.14.4
	The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its function as Agent under the Finance Documents.

		
	26.14.5
	The appointment of the successor Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent.  As from this date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under Clause 26.14.2 but shall remain entitled to the benefit of Clause 14.3 (Indemnity to the Agent) and this Clause 26.

		
	26.14.6
	Any successor Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

		
	26.15
	Confidentiality

		
	26.15.1
	In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

		
	26.15.2
	If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

		
	26.15.3
	Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor an Arranger is obliged to disclose to any other person (i) any Confidential Information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any laws or a breach of a fiduciary duty.

		
	26.16
	Relationship with the Lenders

		
	26.16.1
	Subject to Clause 24.9 (Pro rata interest settlement), the Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent's principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

		
	(c)
	entitled to or liable for any payment due under any Finance Document on that day; and

		
	(d)
	entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

unless it has received not less than five Business Days' prior notice from that Lender to the contrary in accordance with the terms of this Agreement.
		
	26.16.2
	Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or dispatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 31.6 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 31.2 (Addresses) and Clause 31.6.1(b) (Electronic communication) and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

		
	26.17
	Credit appraisal by the Lenders   Without affecting the responsibility of any Security Party for information supplied by it or on its behalf in connection with any Relevant Document, each Lender confirms to the Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Relevant Document including but not limited to:

		
	26.17.1
	the financial condition, status and nature of each Security Party;

		
	26.17.2
	the legality, validity, effectiveness, adequacy or enforceability of any Relevant Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Relevant Document;

		
	26.17.3
	whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Relevant Document, the transactions contemplated by the Relevant Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of under or in connection with any Relevant Document; and

		
	26.17.4
	the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any Encumbrance created or expressed to be created or evidenced by the Security Documents or the existence of any Encumbrance affecting the Charged Property.

		
	26.18
	Reference Banks   If a Reference Bank ceases to be a Lender, the Agent shall (in consultation with the Borrowers) appoint another bank to be a Reference Bank to replace that Reference Bank.

		
	26.19
	Deduction from amounts payable by the Agent   If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

		
	27
	Conduct of Business by the Finance Parties

No provision of this Agreement will:
		
	27.1
	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

		
	27.2
	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

		
	27.3
	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

		
	28
	Sharing among the Finance Parties

		
	28.1
	Payments to Finance Parties   If a Finance Party (a "Recovering Finance Party") receives or recovers any amount from a Security Party other than in accordance with Clause 29 (Payment Mechanics) (a "Recovered Amount") and applies that amount to a payment due under the Finance Documents then:

		
	28.1.11
	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery, to the Agent;

		
	28.1.12
	the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 29 (Payment Mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

		
	28.1.13
	the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the "Sharing Payment") equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 29.6 (Partial payments).

		
	28.2
	Redistribution of payments   The Agent shall treat the Sharing Payment as if it had been paid by the relevant Security Party and distribute it between the Finance Parties (other than the Recovering Finance Party) (the "Sharing Finance Parties") in accordance with Clause 29.6 (Partial payments) towards the obligations of that Security Party to the Sharing Finance Parties.

		
	28.3
	Recovering Finance Party's rights   On a distribution by the Agent under Clause 28.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from a Security Party, as between the relevant Security Party and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Security Party.

		
	28.4
	Reversal of redistribution   If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

		
	28.4.5
	each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the "Redistributed Amount"); and

		
	28.4.6
	as between the relevant Security Party and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Security Party.

		
	28.5
	Exceptions

		
	28.5.15
	This Clause 28 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Security Party.

		
	28.5.16
	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

		
	(g)
	it notified that other Finance Party of the legal or arbitration proceedings; and

		
	(h)
	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

		
	Section 11
	Administration

		
	29
	Payment Mechanics

		
	29.1
	Payments to the Agent   On each date on which a Security Party or a Lender is required to make a payment under a Finance Document (other than the Master Agreement), that Security Party or that Lender shall make the same available to the Agent for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

Payment shall be made to such account in the principal financial centre of the country of that currency with such bank as the Agent specifies.
		
	29.2
	Distributions by the Agent   Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 29.3 (Distributions to a Security Party) and Clause 29.4 (Clawback and pre-funding) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days' notice with a bank specified by that Party in the principal financial centre of the country of that currency.

		
	29.3
	Distributions to a Security Party   The Agent may (with the consent of a Security Party or in accordance with Clause 30 (Set-Off)) apply any amount received by it for that Security Party in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Security Party under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

		
	29.4
	Clawback and pre-funding

		
	29.4.17
	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.  

		
	29.4.18
	Unless Clause 29.4.3 applies, if the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

		
	29.4.19
	If the Agent is willing to make available amounts for the account of a Borrower before receiving funds from the Lenders then if and to the extent that the Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to a Borrower:

		
	(d)
	the Borrower to whom that sum was made available shall on demand refund it to the Agent; and

		
	(e)
	the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower to whom that sum was made available, shall on demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

		
	29.5
	Impaired Agent

		
	29.5.4
	If, at any time, the Agent becomes an Impaired Agent, a Security Party or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with Clause 29.1 (Payments to the Agent) may instead either:

		
	(f)
	pay that amount direct to the required recipient(s); or

		
	(g)
	if in its absolute discretion it considers that it is not reasonably practicable to pay that amount direct to the required recipient(s), pay that amount or the relevant part of that amount to an interest-bearing account held with an Acceptable Bank in relation to which no Insolvency Event has occurred and is continuing, in the name of the Security Party or the Lender making the payment (the "Paying Party") and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents (the "Recipient Party" or "Recipient Parties").

In each case such payments must be made on the due date for payment under the Finance Documents.
		
	29.5.5
	All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements.

		
	29.5.6
	A Party which has made a payment in accordance with this Clause 29.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

		
	29.5.7
	Promptly upon the appointment of a successor Agent in accordance with Clause 26.14 (Replacement of the Agent), each Paying Party shall (other than to the extent that that Party has given an instruction pursuant to Clause 29.5.5) give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance with Clause 29.2 (Distributions by the Agent).

		
	29.5.8
	A Paying Party shall, promptly upon request by a Recipient Party and to the extent:

		
	(a)
	that it has not given an instruction pursuant to Clause 29.5.4; and

		
	(b)
	that it has been provided with the necessary information by that Recipient Party,

give all requisite instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient Party. 
		
	29.6
	Partial payments

		
	29.6.4
	If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by a Security Party under the Finance Documents (other than the Master Agreement), the Agent shall apply that payment towards the obligations of that Security Party under the Finance Documents (other than the Master Agreement) in the following order:

		
	(f)
	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent or the Security Agent under the Finance Documents;

		
	(g)
	secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement;

		
	(h)
	thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and

		
	(i)
	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents,

		
	(j)
	provided that any part of the Indebtedness arising out of the Master Agreement shall be satisfied only after every other part of the Indebtedness for the time being due and payable has been satisfied in full.

		
	29.6.5
	The Agent shall, if so directed by the Majority Lenders, vary the order set out in Clauses 29.6.1(b) to 29.6.1(d).

		
	29.6.6
	Clauses 29.6.1 and 29.6.2 will override any appropriation made by a Security Party.

		
	29.7
	No set-off by Security Parties   All payments to be made by a Security Party under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

		
	29.8
	Business Days   Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.
		
	29.9
	Currency of account

		
	29.9.7 
	Subject to Clauses 29.9.2 to 29.9.5, dollars is the currency of account and payment for any sum due from a Security Party under any Finance Document.

		
	29.9.8
	A repayment or payment of all or part of a Tranche or an Unpaid Sum shall be made in the currency in which that Tranche or Unpaid Sum is denominated on its due date.

		
	29.9.9
	Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

		
	29.9.10
	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

		
	29.9.11 
	Any amount expressed to be payable in a currency other than dollars shall be paid in that other currency.

		
	29.10
	Control account   The Agent shall open and maintain on its books a control account in the names of the Borrowers showing the advance of the Loan and the computation and payment of interest and all other sums due under this Agreement.  The Borrowers' obligations to repay the Loan and to pay interest and all other sums due under this Agreement shall be evidenced by the entries from time to time made in the control account opened and maintained under this Clause 29.10 and those entries will, in the absence of manifest error, be conclusive and binding.

		
	29.11
	Change of currency

		
	29.11.7
	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

		
	(a)
	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Borrowers); and

		
	(b)
	any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).

		
	29.11.8
	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Borrowers) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

		
	29.12
	Disruption to payment systems etc.   If either the Agent determines in its discretion that a Disruption Event has occurred or the Agent is notified by the Borrowers that a Disruption Event has occurred:

		
	29.12.4
	the Agent may, and shall if requested to do so by the Borrower, consult with the Borrowers with a view to agreeing with the Borrowers such changes to the operation or administration of the Loan as the Agent may deem necessary in the circumstances;

		
	29.12.5
	the Agent shall not be obliged to consult with the Borrowers in relation to any changes mentioned in Clause 29.12.1 if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to any such changes;

		
	29.12.6
	the Agent may consult with the Finance Parties in relation to any changes mentioned in Clause 29.12.1 but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

		
	29.12.7
	any such changes agreed upon by the Agent and the Borrowers shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 35 (Amendments and Waivers);

		
	29.12.8
	the Agent shall not be liable for any damages, costs or losses whatsoever (including, without limitation, for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 29.12; and

		
	29.12.9
	the Agent shall notify the Finance Parties of all changes agreed pursuant to Clause 29.12.4.

		
	30
	Set-Off

		
	30.1
	Set-off   A Finance Party may set off any matured obligation due from a Borrower or any of them or the Guarantor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Borrower or the Guarantor (as the case may be), regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

		
	30.2 
	Master Agreement rights   The rights conferred on the Swap Provider by this Clause 30 shall be in addition to, and without prejudice to or limitation of, the rights of netting and set off conferred on the Swap Provider by the Master Agreement.

		
	31
	Notices

		
	31.1
	Communications in writing   Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax, letter or electronic mail.

		
	31.2
	Addresses   The address, fax number and electronic mail address (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

		
	31.2.20
	in the case of each Borrower, that identified with its name below;

		
	31.2.21 
	in the case of the Guarantor, that identified with its name below;

		
	31.2.22
	in the case of each Lender, that notified in writing to the Agent on or prior to the date on which it becomes a Party;

		
	31.2.23 
	in the case of the Swap Provider, that identified with its name below;

		
	31.2.24 
	in the case of an Arranger, that identified with its name below; and

		
	31.2.25
	in the case of the Agent or the Security Agent, that identified with its name below,

or any substitute address, fax number, or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days' notice.
		
	31.3
	Delivery   Any communication or document made or delivered by one Party to another under or in connection with the Finance Documents will only be effective:

		
	31.3.9
	if by way of fax, when received in legible form;

		
	31.3.10
	if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address; or

		
	31.3.11
	if by way of electronic mail, then in accordance with Clause 31.6.2 and Clause 31.6.3,

and, if a particular department or officer is specified as part of its address details provided under Clause 31.2 (Addresses), if addressed to that department or officer.
Any communication or document to be made or delivered to the Agent or the Security Agent will be effective only when actually received by the Agent or the Security Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent's or the Security Agent's signature below (or any substitute department or officer as the Agent or the Security Agent shall specify for this purpose).
All notices from or to a Security Party (save in respect of the Master Agreement) shall be sent through the Agent.
Subject to Clause 5.1 (Delivery of a Drawdown Request), any communication or document which becomes effective, in accordance with this Clause 31.3, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day. 
		
	31.4
	Notification of address and fax number   Promptly upon changing its address, fax number or electronic mail address, the Agent shall notify the other Parties.

		
	31.5
	Communication when Agent is Impaired Agent   If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to 

LONLIVE\23545000.7    Page 22

be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly.  This provision shall not operate after a replacement Agent has been appointed.
		
	31.6
	Electronic communication

		
	31.6.4
	Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication and if those two Parties:

		
	(k)
	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

		
	(l)
	notify each other of any change to their address or any other such information supplied by them by not less than five Business Days' notice.

		
	31.6.5
	Any electronic communication made between those two Parties will be effective only when actually received in readable form and in the case of any electronic communication made by a Party to the Agent or the Security Agent only if it is addressed in such a manner as the Agent or the Security Agent shall specify for this purpose.

		
	31.6.6
	Any electronic communication which becomes effective, in accordance with Clause 31.6.2, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

		
	31.7
	English language   Any notice given under or in connection with any Finance Document must be in English.  All other documents provided under or in connection with any Finance Document must be:

		
	31.7.12
	in English; or

		
	31.7.13
	if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

		
	32
	Calculations and Certificates

		
	32.1
	Accounts   In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by the Agent pursuant to Clause 29.10 (Control account) are prima facie evidence of the matters to which they relate.

		
	32.2
	Certificates and determinations   Any certification or determination by the Agent of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

		
	32.3
	Day count convention   Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

		
	33
	Partial Invalidity

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.
		
	34
	Remedies and Waivers

No failure to exercise, nor any delay in exercising, on the part of any Finance Party or Secured Party, any right or remedy under a Finance Document shall operate as a waiver of any such right or remedy or constitute an election to affirm any Finance Document.  No election to affirm any Finance Document on the part of any Finance Party or Secured Party shall be effective unless it is in writing.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.
		
	35
	Amendments and Waivers

LONLIVE\23545000.7    Page 23

		
	35.1
	Required consents

		
	35.1.6
	Subject to Clause 35.2 (Exceptions) any term of the Finance Documents (other than the Master Agreement) may be amended or waived only with the consent of the Majority Lenders and the Borrowers and any such amendment or waiver will be binding on all Parties.

		
	35.1.7
	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 35.

		
	35.1.8
	Without prejudice to the generality of Clauses 26.7.3, 26.7.4 and 26.7.5 (Rights and discretions of the Agent), the Agent may engage, pay for and rely on the services of lawyers in determining the consent level required for and effecting any amendment, waiver or consent under this Agreement.

		
	35.2
	Exceptions

		
	35.2.7
	An amendment, waiver or (in the case of a Security Document) a consent of, or in relation to, any term of any Finance Document that has the effect of changing or which relates to:

		
	(a)
	the definition of "Majority Lenders" in Clause 1.1 (Definitions);

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

		
	(c)
	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

		
	(d)
	a change in currency of payment of any amount under the Finance Documents;

		
	(e)
	an increase in any Commitment, an extension of the Availability Period or any requirement that a cancellation of Commitments reduces the Commitments of the Lenders rateably;

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

		
	(g)
	Clause 2.2 (Finance Parties' rights and obligations), Clause 24 (Changes to the Lenders), this Clause 35, Clause 40 (Governing Law) or Clause 41.1 (Jurisdiction of English courts);

		
	(h)
	(other than as expressly permitted by the provisions of any Finance Document) the nature or scope of:

		
	(i)
	any Guarantee;

		
	(ii)
	the Charged Property; or

		
	(iii)
	the manner in which the proceeds of enforcement of the Security Documents are distributed; or

		
	(i)
	the release of the Guarantee or of any Encumbrance created or expressed to be created or evidenced by the Security Documents unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal of an asset which is the subject of any Encumbrance created or expressed to be created or evidenced by the Security Documents where such sale or disposal is expressly permitted under this Agreement or any other Finance Document;

shall not be made, or given, without the prior consent of all the Lenders. 

LONLIVE\23545000.7    Page 24

		
	35.2.8
	An amendment or waiver which relates to the rights or obligations of the Agent, the Security Agent or the Arranger (each in their capacity as such) may not be effected without the consent of the Agent, the Security Agent or, as the case may be, the Arranger.

		
	35.3
	Replacement of Lender

		
	35.3.14
	If:

		
	(f)
	any Lender becomes a Non-Consenting Lender (as defined in Clause 35.3.4); or

		
	(g)
	a Borrower or any other Security Party becomes obliged to repay any amount in accordance with Clause 7.1 (Illegality) or to pay additional amounts pursuant to Clause 12.2 (Tax gross-up), Clause 12.3 (Tax Indemnity) or Clause 13.1 (Increased costs) to any Lender,

then the Borrowers may, on ten Business Days' prior written notice to the Agent and such Lender, replace such Lender by requiring such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to Clause 24 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a "Replacement Lender") selected by the Borrower, which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 24 (Changes to the Lenders) for a purchase price in cash payable at the time of transfer in an amount equal to the outstanding principal amount of such Lender's participation in the outstanding Loan and all accrued interest (to the extent that the Agent has not given a notification under Clause 24.9 (Pro rata interest settlement), Break Costs and other amounts payable in relation thereto under the Finance Documents.
		
	35.3.15
	The replacement of a Lender pursuant to this Clause 35.3 shall be subject to the following conditions:

		
	(g)
	the Borrowers shall have no right to replace the Agent or Security Agent;

		
	(h)
	neither the Agent nor the Lender shall have any obligation to the Borrowers to find a Replacement Lender;

		
	(i)
	in the event of a replacement of a Non-Consenting Lender such replacement must take place no later than 15 Business Days after the date on which that Lender is deemed a Non-Consenting Lender;

		
	(j)
	in no event shall the Lender replaced under this Clause 35.3 be required to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents; and

		
	(k)
	the Lender shall only be obliged to transfer its rights and obligations pursuant to Clause 35.3.1 once it is satisfied that it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to that transfer.

		
	35.3.16
	A Lender shall perform the checks described in Clause 35.3.2(e) as soon as reasonably practicable following delivery of a notice referred to in Clause 35.3.1 and shall notify the Agent and the Borrowers when it is satisfied that it has complied with those checks.

LONLIVE\23545000.7    Page 25

		
	35.3.17
	In the event that:

		
	(a)
	the Borrowers or the Agent (at the request of the Borrowers) have requested the Lenders to give a consent in relation to, or to agree to a waiver or amendment of, any provisions of the Finance Documents;

		
	(b)
	the consent, waiver or amendment in question requires the approval of all the Lenders; and

		
	(c)
	Lenders whose Commitments aggregate more than 662/3% of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3% of the Total Commitments prior to that reduction) have consented or agreed to such waiver or amendment, 

then any Lender who does not and continues not to consent or agree to such waiver or amendment shall be deemed a "Non-Consenting Lender".
		
	36
	Confidentiality

		
	36.1
	Confidential Information   Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 36.2 (Disclosure of Confidential Information) and Clause 36.3 (Disclosure to numbering service providers), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

		
	36.2
	Disclosure of Confidential Information   Any Finance Party may disclose:

		
	36.2.18
	to any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this Clause 36.2.1 is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

		
	36.2.19
	to any person:

		
	(a)
	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as Agent or Security Agent and, in each case, to any of that person's Affiliates, Representatives and professional advisers;

		
	(b)
	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Security Parties and to any of that person's Affiliates, Representatives and professional advisers;

		
	(c)
	appointed by any Finance Party or by a person to whom Clause 36.2.2(a) or 36.2.2(b) applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under Clause 26.16.2 (Relationship with the Lenders));

		
	(d)
	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in Clause 36.2.2(a) or 36.2.2(b);

		
	(e)
	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

		
	(f)
	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

		
	(g)
	to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 24.8 (Security over Lenders' rights);

		
	(h)
	who is either an insurance company, a reinsurance company, an insurance broker or a reinsurance broker that in either case is providing or may potentially provide insurance cover either (i) in respect of the assets that are the subject of the Finance Document or (ii) pursuant to and in accordance with the terms of the Finance Documents;

		
	(i)
	who is a Party; or

		
	(j)
	with the consent of the Borrowers;

in each case, such Confidential Information as that Finance Party shall consider appropriate if:
		
	(i)
	in relation to Clauses 36.2.2(a), 36.2.2(b) and 36.2.2(c), the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

		
	(ii)
	in relation to Clause 36.2.2(d), the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

		
	(iii)
	in relation to Clauses 36.2.2(e), 36.2.2(f) and 36.2.2(g), the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

		
	36.2.20
	to any person appointed by that Finance Party or by a person to whom Clause 36.2.2(a) or 36.2.2(b) applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this Clause 36.2.3 if the service provider to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking; and

		
	36.2.21 
	to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Security Parties if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

		
	36.3
	Disclosure to numbering service providers

		
	36.3.11
	Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Loan and/or one or more Security Parties the following information:

(a)    names of Security Parties;
(b)    country of domicile of Security Parties;
(c)    place of incorporation of Security Parties;
(d)    date of this Agreement;
(e)    Clause 40 (Governing law);
(f)    the names of the Agent and the Arranger;
(g)    date of each amendment and restatement of this Agreement;
(h)    amount of Total Commitments;
(i)    currencies of the Loan;
(j)    type of Loan;
(k)    ranking of the Loan;
(l)    Termination Date;
		
	(m)
	changes to any of the information previously supplied pursuant to (a)(a) to (l); and

		
	(n)
	such other information agreed between such Finance Party and that Security Party,

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.
		
	36.3.12
	The Parties acknowledge and agree that each identification number assigned to this Agreement, the Loan and/or one or more Security Parties by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

		
	36.3.13
	Each Borrower represents that none of the information set out in Clauses 36.3.1(a) to 36.3.1(n) is, nor will at any time be, unpublished price-sensitive information.

		
	36.3.14
	The Agent shall notify the Borrowers and the other Finance Parties of:

		
	(l)
	the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Loan and/or one or more Security Parties; and

		
	(m)
	the number or, as the case may be, numbers assigned to this Agreement, the Loan and/or one or more Security Parties by such numbering service provider.

		
	36.4
	Entire agreement   This Clause 36 constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

		
	36.5
	Inside information   Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

		
	36.6
	Notification of disclosure   Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Borrower:

		
	36.6.3
	of the circumstances of any disclosure of Confidential Information made pursuant to Clause 36.2.2(e) (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that Clause during the ordinary course of its supervisory or regulatory function; and

		
	36.6.4
	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 36.

		
	36.7
	Continuing obligations   The obligations in this Clause 36 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of 12 months from the earlier of:

		
	36.7.5
	the date on which all amounts payable by the Security Parties under or in connection with the Finance Documents have been paid in full and the Loan has been cancelled or otherwise ceases to be available; and

		
	36.7.6
	the date on which such Finance Party otherwise ceases to be a Finance Party.

		
	37
	Disclosure of Lender Details by Agent

		
	37.1
	Supply of Lender details to Borrowers   The Agent shall provide to the Borrowers within ten Business Days of a request by the Borrowers (but no more frequently than once per calendar month) a list (which may be in electronic form) setting out the names of the Lenders as at the date of that request, their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each Lender for any communication to be made or document to be delivered under or in connection with the Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Agent to that Lender under the Finance Documents.

		
	37.2
	Supply of Lender details at Borrowers' direction

		
	37.2.15
	The Agent shall, at the request of the Borrowers, disclose the identity of the Lenders and the details of the Lenders' Commitments to any:

		
	(a)
	other Party or any other person if that disclosure is made to facilitate, in each case, a refinancing of the Financial Indebtedness arising under the Finance Documents or a material waiver or amendment of any term of any Finance Document; and

		
	(b)
	Security Party.

		
	37.2.16
	Subject to Clause 37.2.3, the Borrowers shall procure that the recipient of information disclosed pursuant to Clause 37.2.1 shall keep such information confidential and shall not disclose it to anyone and shall ensure that all such information is protected with security measures and a degree of care that would apply to the recipient's own confidential information.

		
	37.2.17
	The recipient may disclose such information to any of its officers, directors, employees, professional advisers, auditors and partners as it shall consider appropriate if any such person is informed in writing of its confidential nature, except that there shall be no such requirement to so inform if that person is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by duties of confidentiality in relation to the information.

		
	37.3
	Supply of Lender details to other Lenders

		
	37.3.9
	If a Lender (a "Disclosing Lender") indicates to the Agent that the Agent may do so, the Agent shall disclose that Lender's name and Commitment to any other Lender that is, or becomes, a Disclosing Lender.

		
	37.3.10
	The Agent shall, if so directed by the Requisite Lenders, request each Lender to indicate to it whether it is a Disclosing Lender.

		
	37.4
	Lender enquiry   If any Lender believes that any entity is, or may be, a Lender and:

		
	37.4.10
	that entity ceases to have an Investment Grade Rating; or

		
	37.4.11
	an Insolvency Event occurs in relation to that entity,

the Agent shall, at the request of that Lender, indicate to that Lender the extent to which that entity has a Commitment.
		
	37.5
	Lender details definitions   In this Clause 37:

"Investment Grade Rating" means, in relation to an entity, a rating for its long-term unsecured and non-credit-enhanced debt obligations of BBB- or higher by Standard & Poor's Rating Services or Fitch Ratings Ltd or Baa3 or higher by Moody's Investors Service Limited or a comparable rating from an internationally recognised credit rating agency.
"Requisite Lenders" means a Lender or Lenders whose Commitments aggregate 15 per cent (or more) of the Total Commitments (or if the Total Commitments have been reduced to zero, aggregated 15 per cent (or more) of the Total Commitments immediately prior to that reduction).
		
	38
	Counterparts

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.
		
	39
	Joint and Several Liability

		
	39.1
	Nature of liability   The representations, warranties, covenants, obligations and undertakings of the Borrowers contained in this Agreement shall be joint and several so that each Borrower shall be jointly and severally liable with all the Borrowers for all of the same and such liability shall not in any way be discharged, impaired or otherwise affected by:

		
	39.1.11
	any forbearance (whether as to payment or otherwise) or any time or other indulgence granted to any other Borrower or any other Security Party under or in connection with any Finance Document;

		
	39.1.12
	any amendment, variation, novation or replacement of any other Finance Document;

		
	39.1.13
	any failure of any Finance Document to be legal valid binding and enforceable in relation to any other Borrower or any other Security Party for any reason;

		
	39.1.14
	the winding-up or dissolution of any other Borrower or any other Security Party;

		
	39.1.15
	the release (whether in whole or in part) of, or the entering into of any compromise or composition with, any other Borrower or any other Security Party; or

		
	39.1.16
	any other act, omission, thing or circumstance which would or might, but for this provision, operate to discharge, impair or otherwise affect such liability.

		
	39.2
	No rights as surety   Until the Indebtedness has been unconditionally and irrevocably paid and discharged in full, each Borrower agrees that it shall not, by virtue of any payment made under this Agreement on account of the Indebtedness or by virtue of any enforcement by a Finance Party of its rights under this Agreement or by virtue of any relationship between, or transaction involving, the relevant Borrower and any other Borrower or any other Security Party:

		
	39.2.12
	exercise any rights of subrogation in relation to any rights, security or moneys held or received or receivable by a Finance Party or any other person; or

		
	39.2.13
	exercise any right of contribution from any other Borrower or any other Security Party under any Finance Document; or

		
	39.2.14
	exercise any right of set-off or counterclaim against any other Borrower or any other Security Party; or

		
	39.2.15
	receive, claim or have the benefit of any payment, distribution, security or indemnity from any other Borrower or any other Security Party; or

		
	39.2.16
	unless so directed by the Agent (when the relevant Borrower will prove in accordance with such directions), claim as a creditor of any other Borrower or any other Security Party in competition with any Finance Party

and each Borrower shall hold in trust for the Finance Parties and forthwith pay or transfer (as appropriate) to the Agent any such payment (including an amount equal to any such set-off), distribution or benefit of such security, indemnity or claim in fact received by it.

		
	Section 12
	Governing Law and Enforcement

		
	40
	Governing Law

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.
		
	41
	Enforcement

		
	41.1
	Jurisdiction of English courts   The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a "Dispute").  Each Party agrees that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

This Clause 41.1 is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, any Finance Party may take concurrent proceedings in any number of jurisdictions.
		
	41.2
	Waiver of Jury Trial   EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MIGHT HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE FINANCE DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER FINANCE DOCUMENTS BY, AMONGST OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS CLAUSE 41.  

		
	41.3
	Service of process

		
	41.3.1
	Without prejudice to any other mode of service allowed under any relevant law, each Borrower and the Guarantor:

		
	(d)
	irrevocably appoints Scorpio UK Limited currently of 10 Lower Grosvenor Place, London SW1W 0EN, England (Attention: General Counsel) as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and

		
	(e)
	agrees that failure by a process agent to notify that Borrower or the Guarantor (as the case may be) of the process will not invalidate the proceedings concerned.

		
	41.3.2
	If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process or terminates its appointment as agent for service of process, the relevant Borrower or the Guarantor (as the case may be) must immediately (and in any event within five days of such event taking place) appoint another agent on terms acceptable to the Agent.  Failing this, the Agent may appoint another agent for this purpose.

		
	42
	Patriot Act Notice

Each of the Finance Parties hereby notifies the Borrowers and the Guarantor that pursuant to the requirements of the Patriot Act and the policies and practices of the Finance Parties, the Finance Parties are required to obtain, verify and record certain information and documentation that identifies each Security Party, which information includes the name and address of each Security Party  and such other information that will allow the Finance Parties to identify each Security Party  in accordance with the Patriot Act.
This Agreement has been entered into on the date stated at the beginning of this Agreement.
Schedule 1 
The Original Lenders

	
		
	Name of Original Lender
	Commitment

	ING Bank N.V., London Branch
	$132,500,000

LONLIVE\23545000.7    Page 26

Schedule 2     
Part I 
Conditions Precedent
		
	1
	Security Parties

		
	(a)
	Constitutional documents   Copies of the constitutional documents of each Borrower and the Guarantor together with such other evidence that each Borrower and the Guarantor are each duly incorporated in its country of incorporation and remains in existence with power to enter into, and perform its obligations under, the Relevant Documents to which it is or is to become a party.

		
	(b)
	Certificates of good standing   A certificate of good standing in respect of each Borrower and the Guarantor (if such a certificate can be obtained).

		
	(c)
	Board resolutions   A copy of a resolution of the board of directors of the each Borrower and the Guarantor:

		
	(i)
	approving the terms of, and the transactions contemplated by, the Relevant Documents to which it is a party and resolving that it execute those Relevant Documents; and 

		
	(ii)
	authorising a specified person or persons to execute those Relevant Documents (and all documents and notices to be signed and/or dispatched under those documents) on its behalf.

		
	(d)
	Specimen signatures A specimen of the signature of each person authorised by the resolutions referred to in (c).

		
	(e)
	Officer's certificates   An original certificate of a duly authorised officer of each Borrower and the Guarantor:

		
	(i)
	certifying that each copy document relating to it specified in this Part I of Schedule 2 is correct, complete and in full force and effect;

		
	(ii)
	setting out the names of the directors, officers and shareholders of each Borrower and the Guarantor (as the case may be) and the proportion of shares held by each shareholder; and

		
	(iii)
	confirming that borrowing or guaranteeing or securing, as appropriate, the Loan would not cause any borrowing, guarantee, security or similar limit binding on that Security Party to be exceeded.

		
	(f)
	Powers of attorney   The original notarially attested and legalised power of attorney of each of the Borrowers and the Guarantor under which the Relevant Documents to which it is or is to become a party are to be executed or transactions undertaken by each Borrower and the Guarantor.

		
	2
	Security and related documents

		
	(a)
	Vessel documents   Photocopies, certified as true, accurate and complete by a director, the secretary or the legal advisers of the Borrower, of:

		
	(i)
	the Building Contract;

		
	(ii)
	in respect of Borrower F, the Vessel F MOA;

LONLIVE\23545000.7    Page 27

		
	(iii)
	the builder's certificate and/or bill of sale transferring title in the Vessel to the Borrower free of all encumbrances, maritime liens or other debts;

		
	(iv)
	the protocol of delivery and acceptance evidencing the unconditional physical delivery of the Vessel by the Builder to the Borrower pursuant to the Building Contract;

		
	(v)
	in respect of Vessel F, the protocol of delivery and acceptance evidencing the unconditional physical delivery of the Vessel by the Vessel F Seller to Borrower F pursuant to the Vessel F MOA;

		
	(vi)
	the commercial invoice issued by the Builder in respect of the final contract price of the Vessel;

		
	(vii)
	the declaration of warranty issued by the Builder to the Borrower pursuant to the Building Contract;

		
	(viii)
	any Charter;

		
	(ix)
	the Management Agreement together with a confirmation from the parties thereto that the Vessel has been delivered into the Management Agreement; 

		
	(x)
	the Vessel's current Safety Construction, Safety Equipment, Safety Radio and Load Line Certificates;

		
	(xi)
	evidence of the Vessel's current Certificate of Financial Responsibility issued pursuant to the United States Oil Pollution Act 1990;

		
	(xii)
	the Vessel's current SMC;

		
	(xiii)
	the ISM Company's current DOC;

		
	(xiv)
	the Vessel's current ISSC;

		
	(xv)
	the Vessel's current IAPPC;

		
	(xvi)
	the Vessel's current Tonnage Certificate;

in each case together with all addenda, amendments or supplements. 
		
	(b)
	Evidence of Borrower's title   In relation to the Vessel, a certificate of ownership of encumbrance (or equivalent) issued by the Registrar of an Approved Flag confirming that the Vessel is owned by the relevant Borrower under the laws and flag of an Approved Flag and free of registered Encumbrances and (ii) the Mortgage will be capable of being registered against the Vessel with first priority.

		
	(c)
	Evidence of insurance and insurance report   Evidence that the Vessel is insured in the manner required by the Security Documents and that letters of undertaking will be issued in the manner required by the Security Documents, together with (if required by the Agent) the written approval of the Insurances by way of a written report from an insurance adviser appointed by the Agent, but at the expense of the Borrower.

		
	(d)
	Confirmation of class   An interim Class Certificate for hull and machinery confirming that the Vessel is classed with the highest class applicable to vessels of her type with an Approved Classification Society.

LONLIVE\23545000.7    Page 28

		
	(e)
	Valuation   Two valuations dated not more than 30 days prior to the Drawdown Date evidencing the FMV of the Vessel, certifying that the amount of the Tranche requested to be advanced pursuant to the Drawdown Request is no greater than the lesser of the relevant Maximum Tranche Amount and 47.5% of the FMV of the Vessel, such valuations to be obtained by the Agent at the expense of the Borrower.

		
	(f)
	Security Documents   The Security Documents, together with all other documents required by any of them, including, without limitation, (i) all notices of assignment and/or charge and evidence that those notices will be duly acknowledged by the recipients and (ii) all share certificates, certified copy share registers or registers of members, transfer forms, proxy forms, letters of resignation and letters of undertaking.

		
	(g)
	No disputes   The written confirmation of the Borrower that there is no dispute under any of the Relevant Documents as between the parties to any such document.

		
	(h) 
	Managers' Undertakings   The Managers' Undertakings.

		
	(i) 
	STI Osceola Indebtedness   In relation to Tranche E, evidence satisfactory to the Agent that on or prior to the Drawdown Date the STI Osceola Indebtedness has or will be repaid and the STI Osceola Finance Documents will have been released and discharged.

		
	3
	Legal opinions

The following legal opinions, each addressed to the Agent, the Security Agent, the Swap Provider and the Lenders and capable of being relied upon by any persons who become Lenders pursuant to the primary syndication of the Loan or confirmation satisfactory to the Agent that such opinions will be given:
		
	(a)
	a legal opinion of Stephenson Harwood LLP, legal advisers to the Agent as to English law substantially in the form distributed to the Lenders prior to signing this Agreement; and

		
	(b)
	a legal opinion of Seward and Kissel LLP as to Marshall Islands law, and, if applicable, Liberian law.

		
	4
	Other documents and evidence

		
	(a)
	Drawdown Request   A duly completed Drawdown Request.

		
	(b)
	Process agent   Evidence that any process agent referred to in Clause 41.3 (Service of process) and any process agent appointed under any other Finance Document has accepted its appointment.

		
	(c)
	Other Authorisations   A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable (if it has notified the Borrowers accordingly) in connection with the entry into and performance of the transactions contemplated by any Relevant Document or for the validity and enforceability of any Relevant Document.

		
	(d)
	Financial statements   A copy of the Original Financial Statements of the Guarantor.

		
	(e)
	Fees   The Fee Letter and evidence that the fees, costs and expenses then due from the Borrower under Clause 11 (Fees) and Clause 16 (Costs and Expenses) have been paid or will be paid by the relevant Drawdown Date.

		
	(f)
	"Know your customer" documents   Such documentation and other evidence needed in order for the Lenders to comply with all necessary "know your customer" or similar identification procedures in relation to the transactions contemplated in the Finance Documents.

LONLIVE\23545000.7    Page 29

		
	(g)
	Capital injected   Evidence satisfactory to the Agent that an equity contribution of not less than (i) US$25,000,000 (in respect of Vessel A and Vessel B) has been paid or (ii) US$19,200,000 (in respect of Vessel C) has been paid, or as a result of the novation agreement been deemed to have been paid, by the relevant Borrower or the Guarantor in connection with the purchase of the relevant Vessel under the relevant Building Contract.

		
	(h)
	Vessel F Indebtedness   In relation to Vessel F, evidence satisfactory to the Agent that on or prior to the Drawdown Date any existing indebtedness in respect of Vessel F will be repaid in full and any existing security over Vessel F will have been released and discharged.

Part II 
Conditions Subsequent
		
	1
	Evidence of Borrower's title   Certificate of ownership and encumbrance (or equivalent) issued by the Registrar of Ships (or equivalent official) of an Approved Flag confirming that (a)(a) the Vessel is permanently registered under that flag in the ownership of the Borrower, (b) the Mortgage has been registered with first priority against the Vessel and (c) there are no further Encumbrances registered against the Vessel.

		
	2
	Letters of undertaking   Letters of undertaking in respect of the Insurances as required by the Security Documents together with copies of the relevant policies or cover notes or entry certificates duly endorsed with the interest of the Finance Parties.

		
	3
	Acknowledgements of notices   Acknowledgements of all notices of assignment and/or charge given pursuant to any Security Documents received by the Agent pursuant to Part I of this Schedule 2.

		
	4
	Legal opinions   Such of the legal opinions specified in Part I of this Schedule 2 as have not already been provided to the Agent.

		
	5
	Master's receipt   The master's receipt for the Mortgage.

Schedule 3     
Drawdown Request
		
	From:
	SBI Macanudo Shipping Company Limited

(to be renamed STI Grace Shipping Company Limited)
SBI Cuaba Shipping Company Limited
(to be renamed STI Jermyn Shipping Company Limited)
STI Black Hawk Shipping Company Limited 
STI Pontiac Shipping Company Limited
STI Osceola Shipping Company Limited
STI Lombard Shipping Company Limited 

		
	To:
	ING Bank N.V.

Dated:
Dear Sirs
SBI Macanudo Shipping Company Limited (to be renamed STI Grace Shipping Company Limited), SBI Cuaba Shipping Company Limited (to be renamed STI Jermyn Shipping Company Limited), STI Black Hawk Shipping Company Limited, STI Pontiac Shipping Company Limited, STI Osceola Shipping Company Limited, STI Lombard Shipping Company Limited – $132,500,000 Loan Agreement dated 24 June 2015 (as amended, supplements, restated, novated or modified from time to time, the "Agreement")
		
	1
	We refer to the Agreement.  This is a Drawdown Request. Terms defined in the Agreement have the same meaning in this Drawdown Request unless given a different meaning in this Drawdown Request.

		
	2
	We wish to borrow the Tranche in respect of the Vessel specified below on the following terms:

		
	Proposed Drawdown Date:
	[        ] (or, if that is not a Business Day, the next Business Day)

Amount:    [        ] 
Interest Period:    [        ]
Vessel:    [        ]
		
	3
	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Drawdown Request.

		
	4
	The proceeds of the Tranche should be paid as follows:

		
	(a)
	    [the sum of [                               ] in accordance with the provisions of the [Building Contract][Vessel F MOA] in respect of the above Vessel [in][towards] payment of the instalment of the purchase price of the above Vessel due on its Delivery Date; and]

		
	(b)
	[the sum of [                              ] to [                                                      ] in reimbursement of the sums advanced in respect of the pre-delivery instalments of the purchase price of the above Vessel.]

		
	(c)
	    [the sum of [                               ] in connection with the payment of the instalment of the purchase price of the above Vessel.]

		
	(d)
	[the sum of [              ] to [                ] in respect of the refinancing of part of the purchase price of the above Vessel.]  

		
	5
	This Drawdown Request is irrevocable.

Yours faithfully
.......................................
authorised signatory for
SBI Macanudo Shipping Company Limited
(to be renamed STI Grace Shipping Company Limited)
SBI Cuaba Shipping Company Limited
(to be renamed STI Jermyn Shipping Company Limited)
STI Black Hawk Shipping Company Limited 
STI Pontiac Shipping Company Limited
STI Osceola Shipping Company Limited
STI Lombard Shipping Company Limited 

Schedule 4     
 
Form of Transfer Certificate
To:    [        ] as Agent and [                           ] as Security Agent
		
	From:
	[The Existing Lender] (the "Existing Lender") and [The New Lender] (the "New Lender")

Dated:
SBI Macanudo Shipping Company Limited (to be renamed STI Grace Shipping Company Limited), SBI Cuaba Shipping Company Limited (to be renamed STI Jermyn Shipping Company Limited), STI Black Hawk Shipping Company Limited, STI Pontiac Shipping Company Limited, STI Osceola Shipping Company Limited, STI Lombard Shipping Company Limited – $132,500,000 Loan Agreement dated 24 June 2015 (as amended, supplements, restated, novated or modified from time to time, the "Loan Agreement")
		
	1
	We refer to the Loan Agreement.  This agreement (the "Agreement") shall take effect as a Transfer Certificate for the purposes of the Loan Agreement.  Terms defined in the Loan Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

		
	2
	We refer to Clause 24.5 (Procedure for transfer) of the Loan Agreement:

		
	(e)
	The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation and in accordance with Clause 24.5 (Procedure for transfer) all of the Existing Lender's rights and obligations under the Loan Agreement and the other Finance Documents which relate to that portion of the Existing Lender's Commitment(s) and participations in the Loan under the Loan Agreement as specified in the Schedule.

		
	(f)
	The proposed Transfer Date is [            ].

		
	(g)
	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 31.2 (Addresses) are set out in the Schedule.

		
	3
	The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in Clause 24.4.1(c) (Limitation of responsibility of Existing Lenders).

		
	4
	This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

		
	5
	This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

		
	6
	This Agreement has been entered into on the date stated at the beginning of this Agreement.

		
	Note:
	The execution of this Transfer Certificate may not transfer a proportionate share of the Existing Lender's interest in any Encumbrance created or expressed to be created or evidenced by the Security Documents in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

The Schedule
Commitment/rights and obligations to be transferred
[insert relevant details] 
[Facility Office address, fax number and attention details for notices and account details for payments,]
[Existing Lender]    [New Lender]
By:    By:
This Agreement is accepted as a Transfer Certificate for the purposes of the Loan Agreement by the Agent and the Transfer Date is confirmed as [                         ].
[Agent]
By:

[Security Agent]
By:        

LONLIVE\23545000.7    Page 30

Schedule 5     
Form of Assignment Agreement
		
	To:
	[        ] as Agent, [              ] as Security Agent and [            ]  as Borrower, for and on behalf of each Security Party

		
	From:
	[the Existing Lender] (the "Existing Lender") and [the New Lender] (the "New Lender")

Dated:
SBI Macanudo Shipping Company Limited (to be renamed STI Grace Shipping Company Limited), SBI Cuaba Shipping Company Limited (to be renamed STI Jermyn Shipping Company Limited), STI Black Hawk Shipping Company Limited, STI Pontiac Shipping Company Limited, STI Osceola Shipping Company Limited, STI Lombard Shipping Company Limited – $132,500,000 Loan Agreement dated 24 June 2015 (as amended, supplements, restated, novated or modified from time to time, the "Loan Agreement")
		
	1
	We refer to the Loan Agreement.  This is an Assignment Agreement.  This agreement (the "Agreement") shall take effect as an Assignment Agreement for the purpose of the Loan Agreement.  Terms defined in the Loan Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

		
	2
	We refer to Clause 24.6 (Procedure for assignment) of the Loan Agreement:

		
	(a)
	The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Loan Agreement, the other Finance Documents and in respect of any Encumbrance created or expressed to be created or evidenced by the Security Documents which correspond to that portion of the Existing Lender's Commitment(s) and participations in the Loan under the Loan Agreement as specified in the Schedule.

		
	(b)
	The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender's Commitment(s) and participations in the Loan under the Loan Agreement specified in the Schedule.

		
	(c)
	The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph (b).

		
	3
	The proposed Transfer Date is [      ].

		
	4
	On the Transfer Date the New Lender becomes Party to the relevant Finance Documents  as a Lender.

		
	5
	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 31.2 (Addresses) are set out in the Schedule.

		
	6
	The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in Clause 24.4.3 (Limitation of responsibility of Existing Lenders).

		
	7
	This Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 24.7 (Copy of Transfer Certificate or Assignment Agreement to Borrowers), to the Borrowers (on behalf of each Security Party) of the assignment referred to in this Agreement.

		
	8
	This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

		
	9
	This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

LONLIVE\23545000.7    Page 31

		
	10
	This Agreement has been entered into on the date stated at the beginning of this Agreement.

		
	Note:
	The execution of this Assignment Agreement may not transfer a proportionate share of the Existing Lender's interest in any Encumbrance created or expressed to be created or evidenced by the Security Documents in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

LONLIVE\23545000.7    Page 32

The Schedule
Commitment/rights and obligations to be transferred by assignment, release and accession
[insert relevant details] 
[Facility office address, fax number and attention details for notices and account details for payments]
[Existing Lender]    [New Lender]
By:    By:
This Agreement is accepted as an Assignment Agreement for the purposes of the Loan Agreement by the Agent and the Transfer Date is confirmed as [                    ].
Signature of this Agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to in this Agreement, which notice the Agent receives on behalf of each Finance Party.
[Agent]
By:

[Security Agent]
By:                    

LONLIVE\23545000.7    Page 33

Schedule 6     
Form of Compliance Certificate 
To:    [Agent]
From:    Scorpio Tankers Inc.
Dated:
Dear Sirs
SBI Macanudo Shipping Company Limited (to be renamed STI Grace Shipping Company Limited), SBI Cuaba Shipping Company Limited (to be renamed STI Jermyn Shipping Company Limited), STI Black Hawk Shipping Company Limited, STI Pontiac Shipping Company Limited, STI Osceola Shipping Company Limited, STI Lombard Shipping Company Limited – $132,500,000 Loan Agreement dated 24 June 2015 (as amended, supplements, restated, novated or modified from time to time, the "Loan Agreement")
We refer to the Agreement.  This is a Compliance Certificate.  Terms defined in the Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.
		
	1
	We confirm that we maintain:

		
	(a)
	Cash of $[  ];

		
	(b)
	Cash Equivalents of $[  ]; 

		
	(c)
	Minimum Liquidity of $[  ], of which [  ]% consists of Cash;

		
	(d)
	Consolidated Tangible Net Worth of $[  ];

		
	(e)
	a ratio of Net Debt to Consolidated Total Capitalisation of [  ]:1.0; and

		
	(f)
	a ratio of Consolidated EBITDA to Consolidated Net Interest Expense of [  ]:1.0.

		
	2
	[We confirm that no Default is continuing.]* 

	
			
	Signed:
	......................................................
	 

	 
	Chief Financial Officer
	 

	 
	of
	 

	 
	Scorpio Tankers Inc.
	 

LONLIVE\23545000.7    Page 34

Signatures

LONLIVE\23545000.7    Page 35

The Borrowers
SBI Macanudo Shipping Company     )
Limited (to be renamed STI Grace    )
Shipping Company Limited)    )
)
By:    )
)
Address:     )
c/o Scorpio Tankers Inc.    )
9, Boulevard Charles III    )
 
MC 98000 Monaco    )
Fax no.: +377 97 77 8346        )
Department Officer: General Counsel)

SBI Cuaba Shipping Company Limited    )
(to be renamed STI Jermyn Shipping    )
Company Limited)    )
)
By:    )
)
Address:     )
c/o Scorpio Tankers Inc.    )
9, Boulevard Charles III    )
 
MC 98000 Monaco    )
Fax no.: +377 97 77 8346        )
Department Officer: General Counsel        )

STI Black Hawk Shipping    )
Company Limited    )
)
By:    )
)
Address:     )
c/o Scorpio Tankers Inc.    )
9, Boulevard Charles III    )
 
MC 98000 Monaco    )
Fax no.: +377 97 77 8346        )
Department Officer: General Counsel        )

LONLIVE\23545000.7    Page 36

STI Pontiac Shipping Company Limited    )
)
By:    )
)
Address:     )
c/o Scorpio Tankers Inc.    )
9, Boulevard Charles III    )
 
MC 98000 Monaco    )
Fax no.: +377 97 77 8346        )
Department Officer: General Counsel        )

STI Osceola Shipping Company Limited    )
)
By:    )
)
Address:     )
c/o Scorpio Tankers Inc.    )
9, Boulevard Charles III    )
 
MC 98000 Monaco    )
Fax no.: +377 97 77 8346        )
Department Officer: General Counsel        )

STI Lombard Shipping Company Limited)
)
By:    )
)
Address:     )
c/o Scorpio Tankers Inc.    )
9, Boulevard Charles III    )
 
MC 98000 Monaco    )
Fax no.: +377 97 77 8346        )
Department Officer: General Counsel        )

LONLIVE\23545000.7    Page 37

The Guarantor
Scorpio Tankers Inc.    )
)
By:    )
)
Address:     )
9, Boulevard Charles III    )
 
MC 98000 Monaco    )
Fax no.: +377 97 77 8346        )
Department Officer: General Counsel        )

The Arranger

ING Bank N.V., London Branch     )
)
By:    )
)
Address:     )
)
60 London Wall                )
London                    )
EC2M 5TQ                )
Fax: + 44 207 767 7324            )
E-mail: henry.rushton@uk.ing.com;    )
loans.agency@uk.ing.com            )

The Agent
ING Bank N.V., London Branch     )
)
By:    )
)
Address:     )
)
60 London Wall                )
London                    )
EC2M 5TQ                )
Fax: + 44 207 767 7324            )
E-mail: henry.rushton@uk.ing.com;    )
loans.agency@uk.ing.com            )

LONLIVE\23545000.7    Page 38

The Security Agent
ING Bank N.V., London Branch     )
)
By:    )
)
Address:     )
)
60 London Wall                )
London                    )
EC2M 5TQ                )
Fax: + 44 207 767 7324            )
E-mail: henry.rushton@uk.ing.com;    )
loans.agency@uk.ing.com            )

The Original Lenders
ING Bank N.V., London Branch    )
)
By:    )

The Swap Provider
ING Capital Markets LLC    )
)
By:    )
)
Address:     )
)
1325 Avenue of the Americas        )
New York, NY  10019            )
Fax: +1  646-424-6248            )

LONLIVE\23545000.7    Page 39

Appendix A 
Effective Date Confirmation
To:    SBI Macanudo Shipping Company Limited
(to be renamed STI Grace Shipping Company Limited)
SBI Cuaba Shipping Company Limited
(to be renamed STI Jermyn Shipping Company Limited)
STI Black Hawk Shipping Company Limited
STI Pontiac Shipping Company Limited
STI Osceola Shipping Company Limited
STI Lombard Shipping Company Limited
Scorpio Tankers Inc.

We, ING Bank N.V., London Branch refer to the second supplemental agreement dated                                             2016 (the "Second Supplemental Agreement") relating to a secured loan agreement dated 24 June 2015 (as amended and restated on 22 September 2015 and on 15 October 2015 pursuant to a first supplemental agreement dated 22 September 2015, the "Loan Agreement") made between SBI Macanudo Shipping Company Limited (to be renamed STI Grace Shipping Company Limited),  SBI Cuaba Shipping Company Limited (to be renamed STI Jermyn Shipping Company Limited),  STI Black Hawk Shipping Company Limited and STI Pontiac Shipping Company Limited  as borrowers, Scorpio Tankers Inc. as guarantor, the banks referred to in schedule 1 to the Loan Agreement as lenders, ING Bank N.V., London Branch as arranger, ING Capital Markets LLC as swap provider and ING Bank N.V., London Branch as agent and security agent.
 
We hereby confirm that all conditions precedent referred to in Clause 2.1 of the Second Supplemental Agreement have been satisfied.  In accordance with Clauses 1.2 and 3 of the Second Supplemental Agreement, the Effective Date is the date of this confirmation and the amendments to the Loan Agreement set out in Clause 3 of the Second Supplemental Agreement are now effective.

Dated                                  2016

Signed:___________________________________________
For and on behalf of
ING Bank N.V., London Branch
(as Agent) 

LONLIVE\23545000.7    Page 40Exhibit

Execution version

Exhibit  4.20
Date 16 July 2015
SCORPIO TANKERS INC.
as Borrower
– and –
THE BANKS AND FINANCIAL INSTITUTIONS
listed in Schedule 1
as Lenders
– and –
THE BANKS AND FINANCIAL INSTITUTIONS
listed in Schedule 2
as Swap Banks
– and –
ABN AMRO BANK N.V.
DVB BANK SE 
as Bookrunning Mandated Lead Arrangers
– and –
ABN AMRO BANK N.V. 
as Coordinator
– and –
ABN AMRO BANK N.V. 
as Agent and as Security Trustee

                                                                               
LOAN AGREEMENT
                                                                                
relating to
a term loan facility (with a revolving credit feature) of up to $142,200,000 to refinance existing indebtedness in relation to Hull Nos. S5402 ("STI SPIGA"), to provide finance in relation to Hull No. S3078 ("STI SAVILE ROW"), and to provide finance in relation to Hull Nos. S3094 (tbn "STI KINGSWAY") and S3079 (tbn "STI CARNABY") under construction by Sungdong Shipbuilding & Marine Engineering Co. Ltd. 

Index
	
		
	Clause
	 

	1
	INTERPRETATION

	2
	FACILITY

	3
	POSITION OF THE LENDERS AND SWAP BANKS

	4
	DRAWDOWN

	5
	INTEREST

	6
	INTEREST PERIODS

	7
	DEFAULT INTEREST

	8
	REPAYMENT, PREPAYMENT AND REBORROWING

	9
	CONDITIONS PRECEDENT

	10
	REPRESENTATIONS AND WARRANTIES

	11
	GENERAL UNDERTAKINGS

	12
	CORPORATE AND FINANCIAL UNDERTAKINGS

	13
	INSURANCE

	14
	SHIP COVENANTS

	15
	SECURITY COVER

	16
	PAYMENTS AND CALCULATIONS

	17
	APPLICATION OF RECEIPTS

	18
	APPLICATION OF EARNINGS

	19
	EVENTS OF DEFAULT

	20
	FEES AND EXPENSES

	21
	INDEMNITIES

	22
	NO SET-OFF OR TAX DEDUCTION

	23
	ILLEGALITY, ETC

	24
	INCREASED COSTS

	25
	SET-OFF

	26
	TRANSFERS AND CHANGES IN LENDING OFFICES

	27
	VARIATIONS AND WAIVERS

	28
	NOTICES

	29
	SUPPLEMENTAL

	30
	LAW AND JURISDICTION

	 
	 

	Schedules
	 

	 
	 

	Schedule 1
	LENDERS AND COMMITMENTS

	      Part A
	 

	Schedule 2
	SWAP BANKS

	Schedule 3
	DRAWDOWN NOTICE

	Schedule 4
	CONDITION PRECEDENT DOCUMENTS

	      Part A
	 

	      Part B
	 

	      Part C
	 

	      Part D
	 

	      Part E
	 

56144316v12

	
		
	      Part F
	 

	      Part G
	 

	      Part H
	 

	Schedule 5
	TRANSFER CERTIFICATE

	Schedule 6
	DESIGNATION NOTICE

	Schedule 7
	LIST OF APPROVED BROKERS

	Schedule 8
	FORM OF COMPLIANCE CERTIFICATE

	 
	 

	Execution
	 

	 
	 

	EXECUTION PAGES
	 

56144316v12

THIS AGREEMENT is made on 16 July 2015
BETWEEN
		
	(1)
	SCORPIO TANKERS INC., a corporation incorporated in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands and whose principal office is at 9, Boulevard Charles III, Monaco, 98000 (the "Borrower");

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

		
	(3)
	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 2, as Swap Banks;

		
	(4)
	ABN AMRO BANK N.V. and DVB BANK SE as Bookrunning Mandated Lead Arrangers;

		
	(5)
	ABN AMRO BANK N.V., as Coordinator;

		
	(6)
	ABN AMRO BANK N.V., as Agent; and

		
	(7)
	ABN AMRO BANK N.V., as Security Trustee.

BACKGROUND
		
	(A)
	The Lenders have agreed to make available to the Borrower a term loan facility (with a revolving credit feature) of up to $142,200,000 for the following purposes:

		
	(i)
	to assist the Borrower in refinancing existing indebtedness secured on Delivered Ship A in an amount not to exceed the lower of (a) 60 per cent. of the Fair Market Value of Delivered Ship A and (b) 60 per cent. of the Purchase Price of Delivered Ship A;

		
	(ii)
	to be on-lent by the Borrower to the relevant Guarantors to assist such Guarantor in financing or refinancing the lower of (a) 60 per cent. of the Fair Market Value of the Ship owned or to be owned by it and (b) 60 per cent. of the Purchase Price of the Ship owned or to be owned by it;

		
	(iii)
	to be on-lent by the Borrower to a Substitute Owner to finance or refinance part of the Purchase Price of a Substitute Ship owned or to be owned by the relevant Guarantor; and

		
	(iv)
	to be on-lent by the Borrower to a Substitute Owner to refinance part of the existing indebtedness in respect of a Substitute Ship.

		
	(B)
	The Swap Banks may enter into interest rate swap transactions with the Borrower from time to time to hedge the Borrower's exposure under this Agreement to interest rate fluctuations.

		
	(C)
	The Lenders and the Swap Banks have agreed to share in the security to be granted to the Security Trustee pursuant to this Agreement on the terms set out herein.

IT IS AGREED as follows:

56144316v12

		
	1
	INTERPRETATION

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

"Account Security Deed"  means, in respect of each Earnings Account, a deed creating security in respect of that Earnings Account in the Agreed Form;
"Account Bank" means ABN AMRO Bank N.V., acting through its branch at Coolsingel 93, 3012 AE Rotterdam, The Netherlands or any other bank or financial institution which at any time, with the Agent's prior written consent (acting on the instructions of all the Lenders) holds an Earnings Account;
"Accounting Information"  means the annual audited consolidated accounts of the Borrower and the annual audited individual accounts of the Borrower or the quarterly unaudited consolidated accounts of the Borrower and the quarterly unaudited individual accounts of the Borrower, in each case, delivered to the Agent in accordance with Clause 11.6;
"Accounting Period" means each consecutive quarterly period during the Security Period ending on 31 March, 30 June, 30 September and 31 December of each financial year of the Borrower;
"Affected Lender"  has the meaning given in Clause 5.6;
"Affiliate" means, as to any person, any other person that, directly or indirectly, controls, is controlled by or is under common control with such person or is a director or officer of such person, and for purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a person means the possession, direct or indirect, of the power to vote 20% or more of the Voting Stock of such person or to direct or cause direction of the management and policies of such person, whether through the ownership of Voting Stock, by contract or otherwise;
"Agency and Trust Deed"  means the agency and trust deed dated the same date as this Agreement and made between the same parties;
"Agent"  means ABN AMRO Bank N.V., acting in its capacity as agent for the Lenders, the Swap Banks and the Bookrunner Mandated Lead Arrangers through its office at Daalsesingel 71 (PAC EA8550), 3511 SW Utrecht, The Netherlands includes its successor appointed under clause 5 of the Agency and Trust Deed and any transferee or assign;
"Agreed Form"  means in relation to any document, that document in the form approved in writing by the Agent (acting on the instructions of all of the Lenders), or as otherwise approved in accordance with any other approval procedure specified in any relevant provision of any Finance Document;
"Applicable Sanctions" means any Sanctions by which the Borrower or any Guarantor is bound or to which it is subject (which shall include, without limitation, any extra territorial sanctions imposed by law or regulation of the United States of America) or compliance with which is reasonable in the ordinary course of business of the Borrower and any Guarantor;
"Approved Broker"  means any of the companies listed in Schedule 7 (or any Affiliate of such person through which valuations are commonly issued) or such other company proposed by the Borrower which the Agent may (acting on the instructions of all the Lenders) approve in writing from time to time to act as an "Approved Broker" under this Agreement;

2    56144316v12

"Approved Classification Society"  means, in relation to a Ship, Lloyds Register, DNV, ABS, Korean Register, Bureau Veritas or any other generally recognised first class classification society that is a member of IACS that the Agent may (acting on the authorisation of all the Lenders), approve in writing from time to time as the "Approved Classification Society" of that Ship for the purposes of this Agreement;
"Approved Flag"  means, in relation to a Ship, the Republic of the Marshall Islands, the Republic of Liberia or such other flag as the Agent may (acting on the instructions of all the Lenders) approve from time to time in writing as the flag on which such Ship shall be registered;
"Approved Pooling Arrangement"  means, in relation to a Ship, the Scorpio LR2 Pool and any other any pooling arrangement:
		
	(a)
	proposed by the Borrower or the Guarantor of that Ship;

		
	(b)
	run by any Affiliate of the Approved Ship Manager responsible for the commercial management of the Ship; and

		
	(c)
	approved in writing by the Agent (acting on the instructions of all the Lenders) prior to that Ship's entry into such pooling arrangement;

"Approved Ship Manager"  means, in relation to the commercial management of a Ship, Scorpio Commercial Management s.a.m. of 9, Boulevard Charles III, Monte Carlo, the Principality of Monaco (or any Affiliate or Subsidiary of Scorpio Commercial Management s.a.m) and, in relation to the technical management of a Ship, Scorpio Ship Management s.a.m. of 9, Boulevard Charles III, Monte Carlo, the Principality of Monaco (or any Affiliate or Subsidiary of Scorpio Ship Management s.a.m), or any other company proposed by the Borrower or a Guarantor which the Agent may (acting on the instructions of all the Lenders), approve from time to time as the technical and/or commercial manager of a Ship;
"Approved Ship Manager's Undertaking" means, in relation to a Ship, the letter executed and delivered by an Approved Ship Manager and an Approved Sub-Manager, in the Agreed Form;
“Approved Sub-Manager” means Hellespont Ship Management GmbH & Co. KG of Beim Strohhause 28, 20097 Hamburg, Germany, Synergy Marine Pte. Ltd. of 1 Kim Seng Promenade, #10-11/12 Great World City West Tower, Singapore 237994, C.P. Offen Tankschiffreedrel (GmbH & Co.) KG of Blichenbruecke 10, 20354 Hamburg, Zenith Gemi Islemeciligi Anonim Sirketi of FSM Mahallesi, Poligon Caddesi, Buyaka 2/B Sitesi NO:8, c-Blok Kat, Umraniye, 34771 Istanbul, Turkey, or any other company proposed by the Borrower or a Guarantor which the Agent may (acting on the instructions of all the Lenders), approve from time to time as the technical and/or commercial sub-contracting manager of a Ship;
"Availability Period" means:
		
	(a)
	in relation to each Tranche in respect of a Delivered Ship and a Newbuilding, the period commencing on the Delivery Date of the Delivered Ship or Newbuilding to which the Tranche relates and ending on the earlier of (i) the date falling 3 months after the Delivery Date of that Delivered Ship or Newbuilding and (ii) 31 December 2015; or

		
	(b)
	in respect of a Tranche to be reborrowed or borrowed in accordance with and subject to the terms of Clauses 8.15 or 8.16 (as the case may be), the Substitution Period in respect of such Tranche;

3    56144316v12

"Basel III" means:
		
	(a)
	the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated; and

		
	(b)
	the rules for global systemically important banks contained  in "Global systemically important banks: assessment methodology and the additional loss absorbency requirement – Rules text" published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and

		
	(c)
	any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III";

"Bookrunning Mandated Lead Arrangers" means ABN AMRO Bank N.V., acting in its capacity as bookrunning mandated lead arranger through its office at Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands, and DVB Bank SE, acting in its capacity as bookrunning mandated lead arranger through its office at Platz der Republik 6, 60325 Frankfurt am Main, Germany, and, in each case, including any transferee, assign or successor;
"Builder" means:
		
	(a)
	in respect of Delivered Ship A,  Daewoo Shipbuilding & Marine Engineering Co., Ltd.; and

		
	(b)
	in respect of each Newbuilding and Delivered Ship B, Sungdong Shipbuilding & Marine Engineering Co., Ltd,

each a company organised and existing under the laws of the Republic of Korea;
"Business Day"  means a day on which banks are open in London, Amsterdam, New York, Curacao and Frankfurt;
"Cancelled Tranche" shall have the meaning given to that expression in Clause 8.16;
"Cash" means any credit balance on any deposit, savings, current or other account, and any cash in hand held with banks or other financial institutions of the Borrower and/or any subsidiary of the Borrower which is:
		
	(a)
	freely withdrawable on demand;

		
	(b)
	not subject to any Security Interest (other than pursuant to the Finance Documents);

		
	(c)
	denominated and payable in freely transferable and freely convertible currency; and

		
	(d)
	capable of being remitted to the Borrower or such subsidiary of the Borrower.

"Cash Equivalents" means:

4    56144316v12

		
	(a)
	unencumbered securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof);

		
	(b)
	time deposits, certificates of deposit or deposits in the interbank market of any commercial bank of recognised standing organised under the laws of the United States of America, any state thereof or any foreign jurisdiction having capital and surplus in excess of $500,000,000; and

		
	(c)
	such other securities or instruments as the Agent shall, with the authorisation of all the Lenders, agree in writing,

provided that in respect of (a) and (b) above such Cash Equivalents shall have a rating of at least "A-" given by S&P or "A" given by Moody's (or the equivalent rating given by another Rating Agency), in each case having maturities of not more than ninety (90) days from the date of acquisition;
"Change of Control" means the occurrence of any act, event or circumstances which results in:
		
	(a)
	100 per cent. of the Equity Interests of any Guarantor ceasing to be ultimately owned and/or controlled by the Borrower (an "Guarantor Disposal");

		
	(b)
	a "person" or "group" (within the meaning of Sections 13(d) and 14(d) of the Exchange Act) other than any holders of the Borrower's Equity Interests as at the date of this Agreement, becoming the ultimate beneficial owner of the Borrower including, without limitation, any change from the date of this Agreement in the ultimate "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act) of more than 35 per cent. of the total voting power of the Voting Stock of the Borrower (calculated on a fully diluted basis); or

		
	(c)
	individuals who constitute the board of directors of the Borrower at the beginning of any period of two consecutive calendar years and yet ceasing for any reason to constitute at least 50 per cent. of the total members of the Borrower's board of directors at any time during such two year period;

"Charter" means, in relation to a Ship, any charterparty in respect of that Ship having a duration (including, without limitation, by virtue of any optional extensions) of more than 12 months entered or to be entered into by the Guarantor which is or is to be the owner of that Ship with a charterer and on terms and conditions acceptable to the Agent (acting on the instructions of all the Lenders);
"Charterparty Assignment" means, in respect of a Charter and any guarantee of that Charter (other than a Charter where the charterer is a member of the Group or pursuant to an Approved Pooling Arrangement), an assignment of the rights and interests of the Guarantor which is party to that Charter in respect of that Charter and any related guarantee, to be executed by that Guarantor in favour of the Security Trustee in the Agreed Form;
"Code" means the US Internal Revenue Code of 1986;
"Commission" means the United States Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act;
"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 

5    56144316v12

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);
"Compliance Certificate" means a certificate executed by the chief financial officer of the Borrower in the form set out in Schedule 8;
"Confidential Information" means all information relating to the Borrower, any Security Party, the Finance Documents or any Master Agreement of which a Creditor Party becomes aware in its capacity as, or for the purpose of becoming, a Creditor Party or which is received by a Creditor Party in relation to, or for the purpose of becoming a Creditor Party under, the Finance Documents or any Master Agreement from either:
		
	(a)
	the Borrower or any Security Party or any of their advisers; or

		
	(b)
	another Creditor Party, if the information was obtained by that Creditor Party directly or indirectly from the Borrower or any Security Party or any of their advisers,

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:
		
	(i)
	is or becomes public information other than as a direct or indirect result of any breach by that Creditor Party of Clause 26.13; or

		
	(ii)
	is identified in writing at the time of delivery as non-confidential by the Borrower or any Security Party or any of their advisers; or

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

"Confidentiality Undertaking" means a confidentiality undertaking in substantially the appropriate form recommended by the Loan Market Association from time to time or in any other form agreed between the Borrower and the Agent;
"Confirmation" and "Early Termination Date", in relation to any continuing Designated Transaction, have the meanings given in the relevant Master Agreement;
"Consolidated EBITDA" means, for any Accounting Period, the consolidated net income of the Borrower for that Accounting Period:
		
	(a)
	plus, to the extent deducted in computing the net income of the Borrower for that Accounting Period, the sum, without duplication, of:

		
	(i)
	all federal, state, local and foreign income taxes and tax distributions;

		
	(ii)
	Consolidated Net Interest Expense;

		
	(iii)
	depreciation, depletion, amortisation of intangibles and other non-cash charges or non-cash losses (including non-cash transaction expenses and the 

6    56144316v12

amortisation of debt discounts) and any extraordinary losses not incurred in the ordinary course of business;
		
	(iv)
	expenses incurred in connection with a special or intermediate survey (including any underwater survey done in lieu thereof) of a Fleet Vessel during such period; and

		
	(v)
	any drydocking expenses;

		
	(b)
	minus, to the extent added in computing the consolidated net income of the Borrower for that Accounting Period:

		
	(i)
	any non-cash income or non-cash gains; and

		
	(ii)
	any extraordinary gains on asset sales not received in the ordinary course of business;

"Consolidated Funded Debt" means, for any Accounting Period, the sum of the following for the Borrower determined (without duplication) on a consolidated basis for such period and in accordance with IFRS consistently applied:
		
	(a)
	all Financial Indebtedness; and

		
	(b)
	all obligations to pay a specific purchase price for goods or services whether or not delivered or accepted (including take-or-pay and similar obligations which in accordance with IFRS would be shown on the liability side of a balance sheet),

provided that balance sheet accruals for future drydock expenses shall not be classified as Consolidated Funded Debt;
"Consolidated Net Interest Expense" means, for any Accounting Period, the aggregate of all interest, commissions, discounts and other costs, charges or expenses accruing that are due from the Borrower and all of its subsidiaries during the relevant Accounting Period less:
		
	(a)
	commitment fees;

		
	(b)
	interest income received; and

		
	(c)
	amortisation of deferred charges and arrangement fees, determined on a consolidated basis in accordance with IFRS and as shown in the consolidated statements of income for the Borrower;

"Consolidated Tangible Net Worth" means, on a consolidated basis, the total shareholders' equity (including retained earnings) of the Borrower, minus goodwill and other non-tangible items;
"Consolidated Total Capitalisation" means the Consolidated Tangible Net Worth plus Consolidated Funded Debt;
"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;

7    56144316v12

"Coordinator" means ABN AMRO Bank N.V., acting in its capacity as coordinator through its office at Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands;
"CRD IV" means Directive 2013/36/EU of the European Union on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms;
"Creditor Party"  means the Agent, the Security Trustee, the Bookrunning Mandated Lead Arrangers, the Coordinator, any Lender or any Swap Bank, whether as at the date of this Agreement or at any later time;
"CRR" means and Regulation (EU) No 575/2013 of the European Union on prudential requirements for credit institutions and investment firms;
“Delivered Ship A” means the 114,900 dwt long range tanker registered in the ownership of Guarantor A under an Approved Flag with the name "STI Spiga”;
"Delivered Ship A Shipbuilding Contract" means, in relation to Delivered Ship A, the shipbuilding contract dated 31 July 2013 as amended and supplemented by an amendment no. 1 dated 26 March 2014, final specifications amended by a memorandum of meeting for technical issues dated 7 October 2014 and as novated in accordance with a master agreement dated 14 May 2015 made between Original Buyer A and the Borrower (or its nominee) pursuant to a novation agreement dated 15 May 2015 between the relevant Builder, the Original Buyer A and Guarantor A (and as the same may have been further amended and supplemented from time to time) in respect of the construction by the relevant Builder of Delivered Ship A;
“Delivered Ship B” means the 115,000 dwt long range tanker registered in the ownership of Guarantor B under an  Approved Flag with the name “STI Savile Row” ;
"Delivered Ship B MOA" means, in relation to Delivered Ship B, the memorandum of agreement dated 8 May 2015 as amended and supplemented by an addendum no. 1 dated 4 June 2015 and a further amended and supplemented from time to time and entered into between the Seller and Guarantor B in respect of the sale and purchase of Delivered Ship B;
"Delivered Ship Purchase Contract" means each of the Delivered Ship A Shipbuilding Contract and the Delivered Ship B MOA;
“Delivered Ships” means Delivered Ship A and Delivered Ship B;
"Delivery Date" means: (i) in respect of Delivered Ship A, 5 June 2015; (ii) in respect of Delivered Ship B, 15 June 2015; and (iii) in respect of a Newbuilding, the date on which such Newbuilding is delivered by the Seller to the relevant Guarantor under the relevant Newbuilding MOA;
"Delivery Prepayment Date" shall have the meaning given to that expression in Clause 8.9;
"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;

		
	(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 Maturity Date; and

8    56144316v12

		
	(c)
	it is designated by the Borrower, by delivery by the Borrower to the Agent of a notice of designation in the form set out in Schedule 6, as a Designated Transaction for the purposes of the Finance Documents;

"Disruption Event" means either or both of:
		
	(a)
	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Loan (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the parties; or

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

		
	(i)
	from performing its payment obligations under the Finance Documents; or

		
	(ii)
	from communicating with other parties in accordance with the terms of the Finance Documents,

and which (in either such case) is not caused by, and is beyond the control of, the party whose operations are disrupted.
"Dollars" and "$"  means the lawful currency for the time being of the United States of America;
"Drawdown Date"  means, in relation to a Tranche, the date requested by the Borrower for such Tranche to be made, or (as the context requires) the date on which such Tranche is actually made;
"Drawdown Notice"  means a notice in the form set out in Schedule 3 (or in any other form which the Agent approves or reasonably requires);
"Earnings"  means, in relation to a Ship, all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Guarantor owning that Ship or the Security Trustee and which arise out of the use or operation of that Ship, including (but not limited to):
		
	(a)
	except to the extent that they fall within paragraph (b):

		
	(i)
	all freight, hire and passage moneys;

		
	(ii)
	compensation payable to the relevant Guarantor or the Security Trustee in the event of requisition of that Ship for hire;

		
	(iii)
	remuneration for salvage and towage services;

		
	(iv)
	demurrage and detention moneys;

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

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

9    56144316v12

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

"Earnings Account"  means, in relation to a Ship, an account in the name of the Guarantor of that Ship with the relevant Account Bank designated as the Earnings Account in respect of such Ship, or any other account (with the relevant Account Bank, the Agent or with a bank or financial institution acceptable to all the Lenders) which is designated by the Agent as the Earnings Account for the purposes of this Agreement;
"Email"  has the meaning given in Clause 28.1;
"Environmental Claim" means:
		
	(a)
	any claim by any governmental, judicial or regulatory authority which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to any Environmental Law; or

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

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

		
	(b)
	any incident in which Environmentally Sensitive Material is released from a vessel other than a Ship and which involves a collision between a Ship and such other vessel or some other incident of navigation or operation, in either case, in connection with which such Ship is actually or potentially liable to be arrested, attached, detained or injuncted and/or such Ship and/or the Guarantor of such Ship and/or any operator or manager of such 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 a Ship and in connection with which such Ship is actually or potentially liable to be arrested and/or where the Guarantor of such Ship and/or any operator or manager of such 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;
"Equity Interests"  of any person means:

10    56144316v12

		
	(a)
	any and all shares and other equity interests (including common stock, preferred stock, limited liability company interests and partnership interests) in such person; and

		
	(b)
	all rights to purchase, warrants or options or convertible debt (whether or not currently exercisable), participations or other equivalents of or interests in (however designated) such shares or other interests in such person;

"Equity Proceeds"  means the net cash proceeds from the issuance of common or preferred stock of the Borrower;
"euros" means the single currency unit of the Participating Member States;
"Event of Default"  means any of the events or circumstances described in Clause 19.1;
"Exchange Act" means the United States Securities Exchange Act of 1934, as amended, and any successor act thereto, and (unless the context otherwise requires) includes the rules and regulations of the Commission promulgated thereunder;
"Facility Office" means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or following that date, by not less than 5 Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement;
"Fair Market Value"  means, in relation to a Ship, a valuation determined in accordance with Clause 15.3;
"FATCA" means:
		
	(a)
	sections 1471 to 1474 of the Code or any associated regulations;

		
	(b)
	any treaty, law or regulation enacted in any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of paragraph (a) above; or

		
	(c)
	any agreement pursuant to the implementation of paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction;

"FATCA Deduction" means a deduction or withholding from a payment under a Finance Document required by FATCA;
"FATCA Exempt Party" means a party to this Agreement that is entitled to receive payments free from any FATCA Deduction;
"Fee Letter" means any letter or letters dated on or about the date of this Agreement between the Agent and the Borrower setting out any of the fees referred to in Clause 20;
"Finance Documents"  means:
		
	(a)
	this Agreement;

		
	(b)
	the Agency and Trust Deed;

		
	(c)
	the Guarantees;

11    56144316v12

		
	(d)
	the Mortgages;

		
	(e)
	the General Assignments

		
	(f)
	the Account Security Deeds;

		
	(g)
	any Charterparty Assignment;

		
	(h)
	any Intercompany Loan Assignment;

		
	(i)
	the Shares Pledge;

		
	(j)
	any Master Agreement Assignment;

		
	(k)
	any Fee Letter;

		
	(l)
	any Approved Ship Manager's Undertaking; and

		
	(m)
	any other document (whether creating a Security Interest or not) which is executed at any time by the Borrower, any Security Party 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 and/or the Swap Banks under this Agreement or any of the other documents referred to in this definition;

"Financial Indebtedness" means, with respect to any person (the "Debtor") at any date of determination (without duplication):
		
	(a)
	all obligations of the Debtor for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the Debtor;

		
	(b)
	all obligations of the Debtor evidenced by bonds, debentures, notes or other similar instruments;

		
	(c)
	all obligations of the Debtor in respect of any acceptance credit, guarantee or letter of credit facility or equivalent made available to the Debtor (including reimbursement obligations with respect thereto) which in accordance with IFRS would be shown on the liability side of a balance sheet;

		
	(d)
	all obligations of the Debtor to pay the deferred purchase price of property or services, which purchase price is due more than six months after the date of placing such property in service or taking delivery thereto or the completion of such services, except trade payables;

		
	(e)
	all capitalised lease obligations of the Debtor as lessee;

		
	(f)
	all Financial Indebtedness of persons other than the Debtor secured by a Security Interest on any asset of that person, whether or not such Financial Indebtedness is assumed by the Debtor, provided that the amount of such Financial Indebtedness shall be the lesser of:

		
	(i)
	the fair market value of such asset at such date of determination; and

		
	(ii)
	the amount of such Financial Indebtedness; and

12    56144316v12

		
	(g)
	all Financial Indebtedness incurred under any guarantee, indemnity or similar obligation to the extent such Financial Indebtedness is guaranteed, secured, expressed to be indemnified by, or otherwise assured by the Debtor.

The amount of Financial Indebtedness of any Debtor at any date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to the contingent obligations set out in paragraphs (f) and (g) above, the maximum liability which would or might arise upon the occurrence of the contingency giving rise to the obligation, as determined in conformity with IFRS, provided that:
		
	(i)
	the amount outstanding at any time of any Financial Indebtedness issued with an original issue discount shall be deemed to be the face amount of such Financial Indebtedness less the remaining unamortised portion of such original issue discount of such Financial Indebtedness at such time; and

		
	(ii)
	the calculation of Financial Indebtedness shall not take into account any liability of the Debtor for taxes;

"Fiscal Year" means, in relation to any person, each period of 1 year commencing on January 1 of each year and ending on December 31 of such year in respect of which its accounts are or ought to be prepared;
"Fleet Vessel"  means each vessel owned by a wholly owned direct or indirect subsidiary of the Borrower (including, but not limited to, the Ships);
"General Assignment"  means, in relation to a Ship, a general assignment of the Earnings, the Insurances and any Requisition Compensation for that Ship in the Agreed Form;
"Green Passport" means, in relation to a Ship, a green passport statement of compliance issued by the relevant Approved Classification Society which includes a list of any and all materials known to be potentially hazardous utilised in the construction of that Ship;
"Group" means the Borrower and its subsidiaries;
"Guarantee"  means a joint and several guarantee to be executed by all the Guarantors in favour of the Security Trustee in the Agreed Form;
"Guarantor" means each of Guarantor A, Guarantor B, Guarantor C and Guarantor D and any Substitute Owner;
"Guarantor A"  means STI Spiga Shipping Company Limited, a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960;
"Guarantor B"  means STI Savile Row Shipping Company Limited, a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960;
"Guarantor C"  means STI Carnaby Shipping Company Limited, a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960;

13    56144316v12

"Guarantor D"  means STI Kingsway Shipping Company Limited, a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960;
"Guarantor Disposal"  shall have the meaning given to that expression in paragraph (a) of the definition of "Change of Control";
"IACS" means the International Association of Classification Societies;
"IFRS" means international accounting standards within the meaning of the IAS Regulations 1606/2002 to the extent applicable to the relevant financial statements;
"Insurances" means, in relation to a Ship:
		
	(a)
	all policies and contracts of insurance, including entries of that Ship in any protection and indemnity or war risks association, effected in respect of that Ship, its Earnings or otherwise in relation to that Ship; 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 and any rights in respect of any claim whether or not the relevant policy, contract of insurance or entry has expired on or before the date of this Agreement;

"Intercompany Loan" means any transaction constituting Financial Indebtedness entered into by the Borrower or any direct or indirect shareholder of the Borrower ("Party A") with the Guarantors or any of them ("Party B") whereby Party A is entitled to receive any payment in cash or in kind from Party B;
"Intercompany Loan Assignment"  means an assignment of each Intercompany Loan made or to be made by the person providing such Intercompany Loan in favour of the Security Trustee in the Agreed Form;
"Interest Period"  means a period determined in accordance with Clause 6;
"Interpolated Screen Rate" means, in relation to LIBOR for the Loan or any part of the Loan, the rate which results from interpolating on a linear basis between:
		
	(a)
	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of the Loan or that part of the Loan; and

		
	(b)
	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of the Loan or that part of the Loan,

each as of the Quotation Date for Dollars.
"ISM Code" means the International Safety Management Code (including the guidelines on its implementation), adopted by the International Maritime Organisation, as the same may be amended or supplemented from time to time (and the terms "safety management system", "Safety Management Certificate" and "Document of Compliance" have the same meanings as are given to them in the ISM Code);
"ISPS Code"  means the International Ship and Port Facility Security Code as adopted by the International Maritime Organisation, as the same may be amended or supplemented from time to time;

14    56144316v12

"ISSC"  means a valid and current International Ship Security Certificate issued under the ISPS Code;
"Latent Event of Default"  means any event or circumstance specified in Clause 19 which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents (except for the Approved Ship Manager Undertakings) or any combination of any of the foregoing) be or become an Event of Default;
"Lender"  means, subject to Clause 26.6, a bank or financial institution listed in Part 1 of Schedule 1 and acting through its branch indicated in Schedule 1 (or through another branch notified to the Borrower under Clause 26.14) or its transferee, successor or assign;
"LIBOR"  means, in relation to any period for which an interest rate is to be determined under any provision of a Finance Document:
		
	(a)
	the applicable Screen Rate as of 11 a.m. (London time) on the Quotation Date for that period for the offering of deposits in the relevant currency and for a period comparable to that period; or

		
	(b)
	as otherwise determined pursuant to Clause 5.5,

and if, in either case, any such rate is below zero, LIBOR shall be deemed to be zero;
"Loan" means the principal amount for the time being outstanding under this Agreement;
"LTV" means:
		
	(a)
	in the case of a Delivered Ship or a Newbuilding, the ratio of (i) the Tranche used to finance or refinance such Delivered Ship or Newbuilding to (ii) the Fair Market Value of that Delivered Ship or Newbuilding; and

		
	(b)
	in the case of a determination of whether a ship fulfils the requirements of paragraph (h) of the definition of the" Substitute Ship Criteria", (i) the ratio of the Substitute Ship Tranche to be used to finance or refinance such ship to (ii) the Fair Market Value of that ship;

"Major Casualty"  means, in relation to a Ship, any casualty to that Ship in respect of which the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds $1,000,000 or the equivalent in any other currency;
"Majority Lenders"  means:
		
	(a)
	before a Tranche has been made, Lenders whose Commitments total 66.66 per cent. of the Total Commitments; and

		
	(b)
	after a Tranche has been made, Lenders whose Contributions total 66.66 per cent. of the Loan;

"Margin"  means 2.15 per cent. per annum;
"Master Agreement"  means each master agreement (on the 2002 ISDA (Multicurrency - Crossborder) form) in the Agreed Form 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 under the master agreement;

15    56144316v12

"Master Agreement Assignment"  means, in relation to each Master Agreement, the assignment of the Master Agreement to be entered into between the Borrower and the Security Trustee in Agreed Form;
"Material Adverse Effect" means in the reasonable opinion of the Lenders a material adverse effect on:
		
	(a)
	the business, operations, property or condition (financial or otherwise) of the Borrower and/or any Guarantor; or

		
	(b)
	the ability of the Borrower and/or any Guarantor to perform its obligations under any Finance Document and any Master Agreement; or

		
	(c)
	the validity or enforceability of, or the effectiveness or ranking of any Security Interest granted or intended to be granted pursuant to any of, the Finance Documents (except for the Approved Ship Manager’s Undertakings); or

		
	(d)
	the rights or remedies of any Creditor Party under any of the Finance Documents and any Master Agreement;

"Maturity Date" means, in the case of each Tranche, the fifth anniversary of the first Drawdown Date in respect of that Tranche;
"Moody's"  means Moody's Investors Service, Inc., a subsidiary of Moody's Corporation;
"Mortgage"  means, in relation to a Ship the first priority or, as the case may be, preferred ship mortgage on the Ship under the applicable Approved Flag together with any deed of covenant collateral thereto, (if applicable) in the Agreed Form;
"Net Debt" means Consolidated Funded Debt less Cash and Cash Equivalents of the Borrower and its Subsidiaries;
"Newbuildings" means each of Newbuilding C and Newbuilding D;
"Newbuilding C" means the 115,000 dwt long range tanker currently under construction by the relevant Builder with hull number S3094 and which upon delivery pursuant to the Newbuilding C MOA shall be registered in the ownership of Guarantor C under an Approved Flag with the name "STI Kingsway";
"Newbuilding C MOA " means, in relation to Newbuilding C, the memorandum of agreement  dated 8 May 2015 as amended and supplemented by an addendum no. 1 dated 4 June 2015 and as further amended and supplemented from time to time and entered into between the Seller and  Guarantor C in respect of Newbuilding C;
"Newbuilding D" means the 115,000 dwt long range tanker currently under construction by the relevant Builder with hull number S3079 and which upon delivery pursuant to the Newbuilding D MOA  shall be registered in the ownership of Guarantor D under an Approved Flag with the name "STI Carnaby";
"Newbuilding D MOA " means, in relation to Newbuilding D, the memorandum of agreement  dated 8 May 2015 as amended and supplemented by an addendum no. 1 dated 4 June 2015 and as further amended and supplemented from time to time and entered into between the  Seller and Guarantor D in respect of Newbuilding D;

16    56144316v12

“Newbuilding MOAs” means the Newbuilding C MOA and the Newbuilding D MOA;
"Notifying Lender"  has the meaning given in Clause 23.1 or Clause 24.1 as the context requires;
“Original Buyer A” means Flagship Jasmine Inc., a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960;
"Participating Member State" means any member state of the European Union that has the euro as its lawful currency in accordance with the legislation of the European Union relating to Economic and Monetary Union;
"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 a Ship not prohibited by this Agreement or any other Finance Document;

		
	(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 a Ship, provided such liens do not secure amounts more than 30 days overdue (unless the overdue amount is being contested by the Guarantor that owns such Ship in good faith by appropriate steps) and subject, in the case of liens for repair or maintenance, to Clause 14.13(h);

		
	(f)
	any Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses where the Guarantor that owns such Ship or the Borrower, as the case may be, 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

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

17    56144316v12

"Pertinent Jurisdiction", in relation to a company, means:
		
	(a)
	England and Wales, the Principality of Monaco, New York State of the United States of America, The Netherlands and the Republic of the Marshall Islands;

		
	(b)
	if not within any of the jurisdictions referred to in (a) above, the country under the laws of which the company is incorporated or formed;

		
	(c)
	if not within any of the jurisdictions referred to in (a) above, 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;

"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;
"Prepositioned Tranche" means a Tranche which is prepositioned in accordance with Clause 4.9;
"Prepositioning Bank" means the bank referred to in Clause 4.9(a)(i);
"Purchase Price" means:
		
	(a)
	in respect of Delivered Ship A, $58,500,000;

		
	(b)
	in respect of each of Delivered Ship B, Newbuilding C and Newbuilding D, $59,500,000; and

		
	(c)
	in respect of a Substitute Ship, the relevant Substitute Ship Purchase Contract in respect of that Substitute Ship;

"Quotation Date"  means, in relation to any period for which an interest rate is to be determined under any provision of a Finance Document, the day which is 2 Business Days before the first day of that period, unless market practice differs in the London Interbank Market for a currency, in which case the Quotation Date will be determined by the Agent in accordance with market practice in the London Interbank Market (and if quotations would normally be given by leading banks in the London Interbank Market on more than one day, the Quotation Date will be the last of those days);
"Rating Agency" means S&P, Moody's or, if both of them are not making ratings of securities publically available, an internationally recognised rating agency selected by the Agent which shall be substituted for S&P or Moody's;
"Reference Banks"  means, subject to Clause 26.16, ABN AMRO Bank N.V. and DVB Bank SE, and any other prime international banks selected by the Agent and notified to the Borrower;

18    56144316v12

"Reference Bank Rate"  means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks:
		
	(a)
	(other than where paragraph (b) below applies) as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in dollars for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or 

		
	(b)
	if different, as the rate (if any and applied to the relevant Reference Bank and the relevant currency and period) which contributors to the Screen Rate are asked to submit to the relevant administrator;

"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";
"Restricted Person" means a person that is:
		
	(a)
	listed on, or owned or controlled by a person listed on any Sanctions List;

		
	(b)
	located in, incorporated under the laws of, or owned or controlled by, or acting on behalf of, a person located in or organised under the laws of a country or territory that is the target of country-wide Sanctions; or

		
	(c)
	otherwise a target of Sanctions.

"S&P" means Standard & Poor's Rating Services, a division of the McGraw Hill Companies Inc.;
"Sanctions" means any economic or trade sanctions, laws, regulations, embargoes or restrictive measures administered, enacted or enforced by:
		
	(a)
	the United States Government;

		
	(b)
	the United Nations;

		
	(c)
	the European Union or any of its Member States;

		
	(d)
	any country to which the Borrower or any Guarantor is bound;

		
	(e)
	the respective governmental institutions and agencies of any of the foregoing, including without limitation, the Office of Foreign Assets Control of the US Department of Treasury ("OFAC"), the United States Department of State, and Her Majesty's Treasury ("HMT") (together the "Sanctions Authorities");

"Sanctions List" means the "Specialty Designated Nationals and Blocked Persons" List issued by OFAC, the "Consolidated List of Financial Sanctions Targets and Investment Ban List" issued by HMT, or any similar list issued or maintained or made public by any of the Sanctions Authorities;

19    56144316v12

"Screen Rate" means, in respect of LIBOR for any period, the rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for Dollars for the relevant period displayed on the appropriate page of the Reuters screen (or any replacement Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters.  If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the Lenders;
"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 connection with any Finance Document or the Master Agreements or any judgment relating to any Finance Documents or the Master Agreements; 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 each Guarantor 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" but always excluding any Approved Ship Manager and any Approved Sub-Manager;
"Security Period"  means the period commencing on the date of this Agreement and ending on the date on which the Agent acting reasonably notifies the Borrower, the Security Parties and the other Creditor Parties that:
		
	(a)
	all amounts which have become due for payment by the Borrower or any Security Party under the Finance Documents and the Master Agreements have been paid;

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

		
	(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 or a Master Agreement; and

		
	(d)
	the Agent, the Security Trustee and all the Lenders do not consider that there is a significant risk that any payment or transaction under a Finance Document or a Master Agreement 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 

20    56144316v12

possible future proceeding relating to a Finance Document or a Master Agreement or any asset covered (or previously covered) by a Security Interest created by a Finance Document;
"Security Trustee"  means ABN AMRO Bank N.V., acting in its capacity as Security Trustee for the Lenders and the Swap Banks through its office at Daalsesingel 71 (PAC EA8550), 3511 SW Utrecht, The Netherlands and includes any transferee, assign or any successor of it appointed under clause 5 of the Agency and Trust Deed;
“Seller” means Navig8 Product Tankers Inc or its guaranteed nominee;
"Servicing Bank" means the Agent or the Security Trustee;
"Shares Pledge"  means a deed creating security over the share capital of each Guarantor in favour of the Security Trustee in the Agreed Form;
"Ship" means the Delivered Ships, each Newbuilding and each Substitute Ship;
"SMC"  means a safety management certificate issued in respect of the Ship in accordance with Rule 13 of the ISM Code;
"Substitute Owner" means an entity which:
		
	(a)
	is a direct or indirect wholly owned subsidiary of the Borrower; and

		
	(b)
	is or is to be the registered owner of a Substitute Ship;

"Substitution Period"  means:
		
	(a)
	in respect of a Tranche to be reborrowed in accordance with and subject to the conditions set out in Clause 8.15, the period commencing on the date of the mandatory prepayment of such Tranche pursuant to Clause 8.8 and ending on the earlier of (i) 120 days after the date of such mandatory prepayment and (ii) 31 August 2019; and

		
	(b)
	in respect of a Tranche to be borrowed in accordance with and subject to the conditions set out in Clause 8.16, the period commencing on the date of the cancellation of the Cancelled Tranche and ending on the earlier of (i) 120 days after the date of cancellation and (ii) 31 December 2015;

"Substitute Ship" means any ship which becomes subject to this Agreement in accordance with the provisions of Clauses 8.15 or 8.16 (as the case may be);
"Substitute Ship Purchase Contract" means, in relation to a Substitute Ship, the building contract or memorandum of agreement pursuant to which the relevant Substitute Owner agrees to purchase such Substitute Ship;
"Substitute Ship Criteria" means any ship which:
		
	(a)
	is a product tanker;

		
	(b)
	is between 35,000 and 120,000 dwt;

		
	(c)
	has a double hull;

21    56144316v12

		
	(d)
	is built no earlier than 1 January 2014;

		
	(e)
	is registered under an Approved Flag;

		
	(f)
	is classed with an Approved Classification Society; 

		
	(g)
	is owned or to be owned by a Substitute Owner; and

		
	(h)
	has the same LTV as that which applied to the Ship being replaced by such ship as at the date of prepayment of the Tranche relating to such Ship being replaced in accordance with Clause 8.8;

"Substitute Ship Tranche" shall have the meaning given to that expression in Clause 8.15;
"Swap Bank"  means a bank or financial institution listed in Schedule 2 and acting through its branch indicated in Schedule 1;
"Swap Counterparty"  means, at any relevant time and in relation to a continuing Designated Transaction, the Swap Bank which is a party to that Designated Transaction;
"Swap Exposure"  means, as at any relevant date and in relation to a Swap Counterparty, the amount certified by the Swap Counterparty to the Agent to be the aggregate net amount in Dollars which would be payable by the Borrower to the Swap Counterparty under (and calculated in accordance with) section 6(e) (Payments on Early Termination) of the Master Agreement entered into by the Swap Counterparty with the Borrower 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 Counterparty;
"Total Loss"  means, in relation to a Ship:
		
	(a)
	actual, constructive, compromised, agreed or arranged total loss of that Ship;

		
	(b)
	any expropriation, confiscation, requisition or acquisition of that Ship, whether for full consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period not exceeding 1 year without any right to an extension), unless it is within 45 days redelivered to the full control of the Guarantor owning that Ship;

		
	(c)
	any arrest, capture, seizure or detention of that Ship (including any theft) unless it is within 45 days redelivered to the full control of the Guarantor owning that Ship; and

		
	(d)
	any hijacking of that ship unless it is within 45 days redelivered to the full control of the Guarantor owning that Ship;

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

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

22    56144316v12

		
	(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 with that Ship's insurers in which the insurers agree to treat such Ship as a total loss; and

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

"Tranche"  means the principal amount of each borrowing by the Borrower under this Agreement comprising Tranche A, Tranche B, Tranche C and Tranche D and shall, for the avoidance of doubt, include any reborrowing or borrowing of such Tranche by the Borrower in accordance with and subject to the conditions set out in Clauses 8.15, 8.16 or 8.17 (as the case may be);
"Tranche A" means an amount up to the lower of (i) 60 per cent. of the Purchase Price of Delivered Ship A and (ii) 60 per cent. of the Fair Market Value of Delivered Ship A, to be advanced to the Borrower to refinance the existing indebtedness secured on Delivered Ship A, as that amount may be reduced, cancelled or terminated in accordance with this Agreement;
"Tranche B" means an amount up to the lower of (i) 60 per cent. of the Purchase Price of Delivered Ship B and (ii) 60 per cent. of the Fair Market Value of Delivered Ship B, to be advanced to the Borrower and on-lent to Guarantor B to assist Guarantor B in partially financing or re-financing the cost of its purchase of Delivered Ship B from the Seller under the Delivered Ship B MOA, as that amount may be reduced, cancelled or terminated in accordance with this Agreement;
"Tranche C" means an amount up to the lower of (i) 60 per cent. of the Purchase Price of Newbuilding C and (ii) 60 per cent. of the Fair Market Value of Newbuilding C, to be advanced to the Borrower and on-lent to Guarantor C to assist Guarantor C in partially financing or re-financing the cost of its purchase of Newbuilding C from the Seller under the Newbuilding C MOA, as that amount may be reduced, cancelled or terminated in accordance with this Agreement;
"Tranche D" means an amount up to the lower of (i) 60 per cent. of the Purchase Price of Newbuilding D and (ii) 60 per cent. of the Fair Market Value of Newbuilding D, to be advanced to the Borrower to be on-lent to Guarantor D to assist Guarantor D in partially financing or re-financing the cost of its purchase of Newbuilding D from the Seller under the Newbuilding D MOA, as that amount may be reduced, cancelled or terminated in accordance with this Agreement;
"Transaction"  has the meaning given in each Master Agreement;
"Transfer Certificate"  has the meaning given in Clause 26.2; 
"Trust Property" has the meaning given in clause 3.1 of the Agency and Trust Deed;
"VAT" means:
		
	(a)
	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and

		
	(b)
	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere; 

23    56144316v12

“Voting Stock” of any person as of any date means the Equity Interests of such person that are at the time entitled to vote in the election of the board of directors or similar governing body of such person.
		
	1.2
	Construction of certain terms.  In this Agreement:

"administration notice"  means a notice appointing an administrator, a notice of intended appointment and any other notice which is required by law (generally or in the case concerned) to be filed with the court or given to a person prior to, or in connection with, the appointment of an administrator;
"approved"  means, for the purposes of Clause 13, approved in writing by the Agent;
"asset"  includes every kind of property, asset, interest or right, including any present, future or contingent right to any revenues or other payment;
"company"  includes any partnership, joint venture and unincorporated association;
"consent"  includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration, notarisation and legalisation;
"contingent liability"  means a liability which is not certain to arise and/or the amount of which remains unascertained;
"document"  includes a deed; also a letter or fax;
"excess risks"  means, in relation to a Ship, the proportion of claims for general average, salvage and salvage charges not recoverable under the hull and machinery policies in respect of that Ship in consequence of its insured value being less than the value at which such 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 of 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, in relation to a Ship, all insurances effected, or which the Guarantor owning that Ship is obliged to effect, under Clause 13 or any other provision of this Agreement or another Finance Document;
"parent company"  has the meaning given in Clause 1.4;
"party" means any party to this Agreement;

24    56144316v12

"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 6 of the International Time Clauses (Hulls)(1/11/02 or 1/11/03) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision;
"regulation"  includes any regulation, rule, official directive, request or guideline whether or not having the force of law of any governmental body, intergovernmental or supranational, agency, department or regulatory, self‐regulatory or other authority or organisation;
"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; 
"war risks"  includes the risk of mines and all risks excluded by clause 29 of the Institute Hull Clauses (1/11/02 or 1/11/03) or clause 24 of the Institute Time clauses (Hulls) (1/11/1995) or clause 23 of the Institute Time Clauses (Hulls) (1/10/83); and
a "Latent Event of Default" is "continuing" if it has not been remedied or waived and an "Event of Default" is "continuing" if it has not been waived.
		
	1.3
	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".  In this Agreement "subsidiary" means a subsidiary within the meaning of section 1159 of the Companies Act 2006.

		
	1.5
	General Interpretation.  In this Agreement:

		
	(a)
	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;

25    56144316v12

		
	(b)
	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;

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

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

		
	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 agree to make a loan facility not exceeding $142,200,000 available to the Borrower in four Tranches.

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

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

		
	3
	POSITION OF THE LENDERS AND SWAP BANKS

		
	3.1
	Interests several.  The rights of the Lenders and of the Swap Banks under this Agreement and under the Master Agreements are several.

		
	3.2
	Individual right of action. Each Lender and each Swap Bank shall be entitled to sue for any amount which has become due and payable by the Borrower to it under this Agreement or under a Master Agreement without joining the Agent, the Security Trustee, any other Lender or any other Swap Bank as additional parties in the proceedings.

		
	3.3
	Proceedings requiring Majority Lender consent. Except as provided in Clause 3.2, no Lender and no Swap Bank may commence proceedings against the Borrower or any Security Party in connection with a Finance Document without the prior consent of the Majority Lenders.

		
	3.4
	Obligations several.  The obligations of the Lenders under this Agreement and of the Swap Banks under the Master Agreement to which each is a party are several; and a failure of a Lender to perform its obligations under this Agreement or a failure 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 or Swap Banks being increased; nor

		
	(b)
	the Borrower, any Security Party, any other Lender or any other Swap Bank being discharged (in whole or in part) from its obligations under any Finance Document or under any Master Agreement,

and in no circumstances shall a Lender or a Swap Bank have any responsibility for a failure of another Lender or another Swap Bank to perform its obligations under this Agreement or a Master Agreement.
		
	4
	DRAWDOWN

		
	4.1
	Request for advance of a Tranche.  Subject to the following conditions, the Borrower may request a Tranche to be made by ensuring that the Agent receives a completed Drawdown Notice not later than:

		
	(a)
	in the case of Tranche A or Tranche B, 11.00 a.m. (Amsterdam time) 3 Business Days prior to the intended Drawdown Date; or

		
	(b)
	in the case of any other Tranche , 11.00 a.m. (Amsterdam time) 4 Business Days prior to the intended Drawdown Date.

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

		
	(e)
	the Drawdown Date for each Tranche has to be a Business Day during the Availability Period applicable to such Tranche; and

		
	(f)
	each Tranche in respect of a Delivered Ship and a Newbuilding shall not exceed the lower of:

		
	(i)
	60 per cent. of the Purchase Price; and

		
	(ii)
	60 per cent. of the Fair Market Value, 

of the Delivered Ship or Newbuilding which is the subject of such Tranche;
		
	(g)
	each Tranche being reborrowed in accordance with and subject to the conditions of Clause 8.15 shall not exceed the lower of:

		
	(i)
	60 per cent. of the Fair Market Value of the Substitute Ship to be financed or refinanced by that Tranche; and

		
	(ii)
	an amount equal to the corresponding Tranche prepaid under Clause 8.8 and which is being reborrowed in accordance with Clause 8.15;

		
	(h)
	the Tranche being borrowed in accordance with and subject to the conditions of Clause 8.16 shall not exceed the lower of:

		
	(i)
	60 per cent. of the Fair Market Value of the Substitute Ship to be financed or refinanced by that Tranche; and

		
	(ii)
	an amount equal to the corresponding Cancelled Tranche (if such amount was determined as at the date of cancellation of such Cancelled Tranche);

		
	(i)
	each Tranche in respect of a Newbuilding shall only be on-lent by the Borrower to the relevant Guarantor to assist the relevant Guarantor in partially financing or refinancing its acquisition of the Newbuilding acquired or to be acquired by it pursuant to the relevant Newbuilding MOA;

		
	(j)
	each Tranche being reborrowed or borrowed in accordance with and subject to the conditions of Clauses 8.15 or 8.16 (as the case may be) shall only be on-lent by the Borrower to the relevant Substitute Owner to assist the relevant Substitute Owner in:

		
	(i)
	partially financing or refinancing its acquisition of a Substitute Ship acquired or to be acquired by it; or

		
	(ii)
	partially refinancing the existing indebtedness in respect of a Substitute Ship owned by it;

		
	(k)
	each Tranche shall be made available in a single amount and any amount undrawn in respect of a Tranche shall be cancelled and, other than pursuant to Clause 8.15 or Clause 8.17, may not be borrowed by the Borrower at a later date;

		
	(l)
	the aggregate amount of the Tranches shall not exceed the Total Commitment; and

		
	(m)
	the applicable conditions precedent stated in Clause 9 shall have been satisfied or waived as provided therein.

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

		
	(c)
	the amount of the Tranche requested and the Drawdown Date;

		
	(d)
	the amount of that Lender's participation in that Tranche; and

		
	(e)
	the duration of the first Interest Period applicable to that Tranche.

		
	4.4
	Drawdown Notice irrevocable.  A Drawdown Notice must be signed by an officer or a duly authorised attorney-in-fact of the Borrower; and once served, a 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 under Clause 2.2.

		
	4.6
	Disbursement of a Tranche.  Subject to the provisions of this Agreement, the Agent shall on each 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 a Tranche to third party.  The payment of a Tranche by the Agent under Clause 4.6 to the Guarantor owning the Ship to which such Tranche relates or to the relevant Builder shall constitute the making of that Tranche and the Borrower shall at that time become indebted, as principal and direct obligor, to each Lender in an amount equal to that Lender's Contribution.

		
	4.8
	Cancellation of Commitments.  The Commitments in respect of any Tranche which are unutilised at the end of the Availability Period for such Tranche shall then be cancelled.

		
	4.9
	Prepositioning of funds. If, in respect of the disbursement of Tranche C, Tranche D or any Substitute Ship Tranche where the relevant Substitute Ship to which such Substitute Ship Tranche relates is a newbuilding (the "Prepositioned Tranche"), the Lenders may preposition funds in accordance with the following terms and subject to the following conditions:

		
	(a)
	the Agent shall, on the Drawdown Date relating to the Prepositioned Tranche, preposition the amounts which the Agent receives from the Lenders in respect of the Prepositioned Tranche by making payment of such amounts:

		
	(iii)
	to the account of the Agent with the relevant bank (the "Prepositioning Bank") as the Borrower may have agreed with the Agent in advance of the Drawdown Date relating to the Prepositioned Tranche and specified in the Drawdown Request relating to the Prepositioned Tranche; 

		
	(iv)
	in like funds as the Agent received from the Lenders in respect of the Prepositioned Tranche; and

		
	(v)
	on terms that:

		
	(A)
	such amounts shall be held to the order of the Agent until such time as the Agent agrees that the Prepositioned Tranche may be released to the relevant Builder, the Seller or, in the case of a Substitute Ship Tranche, the relevant builder or seller in accordance with Clause 4.10;

		
	(B)
	such prepositioning shall constitute the making of the Prepositioned Tranche and the Borrower shall at that time become indebted, as principal and direct obligor, to each Lender in an amount equal to that Lender's participation in the Prepositioned Tranche; and

		
	(C)
	the date on which the Prepositioned Tranche is prepositioned shall constitute the Drawdown Date relating to the Prepositioned Tranche.

		
	4.10
	Disbursement of Prepositioned Tranche

The Agent shall, on the Delivery Date of the relevant Ship, instruct the Prepositioning Bank to release the amount of the Prepositioned Tranche to the relevant Builder, the Seller or, in the case of a Substitute Ship Tranche, the relevant builder or seller (as the case may be) subject to the provisions of Clause 9.1.
		
	5
	INTEREST

		
	5.1
	Payment of normal interest.  Subject to the provisions of this Agreement, interest on each Tranche 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 each Tranche in respect of an Interest Period shall be the aggregate of (i) the Margin and (ii) LIBOR for that Interest Period.

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

		
	5.4
	Notification of 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
	Unavailability of Screen Rate

		
	(c)
	If no Screen Rate is available for LIBOR for the Interest Period of the Loan or any part of the Loan, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of the Loan or that part of the Loan.

		
	(d)
	If no Screen Rate is available for LIBOR for:

		
	(vi)
	dollars; or

		
	(vii)
	the Interest Period of the Loan or any part of the Loan and it is not possible to calculate the Interpolated Screen Rate,

the applicable LIBOR shall be the Reference Bank Rate as of the Quotation Date and for a period equal in length to the Interest Period of the Loan or that part of the Loan.
		
	(e)
	If paragraph (b) above applies but no Reference Bank Rate is available for dollars or the relevant Interest Period, there shall be no LIBOR for the Loan or that part of the Loan and Clause 5.8 (Cost of funds) shall apply to the Loan or that part of the Loan for that Interest Period.

		
	5.6
	Calculation of Reference Bank Rate

		
	(a)
	Subject to paragraph (b) below, if LIBOR is to be determined on the basis of a Reference Bank Rate but a Reference Bank does not supply a quotation by the Quotation Date, the Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Reference Banks.

		
	(b)
	If at or about 12.00 p.m. (London time) on the Quotation Date none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period.

		
	5.7
	Market disruption

		
	(a)
	If before close of business in London on the Quotation Day for the relevant Interest Period the Agent receives notification from a Lender or Lenders (whose participations in the Loan or the relevant part of the Loan exceed 30 per cent. of the Loan or the relevant part of the Loan) (the "Relevant Lender") that the cost to it of funding its participation in the Loan or that part of the Loan would be in excess of LIBOR then Clause 5.8 (Cost of funds) shall apply to the Loan or that part of the Loan (as applicable) for the relevant Interest Period.

		
	(b)
	If, at least 1 Business Day before a Drawdown Date, the Agent receives notification from 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 participation in the relevant Tranche, the Affected Lender's obligation to participate in that Advance shall be suspended while that situation continues.

		
	5.8
	Cost of funds

		
	(b)
	If this Clause 5.8 (Cost of funds) applies, the rate of interest on each Lender's share of the Loan or the relevant part of the Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

		
	(i)
	the Margin; and

		
	(ii)
	the rate notified to the Agent by that Lender as soon as practicable before interest is due to be paid in respect of that Interest Period to be that which expresses as a percentage rate per annum the cost to the relevant Lender of funding its participation in the Loan or that part of the Loan from whatever source it may reasonably select.

		
	(c)
	If this Clause 5.8 (Cost of funds) applies and the Agent or the Borrower so requires, the Agent and the Borrower shall enter into negotiations (for a period of not more than 30 days) with a view to agreeing a substitute basis for determining the rate of interest or (as the case may be) an alternative basis for funding.

		
	(d)
	Any substitute or alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all parties.

		
	6
	INTEREST PERIODS

		
	6.1
	Commencement of Interest Periods.  The first Interest Period applicable to:

		
	(f)
	a Tranche which is not a Prepositioned Tranche shall commence on the Drawdown Date relating to that Tranche; and 

		
	(g)
	a Prepositioned Tranche shall be 14 days from the Drawdown Date relating to that Prepositioned Tranche,

and each subsequent Interest Period shall commence on the expiry of the preceding Interest Period.
If the Delivery Date relating to the Ship which is the subject of a Prepositioned Tranche occurs on or before the Delivery Prepayment Date relating thereto, the second Interest Period for such Prepositioned Tranche shall start on the Delivery Prepayment Date and end on the first Repayment Date.
		
	6.2
	Duration of normal Interest Periods.  Subject to Clauses 6.1, 6.3 and 6.4, each Interest Period shall be:

		
	(a)
	3, 6 or 9 months as notified by the Borrower to the Agent not later than 11.00 a.m. (Amsterdam time) 5 Business Days before the commencement of the Interest Period; or

		
	(b)
	in the case of the first Interest Period applicable to each Tranche, a period ending on the first Repayment Date relating to that Tranche; or

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

		
	(d)
	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 3 months, any Lender notifies the Agent by 11.00 a.m. (London time) on the third Business Day before the commencement of the Interest Period that it is not satisfied that deposits in Dollars for a period equal to the Interest Period will be available to it in the London Interbank Market when the Interest Period commences, the Interest Period shall be of 3 months.

		
	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:

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

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

		
	(g)
	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:

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

		
	(d)
	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:

		
	(f)
	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);

		
	(g)
	the Margin plus, in respect of successive periods select by the Agent for so long as such amounts remain unpaid:

		
	(i)
	LIBOR; or

		
	(ii)
	if LIBOR is unavailable, a rate from time to time determined by the Agent by reference to the actual 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.

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

		
	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 that Master Agreement shall apply.

		
	8
	REPAYMENT, PREPAYMENT AND REBORROWING

		
	8.1
	Amount of repayment instalments.  The Borrower shall repay each Tranche by 20 equal consecutive quarterly instalments (each a "Scheduled Instalment") using an age-adjusted linear repayment profile corresponding to a repayment of such Tranche by the fifteenth anniversary of the Delivery Date of the Ship to which such Tranche relates up to the Maturity Date whereupon the remainder of the Tranche then outstanding shall be repaid as a balloon instalment (the "Balloon Instalment").  If less than the maximum amount of a Tranche is advanced, each Scheduled Instalment for that Tranche, including its Balloon Instalment, shall be reduced pro rata by an amount in aggregate equal to the undrawn amount.

		
	8.2
	Repayment Dates.  The first instalment of each Tranche shall be repaid on the date falling 3 months after the Drawdown Date relating to that Tranche with subsequent instalments falling due at consecutive intervals of three calendar months thereafter and the Balloon Instalment shall be repaid on the Maturity Date together with the last Scheduled Instalment.

		
	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 conditions set forth in Clause 8.5, the Borrower may prepay the whole or any part of the Loan on the last day of an Interest Period without premium other than pursuant to Clause 8.11(c).

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

		
	(e)
	a partial prepayment shall be $1,000,000 or a higher integral multiple of $1,000,000 or such lower amount as the Agent may approve;

		
	(f)
	the Agent has received from the Borrower at least 15 Business Days' prior written notice specifying the amount to be prepaid and the date on which the prepayment is to be made; and

		
	(g)
	that the Borrower has complied with Clause 8.14 on or prior to the date of prepayment.

		
	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 all the 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.

		
	8.8
	Mandatory prepayment on sale or Total Loss.  If a Ship is sold or becomes a Total Loss, the Borrower shall prepay the Tranche related to that Ship and comply with Clause 8.14:

		
	(a)
	in the case of a sale, on the earlier of (i) the date on which the sale is completed by delivery of the Ship to the relevant buyer and (ii) the date of receipt by the Security Trustee of the proceeds of the sale; or

		
	(b)
	in the case of a Total Loss, on the earlier of (i) the date falling 180 days after the Total Loss Date and (ii) the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss.

		
	8.9
	Mandatory prepayment for failure to deliver

If, after the Drawdown Date relating to any Prepositioned Tranche, the Ship which is the subject of such Prepositioned Tranche is not delivered to the relevant Guarantor by the date which is 14 days after the Drawdown Date of such Prepositioned Tranche (the "Delivery Prepayment Date"), that Prepositioned Tranche shall be prepaid immediately and in any event within 3 Business Days of the Delivery Prepayment Date and the Borrower shall make up any shortfall if the amount prepaid is less than the amount of that Prepositioned Tranche.
		
	8.10
	Mandatory prepayment on Change of Control.  If there is a Change of Control, the Borrower shall prepay the Loan and comply with Clause 8.14 on or before the date falling 60 days following such Change of Control unless agreed otherwise by all the Lenders save that, up to 2 Guarantor Disposals shall be permitted where such Guarantor Disposal is made solely to facilitate the sale or disposal of a Ship which is then replaced by a Substitute Ship in accordance with and subject to the conditions set out in this Agreement.

		
	8.11
	Amounts payable on prepayment.  A voluntary prepayment under Clause 8.4, a mandatory prepayment under Clauses 8.8 and 8.9 and any cancellation of any Lender's Commitment under this Agreement shall be made together with:

		
	(a)
	accrued interest (and any other amount payable under Clause 21 or otherwise) in respect of the amount prepaid;

		
	(b)
	if the prepayment is not made on the last day of an Interest Period, any sums payable under Clause 21.1(b); and

		
	(c)
	in respect of a voluntary prepayment pursuant to Clause 8.4 only, a prepayment fee of 1.00 per cent. of the amount of the Loan as at the relevant prepayment date in respect of any voluntary prepayment made prior to the first anniversary of the earlier of (i) 31 December 2015 and (ii) the Drawdown Date in respect of the last Newbuilding to be delivered to an Guarantor under this Agreement.

		
	8.12
	Application of partial prepayment.  Each partial prepayment shall be applied pro rata between the Tranches and, as regards each Tranche, pro rata against the repayment instalments for the relevant Tranche specified in Clause 8.1, including the Balloon Instalment.

		
	8.13
	No reborrowing.  No amount prepaid may be reborrowed other than a reborrowing made in accordance with Clause 8.15 or Clause 8.17.

		
	8.14
	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 unless otherwise agreed by all the Lenders wholly or partially reverse, offset, unwind or otherwise terminate one or more of the continuing Designated Transactions so 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.

		
	8.15
	Reborrowing in respect of Substitute Ships.  Following the mandatory prepayment of a Tranche pursuant to Clause 8.8, the Borrower may, during the Substitution Period applicable to such Tranche, reborrow that Tranche (a "Substitute Ship Tranche") in accordance with and subject to the following conditions:

		
	(a)
	such Substitute Ship Tranche shall only be used for the purpose set out in paragraph (A)(ii) and (iii) of the preamble to this Agreement and Clause 4.2(e);

		
	(b)
	any ship to be financed or refinanced by such Substitute Ship Tranche shall comply with the Substitute Ship Criteria;

		
	(c)
	any reborrowing of such Substitute Ship Tranche shall be made in accordance with Clause 4;

		
	(d)
	the amount of such Substitute Ship Tranche shall not exceed the amount set out in Clause 4.2(c);

		
	(e)
	the Borrower may only exercise its right to reborrow under this Clause 8.15, no more than twice and the same Tranche may be reborrowed but in no event shall the Borrower be entitled to reborrow any Tranche after 31 August 2019.

		
	8.16
	Borrowing in respect of a Cancelled Tranche.  The Borrower may, if it gives the Agent not less than 10 Business Days' prior notice, cancel a Tranche (excluding a Substitute Ship Tranche) prior to its initial drawing under this Agreement.  The Tranche cancelled by the Borrower in accordance with this Clause 8.16 shall be the "Cancelled Tranche".

Following the cancellation of a Cancelled Tranche pursuant to this Clause 8.16, the Borrower may, during the Substitution Period applicable to such Cancelled Tranche, borrow that Cancelled Tranche in accordance with and subject to the following conditions:
		
	(a)
	the Cancelled Tranche shall, once borrowed, constitute a "Substitute Ship Tranche" for the purposes of this Agreement and it shall only be used for the purpose set out in paragraph (A)(ii) and (iii) of the preamble to this Agreement and Clause 4.2(f);

		
	(b)
	any ship to be financed or refinanced by such Substitute Ship Tranche shall comply with the Substitute Ship Criteria;

		
	(c)
	any borrowing of such Substitute Ship Tranche shall be made in accordance with Clause 4;

		
	(d)
	the amount of such Substitute Ship Tranche shall not exceed the amount set out in Clause 4.2(d);

		
	(e)
	the Borrower may only exercise its right to cancel a Tranche under this Clause 8.16 once, and in no event shall the Borrower be entitled to borrow a Cancelled Tranche after 31 December 2015; and

		
	(f)
	if remaining unutilised at the end of the Substitution Period applicable to it, the Cancelled Tranche shall be automatically cancelled at close of business on the date of expiry of the Substitution Period applicable to it.

		
	8.17
	Reborrowing following mandatory prepayment for failure to deliver.  Following the mandatory prepayment of a Prepositioned Tranche pursuant to Clause 8.9, the Borrower may, during the Availability Period applicable to the relevant Newbuilding, reborrow that Tranche in accordance with and subject to the following conditions:

		
	(a)
	any reborrowing of such Tranche shall be made in accordance with Clause 4;

		
	(b)
	the amount of such Tranche shall not exceed the amount set out in Clause 4.2(b).

		
	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:

		
	(h)
	that, on or before the service of the first Drawdown Notice, the Agent receives the documents described in Part A of Schedule 4 in form and substance satisfactory to the Agent and its lawyers;

		
	(i)
	that, on each Drawdown Date relating to a Prepositioned Tranche but prior to the advance of such Tranche, the Agent receives or is satisfied that it will receive on the making of such Tranche the documents described in Part B of Schedule 4 in form and substance satisfactory to it and its lawyers;

		
	(j)
	that, on each Drawdown Date relating to a Tranche which is not a Prepositioned Tranche, but prior to the advance of such Tranche, the Agent receives or is satisfied that it will receive on the making of such Tranche, the documents described in Part C of Schedule 4 in form and substance satisfactory to it and its lawyers;

		
	(k)
	that, in the case of a Prepositioned Tranche, on the Delivery Date in relation to the Newbuilding to be financed by such Tranche, the Agent receives or is satisfied that it will receive simultaneously with the release of the Tranche to the relevant Builder or the Seller on the applicable Delivery Date, the documents described in Part D of Schedule 4 in form and substance satisfactory to it and its lawyers;

		
	(l)
	that, on or before the service of each Drawdown Notice in relation to a Substitute Ship Tranche, the Agent receives the documents described in Part E of Schedule 4 in form and substance satisfactory to the Agent and its lawyers;

		
	(m)
	that, on each Drawdown Date relating to a Prepositioned Tranche which is a Substitute Ship Tranche but prior to the advance of such Substitute Ship Tranche, the Agent receives or is satisfied that it will receive on the making of such Substitute Ship Tranche, the documents described in Part F of Schedule 4 in form and substance satisfactory to it and its lawyers;

		
	(n)
	that, on each Drawdown Date relating to a Substitute Ship Tranche which is not a Prepositioned Tranche but prior to the advance of such Substitute Ship Tranche, the Agent receives or is satisfied that it will receive on the making of such Substitute Ship Tranche, the documents described in Part G of Schedule 4 in form and substance satisfactory to it and its lawyers; 

		
	(o)
	that, in the case of a Prepositioned Tranche which is a Substitute Ship Tranche, on the Delivery Date in relation to the Substitute Ship to be financed by such Substitute Ship Tranche, the Agent receives or is satisfied that will receive simultaneously with the release of the Tranche to the relevant builder or seller on the applicable Delivery Date, the documents described in Part H of Schedule 4 in form and substance satisfactory to it and its lawyers;

		
	(p)
	that, on or before the service of each Drawdown Notice, the Agent receives all accrued commitment fees payable pursuant to Clause 20.1(c) and the first instalment of the annual agency fee referred to in Clause 20.1(d) and has received payment of the expenses referred to in Clause 20.2;

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

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

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

		
	(iii)
	no event or circumstance has occurred which has or is reasonably likely to have a Material Adverse Effect;

		
	(iv)
	there has been no material change in the consolidated financial condition, operations or business prospects of the Borrower since the date on which the Borrower provided the Compliance Certificate and Accounting Information accompanying such Compliance Certificate or in respect of any of the information concerning those topics appended to the Compliance Certificate; and

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

		
	(r)
	that, the Agent is satisfied that the Borrower will be in compliance with the requirements of Clause 15 immediately following the making of the Tranche; and

		
	(s)
	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 relevant Drawdown Date.

		
	9.2
	Waiver of conditions precedent.  If the Majority Lenders, at their discretion, permit a Tranche to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied, the Borrower shall ensure that those conditions are satisfied within 5 Business Days after the Drawdown Date relating to that Tranche (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 Republic of the Marshall Islands.

		
	10.3
	Ownership of the Guarantors.  The Borrower is the ultimate beneficial owner of all the issued share capital and voting rights in respect of each Guarantor free of Security Interests save for the Security Interests created pursuant to the Finance Documents.

		
	10.4
	Corporate power.  The Borrower (or in the case of paragraph (a) each Guarantor) has the corporate capacity, and has taken all corporate action and obtained all consents necessary for it:

		
	(a)
	to execute its Delivered Ship Purchase Contract or Newbuilding MOA, to purchase and pay for its Ship under the relevant Delivered Ship Purchase Contract or Newbuilding MOA and register its Ship in its name under the Approved Flag;

		
	(b)
	to execute the Finance Documents to which the Borrower is a party and the Master Agreements; 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, the Finance Documents to which the Borrower is a party and each Master Agreement.

		
	10.5
	Consents in force.  All the consents referred to in Clause 10.3 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 and each Master Agreement, do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents):

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

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

subject to any relevant insolvency laws affecting creditors' rights generally.
		
	10.7
	No third party Security Interests.  Without limiting the generality of Clause 10.6, at the time of the execution and delivery of each Finance Document:

		
	(a)
	the Borrower will have the right to create all 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 and each Master Agreement, and the borrowing by the Borrower of the Loan, and its compliance with each Finance Document and each Master Agreement 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 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 Latent Event of Default has occurred.

		
	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 or any Security Party (including action relating to any alleged or actual breach of the ISM Code or the ISPS Code) has been commenced or taken or, to the Borrower's knowledge, is likely to be commenced or taken which, in either case, would be likely to have a Material Adverse Effect.

		
	10.13
	Delivered Ship Purchase Contracts and Newbuilding MOAs.  The copies of each Delivered Ship Purchase Contract or Newbuilding MOA delivered to the Agent before the date of this Agreement are true and complete copies and no amendments or additions to any Delivered Ship Purchase Contract or Newbuilding MOA have been agreed which would result in a change of specification, classification, the characteristics, type, contract price or scheduled delivery date of the relevant Ship which could reasonably be considered material in the context of this Agreement.

		
	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 or any Security Party from the Builder or Seller (as applicable), or to the Seller or Builder (as applicable) from the Borrower or any Security Party in connection with the purchase by the Guarantor of the Ship to be owned by it, other than the provisions for liquidated damages contained in the Delivered Ship Purchase Contracts or Newbuilding MOAs and as disclosed to the Agent 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, 11.8 and 11.14.

		
	10.16
	Taxes paid.  The Borrower has paid and has procured that each Guarantor has paid all taxes applicable to, or imposed on or in relation to it, its business or the Ship owned or to be owned by it.

		
	10.17
	ISM Code, ISPS Code and Environmental Laws compliance.  All requirements of the ISM Code, the ISPS Code and all Environmental Laws as they relate to the Borrower, the Guarantors, any Approved Ship Manager and the Ships have been complied with at the time the relevant Guarantor acquires that Ship.

		
	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 or any Master Agreement, and the transactions and other arrangements affected or contemplated by the Finance Documents or any Master Agreement to which the Borrower is a party, the Borrower confirms (i) that it is acting for its own account;  (ii) that it will use the proceeds of the Loan for its own benefit, under its full responsibility and exclusively for the purposes specified in this Agreement;  and (iii) that the foregoing will not involve or lead to a contravention of any law, official requirement or other regulatory measure or procedure implemented to combat "money laundering" (as defined in Article 1 of Directive 2005/60/EC of the European Parliament and of the Council).

		
	10.19
	No immunity.  The Borrower is not and no assets of the Borrower are entitled to immunity on the grounds of sovereignty or otherwise from any legal action or proceedings (which shall include, without limitation, suit, attachment prior to judgment, execution or other enforcement).

		
	10.20
	Pari passu.  The obligations of the Borrower under the Finance Documents and any Master Agreement to which it is a party rank at least pari passu with all other unsecured indebtedness of the Borrower other than indebtedness mandatorily preferred by law.

		
	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 all the Lenders, otherwise permit.

		
	11.2
	Title; negative pledge.  The Borrower will:

		
	(h)
	own (directly or indirectly) and maintain ownership of the entire legal and beneficial interest in the entire issued share capital of each Guarantor free from all Security Interests and other interests and rights of every kind except for those created by the Finance Documents;

		
	(i)
	procure that each Guarantor will:

		
	(i)
	hold the legal title to, and own the entire beneficial interest in the Ship to be owned by it, the Insurances and Earnings relating to that Ship and the Earnings Account in its name, 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

		
	(ii)
	not create or permit to arise any Security Interest (except for Permitted Security Interests) over any other asset, present or future; 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 procure that no Guarantor will transfer, lease or otherwise dispose of:

		
	(d)
	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; or

		
	(e)
	make any substantial change to the nature of its business from that existing at the date of this Agreement.

		
	11.4
	No other liabilities or obligations to be incurred.  The Borrower will procure that no Guarantor will incur any liability or obligation (including, without limitation, any contingent liability) except liabilities and obligations:

		
	(a)
	under the Delivered Ship Purchase Contract, Newbuilding MOA or Substitute Ship Purchase Contract (as applicable) and the Finance Documents to which it is a party;

		
	(b)
	reasonably incurred in the ordinary course of operating, upgrading, maintaining and chartering its Ship; and

		
	(c)
	in respect of Intercompany Loans made to the relevant Guarantor provided these comply with the requirements of Clause 11.21.

		
	11.5
	Information provided to be accurate.  All financial and other information which is provided in writing by or on behalf of the Borrower or any Security Party under or in connection with any Finance Document will be true, complete 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:

		
	(c)
	as soon as possible, but in no event later than 120 days after the end of each financial year of the Borrower, the audited consolidated accounts of the Borrower and its subsidiaries;

		
	(d)
	as soon as possible, but in no event later than 90 days after the end of each Accounting Period, unaudited consolidated accounts of the Borrower and its subsidiaries which are certified as to their correctness by the chief financial officer of the Borrower;

		
	(e)
	a Compliance Certificate together with quarterly reports that the Borrower delivers in (b) above each certified by the chief financial officer of the Borrower; and

		
	(f)
	such other information and financial statements (including, without limitation, details of the operating performance, employment, positions and engagements of the Ships, annual budgets and projections) as may be requested by the Agent from time to time.

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

		
	(d)
	be prepared in accordance with all applicable laws and IFRS consistently applied;

		
	(e)
	fairly represent the financial condition of the Borrower and its subsidiaries at the date of those accounts and of their profit for the period to which those accounts relate; and

		
	(f)
	fully disclose or provide for all significant liabilities of the Borrower and its subsidiaries.

		
	11.8
	Consents.  The Borrower will, and will procure that each Guarantor will, maintain in force and promptly obtain or renew, and will promptly send certified copies to the Agent of, all consents required:

		
	(d)
	for it to perform its obligations under any Finance  Document to which it is a party or any Master Agreement;

		
	(e)
	for the validity or enforceability of any Finance Document to which it is a party or any Master Agreement; and

		
	(f)
	in the case of each Guarantor, to continue to own and operate the Ship owned by it

and the Borrower will, and will procure that each Guarantor will, comply with the terms of all such consents.
		
	11.9
	Maintenance of Security Interests.  The Borrower will:

		
	(a)
	at its own cost, do all that it reasonably can to ensure that any Finance Document and each Master Agreement 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 and any Master Agreement (if applicable) 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 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.

		
	11.10
	Notification of litigation.  The Borrower will provide the Agent with details of any legal action involving the Borrower, any Security Party or any Ship, its Earnings or its Insurances as soon as such action is instituted unless it is clear that the legal action cannot be considered material in the context of any Finance Document.

		
	11.11
	No amendment to Newbuilding MOA.  The Borrower will procure that no Guarantor will agree to any amendment or supplement to, its Newbuilding MOA in any manner which would result in a change of specification, classification, the characteristics, type, contract price or scheduled delivery date for the Ship which is the subject of such Newbuilding MOA which could reasonably be considered as material in the context of this Agreement.

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

		
	11.13
	Chief Executive Office. The Borrower will maintain its chief executive office in the Principality of Monaco.

		
	11.14
	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 2 directors of the Borrower and which:

		
	(c)
	states that no Event of Default or Latent Event of Default has occurred; or

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

The Agent may serve requests under this Clause 11.14 from time to time but only if asked to do so by a Lender or Lenders having Contributions exceeding 10 per cent. of the Loan or (if the Loan has not been made) Commitments exceeding 10 per cent of the Total Commitments; and this Clause 11.14 does not affect the Borrower's obligations under Clause 11.15.
		
	11.15
	Notification of default.  The Borrower will notify the Agent as soon as the Borrower becomes aware of:

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

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

and will keep the Agent fully up‐to‐date with all developments.
		
	11.16
	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 to:

		
	(a)
	the financial condition, business and operations of the Borrower;

		
	(b)
	the Borrower, any Security Party, any Ship, its Earnings or its Insurances; or

		
	(c)
	any other matter relevant to, or to any provision of, a Finance Document and any Master Agreement,

which may be requested by the Agent, the Security Trustee, any Lender or any Swap Bank at any time and the Borrower shall promptly, provide such further information and/or documents as any Creditor Party (through the Agent) may request so as to enable such Creditor Party to comply with any laws applicable to it (including, without limitation, compliance with FATCA).
		
	11.17
	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.

		
	11.18
	"Know your customer" checks.  The Borrower shall notify the Agent immediately if it becomes aware of any actual or intended change in its status or the status of any Security Party after the date of this Agreement.  If:

		
	(a)
	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

		
	(b)
	any change in the status of the Borrower or any Security Party after the date of this Agreement; or

		
	(c)
	a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

obliges the Agent or any Lender (or, in the case of paragraph (c), any prospective new Lender) to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the request of the Agent or the Lender concerned supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or the Lender concerned (for itself or, in the case of the event described in paragraph (c), on behalf of any prospective new Lender) in order for the Agent, the Lender concerned or, in the case of the event described in paragraph (c), any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.
		
	11.19
	Compliance with laws. The Borrower shall comply and shall procure that each Guarantor shall comply in all material respects with all applicable laws, including, without limitation, all Environmental Laws, all Sanctions and regulations relating thereto.

		
	11.20
	Taxes.  The Borrower shall prepare and timely file all tax returns required to be filed by it and any member of the Group and pay and discharge all taxes imposed upon it and any member of the Group or in respect of any of its or any member of the Group's property and assets before the same shall become in default, as well as all lawful claims (including, without limitation, claims for labour, materials and supplies) which, if unpaid, might become a lien or any part thereof, except in each case, for any such taxes (a) as are being contested in good faith by appropriate proceedings and for which adequate reserves have been established, (b) as to which such failure to have paid does not create any risk of sale, forfeiture, loss, confiscation or seizure of a Ship or criminal liability, or (c) the failure of which to pay or discharge would not be likely to have a Material Adverse Effect.

		
	11.21
	Use of proceeds and Intercompany Loans.  The Borrower shall:

		
	(a)
	on-lend the proceeds of each Tranche directly or indirectly to the Guarantor which owns the Ship to which that Tranche relates and shall procure that such Guarantor shall use the proceeds of such Tranche solely as permitted pursuant to the terms of this Agreement; and

		
	(b)
	procure that any Intercompany Loan it provides whether directly or indirectly to an Guarantor pursuant to paragraph (a) above shall:

		
	(i)
	be fully subordinated to any and all obligations of the Guarantors and the rights of the Creditor Parties under the Finance Documents;

		
	(ii)
	not require the payment of interest prior to expiry of the Maturity Date;

		
	(iii)
	mature at least 1 year after the Maturity Date; and

		
	(iv)
	not be secured by any asset which is already, or is to be, the subject of a Security Interest created by the Borrower or any Security Party pursuant to any Finance Document;

		
	(c)
	furnish promptly to the Agent a true and complete copy of any instrument evidencing any Intercompany Loan, all other documents related thereto and a true and complete copy of each material amendment or other modification thereof; and

		
	(d)
	in respect of any such Intercompany Loan, execute and deliver to the Agent an Intercompany Loan Assignment and deliver to the Agent such other documents equivalent to those referred to in paragraphs 4, 5 and 6 of Part A of Schedule 4 as the Agent may require.

		
	11.22
	Sanctions

		
	(a)
	The Borrower undertakes that it and each director, officer, agent, employee or person acting on behalf of it, is not a Restricted Person and does not act directly or indirectly on behalf of a Restricted Person.

		
	(b)
	Without prejudice to Clause 14.10, the Borrower shall not, and will procure that no Guarantor shall, engage in any activity or dealing with a Restricted Person except such activity or dealing with a Restricted Person that is not in breach of Applicable Sanctions.

		
	(c)
	The Borrower shall procure, and will ensure that each Guarantor procures, that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with any Creditor Party in its name.

		
	(d)
	The Borrower shall, and will procure that the Guarantor shall, to the extent permitted by law, promptly upon becoming aware of them supply to the Agent details of any claim, action, suit, proceedings or investigation against it with respect to Sanctions by any Sanctions Authority.

		
	11.23
	Use of proceeds

The Borrower shall not, and shall not permit or authorise any other person to, directly or indirectly, make available any proceeds of the Loan to fund or facilitate trade, business or other activities (i) involving or for the benefit of any Restricted Person or (ii) in any other manner that could result in the Borrower and/or any Guarantor and/or a Finance Party being in breach of any Applicable Sanctions or becoming a Restricted Person.
		
	12
	CORPORATE AND FINANCIAL 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 all the Lenders, otherwise permit.

		
	12.2
	Maintenance of status.  The Borrower will:

		
	(f)
	maintain its separate corporate existence and remain in good standing under the laws of the Republic of the Marshall Islands;

		
	(g)
	remain listed on the New York Stock Exchange; and

		
	(h)
	procure that each Guarantor shall maintain its separate corporate existence and remain in goodstanding under the laws of the Republic of the Marshall Islands.

		
	12.3
	Negative undertakings.  The Borrower will not and will procure that no Guarantor shall:

		
	(d)
	change its name, its type of organisation or the nature of its business; or

		
	(e)
	in the case of the Guarantors only and then subject to Clause 12.4, pay any dividend or make any other form of distribution or effect any form of redemption, purchase or return of share capital; or

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

		
	(i)
	a person who is directly or indirectly interested in the Borrower's or the relevant Guarantor'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 or the relevant Guarantor than those which it could obtain in a bargain made at arms' length;
		
	(g)
	change its Fiscal Year;

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

		
	(i)
	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; or

		
	(j)
	permit or authorise any Guarantor to enter into any form of amalgamation, merger or de-merger or any form of reconstruction or reorganisation.

		
	(k)
	permit any act, event or circumstance to occur or arise which would or could result in a Change of Control of the Borrower or any Guarantor or give rise whether directly or indirectly to a Material Adverse Effect.

		
	12.4
	Dividends.  The Borrower will procure that no Guarantor shall pay a dividend or make any other form of distribution or effect any form of redemption, purchase or return of share capital if:

		
	(e)
	any Event of Default has occurred and is continuing at the time of the payment of such dividends or will result from such payment; or

		
	(f)
	such dividend shall result in a breach of the financial covenants set out in Clauses 12.5, 12.6, 12.7 and 12.8.

		
	12.5
	Minimum liquidity.  The Borrower shall, at all times, maintain Cash and Cash Equivalents on a consolidated basis, including all amounts on deposit with any bank, of not less than the greater of (a) $25,000,000 or (b) $500,000 per Fleet Vessel (the "Minimum Liquidity"), provided that:

		
	(g)
	for the purpose of this Clause 12.5, "Cash Equivalents" shall include unutilised and freely available amounts under any revolving credit facility (where no default or termination event has occurred and is continuing and there is no restriction on borrowing under such facilities) with a  maturity date in excess of 12 months after the date of the financial statements delivered pursuant to Clause 11.6; and

		
	(h)
	50 per cent. of the Minimum Liquidity shall at all times consist of Cash.

		
	12.6
	Minimum Consolidated Tangible Net Worth.  The Borrower shall maintain a Consolidated Tangible Net Worth of not less than $677,286,768 plus:

		
	(g)
	25 per cent. of the Borrower 's cumulative, positive consolidated net income for each Accounting Period commencing on or after 1 October 2013; and

		
	(h)
	50 per cent. of the Equity Proceeds realised from any issuance of Equity Interests in the Borrower occurring on or after 1 October 2013.

		
	12.7
	Maximum leverage.  The Borrower shall maintain a ratio of Net Debt to Consolidated Total Capitalisation of not more than 0.60 to 1.00, to be tested on the last day of each Accounting Period.

		
	12.8
	Minimum interest coverage. The Borrower shall maintain a ratio of Consolidated EBITDA to Consolidated Net Interest Expense greater than 2.50 to 1.00.  Such ratio shall be calculated on the last day of each Accounting Period on a trailing four quarter basis.

		
	12.9
	Material Changes in IFRS requirements.  If, at any time after the date of this Agreement, the IFRS requirements materially change so as to impact the financial covenants set out in this Clause 12 the Borrower shall notify the Agent and, if agreed between the Borrower and the Agent, this Agreement shall be amended and/or supplemented to reflect these changes.

26    56144316v12

		
	13
	INSURANCE

		
	13.1
	General.  The Borrower also undertakes with each Creditor Party to procure that each Guarantor will 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 all the Lenders, otherwise permit.

		
	13.2
	Maintenance of obligatory insurances.  The Borrower shall procure that each Guarantor shall keep the Ship owned by it insured at the expense of that Guarantor against:

		
	(l)
	fire and usual marine risks (including hull and machinery plus hull interest and any other usual marine risks such as excess risks as applicable);

		
	(m)
	war risks (including the London Blocking and Trapping addendum or similar arrangement);

		
	(n)
	full protection and indemnity risks (including liability for oil pollution and excess war risk P&I cover) on standard club rules, covered by a protection and indemnity association which is a member of the International Group of Protection and Indemnity Associations (or, if the International Group of Protection and Indemnity Associations ceases to exist, any other leading protection and indemnity association or other leading provider of protection and indemnity insurance) (including, without limitation, the proportion (if any) of any collision liability not covered under the terms of the hull cover), or other with written consent from the Agent;

		
	(o)
	freight, demurrage & defence risks;

		
	(p)
	any other risks against which the Security Trustee considers, having regard to standard practices and other circumstances prevailing at the relevant time, it would in the opinion of the Security Trustee be reasonable for that Guarantor to insure and which are specified by the Security Trustee by written notice to that Guarantor.

		
	13.3
	Terms of obligatory insurances.  The Borrower shall procure that each Guarantor shall affect such insurances in respect of the Ship owned by it:

		
	(g)
	in Dollars;

		
	(h)
	in the case of the insurances described in 13.2(a), (b), (d) and (e) in an amount on an agreed value basis at least the greater of:

		
	(i)
	when aggregated with the insured values of the other Ship then financed under this Agreement, 120 per cent. of the aggregate amount of the Loan and the Swap Exposure (if any); and

		
	(ii)
	the Fair Market Value of the Ship owned by it;

		
	(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 and in the international marine insurance market;

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

		
	(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 

27    56144316v12

and indemnity risks associations that are members of the International Group of Protection and Indemnity Clubs.
		
	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:

		
	(i)
	subject always to paragraph (b), name the relevant Guarantor as the sole named assured unless the interest of every other named assured is limited:

		
	(i)
	in respect of any obligatory insurances for hull and machinery and war risks;

		
	(A)
	to any provable out-of-pocket expenses that it has incurred and which form part of any recoverable claim on underwriters; and

		
	(B)
	to any third party liability claims where cover for such claims is provided by the policy (and then only in respect of discharge of any claims made against it); and

		
	(ii)
	in respect of any obligatory insurances for protection and indemnity risks, to any recoveries it is entitled to make by way of reimbursement following discharge of any third party liability claims made specifically against it;

and every other named assured has undertaken in writing to the Security Trustee (in such form as it requires) that any deductible shall be apportioned between the relevant Guarantor and every other named assured in proportion to the gross claims made or paid by each of them and that it 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;
		
	(j)
	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 Lender, 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;

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

		
	(l)
	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;

		
	(m)
	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;

		
	(n)
	provide that the Security Trustee may make proof of loss if the Guarantor concerned fails to do so; and

		
	(o)
	provide that the deductible of the hull and machinery insurance is not higher than the amount agreed upon and stated in the loss payable clause.

		
	13.5
	Renewal of obligatory insurances.  The Borrower shall procure that each Guarantor shall;

		
	(i)
	at least 14 days before the expiry of any obligatory insurance:

28    56144316v12

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

		
	(vii)
	obtain the Security Trustee's approval to the matters referred to in paragraph (i);

		
	(j)
	at least 10 days before the expiry of any obligatory insurance, renew that obligatory insurance in accordance with the Security Trustee's approval pursuant to paragraph (a); and

		
	(k)
	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 procure that each Guarantor shall ensure that all approved insurance 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:

		
	(g)
	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;

		
	(h)
	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;

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

		
	(j)
	they will notify the Security Trustee, not less than 10 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from that Guarantor 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

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

		
	13.7
	Copies of certificates of entry.  The Borrower shall procure that each Guarantor shall ensure that any protection and indemnity and/or war risks associations in which the Ship owned by it is entered provides the Security Trustee with:

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

		
	(d)
	a letter or letters of undertaking in such form as may be required by the Security Trustee; and

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

29    56144316v12

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

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

		
	13.10
	Guarantees.  The Borrower shall procure that each Guarantor 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 and shall procure that no Guarantor shall do or omit to do (or 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:

		
	(g)
	each Guarantor shall take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without limiting the obligation contained in Clause 13.6(c)) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Security Trustee has not given its prior approval;

		
	(h)
	no Guarantor shall make any changes relating to the classification or classification society or manager or operator of the Ship owned by it approved by the underwriters of the obligatory insurances;

		
	(i)
	each Guarantor 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 owned by it 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

		
	(j)
	no Guarantor shall employ the Ship owned by it, or 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 not and shall procure that no Guarantor shall make or agree to any alteration to the terms of any obligatory insurance or waive any right relating to any obligatory insurance.

		
	13.13
	Settlement of claims.  The Borrower shall not and shall procure that no Guarantor shall settle, compromise or abandon any claim under any obligatory insurance effected by it 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 not and shall procure that no Guarantor shall provide the Security Trustee, at the time of each such communication, copies of all written communications between the relevant Guarantor and:

		
	(d)
	the approved insurance brokers;

30    56144316v12

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

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

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

		
	(ii)
	any credit arrangements made between that Guarantor 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 procure that each Guarantor 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 by it; 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 reasonable 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), provided the amount of such fees and expenses shall have been the subject of prior consultation between the Security Trustee and the Borrower but without any obligation on the part of the Security Trustee to consider or comply with any recommendation by or request from the Borrower during such consultation.
		
	13.16
	Mortgagee's interest, additional perils.  The Security Trustee shall be entitled from time to time to effect, maintain and renew (i) mortgagee's interest additional perils insurance and (ii) mortgagee's interest marine insurance in such amounts, (and on the date of this Agreement, it is expected that such amount will be 120 per cent. of the Loan from time to time), on such terms, through 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.

		
	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 all the Lenders, may otherwise permit.

		
	14.2
	Ship's name and registration.  The Borrower shall procure that each Guarantor shall keep the Ship owned by it registered in its name under an Approved Flag; shall not do, omit to do or allow to be done anything as a result of which such registration might be cancelled or imperilled; and shall not change the name or port of registry of any Ship without the prior written approval of the Agent, such approval not to be unreasonably withheld.

		
	14.3
	Repair and classification.  The Borrower shall procure that each Guarantor shall keep the Ship owned by it in a good and safe condition and state of repair:

		
	(p)
	consistent with first‐class ship ownership and management practice;

		
	(q)
	so as to maintain the highest class for that Ship with the Approved Classification Society free of overdue recommendations and conditions affecting that Ship's class; and

		
	(r)
	so as to comply with all laws and regulations applicable to vessels registered under the law of the Approved Flag on which that Ship is registered or to vessels trading to any jurisdiction to which that Ship may trade from time to time, including but not limited to the ISM Code and the ISPS Code.

		
	14.4
	Classification Society undertaking.  The Borrower shall procure that each Guarantor shall instruct the Approved Classification Society (and in the case of dual classification, only the primary classification society):

		
	(l)
	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 Approved Classification Society in relation to the Ship owned by it;

		
	(m)
	to allow the Security Trustee (or its agents), at any time and from time to time, to inspect the original class and related records of that Guarantor and the Ship owned by it at the offices of the Approved Classification Society and to take copies of them;

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

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

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

		
	14.5
	Modification.  The Borrower shall procure that no Guarantor shall make any modification or repairs to, or replacement of, the Ship owned by it or equipment installed on that Ship which would or might materially alter the structure, type or performance characteristics of that Ship or materially reduce its value.

		
	14.6
	Removal of parts.  The Borrower shall procure that no Guarantor shall remove any material part of the Ship owned by it, or any item of equipment installed on, that Ship unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest or any right in favour of any person other than the Security Trustee and becomes on installation on that Ship the property of that Guarantor and subject to the security constituted by the Mortgage Provided that an Guarantor may install equipment owned by a third party if the equipment can be removed without any risk of damage to the Ship owned by it.

		
	14.7
	Surveys.  The Borrower shall procure that each Guarantor, at the Borrower's expense submits the Ship owned by it regularly to all periodical or other surveys which may be required for classification purposes with copies of all technical survey reports in respect of surveys carried out by an Approved Ship Manager or other qualified expert duly appointed for such purpose.

		
	14.8
	Inspection.  The Borrower shall procure that each Guarantor shall permit the Security Trustee (by surveyors or other persons appointed by it for that purpose) to board the Ship owned by it at all reasonable times, with reasonable notice to the relevant Guarantor, always without interfering with the trading of the Ship at the Borrower's expense to inspect its condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections provided that unless an Event of Default has occurred or that Ship's Approved Classification Society has issued a recommendation or condition affecting that Ship's class, the Borrower shall not have to pay for more than 1 inspection per Ship in each calendar year.  The Security Trustee shall use reasonable efforts not to interfere with the operation of that Ship when exercising its rights under this Clause 14.8.

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

		
	(f)
	all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against the Ship owned by it, its Earnings or its Insurances;

		
	(g)
	all taxes, dues and other amounts charged in respect of the Ship owned by it, its Earnings or its Insurances; and

		
	(h)
	all other outgoings whatsoever in respect of the Ship owned by it, its Earnings or its Insurances,

and, forthwith upon receiving notice of the arrest of the Ship owned by it, or of its detention in exercise or purported exercise of any lien or claim, the Borrower shall procure its release by providing bail or otherwise as the circumstances may require.
		
	14.10
	Compliance with laws etc.  The Borrower shall procure that each Guarantor shall:

		
	(k)
	comply, or procure compliance with the ISM Code, the ISPS Code, all Environmental Laws, all Applicable Sanctions and all other laws or regulations relating to the Ship owned by it, its ownership, operation and management or to the business of that Guarantor;

		
	(l)
	not employ the Ship owned by it 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, the ISPS Code, all Environmental Laws and Applicable Sanctions; and

		
	(m)
	in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit the Ship owned by it to enter or trade to any zone which is declared a war zone by any government or by that Ship's war risks insurers unless the prior written consent of the Security Trustee has been given and the Borrower has or has procured that there is (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 procure that each Guarantor shall promptly provide the Security Trustee with any information which it requests regarding:

		
	(e)
	the Ship owned by it, its employment, position and engagements (including, without limitation, details of the operating performance, employment, positions and engagements of the Ships, annual budgets and projections);

		
	(f)
	the Earnings and payments and amounts due to the master and crew of the Ship owned by it;

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

		
	(h)
	any towages and salvages; and

		
	(i)
	its compliance, the Approved Ship Manager's or the compliance by the Ship owned by it with the ISM Code, the ISPS Code, all Environmental Laws and Sanctions,

and, upon the Security Trustee's request, provide copies of any current charter relating to that Ship, of any current charter guarantee and copies of each Guarantors or the Approved Ship Manager's Document of Compliance.
		
	14.12
	Notification of certain events.  The Borrower shall procure that each Guarantor shall immediately notify the Security Trustee by fax or email, confirmed forthwith, by letter of:

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

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

		
	(e)
	any requirement or condition made by any insurer or the Approved Classification Society or by any competent authority which is not complied with within the specified time;

		
	(f)
	any arrest or detention of the Ship owned by it, any exercise or purported exercise of any lien on that Ship or its Earnings or any requisition of that Ship for hire;

		
	(g)
	any intended dry docking of the Ship owned by it;

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

		
	(i)
	any claim for breach of the ISM Code, the ISPS Code, any Environmental Laws or Sanctions being made against that Guarantor, the Approved Ship Manager or otherwise in connection with the Ship owned by it; or

		
	(j)
	any other matter, event or incident, actual or threatened, the effect of which will or could lead to the ISM Code, the ISPS Code, any Environmental Laws or Sanctions 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, any Guarantor's, the Approved Ship Manager's or any other person's response to any of those events or matters.
		
	14.13
	Restrictions on chartering, appointment of managers etc.  The Borrower shall procure that no Guarantor shall, in relation to the Ship owned by it:

		
	(g)
	let that Ship on demise charter for any period;

		
	(h)
	enter into any time or consecutive voyage charter in respect of that Ship for a term which exceeds, or which by virtue of any optional extensions may exceed, 12 months other than Charters where the charterer is a member of the Group or the Charter is pursuant to an Approved Pooling Arrangement;

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

		
	(j)
	charter that Ship otherwise than on bona fide arm's length terms at the time when such Ship is fixed;

		
	(k)
	appoint a manager of that Ship other than an Approved Ship Manager or agree to any alteration to the terms of the Approved Ship Manager's appointment;

		
	(l)
	appoint a classification society for that Ship other than an Approved Classification Society;

		
	(m)
	de‐activate or layup that Ship; or

		
	(n)
	put that Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $500,000 (or the equivalent in any other currency) or in the case of any scheduled special surveys in respect of such Ship, in an amount exceeding or likely to exceed $1,000,000, 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 such Ship or its Earnings for the cost of such work or for any other reason.

		
	14.14
	Notice of Mortgage.  The Borrower shall procure that each Guarantor shall keep the Mortgage registered against the Ship owned by it as a valid first preferred or, as the case may be, priority mortgage, carry on board the Ship owned by it a certified copy of the relevant Mortgage and place and maintain in a conspicuous place in the navigation room and the Master's cabin of that Ship a framed printed notice stating that such Ship is mortgaged by that Guarantor to the Security Trustee.

		
	14.15
	Sharing of Earnings.  The Borrower shall procure that no Guarantor shall enter into any agreement or arrangement for the sharing of any Earnings of the Ship owned by it provided always that any Ship may be entered into any Approved Pooling Arrangement.

		
	14.16
	ISPS Code.  The Borrower shall procure that each Guarantor shall comply with the ISPS Code and in particular, without limitation, shall:

		
	(a)
	procure that its Ship and the company responsible for such Ship's compliance with the ISPS Code comply with the ISPS Code; and

		
	(b)
	maintain for its Ship an ISSC; and

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

		
	14.17
	Copies of Charter; Charterparty Assignment.  Provided that the Borrower has obtained the prior permission of the Agent necessary under Clause 14.13(b), the Borrower shall procure that each Guarantor shall:

		
	(a)
	furnish promptly to the Agent a true and complete copy of any Charter for the Ship owned by it, all other documents related thereto including, without limitation, any guarantee of such Charter and a true and complete copy of each material amendment or other modification thereof; and

		
	(b)
	in respect of any such Charter, execute and deliver to the Agent a Charterparty Assignment and deliver to the Agent a consent and acknowledgement executed by the charterer and any related charter guarantor and such other documents equivalent to those referred to in paragraphs 4, 5 and 6 of Part A of Schedule 4 as the Agent may require.

		
	14.18
	Change of Approved Ship Manager.  If, in accordance with the terms of this Agreement, there is a change of Approved Ship Manager, the Borrower shall or shall procure that:

		
	(e)
	the relevant Guarantor shall promptly provide the Agent with a copy of the management agreement pursuant to which such Approved Ship Manager is to be appointed; and

		
	(f)
	the new Approved Ship Manager shall provide to the Agent on or prior to the commencement of its appointment, an Approved Ship Manager's Undertaking.

		
	14.19
	Green Passport. The Borrower shall procure that each Guarantor has obtained a Green Passport, or equivalent document acceptable to the Agent, within 30 days from the Drawdown Date of the relevant Tranche in respect of the Ship owned by it which remains valid throughout the Security Period.

		
	15
	SECURITY COVER

		
	15.1
	Minimum required security cover.  Clause 15.2 applies if the Agent notifies the Borrower that:

		
	(i)
	the Fair Market Value of the Ships; plus

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

is below 140 per cent. of the aggregate of the Loan.
		
	15.2
	Provision of additional security; prepayment.  If the Agent serves a notice on the Borrower under Clause 15.1, the Borrower shall prepay such part (at least) of the Loan as will eliminate the shortfall on or before the date falling 7 days after the date on which the Agent's notice is served under Clause 15.1 (the "Prepayment Date") unless at least 1 Business Day before the Prepayment Date it has provided, or ensured that a third party has provided, additional security which, in the opinion of all the Lenders, has a net realisable value at least equal to the shortfall and which has been documented in such terms as the Agent may, with the authorisation of all the Lenders, approve or require.

		
	15.3
	Valuation of Ship.  The market value of a Ship at any date is that shown by:

		
	(o)
	the arithmetic average of 2 valuations each prepared by an Approved Broker selected by the Agent;

		
	(p)
	as at a date not more than 14 days prior to the date such valuation is delivered to the Agent by such Approved Broker;

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

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

		
	(s)
	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.

		
	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 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, subject to Clause 15.8, 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 15.

		
	15.8
	Frequency of valuations

		
	(i)
	The Borrower shall provide the valuations of each Ship required pursuant to paragraph 4 of Part B of Schedule 4 at the Borrower's expense;

		
	(j)
	the Agent shall be entitled to obtain 2 valuations during each half of each Fiscal Year of the Borrower commencing on 1 January 2016 (such valuations to be attached to the Compliance Certificates for the relevant fiscal quarter to be provided by the Borrower) setting forth the Fair Market Value of each Ship in each case at the cost of the Borrower save that the Borrower shall not be required to pay for more than 2 sets of valuations of each Ship in each calendar year unless an Event of Default has occurred or any valuation obtained would entitle the Agent to serve a notice pursuant to Clause 15.1 in which case such valuations required by the Agent shall be for the cost of the Borrower; and

		
	(k)
	the Agent shall be entitled, at its own expense, to obtain valuations of each Ship other than those referred to in paragraphs (a) and (b) above as often as it may request.

		
	15.9
	Application of prepayment.  Clause 8 shall apply in relation to any prepayment pursuant to Clause 15.2.

		
	15.10
	Release of Additional Security.  It is agreed that where the Borrower or a third party has provided additional security pursuant to Clause 15.2 the Borrower is entitled to request the release of such additional security at its expense at any time following a testing of compliance by the Borrower of the minimum required security cover under Clause 15.1. Where the Borrower is shown to be in compliance with such minimum required security cover without including the additional security within the calculation and where the Borrower is in compliance with the minimum required security cover under Clause 15.1, such additional security shall be released at the Borrower's cost.

		
	16
	PAYMENTS AND CALCULATIONS

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

		
	(s)
	by not later than 11.00 a.m. (Amsterdam time) on the due date;

		
	(t)
	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);

		
	(u)
	in the case of an amount payable by a Lender to the Agent or by the Borrower or another Security Party to the Agent or any Lender, to an account of the Agent as the Agent may from time to time notify to the Borrower and the other Creditor Parties, 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

		
	(v)
	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:

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

		
	(u)
	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 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.

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

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

		
	(g)
	amounts to be applied in satisfying amounts of a particular category which are due to the Lenders and/or the Swap Counterparties generally shall be distributed by the Agent to each Lender and each Swap Counterparty 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 Counterparty, deduct and withhold from that amount any sum which is then due and payable to the Agent from that Lender or that Swap Counterparty under any Finance Document or any sum which the Agent is then entitled under any Finance Document to require that Lender or that Swap Counterparty 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 Counterparty any sum which the Agent is expecting to receive for remittance or distribution to the Borrower or that Lender or that Swap Counterparty 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 or a Lender or a Swap Counterparty, without first having received that sum, the Borrower or (as the case may be) the Lender or the Swap Counterparty concerned shall, on demand:

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

		
	(m)
	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 that amount is owing to that Creditor Party.

		
	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:

		
	(v)
	FIRST: in or towards satisfaction of any amounts then due and payable under the Finance Documents and the Master Agreements 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 and the Swap Counterparties under any Master Agreements other than those amounts referred to at paragraphs (ii) and (iii) below (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 or in any Master Agreement);

		
	(ii)
	secondly, in or towards satisfaction of any and all amounts of interest or default interest payable to the Creditor Parties under the Finance Documents and the Master Agreements (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 any Master Agreement but shall have failed to pay or deliver to the relevant Swap Counterparty 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 Counterparty (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);

		
	(w)
	SECONDLY: in retention of an amount equal to any amount not then due and payable under any Finance Document or any Master Agreement 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);

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

		
	17.2
	Variation of order of application.  The Agent may, with the authorisation of the 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.

		
	18
	APPLICATION OF EARNINGS

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

		
	18.2
	Application of Earnings.  The Borrower undertakes with the Lenders to procure that money from time to time credited to, or for the time being standing to the credit of, an Earnings Account shall, unless and until an Event of Default shall have occurred (whereupon the provisions of Clause 17.1 shall be and become applicable), be freely available to the Borrower.

		
	18.3
	Location of accounts.  The Borrower shall promptly:

		
	(a)
	comply with any requirement of the Agent as to the location or re‐location of the Earnings Accounts (or any of them); and

		
	(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 Accounts (or any of them).

		
	18.4
	Debits for expenses etc.  The Agent shall be entitled (but not obliged) from time to time to debit any Earnings Account without prior notice 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.

		
	18.5
	Borrower's obligations unaffected.  The provisions of this Clause 18 do not affect:

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

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

		
	19
	EVENTS OF DEFAULT

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

		
	(h)
	the Borrower or any Security Party fails to pay when due any sum payable under a Finance Document or under any document relating to a Finance Document unless its failure to pay is caused by a Disruption Event and payment is made within 3 Business Days of its due date; or

		
	(i)
	any breach occurs of Clause 9.2, 11.2, 11.3, 11.22, 11.23, 12 or 15.2; or

		
	(j)
	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)) which, in the opinion of all the Lenders, is capable of remedy, and such default continues remedied 10 days after written notice from the Agent requesting action to remedy the same; or

		
	(k)
	(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 falling within paragraphs (a), (b) or (c)); or

		
	(l)
	any representation, warranty or statement made or repeated by, or by an officer of, the Borrower or a Security Party in a Finance Document or in a Drawdown Notice or any other notice or document relating to a Finance Document is untrue or misleading when it is made or repeated; or

		
	(m)
	any of the following occurs in relation to any Financial Indebtedness of the Borrower on a consolidated basis exceeding $10,000,000 in aggregate or, in the case of any Security Party, $2,500,000 (or in either case, the equivalent in any other currency):

		
	(iii)
	any Financial Indebtedness of that Relevant Person is not paid when due; or

		
	(iv)
	any Financial Indebtedness of that 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

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

		
	(vi)
	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 that 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

		
	(vii)
	any Security Interest securing any Financial Indebtedness of that Relevant Person becomes enforceable; or

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

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

		
	(vi)
	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, $10,000,000 in the case of the Borrower or $2,500,000 in the case of any Security Party or more or the equivalent in another currency; or

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

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

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

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

		
	(xi)
	a resolution is passed, an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by (a) a Relevant Person, (bb) the members or directors of a Relevant Person, (cc) a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person, or (did) a government minister or public or regulatory authority of a Pertinent Jurisdiction for or with a view to the winding up of that or another Relevant Person or the appointment of a provisional liquidator or administrator in respect of that or another Relevant Person, or that or another Relevant Person ceasing or suspending business operations or payments to creditors, save that this paragraph does not apply to a fully solvent winding up of a Relevant Person other than the Borrower or the Guarantors which is, or is to be, effected for the purposes of an amalgamation or reconstruction previously approved by all the Lenders and effected not later than 3 months after the commencement of the winding up; or

		
	(xii)
	an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by a creditor of a Relevant Person (other than a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person) for the winding up of a Relevant Person or the appointment of a provisional liquidator or administrator in respect of a Relevant Person in any Pertinent Jurisdiction, unless the proposed winding up, appointment of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not with a view to some other insolvency law procedure being implemented instead and either (a) the application or petition is dismissed or withdrawn within 30 days of being made or presented, or (bb) within 30 days of the administration notice being given or filed, or the other relevant steps being taken, other action is taken which will ensure that there will be no administration and (in both cases (a) or (bb)) the Relevant Person will continue to carry on business in the ordinary way and without being the subject of any actual, interim or pending insolvency law procedure; or

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

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

		
	(xv)
	in a Pertinent Jurisdiction other than England, any event occurs, any proceedings are opened or commenced or any step is taken which, in the opinion of the Lenders acting reasonably is similar to any of the foregoing.

		
	(o)
	any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened against a Relevant Person or its assets which has, will have or may have a Material Adverse Effect;

		
	(p)
	a Finance Document is amended, terminated, cancelled or suspended for any reason except with the prior written consent of the Agent, acting with the authorisation of all the Lenders;

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

		
	(r)
	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 all the Lenders consider material under a Finance Document;

		
	(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

		
	(s)
	any consent necessary to enable any Guarantor to own, operate or charter the Ship owned by it or to enable the Borrower, such Guarantor or any other Security Party to comply with any provision which all the Lenders consider material of a Finance Document, the Delivered Ship Purchase Contract, Newbuilding MOA or Substitute Ship Purchase Contract (as applicable) to which it is a party 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

		
	(t)
	any provision which all the 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 and which in each case such default continues unremedied 15 days after written notice from the Agent requesting action to remedy the same; or

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

		
	(v)
	an Event of Default (as defined in section 14 of a Master Agreement) occurs; or

		
	(w)
	a Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in full force and effect for any reason except with the consent of the Agent, acting with the authorisation of all the Lenders; or

		
	(x)
	any of the Ships ceases to be employed by the relevant Approved Ship Manager on terms acceptable to the Agent or any of the circumstances described in Clause 19.1(g) or (j) occurs (mutatis mutandis) in relation to an Approved Ship Manager or an Approved Ship Manager or Approved Sub‐Manager breaches any provision of its Approved Ship Manager's Undertaking which the Agent considers material and the Borrower fails within a period of 15 days of it becoming aware of the occurrence of such circumstance or breach or of the receipt of a written notification from the Agent requesting the Borrower to remedy such circumstances or breach either to remedy such circumstances or breach or to substitute the relevant Approved Ship Manager or Approved Sub-Manager with another Approved Ship Manager or Approved Sub‐Manager which executes and delivers to the Security Trustee a replacement Approved Ship Manager's Undertaking; or

		
	(y)
	an event or circumstance occurs which has or is reasonably likely to have a Material Adverse Effect.

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

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

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

		
	(iv)
	serve on the Borrower a notice stating that all or part of the Loan together with 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

		
	(v)
	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

		
	(d)
	the Security Trustee may, and if so instructed by the Agent, acting with the authorisation of all the 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 Counterparties 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 be cancelled.

		
	19.4
	Acceleration of Loan.  On the service of a notice under Clause 19.2(a)(i), all or, as the case may be, the part of the Loan specified in the notice together with 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) and (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, each Swap Counterparty, the Security Trustee 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.

		
	19.7
	Creditor Party rights unimpaired.  Nothing in this Clause shall be taken to impair or restrict the exercise of any right given to individual Lenders or Swap Counterparties under a Finance Document, a Master Agreement 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:

		
	(o)
	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

		
	(p)
	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 and any 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.

		
	19.11
	Position of Swap Counterparties.  Neither the Agent nor the Security Trustee shall be obliged, in connection with any action taken or proposed to be taken under or pursuant to the foregoing provisions of this Clause 19, to have any regard to the requirements of a Swap Counterparty except to the extent that such Swap Counterparty is also a Lender.

		
	20
	FEES AND EXPENSES

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

		
	(e)
	within 5 days after the date of this Agreement, an upfront fee as set out in a Fee Letter, for distribution among the Lenders in the proportions agreed by the Agent and the Lenders;

		
	(f)
	within 5 days after the date of this Agreement, a structuring fee as set out in a Fee Letter, for distribution among the Bookrunning Mandated Lead Arranger in the proportions agreed by the Agent and the Bookrunning Mandated Lead Arrangers;

		
	(g)
	semi-annually in arrears:

		
	(i)
	during the period from (and including) the date of this Agreement to the earlier of (i) the fourth and final Drawdown Date applicable to the Tranches in respect of the Delivered Ships and the Newbuildings and (ii) the end of the Availability Period applicable to the Tranches in respect of the Delivered Ships and the Newbuildings or, in the case of a Cancelled Tranche only, on the date of its cancellation in accordance with Clause 8.16, and on the last day of that period, for the account of the Lenders, a commitment fee at the rate of 0.86 per cent. per annum on the amount of the Total Commitments less the amount of the Loan for distribution among the Lenders pro rata to their Commitments; and

		
	(ii)
	during a Substitution Period applicable to a Tranche to be reborrowed or borrowed in accordance with and subject to the terms of Clause 8.15 or 8.16 (as the case may be) and on the earlier of (i) the Drawdown Date applicable to that Tranche and (ii) the last day of such Substitution Period, a commitment fee at the rate of 1.2 per cent. per annum on the maximum amount available for reborrowing or borrowing under that Tranche as determined in accordance with Clause 4.2(c) or Clause 4.2(d) (as the case may be) for distribution among the Lenders pro rata to their Commitments; 

		
	(h)
	on or prior to the Drawdown Date applicable to a Substitute Ship Tranche, a substitution fee of 0.25 per cent. of the amount of that Substitute Ship Tranche for distribution among the Lenders in the proportions agreed by the Agent and the Lenders; and

		
	(i)
	on the date of this Agreement and on each anniversary thereof during the Security Period, an annual agency fee as set out in a Fee Letter.

		
	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, syndication or registration of any Finance Document or any related document or with any transaction contemplated by a Finance Document or a related document including, without limitation, any legal fees (including VAT and disbursements) reasonably incurred by the Agent, Security Trustee and the Bookrunning Mandated Lead Arrangers in this connection.

		
	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:

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

		
	(q)
	any consent or waiver by the Lenders, the Swap Banks, 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;

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

		
	(s)
	any step taken by the Lender or the Swap Bank 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 (d) 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
	Financial Services Authority fees.  The Borrower shall pay to the Agent, on the Agent's demand, for the account of the Lender concerned the amounts which the Agent from time to time notifies the Borrower that a Lender has notified the Agent to be necessary to compensate it for the cost attributable to its Contribution resulting from the imposition from time to time under or pursuant to the Bank of England Act 1998 and/or by the Bank of England and/or by the Financial Services Authority (or other United Kingdom governmental authorities or agencies) of a requirement to pay fees to the Financial Services Authority calculated by reference to liabilities used to fund its Contribution.

		
	20.6
	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 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.

31    56144316v12

		
	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)
	a Tranche not being borrowed on the date specified in the Drawdown Notice relating to such Tranche 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 of an Event of Default or a Latent Event of Default and/or the acceleration of repayment of the Loan under Clause 19;

and in respect of any tax (other than any FATCA Deduction or a tax on its overall net income under the law of the jurisdiction in which that Creditor Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Creditor Party is treated as a resident for tax purposes) 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:

		
	(t)
	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

		
	(u)
	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, expenses, liabilities and losses which may be made or brought against or incurred by a Creditor Party, in any country, as a result of or in connection with:

		
	(n)
	any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document or any Master Agreement by the Agent, the Security Trustee or any other Creditor Party or by any receiver appointed under a Finance Document or any Master Agreement; or

		
	(o)
	any other Pertinent Matter,

32    56144316v12

other than claims, expenses, liabilities and losses which are shown to have been directly and mainly caused by the dishonesty or wilful misconduct of the officers or employees of the Creditor Party concerned.
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, 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:

		
	(j)
	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

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

		
	(l)
	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.
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
	Mandatory Cost

The Borrower shall, on demand by the Agent, pay to the Agent for the account of the relevant Lender, such amount which any Lender certifies in a notice to the Agent to be its good faith determination of the amount necessary to compensate it for complying with:
		
	(k)
	in the case of a Lender lending from a Facility Office in a Participating Member State, the minimum reserve requirements (or other requirements having the same or similar purpose) of the European Central Bank or any other authority or agency which replaces all or any of its functions) in respect of loans made from that Facility Office; and 

		
	(l)
	in the case of any Lender lending from a Facility Office in the United Kingdom, any reserve asset, special deposit or liquidity requirements (or other requirements having the same or similar purpose) of the Bank of England (or any other governmental authority or agency) and/or paying any fees to the Financial Conduct Authority and/or the Prudential Regulation Authority (or any other governmental authority or agency which replaces all or any of their functions).

		
	21.6
	Application to Master Agreements.  For the avoidance of doubt, Clause 21.4 does not apply in respect of sums due from the Borrower to a Swap Counterparty under or in connection with a Master Agreement as to which sums the provisions of section 8 (Contractual Currency) of that Master Agreement shall apply.

33    56144316v12

		
	21.7
	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.

		
	21.8
	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 or any Security Party under a Finance Document or any the Master Agreement shall be paid:

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

		
	(w)
	free and clear of any tax deduction except a tax deduction which the Borrower or such Security Party is required by law to make.

		
	22.2
	Grossing-up for taxes.  If the Borrower or any Security Party is required by law to make a tax deduction from any payment under a Finance Document or a Master Agreement (other than a FATCA Deduction):

		
	(p)
	the Borrower or such Security Party (as the case may be) shall notify the Agent as soon as it becomes aware of the requirement;

		
	(q)
	the Borrower or such Security Party (as the case may be) shall pay the tax deducted to the appropriate taxation authority promptly, and in any event before any fine or penalty arises; and

		
	(r)
	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 shall deliver to the Agent documentary evidence satisfactory to the Agent that the tax had been paid to the appropriate taxation authority.

		
	22.4
	Tax deduction.  In this Clause 22 "tax deduction" means any deduction or withholding for or on account of any present or future tax except tax other than a FATCA Deduction.

		
	22.5
	FATCA Deduction.  Each party to this Agreement may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no party to this Agreement shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. Each party to this Agreement shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the party to this Agreement to whom it is making the payment and, in addition, shall notify the Borrower, the Agent and the other Creditor Parties.

		
	22.6
	Stamp taxes.  The Borrower shall pay and, within 3 Business Days of demand, indemnify each Creditor Party against any cost, loss or liability which that Creditor Party incurs in relation to all stamp duty, registration and other similar taxes payable in respect of any Finance Document or any Master Agreement.

		
	22.7
	Application to Master Agreements.  For the avoidance of doubt, Clause 22 does not apply in respect of sums due from the Borrower to a Swap Counterparty under or in connection with a Master Agreement as to which sums the provisions of section 2(d) (Deduction or Withholding for Tax) of that Master Agreement shall apply.

		
	22.8
	FATCA Information

		
	(d)
	Subject to paragraph (c) below, each Party shall, within 10 Business Days of a reasonable request by another Party:

		
	(xvi)
	confirm to that other Party whether it is:

		
	(A)
	a FATCA Exempt Party; or

		
	(B)
	not a FATCA Exempt Party;

		
	(xvii)
	supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA; and

		
	(xviii)
	supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange of information regime.

		
	(e)
	If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

		
	(f)
	Paragraph (a) above shall not oblige any Creditor Party to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

		
	(i)
	any law or regulation;

		
	(ii)
	any fiduciary duty; or

		
	(iii)
	any duty of confidentiality.

		
	(g)
	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with sub-paragraphs (i) or (ii) of paragraph (a) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

		
	22.9
	VAT

		
	(c)
	All amounts expressed to be payable under a Finance Document by any Party to a Creditor Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Creditor Party to any Party under a Finance Document and such Creditor Party is required to account to the relevant tax authority for the VAT, that Party must pay to such Creditor Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Creditor Party must promptly provide an appropriate VAT invoice to that Party).

		
	(d)
	If VAT is or becomes chargeable on any supply made by any Creditor Party (the "Supplier") to any other Creditor Party (the "Recipient") under a Finance Document, and any Party other than the Recipient (the "Relevant Party") is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

		
	(i)
	(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where this sub-paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

		
	(ii)
	(where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

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

		
	(f)
	Any reference in this Clause 22.9 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term "representative member" to have the same meaning as in the Value Added Tax Act 1994).

		
	(g)
	In relation to any supply made by a Creditor Party to any Party under a Finance Document, if reasonably requested by such Creditor Party, that Party must promptly provide such Creditor Party with details of that Party's VAT registration and such other information as is reasonably requested in connection with such Creditor Party's VAT reporting requirements in relation to such supply.

		
	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:

		
	(s)
	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

		
	(t)
	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:

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

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

		
	(s)
	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:

		
	(m)
	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 Notifying Lender's overall net income); or

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

		
	(o)
	the implementation or application of or compliance with any Basel III Regulation, CRD IV and CRR, 

the Notifying Lender (or a parent company of it) has incurred or will incur an "increased cost".
		
	24.2
	Meaning of "increased costs".  In this Clause 24, "increased costs" means, in relation to a Notifying Lender:

		
	(m)
	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 having taken an assignment of rights under this Agreement, 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;

		
	(n)
	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;

		
	(o)
	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

		
	(p)
	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 after providing evidence of its method of calculation to quantify such increased costs under this Agreement,

but not an item attributable to a FATCA Deduction required to be made by a Party or compensated for by any payment made pursuant to Clause 21.5.
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:

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

		
	(i)
	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.

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

34    56144316v12

		
	25
	SET‐OFF

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

		
	(q)
	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 Party under any of the Finance Documents; and

		
	(r)
	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; and

		
	(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 charge 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 prior written 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 26.5 a Lender (the "Transferor Lender") may at any time, without the consent of the Borrower or any Security Party but with the prior approval of the Agent, cause:

		
	(c)
	its rights in respect of all or part of its Contribution but in the case of part, in an amount no less than $5,000,000; or

		
	(d)
	its obligations in respect of all or part of its Commitment but in the case of part, in an amount no less than $5,000,000; or

		
	(e)
	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 which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets and which is FATCA Exempt Party (a "Transferee Lender") or the securitisation or similar transaction of that Transferor Lender's Contribution of Commitment by delivering to the Agent a completed certificate in the form set out in Schedule 5 with any modifications approved or required by the Agent (a "Transfer Certificate") executed by the Transferor Lender and the Transferee Lender,
However any rights and obligations of the Transferor Lender in its capacity as Agent or Security Trustee will have to be dealt with separately in accordance with the Agency and Trust Deed.
		
	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):

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

		
	(e)
	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;

		
	(f)
	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b),

but the Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Transferor Lender and the Transferee Lender once it is satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations to the transfer to that Transferee Lender.
		
	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.  Except as provided in Clause 26.17, 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 a 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:

		
	(e)
	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;

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

		
	(g)
	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;

		
	(h)
	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;

		
	(i)
	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;

		
	(j)
	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

		
	(k)
	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 authorises 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 $3,500 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 Confidential Information.  Any Creditor Party may disclose:

		
	(a)
	with the prior written consent of the Borrower, to any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and representatives such Confidential Information as that Creditor Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

		
	(b)
	to any person:

		
	(i)
	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person's Affiliates, representatives and professional advisers;

		
	(ii)
	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or the Borrower and/or one or more of the Security Parties and to any of that person's Affiliates, representatives and professional advisers;

		
	(iii)
	appointed by any Creditor Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;

		
	(iv)
	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above;

		
	(v)
	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

		
	(vi)
	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitrations, administrative or other investigations, proceedings or disputes;

		
	(vii)
	to whom or for whose benefit that Creditor Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 26.17 and to any rating agency in relation to any such securitisation;

		
	(viii)
	who is a party; or

		
	(ix)
	as a result of the registration of any Finance Document as contemplated by any Finance Document or any legal opinion obtained in connection with any Finance Document,

in each case, such Confidential Information as that Creditor Party shall consider appropriate if:
		
	(C)
	in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

		
	(D)
	in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

		
	(E)
	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Creditor Party, it is not practicable so to do in the circumstances; and

		
	(c)
	with the prior written consent of the Borrower, to any person appointed by that Creditor Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered in to a confidentiality agreement substantially in the form of the Loan Market Association Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Borrower and the relevant Creditor Party.

		
	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.

		
	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.

		
	26.17
	Security over Lenders' rights.  In addition to the other rights provided to Lenders under this Clause 26, each Lender may without consulting with or obtaining consent from the Borrower or any Security Party, at any time charge, assign or otherwise create a Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:

		
	(a)
	any charge, assignment or other Security Interest to secure obligations to a federal reserve or central bank; and

		
	(iv)
	in the case of any Lender which is a fund, any charge, assignment or other Security Interest granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities;

except that no such charge, assignment or Security Interest shall:
		
	(v)
	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the Lender as a party to any of the Finance Documents; or

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

		
	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, 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":

		
	(g)
	a change to any Security Party, other than in accordance with the terms of the Finance Documents;

		
	(h)
	a reduction in the Margin;

		
	(i)
	a postponement to the date for, or a reduction in the amount of, any payment of principal, interest, fees or other sum payable under this Agreement;

		
	(j)
	an increase in any Lender's Commitment;

35    56144316v12

		
	(k)
	a change to the definition of "Majority Lenders";

		
	(l)
	a change to the definition of "Sanctions", "Sanctions List" or "Restricted Person";

		
	(m)
	a change to Clause 3 or this Clause 27;

		
	(n)
	a change to Clauses 12.5, 12.6, 12.7 and 12.8;

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

		
	(p)
	an extension of the Availability Period; and

		
	(q)
	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:

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

		
	(k)
	an Event of Default; or

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

		
	(m)
	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.

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	28
	NOTICES

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

		
	28.2
	Addresses for communications.  A notice by letter or fax shall be sent:

		
	(n)
	to the Borrower:    Scorpio Tankers Inc.

Le Millenium, 9 Boulevard Charles III,
98000 Monaco
Attn:  Mr Luca Forgione  - Legal Department
Fax No:     + 3 77 97 77 83 46
Email@ legal@scorpiogroup.net
		
	(o)
	to a Lender:    At the address below its name in Schedule 1 or a Swap Bank Schedule 2 or (as the case may require) in the relevant Transfer Certificate, or in the case of DVB Bank SE at:

c/o DVB Bank America N.V. 
Zeelandia Office Park 
Kaya W.F.G. Mensing 14 
Willemstad, Curacao

Attention: Managing Director and Loan Administration Department
Facsimile: +599-9-465-2366
Email: TLS.Curacao@dvbbank.com

with a copy to:

DVB Transport (US) LLC  
Representative Office of DVB Bank SE 
609 Fifth Avenue, 5th Floor 
New York, New York 10017

Attention: Jurek Bochner    
Facsimile: +(212) 588-0424
Email: Jurek.bochner@dvbbank.com
		
	(p)
	to a Swap Bank    At the address below its name in Schedule 2, or in the case of DVB Bank SE at the address set out in Clause 28.2(b) above.

		
	(q)
	to the Agent:    in respect of administrative matters:

ABN AMRO Bank N.V.
Daalsesingel 71 
3511 SW Utrecht 
The Netherlands 
Attention:  Agency Syndicated Loans (PAC EA 8550)

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Email: agency.shipping@nl.abnamro.com
Fax:  +31 20 628 69 85
		
	(r)
	to the Security Trustee:        in respect of administrative matters:

ABN AMRO Bank N.V.
Daalsesingel 71 
3511 SW Utrecht 
The Netherlands 
Attention:  Agency Syndicated Loans (PAC EA 8550)
Email: agency.shipping@nl.abnamro.com
Fax:  +31 20 628 69 85
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:

		
	(h)
	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;

		
	(i)
	a notice which is sent by Email shall be deemed to be served, and shall take effect, at the time when it is actually received in readable form; and

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

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

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

		
	(h)
	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.

38    56144316v12

		
	28.7
	Electronic communication between the Agent and a Lender or a Swap Bank.  Any communication to be made between the Agent and a Lender or a Swap Bank under or in connection with the Finance Documents may be made by Email or other electronic means, if the Agent and the relevant Lender or Swap Bank:

		
	(a)
	agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

		
	(b)
	notify each other in writing of their Email address and/or any other information required to enable the sending and receipt of information by that means; and

		
	(c)
	notify each other of any change to their respective Email addresses or any other such information supplied to them.

Any electronic communication made between the Agent and a Lender or a Swap Bank will be effective only when actually received in readable form and, in the case of any electronic communication made by a Lender or a Swap Bank to the Agent, only if it is addressed in such a manner as the Agent shall specify for this purpose.
		
	28.8
	English language.  Any notice under or in connection with a Finance Document shall be in English.

		
	28.9
	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:

		
	(s)
	cumulative;

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

		
	(u)
	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 and any non-contractual obligations arising out of or in connection with it 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 Dispute.

39    56144316v12

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

		
	(l)
	to commence proceedings in relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and

		
	(m)
	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 Dispute.
		
	30.4
	Process agent.  The Borrower irrevocably appoints Scorpio UK Limited at its registered office for the time being, presently at 10 Lower Grosvenor Place, London, SW1W 0EN (for the attention of Luca Forgione), to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with a Dispute.

		
	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 and a "Dispute" means any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement) or any non-contractual obligation arising out of or in connection with this Agreement.

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

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SCHEDULE 1 

LENDERS AND COMMITMENTS
Part A

	
			
	Lender
	Lending Office
	Commitment

	ABN AMRO Bank N.V.
	Gustav Mahlerlaan 10 
1082 PP Amsterdam 
The Netherlands
	$71,100,000

	 
	 
	 

	DVB Bank SE
	Platz der Republik 6 
60325 Frankfurt am Main 
Germany

	$71,100,000

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SCHEDULE 2 
SWAP BANKS

	
		
	Swap Bank
	Booking Office

	ABN AMRO Bank N.V.
	Gustav Mahlerlaan 10 
1082 PP Amsterdam 
The Netherlands

	 
	 

	DVB Bank SE
	Platz der Republik 6 
60325 Frankfurt am Main 
Germany

	 
	 

42    56144316v12

 
SCHEDULE 3
 DRAWDOWN NOTICE
To:    ABN AMRO Bank N.V. as Agent
Attn: Agency Syndicated Loans (PAC EA 8550)
Daalsesingel 71 
3511 SW Utrecht 
The Netherlands
[l] 2015
DRAWDOWN NOTICE
		
	1
	We refer to the loan agreement (the "Loan Agreement") dated [l] 2015 and made between ourselves as Borrower, the Lenders referred to therein, the Swap Banks referred to therein, the Bookrunning Mandated Lead Arrangers referred to therein, yourselves as Agent and as Security Trustee in connection with a facility of up to US$142,200,000.  Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice.

		
	2 
	We request to [re]borrow Tranche [A][B][C][D] as follows:‐

		
	(a)
	Amount: US$[l];

		
	(b)
	Drawdown Date: [l] 2015;

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

		
	(d)
	Payment instructions: [l].

		
	3
	We represent and warrant that:

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

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

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

[Name of Signatory]

Chief Financial Officer
for and on behalf of
SCORPIO TANKERS INC.

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SCHEDULE 4 
CONDITION PRECEDENT DOCUMENTS
Part A    
The following are the documents referred to in Clause 9.1(a).
		
	1
	A duly executed original of each Finance Document (and of each document required to be delivered by each Finance Document) other than those referred to in Part B, Part C, Part D, Part E, Part F, Part G or Part H of this Schedule 4.

		
	2
	Copies of the certificate of incorporation and constitutional documents of the Borrower and each Security Party.

		
	3
	Copies of resolutions of the directors of the Borrower and each Security Party and in the case of the Guarantors copies of resolutions of their shareholders authorising the execution of the Master Agreement and each of the Finance Documents to which the Borrower or that Security Party is a party and, in the case of the Borrower, authorising named officers to give Drawdown Notices and other notices under this Agreement.

		
	4 
	The original of any power of attorney under which the Master Agreement (if applicable) and any Finance Document is executed on behalf of the Borrower or a Security Party.

		
	5
	An incumbency certificate in respect of the officers and directors (or equivalent) of each of the Borrower and the Security Parties and signature samples of any signatories to any Finance Document.

		
	6
	Copies of all consents which the Borrower or any Security Party requires to enter into, or make any payment under, any Finance Document and any Master Agreement.

		
	7
	Documentary evidence that the Earnings Accounts have been opened with the relevant Account Bank.

		
	8
	Documentary evidence that the agent for service of process named in Clause 30 has accepted its appointment.

		
	9
	Such documentation and other evidence in form and substance acceptable to the Agent or a Lender in order for each to carry out and be satisfied with the results of all necessary "know your customer" or other checks which it is required to carry out in relation to the transactions contemplated by this Agreement, and other Finance Documents and any Master Agreement, including without limitation obtaining, verifying and recording certain information and documentation that will allow the Agent and each of the Lenders to identify the Borrower and each Security Party.

		
	10
	Copies of each Delivered Ship Purchase Contract and each Newbuilding MOA and of all documents signed or issued by any Guarantor or the relevant Builder or the Seller (or any of them) under or in connection with such Delivered Ship Purchase Contract or Newbuilding MOA (as applicable).

		
	11
	Such documentary evidence as the Agent and its legal advisers may require in relation to the due authorisation and execution of the Delivered Ship Purchase Contracts or Newbuilding MOAs (as applicable) by each party thereto.

44    56144316v12

		
	12
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the structure of the financing which is the subject of this Agreement and the laws of the Marshall Islands and such other relevant jurisdictions as the Agent may require.

		
	13
	A Compliance Certificate together with all supporting Accounting Information and other evidence as required pursuant to the terms of this Agreement.

		
	14
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the first Drawdown Date.

		
	15
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

45    56144316v12

Part B    
The following are the documents referred to in Clause 9.1(b).
In this Part B, the "relevant Ship" means the particular Ship to which the relevant Prepositioned Tranche relates and "relevant Guarantor" means the Guarantor which is to take delivery of that Ship.
		
	1
	A certificate of an authorised signatory of the relevant Guarantor and, if signing any Finance Document listed in paragraphs 2 and 5 below, the Borrower and any other Security Party, certifying that each corporate and copy document provided by it under Part A of Schedule 4 remains correct, complete, has not been amended and is in full force and effect as at the relevant Drawdown Date.

		
	2
	A duly executed original of any Charterparty Assignment and any Intercompany Loan Assignment (if applicable) (and of each document to be delivered by each of them) relating to the relevant Ship.

		
	3
	Documentary evidence that in the case of the Newbuildings, all sums due to the relevant Builder and/or Seller, other than the sums to be financed by the Prepositioned Tranche on the relevant Drawdown Date, have been paid to the relevant Builder and/or Seller (as the case may be) together with a copy of the commercial invoice in respect of the relevant Ship.

		
	4
	Documentary evidence that any Intercompany Loans made or to be made available to the relevant Guarantor to assist that Guarantor in financing or re-financing that part of the acquisition cost of the relevant Ship which is not being funded out of the proceeds of the Prepositioned Tranche have been or will be when made available fully subordinated to the rights of the Creditor Parties under the Finance Documents and any Master Agreements.

		
	5
	A duly executed by undated original General Assignment and each document to be delivered under or pursuant to it together with instructions for the Agent or its lawyers to date such documents on the Delivery Date relating to the relevant Ship.

		
	6
	Documents establishing that the relevant Ship is or will on and from its Delivery Date be managed by the Approved Ship Manager and/or the Approved Sub‐Manager on terms acceptable to the Agent (such documents the "Approved Management Agreement"), together with:

		
	(a)
	an Approved Ship Manager's Undertaking executed by the relevant Approved Ship Manager and/or the Approved Sub‐Manager which is party to an Approved Management Agreement with the Guarantor, in favour of the Agent; and

		
	(b)
	copies of the technical Approved Ship Manager's Document of Compliance.

		
	7
	Two valuations of the Fair Market Value of the relevant Ship, addressed to the Agent and the Lenders stated to be for the purposes of this Agreement and dated not more than 14 days before the Drawdown Date in respect of the relevant Prepositioned Tranche.

		
	8
	Draft agreed form legal opinions from lawyers appointed by the Agent on such matters concerning the laws of the Marshall Islands, and such other relevant jurisdictions as the Agent may require.

		
	9
	A draft agreed form favourable opinion from an independent insurance consultant appointed by the Agent at the Borrower's cost on such matters relating to the insurances for the relevant Ship as the Agent may require but to include a certification that such insurances:

46    56144316v12

		
	(a)
	shall be placed with such insurance companies and/or underwriters and/or clubs, in such amounts, against such risks and in such form as is acceptable to the Agent; and

		
	(b)
	are otherwise in conformity with the requirements of this Agreement.

		
	10 
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the relevant Drawdown Date.

		
	11
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

Each of the documents specified in this Schedule 4 all be certified as a true and up to date copy by a director or the secretary (or equivalent officer) of the Borrower.

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Part C    
The following are the documents referred to in Clause 9.1(c).
In this Part C, the "relevant Ship" means the particular Ship to which the relevant Tranche relates and "relevant Guarantor" means the Guarantor which is to take delivery of that Ship.
		
	1
	A certificate of an authorised signatory of the relevant Guarantor and, if signing any Finance Document listed in paragraph 2 below, the Borrower and any other Security Party, certifying that each corporate and copy document provided by it under Part A of Schedule 4 remains correct, complete, has not been amended and is in full force and effect as at the relevant Drawdown Date.

		
	2
	A duly executed original of the Mortgage, the General Assignment and any Charterparty Assignment and any Intercompany Loan Assignment (if applicable) (and of each document to be delivered by each of them) relating to the relevant Ship.

		
	3
	Documentary evidence that:

		
	(a)
	in the case of a Delivered Ship, such Delivered Ship has been unconditionally delivered by the Original Buyer A or the Seller (as the case may be) to, and accepted by, the relevant Guarantor under the relevant Delivered Ship Purchase Contract, and the full purchase price payable under the Delivered Ship Purchase Contract (in addition to the part to be financed or re-financed by the relevant Tranche) has been duly paid in full (together with a copy of each of the documents delivered by the Original Buyer A or the Seller (as the case may be), in each case to the relevant Guarantor under the relevant Delivered Ship Purchase Contract including, but not limited to, the relevant bill of sale, the commercial invoice and the protocol of delivery and acceptance);

		
	(b)
	in the case of the Newbuildings, the relevant Ship has been unconditionally delivered by the Seller to, and accepted by, the relevant Guarantor under the relevant Newbuilding MOA, and the full purchase price payable under the relevant Newbuilding MOA (in addition to the part to be financed or re-financed by the relevant Tranche) has been duly paid in full (together with a copy of each of the documents delivered by the Seller to the relevant Guarantor under the relevant Newbuilding MOA including, but not limited to, the bill of sale, the commercial invoice and the protocol of delivery and acceptance);

		
	(c)
	the relevant Ship is permanently registered in the name of the relevant Guarantor under the applicable Approved Flag;

		
	(d)
	the relevant Ship is in the absolute and unencumbered ownership of the relevant Guarantor save as contemplated by the Finance Documents;

		
	(e)
	that any and all Security Interests in favour of any other creditors in respect of the Borrower, such relevant Ship and the relevant Guarantor have been unconditionally and irrevocably released in full together with evidence satisfactory to the Agent of the due execution of any such release by the parties to it;

		
	(f)
	the relevant Ship maintains the highest available class with the Approved Classification Society free of all overdue recommendations and conditions of such Approved Classification Society;

		
	(g)
	the relevant Mortgage has been duly registered against the relevant Ship as a valid first priority or, as the case may be, preferred ship mortgage in accordance with the laws of the jurisdiction of its Approved Flag; 

48    56144316v12

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

		
	(i)
	any Intercompany Loans made available to the relevant Guarantor to assist that Guarantor in financing or re-financing that part of the acquisition cost of the relevant Ship which is not being funded out of the proceeds of the Tranche have been fully subordinated to the rights of the Creditor Parties under the Finance Documents and any Master Agreements.

		
	4
	Documents establishing that the relevant Ship is managed by the Approved Ship Manager and/or the Approved Sub‐Manager on terms acceptable to the Agent (such documents the "Approved Management Agreement"), together with:

		
	(a)
	an Approved Ship Manager's Undertaking executed by the relevant Approved Ship Manager and/or the Approved Sub‐Manager which is party to an Approved Management Agreement with the Guarantor, in favour of the Agent; and

		
	(b)
	copies of the technical Approved Ship Manager's Document of Compliance and the relevant Ship's Safety Management Certificate (together with any other details of the applicable safety management system which the Agent requires) and ISSC.

		
	5
	Two valuations of the Fair Market Value of the relevant Ship, addressed to the Agent and the Lenders stated to be for the purposes of this Agreement and dated not more than 14 days before the Drawdown Date in respect of the relevant Tranche.

		
	6
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of the Marshall Islands, and such other relevant jurisdictions as the Agent may require.

		
	7
	A favourable opinion from an independent insurance consultant appointed by the Agent at the Borrower's cost on such matters relating to the insurances for the relevant Ship as the Agent may require but to include a certification that such insurances:

		
	(a)
	are placed with such insurance companies and/or underwriters and/or clubs, in such amounts, against such risks and in such form as is acceptable to the Agent; and

		
	(b)
	are otherwise in conformity with the requirements of this Agreement.

		
	8
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the relevant Drawdown Date.

		
	9
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

Each of the documents specified in this Schedule 4 all be certified as a true and up to date copy by a director or the secretary (or equivalent officer) of the Borrower.

49    56144316v12

Part D    
The following are the documents referred to in Clause 9.1(d).
In this Part D, the "relevant Ship" means the particular Ship to which the relevant Prepositioned Tranche relates and "relevant Guarantor" means the Guarantor which is to take delivery of that Ship.
		
	1
	A duly executed original of the Mortgage and the General Assignment (and of each document to be delivered by each of them) relating to the relevant Ship.

		
	2
	Documentary evidence that the relevant Ship has been unconditionally delivered by the Seller to, and accepted by, the relevant Guarantor under the relevant Newbuilding MOA, and the full purchase price payable under the relevant Newbuilding MOA (in addition to the part to be financed or re-financed by the relevant Tranche) has been duly paid in full (together with a copy of each of the documents delivered by the Seller to the relevant Guarantor under the relevant Newbuilding MOA including, but not limited to, the bill of sale, the commercial invoice and the protocol of delivery and acceptance);

		
	(a)
	the relevant Ship is permanently registered in the name of the relevant Guarantor under the applicable Approved Flag;

		
	(b)
	the relevant Ship is in the absolute and unencumbered ownership of the relevant Guarantor save as contemplated by the Finance Documents;

		
	(c)
	that any and all Security Interests in favour of any other creditors in respect of the Borrower, such relevant Ship and the relevant Guarantor have been unconditionally and irrevocably released in full together with evidence satisfactory to the Agent of the due execution of any such release by the parties to it;

		
	(d)
	the relevant Ship maintains the highest available class with the Approved Classification Society free of all overdue recommendations and conditions of such Approved Classification Society;

		
	(e)
	the relevant Mortgage has been duly registered against the relevant Ship as a valid first priority or, as the case may be, preferred ship mortgage in accordance with the laws of the jurisdiction of its Approved Flag; and

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

		
	3
	Copies of the relevant Ship's Safety Management Certificate (together with any other details of the applicable safety management system which the Agent requires) and ISSC.

		
	4
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of the Marshall Islands, and such other relevant jurisdictions as the Agent may require.

		
	5
	A favourable opinion from an independent insurance consultant appointed by the Agent at the Borrower's cost on such matters relating to the insurances for the relevant Ship as the Agent may require but to include a certification that such insurances:

		
	(a)
	are placed with such insurance companies and/or underwriters and/or clubs, in such amounts, against such risks and in such form as is acceptable to the Agent; and

		
	(b)
	are otherwise in conformity with the requirements of this Agreement.

50    56144316v12

		
	6
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the relevant Drawdown Date.

		
	7
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

Each of the documents specified in this Schedule 4 all be certified as a true and up to date copy by a director or the secretary (or equivalent officer) of the Borrower.

51    56144316v12

Part E    
The following are the documents referred to in Clause 9.1(e).
In this Part E, the "relevant Substitute Ship" means the particular Substitute Ship to which the relevant Substitute Ship Tranche relates and "relevant Substitute Owner" means the Substitute Owner which is to take delivery of that Substitute Ship.
		
	1
	A duly executed original of the Guarantee from the relevant Substitute Owner and the Shares Pledge in relation to the shares of the relevant Substitute Owner.

		
	2
	Copies of the certificate of incorporation and constitutional documents of the Borrower and the relevant Substitute Owner or in the case of the Borrower, a certificate of an authorised signatory of the Borrower certifying that each corporate document provided by it under Part A of Schedule 4 remains correct, complete, has not been amended and is in full force and effect as at the relevant Drawdown Date.

		
	3
	Copies of resolutions of the directors of the Borrower and the relevant Substitute Owner, and in the case of the relevant Substitute Owner, copies of resolutions of their shareholders authorising the execution of the Finance Documents to which the Borrower or that relevant Substitute Owner is a party as required under Part F and Part H (in the case of a Prepositioned Tranche) or Part G (in the case of any other Substitute Ship Tranche) of this Schedule 4.

		
	4
	The original of any power of attorney under which any Finance Document required under Part F and Part H (in the case of a Prepositioned Tranche) or Part G (in the case of any other Substitute Ship Tranche) of this Schedule 4 is executed on behalf of the Borrower or the relevant Substitute Owner.

		
	5
	An incumbency certificate in respect of the officers and directors (or equivalent) of each of the Borrower and the relevant Substitute Owner, and signature samples of any signatories to any Finance Document required under Part F and Part H (in the case of a Prepositioned Tranche) or Part G (in the case of any other Substitute Ship Tranche) of this Schedule 4.

		
	6
	Copies of all consents which the Borrower or the relevant Substitute Owner requires to enter into, or make any payment under, any Finance Document required under Part F and Part H (in the case of a Prepositioned Tranche) or Part G (in the case of any other Substitute Ship Tranche) of this Schedule 4.

		
	7
	Documentary evidence that the Earnings Account in relation to the relevant Substitute Ship has been opened with the relevant Account Bank.

		
	8
	Documentary evidence that the agent for service of process named in Clause 30 has accepted its appointment under the Finance Documents required under Part F and Part H (in the case of a Prepositioned Tranche) or Part G (in the case of any other Substitute Ship Tranche) of this Schedule 4.

		
	9
	Such documentation and other evidence in form and substance acceptable to the Agent or a Lender in order for each to carry out and be satisfied with the results of all necessary "know your customer" or other checks which it is required to carry out in relation to the transactions contemplated by the Finance Documents required under Part F and Part H (in the case of a Prepositioned Tranche) or Part G (in the case of any other Substitute Ship Tranche) of this Schedule 4, including without limitation obtaining, verifying and recording certain information 

52    56144316v12

and documentation that will allow the Agent and each of the Lenders to identify the relevant Substitute Owner.
		
	10
	Copies of each Substitute Ship Purchase Contract and of all documents signed or issued by the relevant Substitute Owner or the relevant builder or the seller (or any of them) under or in connection with such Substitute Ship Purchase Contract.

		
	11
	Such documentary evidence as the Agent and its legal advisers may require in relation to the due authorisation and execution of the Substitute Ship Purchase Contracts by each party thereto.

		
	12
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of such relevant jurisdictions as the Agent may require.

		
	13
	A Compliance Certificate together with all supporting Accounting Information and other evidence as required pursuant to the terms of this Agreement.

		
	14
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the Drawdown Date applicable to the relevant Substitute Ship Tranche.

		
	15
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

53    56144316v12

Part F    
The following are the documents referred to in Clause 9.1(f).
In this Part F, the "relevant Substitute Ship" means the particular Substitute Ship to which the relevant Prepositioned Tranche which is a Substitute Ship Tranche relates and "relevant Substitute Owner" means the Substitute Owner which is to take delivery of that Substitute Ship.
		
	1
	A certificate of an authorised signatory of the relevant Substitute Owner and, if signing any Finance Document listed in paragraphs 2 and 5 below, the Borrower and any other Security Party, certifying that each corporate and copy document provided by it under Part E of Schedule 4 remains correct, complete, has not been amended and is in full force and effect as at the relevant Drawdown Date.

		
	2
	A duly executed original of any Charterparty Assignment and any Intercompany Loan Assignment (if applicable) (and of each document to be delivered by each of them) relating to the relevant Substitute Ship.

		
	3
	Documentary evidence that all sums due to the relevant builder and/or seller in respect of the relevant Substitute Ship, other than the sums to be financed by the Prepositioned Tranche on the relevant Drawdown Date, have been paid to the relevant builder and/or seller (as the case may be), together with a copy of the commercial invoice in respect of the relevant Substitute Ship.

		
	4
	Documentary evidence that any Intercompany Loans made or to be made available to the relevant Substitute Owner to assist that Substitute Owner in financing or re-financing that part of the acquisition cost of the relevant Ship which is not being funded out of the proceeds of the Substitute Ship Tranche have been or will be when made available fully subordinated to the rights of the Creditor Parties under the Finance Documents and any Master Agreements.

		
	5
	A duly executed but undated original General Assignment and each document to be delivered under or pursuant to it together with instructions for the Agent or its lawyers to date such documents on the Delivery Date relating to the relevant Substitute Ship.

		
	6
	Documents establishing that the relevant Substitute Ship is or will on and from its Delivery Date be managed by the Approved Ship Manager and/or the Approved Sub‐Manager on terms acceptable to the Agent (such documents the "Approved Management Agreement"), together with:

		
	(a)
	an Approved Ship Manager's Undertaking executed by the relevant Approved Ship Manager and/or the Approved Sub‐Manager which is party to an Approved Management Agreement with the relevant Substitute Owner, in favour of the Agent; and

		
	(b)
	copies of the technical Approved Ship Manager's Document of Compliance.

		
	7
	Two valuations of the Fair Market Value of the relevant Substitute Ship, addressed to the Agent and the Lenders stated to be for the purposes of this Agreement and dated not more than 14 days before the Drawdown Date in respect of the relevant Substitute Ship Tranche.

		
	8
	Draft agreed form legal opinions from lawyers appointed by the Agent on such matters concerning the laws of such relevant jurisdictions as the Agent may require.

		
	9
	Draft agreed form favourable opinion from an independent insurance consultant appointed by the Agent at the Borrower's cost on such matters relating to the insurances for the relevant Substitute Ship as the Agent may require but to include a certification that such insurances:

54    56144316v12

		
	(a) 
	shall be placed with such insurance companies and/or underwriters and/or clubs, in such amounts, against such risks and in such form as is acceptable to the Agent; and

		
	(b)
	are otherwise in conformity with the requirements of this Agreement.

		
	10
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the relevant Drawdown Date.

		
	11
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

Each of the documents specified in this Schedule 4 all be certified as a true and up to date copy by a director or the secretary (or equivalent officer) of the Borrower.

55    56144316v12

Part G    
The following are the documents referred to in Clause 9.1(g).
In this Part G, the "relevant Substitute Ship" means the particular Substitute Ship to which the relevant Substitute Ship Tranche relates and "relevant Substitute Owner" means the Substitute Owner which is to take delivery of that Substitute Ship.
		
	1
	A certificate of an authorised signatory of the relevant Substitute Owner and, if signing any Finance Document listed in paragraph 2 below, the Borrower and any other Security Party, certifying that each corporate and copy document provided by it under Part E of Schedule 4 remains correct, complete, has not been amended and is in full force and effect as at the relevant Drawdown Date.

		
	2
	A duly executed original of the Mortgage, the General Assignment and any Charterparty Assignment and any Intercompany Loan Assignment (if applicable) (and of each document to be delivered by each of them) relating to the relevant Substitute Ship.

		
	3
	Documentary evidence that:

		
	(a)
	the relevant Substitute Ship has been unconditionally delivered by the relevant builder or seller, as the case may be, to, and accepted by, the relevant Substitute Owner under the relevant Substitute Ship Purchase Contract, and the full purchase price payable under the Substitute Ship Purchase Contract (in addition to the part to be financed or re-financed by the relevant Substitute Ship Tranche) has been duly paid in full (together with a copy of each of the documents delivered by the relevant builder to the relevant Substitute Owner under the Substitute Ship Purchase Contract including, but not limited to, the relevant builder's certificate, the bill of sale, the commercial invoice and the protocol of delivery and acceptance);

		
	(b)
	the relevant Substitute Ship is permanently registered in the name of the relevant Substitute Owner under the applicable Approved Flag;

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

		
	(d)
	the relevant Substitute Ship maintains the highest available class with the Approved Classification Society free of all overdue recommendations and conditions of such Approved Classification Society;

		
	(e)
	the relevant Mortgage has been duly registered against the relevant Substitute Ship as a valid first priority or, as the case may be, preferred ship mortgage in accordance with the laws of the jurisdiction of its Approved Flag; 

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

		
	(g)
	any Intercompany Loans made available to the relevant Substitute Owner to assist that Substitute Owner in financing or re-financing that part of the acquisition cost of the relevant Ship which is not being funded out of the proceeds of the Substitute Ship Tranche have been fully subordinated to the rights of the Creditor Parties under the Finance Documents and any Master Agreements.

56    56144316v12

		
	4
	Documents establishing that the relevant Substitute Ship is managed by the Approved Ship Manager and/or the Approved Sub‐Manager on terms acceptable to the Agent (such documents the "Approved Management Agreement"), together with:

		
	(a)
	an Approved Ship Manager's Undertaking executed by the relevant Approved Ship Manager and/or the Approved Sub‐Manager which is party to an Approved Management Agreement with the relevant Substitute Owner, in favour of the Agent; and

		
	(b)
	copies of the technical Approved Ship Manager's Document of Compliance and the relevant Substitute Ship's Safety Management Certificate (together with any other details of the applicable safety management system which the Agent requires) and ISSC.

		
	5
	Two valuations of the Fair Market Value of the relevant Substitute Ship, addressed to the Agent and the Lenders stated to be for the purposes of this Agreement and dated not more than 14 days before the Drawdown Date in respect of the relevant Substitute Ship Tranche.

		
	6
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of such relevant jurisdictions as the Agent may require.

		
	7
	A favourable opinion from an independent insurance consultant appointed by the Agent at the Borrower's cost on such matters relating to the insurances for the relevant Substitute Ship as the Agent may require but to include a certification that such insurances:

		
	(a)
	are placed with such insurance companies and/or underwriters and/or clubs, in such amounts, against such risks and in such form as is acceptable to the Agent; and

		
	(b)
	are otherwise in conformity with the requirements of this Agreement.

		
	8
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the relevant Drawdown Date.

		
	9
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

Each of the documents specified in this Schedule 4 all be certified as a true and up to date copy by a director or the secretary (or equivalent officer) of the Borrower.

57    56144316v12

Part H    
The following are the documents referred to in Clause 9.1(h).
In this Part H, the "relevant Substitute Ship" means the particular Substitute Ship to which the relevant Prepositioned Tranche which is a Substitute Ship Tranche relates and "relevant Substitute Owner" means the Substitute Owner which is to take delivery of that Substitute Ship.
		
	1
	A duly executed original of the Mortgage and the General Assignment (and of each document to be delivered by each of them) relating to the relevant Substitute Ship.

		
	2
	Documentary evidence that:

		
	(a)
	the relevant Substitute Ship has been unconditionally delivered by the relevant builder or seller, as the case may be, to, and accepted by, the relevant Substitute Owner under the relevant Substitute Ship Purchase Contract, and the full purchase price payable under the Substitute Ship Purchase Contract (in addition to the part to be financed or re-financed by the relevant Substitute Ship Tranche) has been duly paid in full (together with a copy of each of the documents delivered by the relevant builder to the relevant Substitute Owner under the Substitute Ship Purchase Contract including, but not limited to, the relevant builder's certificate, the bill of sale, the commercial invoice and the protocol of delivery and acceptance);

		
	(b)
	the relevant Substitute Ship is permanently registered in the name of the relevant Substitute Owner under the applicable Approved Flag;

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

		
	(d)
	the relevant Substitute Ship maintains the highest available class with the Approved Classification Society free of all overdue recommendations and conditions of such Approved Classification Society;

		
	(e)
	the relevant Mortgage has been duly registered against the relevant Substitute Ship as a valid first priority or, as the case may be, preferred ship mortgage in accordance with the laws of the jurisdiction of its Approved Flag; and

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

		
	3
	Copies of the relevant Substitute Ship's Safety Management Certificate (together with any other details of the applicable safety management system which the Agent requires) and ISSC.

		
	4
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of such relevant jurisdictions as the Agent may require.

		
	5
	A favourable opinion from an independent insurance consultant appointed by the Agent at the Borrower's cost on such matters relating to the insurances for the relevant Substitute Ship as the Agent may require but to include a certification that such insurances:

		
	(a)
	are placed with such insurance companies and/or underwriters and/or clubs, in such amounts, against such risks and in such form as is acceptable to the Agent; and

		
	(b)
	are otherwise in conformity with the requirements of this Agreement.

58    56144316v12

		
	6
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the relevant Drawdown Date.

		
	7
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

Each of the documents specified in this Schedule 4 all be certified as a true and up to date copy by a director or the secretary (or equivalent officer) of the Borrower.

59    56144316v12

SCHEDULE 5 
TRANSFER CERTIFICATE
The Transferor and the Transferee accept exclusive responsibility for ensuring that this Certificate and the transaction to which it relates comply with all legal and regulatory requirements applicable to them respectively.
		
	To:
	[Name of Agent] for itself and for and on behalf of the Borrower, each Security Party, the Security Trustee, each Lender, each Swap Bank, and each Bookrunner Mandated Lead Arranger as defined in the Loan Agreement referred to below.

[l]
		
	1
	This Certificate relates to a Loan Agreement ("the "Agreement") dated [l] 2015 and made between (1) Scorpio Tankers Inc. (the "Borrower"), (2) the banks and financial institutions named therein as Lenders, (3) the banks and financial institutions named therein as Swap Banks, (4) the banks and financial institutions named therein as Bookrunning Mandated Lead Arrangers, (5) ABN AMRO Bank N.V. as Coordinator, as Agent and as Security Trustee for a loan facility of up to $142,200,000.

		
	2
	In this Certificate, terms defined in the Agreement shall, unless the contrary intention appears, have the same meanings when used in this Certificate and:

"Relevant Parties"  means the Agent, the Borrower, each Security Party, the Bookrunning Mandated Lead Arrangers, the Security Trustee, each Lender and each Swap Bank;
"Transferor"  means [full name] of [lending office];
"Transferee"  means [full name] of [lending office].
		
	3
	The effective date of this Certificate is [l] Provided that this Certificate shall not come into effect unless it is signed by the Agent on or before that date.

		
	4
	[The Transferor assigns to the Transferee absolutely all rights and interests (present, future or contingent) which the Transferor has as Lender under or by virtue of the Agreement and every other Finance Document in relation to [l] per cent. of its Contribution, which percentage represents $[l].]

		
	5
	[By virtue of this Certificate and Clause 26 of the Agreement, the Transferor is discharged [entirely from its Commitment which amounts to $[l]] [from [l] per cent. of its Commitment, which percentage represents $[l]] and the Transferee acquires a Commitment of $[l].]

		
	6
	The Transferee undertakes with the Transferor and each of the Relevant Parties that the Transferee will observe and perform all the obligations under the Finance Documents which Clause 26 of the Agreement provides will become binding on it upon this Certificate taking effect.

		
	7
	The Agent, at the request of the Transferee (which request is hereby made) accepts, for the Agent itself and for and on behalf of every other Relevant Party, this Certificate as a Transfer Certificate taking effect in accordance with Clause 26 of the Agreement.

60    56144316v12

		
	8
	The Transferor:

		
	(a)
	warrants to the Transferee and each Relevant Party that:

		
	(i)
	the Transferor has full capacity to enter into this transaction and has taken all corporate action and obtained all consents which are required in connection with this transaction; and

		
	(ii)
	this Certificate is valid and binding as regards the Transferor;

		
	(b)
	warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances, to all the rights and interests covered by the assignment in paragraph 4; and

		
	(c)
	undertakes with the Transferee that the Transferor will, at its own expense, execute any documents which the Transferee reasonably requests for perfecting in any relevant jurisdiction the Transferee's title under this Certificate or for a similar purpose.

9    The Transferee:
		
	(a)
	confirms that it has received a copy of the Agreement and each of the other Finance Documents;

		
	(b)
	agrees that it will have no rights of recourse on any ground against either the Transferor, the Agent, the Security Trustee, any Lender, any Swap Bank, or any Bookrunner Mandated Lead Arranger in the event that:

(i)    any of the Finance Documents prove to be invalid or ineffective;
		
	(ii)
	the Borrower or any Security Party fails to observe or perform its obligations, or to discharge its liabilities, under any of the Finance Documents;

		
	(iii)
	it proves impossible to realise any asset covered by a Security Interest created by a Finance Document, or the proceeds of such assets are insufficient to discharge the liabilities of the Borrower or any Security Party under any of the Finance Documents;

		
	(c)
	agrees that it will have no rights of recourse on any ground against the Agent, the Security Trustee, any Lender, any Swap Bank or any Bookrunner Mandated Lead Arranger in the event that this Certificate proves to be invalid or ineffective;

		
	(d)
	warrants to the Transferor and each Relevant Party that:

		
	(i)
	it has full capacity to enter into this transaction and has taken all corporate action and obtained all consents which it needs to take or obtain in connection with this transaction; and

		
	(ii)
	that this Certificate is valid and binding as regards the Transferee;

		
	(e)
	confirms the accuracy of the administrative details set out below regarding the Transferee.

		
	10
	The Transferor and the Transferee each undertake with the Agent and the Security Trustee severally, on demand, fully to indemnify the Agent and/or the Security Trustee in respect of any claim, proceeding, liability or expense (including all legal expenses) which they or either of them may incur in connection with this Certificate or any matter arising out of it, except such as are shown to have been mainly and directly caused by the gross and culpable negligence or dishonesty of the Agent's or the Security Trustee's own officers or employees.

61    56144316v12

		
	11
	The Transferee shall repay to the Transferor on demand so much of any sum paid by the Transferor under paragraph 9 as exceeds one-half of the amount demanded by the Agent or the Security Trustee in respect of a claim, proceeding, liability or expense which was not reasonably foreseeable at the date of this Certificate; but nothing in this paragraph shall affect the liability of each of the Transferor and the Transferee to the Agent or the Security Trustee for the full amount demanded by it.

[Name of Transferor]    [Name of Transferee]
By:    By:
Date:    Date:
Agent
Signed for itself and for and on behalf of itself
as Agent and for every other Relevant Party
[Name of Agent]
By:
Date:
Administrative Details of Transferee
Name of Transferee:
Lending Office:
Contact Person 
(Loan Administration Department):
Telephone:
Fax:
Contact Person 
(Credit Administration Department):
Telephone:
Fax:
Account for payments:
Note:    This Transfer Certificate alone may not be sufficient to transfer a proportionate share of the Transferor's interest in the security constituted by the Finance Documents in the Transferor's or Transferee's jurisdiction.  It is the responsibility of each Lender to ascertain whether any other documents are required for this purpose.

62    56144316v12

SCHEDULE 6 
DESIGNATION NOTICE
To:    ABN AMRO Bank N.V. as Agent
Attn: Agency Syndicated Loans (PAC EA 8550)
Daalsesingel 71 
3511 SW Utrecht 
The Netherlands
[l]
Dear Sirs
Loan Agreement dated [l] 2015 made between (i) ourselves as Borrower, (ii) the Lenders named therein, (iii) the Swap Banks named therein, (iv) the Bookrunning Mandated Lead Arrangers named therein and (v) yourselves as Coordinator, Agent and Security Trustee (the "Loan Agreement").
We refer to:-
		
	1
	the Loan Agreement;

		
	2
	the Master Agreement dated [l] made between ourselves and [l]; and

		
	3
	a Confirmation delivered pursuant to the said Master Agreement dated [l] and addressed by [l] to us.

In accordance with the terms of the Loan Agreement, we hereby give you notice of the said Confirmation and hereby confirm that the Transaction evidenced by it will be designated as a "Designated Transaction" for the purposes of the Loan Agreement and the Finance Documents.
Yours faithfully,

.................................................
for and on behalf of
SCORPIO TANKERS INC.

63    56144316v12

SCHEDULE 7 
LIST OF APPROVED BROKERS
Affinity Shipbrokers
Clarksons
Arrow Sale & Purchase Ltd.
Braemar Seascope Ltd.
Maersk Broker K/S
Fearnleys Ltd.
Simpson Spence Young

64    56144316v12

SCHEDULE 8 
FORM OF COMPLIANCE CERTIFICATE
To:    ABN AMRO Bank N.V. as Agent
Attn: Agency Syndicated Loans (PAC EA 8550)
Daalsesingel 71 
3511 SW Utrecht 
The Netherlands
[date]
Dear Sirs,
We refer to a loan agreement dated [l] 2015 (the "Loan Agreement") made between (i) Scorpio Tankers Inc. as borrower (the "Borrower"), (2) the Lenders named therein, (3) the Swap Banks named therein, (4) the Bookrunning Mandated Lead Arrangers named therein and (5) yourselves as Coordinator, Agent and Security Trustee
Words and expressions defined in each of the Loan Agreement shall have the same meaning when used in this Compliance Certificate.
We hereby represent that no Event of Default has occurred as at the date of this Certificate [other than [l]].
We hereby certify that, as at the date of this certificate:
		
	(a)
	the Minimum Liquidity is $[l], $[l] of which consists of Cash and Cash Equivalents;

		
	(b)
	the Consolidated Tangible Net Worth is $[l];

		
	(c)
	the ratio of Net Debt to Consolidated Total Capitalisation is [l] to [l];

		
	(d)
	the ratio of Consolidated EBITDA to Consolidated Net Interest Expense is [l] to [l]; and

		
	(e)
	the Fair Market Value of the Ships plus the net realisation value of any additional security previously provided under Clause 15 is $[l].

All of these thresholds and ratios are in compliance with the requirements of clauses 12.5, 12.6, 12.7, 12.8 and 15.1 of the Loan Agreement. Copies of our calculations in relation to the financial covenants and the valuations for the purposes of determining the Fair Market Value of the Ships is attached.
This Certificate and any non-contractual obligations arising out of or in connection with it shall be governed by, and construed in accordance with, English law.

______________________________
[l]
Chief Financial Officer
Scorpio Tankers Inc.

65    56144316v12

EXECUTION PAGES
	
		
	THE BORROWER
	 

	 
	 

	SIGNED by
	/s/ Brian M. Lee

	 
	Name: Brian M. Lee

	for and on behalf of
	Title: Chief Financial Officer

	SCORPIO TANKERS INC.
	 

	in the presence of:
	 

	/s/ Vikram Hiranandani
	 

	 
	 

	THE LENDERS
	 

	 
	 

	SIGNED by
	/s/ Catherine Killeen

	 
	Name: Catherine Killeen

	for and on behalf of
	Title: Attorney-in-Fact

	ABN AMRO BANK N.V.
	 

	in the presence of:
	/s/ Nigel Willis

	 
	Name: Nigel Willis

	 
	Title: Solicitor

	 
	Watson, Farley & Williams

	 
	15 Appold Street

	 
	London EC2A 2HB

	 
	 

	SIGNED by
	/s/ Catherine Killeen

	 
	Name: Catherine Killeen

	for and on behalf of
	Title: Attorney-in-Fact

	DVB BANK SE
	 

	in the presence of:
	/s/ Nigel Willis

	 
	Name: Nigel Willis

	 
	Title: Solicitor

	 
	Watson, Farley & Williams

	 
	15 Appold Street

	 
	London EC2A 2HB

	 
	 

	THE SWAP BANKS
	 

	SIGNED by
	/s/ Catherine Killeen

	 
	Name: Catherine Killeen

	for and on behalf of
	Title: Attorney-in-Fact

	ABN AMRO BANK N.V.
	 

	in the presence of:
	/s/ Nigel Willis

	 
	Name: Nigel Willis

	 
	Title: Solicitor

	 
	Watson, Farley & Williams

	 
	15 Appold Street

	 
	London EC2A 2HB

	 
	 

66    56144316v12

	
		
	SIGNED by
	/s/ Catherine Killeen

	 
	Name: Catherine Killeen

	for and on behalf of
	Title: Attorney-in-Fact

	DVB BANK SE
	 

	in the presence of:
	/s/ Nigel Willis

	 
	Name: Nigel Willis

	 
	Title: Solicitor

	 
	Watson, Farley & Williams

	 
	15 Appold Street

	 
	London EC2A 2HB

	 
	 

	 
	 

	THE BOOKRUNNING MANDATED LEAD ARRANGERS
	 

	 
	 

	SIGNED by
	/s/ Catherine Killeen

	 
	Name: Catherine Killeen

	for and on behalf of
	Title: Attorney-in-Fact

	ABN AMRO BANK N.V.
	 

	in the presence of:
	/s/ Nigel Willis

	 
	Name: Nigel Willis

	 
	Title: Solicitor

	 
	Watson, Farley & Williams

	 
	15 Appold Street

	 
	London EC2A 2HB

	 
	 

	SIGNED by
	/s/ Catherine Killeen

	 
	Name: Catherine Killeen

	for and on behalf of
	Title: Attorney-in-Fact

	DVB BANK SE
	 

	in the presence of:
	/s/ Nigel Willis

	 
	Name: Nigel Willis

	 
	Title: Solicitor

	 
	Watson, Farley & Williams

	 
	15 Appold Street

	 
	London EC2A 2HB

67    56144316v12

	
			
	 
	 
	 

	THE SECURITY TRUSTEE
	 
	 

	 
	 
	 

	SIGNED by
	/s/ Catherine Killeen
	 

	 
	Name: Catherine Killeen
	 

	for and on behalf of
	Title: Attorney-in-Fact
	 

	ABN AMRO BANK N.V.
	 
	 

	in the presence of:
	/s/ Nigel Willis
	 

	 
	Name: Nigel Willis
	 

	 
	Title: Solicitor
	 

	 
	Watson, Farley & Williams
	 

	 
	15 Appold Street
	 

	 
	London EC2A 2HB
	 

	 
	 
	 

	THE AGENT
	 
	 

	 
	 
	 

	SIGNED by
	/s/ Catherine Killeen
	 

	 
	Name: Catherine Killeen
	 

	for and on behalf of
	Title: Attorney-in-Fact
	 

	ABN AMRO BANK N.V.
	 
	 

	in the presence of:
	/s/ Nigel Willis
	 

	 
	Name: Nigel Willis
	 

	 
	Title: Solicitor
	 

	 
	Watson, Farley & Williams
	 

	 
	15 Appold Street
	 

	 
	London EC2A 2HB
	 

68    56144316v12

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