Common use of Making of the Advances Clause in Contracts

Making of the Advances. (i) Each of the Lenders, relying upon each of the representations and warranties set out in Section 2, hereby severally and not jointly agrees with the Borrowers that, subject to and upon the terms of this Credit Facility Agreement, it will, not later than 11:00 A.M. (New York City time) on the Drawdown Date of Advance in respect of each Tranche (except as provided in subsection (ii) of this Section), make its portion of the relevant Advance, in Federal or other funds immediately available in New York City, to the Administrative Agent at its address and to such account as set forth on Schedule 1 or to such account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. Unless the Administrative Agent determines that any applicable condition specified in Section 4.1, 4.2, 4.3 or 4.4 has not been satisfied, the Administrative Agent will make the funds so received from the Lenders available to the Borrowers at the aforesaid address, subject to the receipt of the funds by the Administrative Agent as provided in the immediately preceding sentence, not later than 10:00A.M. (New York City time) on the date of such Advance, and in any event as soon as practicable after receipt. All Advances, subject to the other terms and conditions hereof, shall be in a minimum amount of One Million Dollars ($1,000,000) and in multiples of Two Hundred Fifty Thousand Dollars ($250,000). The Facility and each Tranche hereunder shall be repayable as provided in Section 5. The Lenders’ obligation to make any Advance in respect of any Tranche hereunder shall terminate if the Vessel to which such Tranche relates is not delivered to the Borrowers by the Commitment Termination Date. (ii) Unless the Administrative Agent shall have received notice from a Lender prior to the Drawdown Date of any Advance that such Lender will not make available to the Administrative Agent such L▇▇▇▇▇’s share of such Advance, the Administrative Agent may assume that such L▇▇▇▇▇ has made such share available to the Administrative Agent on the date of such Advance in accordance with this Section 3.1 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrowers on such date a corresponding amount. If and to the extent that such Lender shall not have so made such share available to the Administrative Agent, such Lender and the Borrowers (but without duplication and not if such Lender is an affiliate of the Administrative Agent) severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrowers until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrowers, a rate per annum equal to the higher of (y) the LIBOR rate for overnight or weekend deposits plus the Margin and (z) the interest rate applicable thereto pursuant to Section 6.1 and (ii) in the case of such Lender, the LIBOR rate for overnight or weekend deposits. If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Advance included in such Advance for purposes of this Credit Facility Agreement as of the date such Advance was made. Nothing in this subsection (b)(ii) shall be deemed to relieve any Lender of its obligation to make Advances to the extent provided in this Credit Facility Agreement. In the event that the Borrowers are required to repay an Advance to the Administrative Agent pursuant to this Section 3.1(b)(ii), as between the Borrowers and the defaulting Lender, the liability for any breakfunding costs as described in Section 4.4 shall be borne by the defaulting Lender. If the defaulting Lender has not paid any such breakage costs upon demand by the Administrative Agent therefor, the Borrowers shall pay such breakage costs upon demand by the Administrative Agent and the Borrowers shall be entitled to recover any such payment for breakfunding costs made by the Borrowers from the defaulting Lender.

Making of the Advances. (i) Each of the Lenders, relying upon each of the representations and warranties set out in Section 2, hereby severally and not jointly agrees with the Borrowers Borrower that, subject to and upon the terms of this Credit Facility Agreement, it will, not later than 11:00 A.M. (New York City time) on the Drawdown Date of each Advance in respect of each Tranche (except as provided in subsection (ii) of this SectionSection 3.7), make its portion of the relevant AdvanceAdvance (in an amount not exceed its Commitment ratably with the other Lenders according to their respective Commitments), in Federal or other funds immediately available in New York City, to the Borrower through the Administrative Agent at its address and to such account as set forth on Schedule 1 in Section 16.10 or to such account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. Unless the Administrative Agent determines that any applicable condition specified in Section 4.1, 4.2, 4.3 or 4.4 4 has not been satisfied, the Administrative Agent will make the funds so received from the Lenders available to the Borrowers Borrower at the aforesaid address, subject to the receipt of the funds by the Administrative Agent as provided in the immediately preceding sentence, not later than 10:00A.M. 12:00 P.M. (New York City time) on the date of such Advance, and in any event as soon as practicable after receipt. All Advances, subject It is understood that the Facility will be made available in multiple Advances after the date hereof according to the payment schedules in the Building Contract. The amount of any Advance shall not exceed 80% of (a) the actual payment due under the Building Contract (on the basis of invoices received from the Builder for construction installments) and (b) other terms and conditions hereofAcquisition Costs, which the Borrower shall evidence to the satisfaction of the Administrative Agent. No Advance shall be in a minimum made after the Delivery Advance. The aggregate amount of One all Advances shall not exceed Fifty Seven Million Dollars ($1,000,000) and in multiples of Two Six Hundred Fifty Thousand Dollars ($250,00057,600,000). The Facility and each Tranche hereunder shall be repayable as provided in Section 5. The Lenders’ obligation to make any Advance in respect of any Tranche hereunder shall terminate if the Vessel to which such Tranche relates is not delivered to the Borrowers by the Commitment Termination Date. (ii) Unless the Administrative Agent shall have received notice from a Lender prior to the Drawdown Date of any Advance that such Lender will not make available to the Administrative Agent such L▇▇▇▇▇’s share of such Advance, the Administrative Agent may assume that such L▇▇▇▇▇ has made such share available to the Administrative Agent on the date of such Advance in accordance with this Section 3.1 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrowers on such date a corresponding amount. If and to the extent that such Lender shall not have so made such share available to the Administrative Agent, such Lender and the Borrowers (but without duplication and not if such Lender is an affiliate of the Administrative Agent) severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrowers until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrowers, a rate per annum equal to the higher of (y) the LIBOR rate for overnight or weekend deposits plus the Margin and (z) the interest rate applicable thereto pursuant to Section 6.1 and (ii) in the case of such Lender, the LIBOR rate for overnight or weekend deposits. If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Advance included in such Advance for purposes of this Credit Facility Agreement as of the date such Advance was made. Nothing in this subsection (b)(ii) shall be deemed to relieve any Lender of its obligation to make Advances to the extent provided in this Credit Facility Agreement. In the event that the Borrowers are required to repay an Advance to the Administrative Agent pursuant to this Section 3.1(b)(ii), as between the Borrowers and the defaulting Lender, the liability for any breakfunding costs as described in Section 4.4 shall be borne by the defaulting Lender. If the defaulting Lender has not paid any such breakage costs upon demand by the Administrative Agent therefor, the Borrowers shall pay such breakage costs upon demand by the Administrative Agent and the Borrowers shall be entitled to recover any such payment for breakfunding costs made by the Borrowers from the defaulting Lender.