Exhibit 10.1
 
EXECUTION COPY
 
AMENDMENT NO. 1 TO WAIVER AND FORBEARANCE AGREEMENT
 
This AMENDMENT NO. 1 TO WAIVER AND FORBEARANCE AGREEMENT, dated as of April 15,
2014 (the "Amendment"), is made and entered into by and among (i) Eagle Bulk
Shipping Inc. (the "Borrower") and its subsidiaries (collectively, the
"Guarantors", and together with the Borrower, the "Loan Parties") and (ii)
certain lenders under the Credit Agreement (collectively, the "Lenders").  The
Loan Parties and the Lenders party hereto are hereinafter referred to
collectively as the "Parties."
 
RECITALS
 
WHEREAS, the Loan Parties and Lenders constituting the "Majority Lenders," as
that term is defined in the Credit Agreement, entered into that certain Waiver
and Forbearance Agreement dated as of March 19, 2014 (as amended to date and as
may be further amended, the "Waiver and Forbearance Agreement").
 
WHEREAS, on or about April 1, 2014, the Loan Parties disclosed that they had
failed to meet the maximum leverage ratio covenant in the Credit Agreement as of
December 31, 2013, which covenant was one of the "Acknowledged Potential
Defaults" as defined in the Waiver and Forbearance Agreement.
 
WHEREAS, the Lenders party hereto collectively hold more than 66-2/3% of the
revolving and term loans outstanding under the Credit Agreement as of the date
hereof and constitute the "Majority Lenders" as that term is defined in the
Credit Agreement.
 
WHEREAS, the Borrower has requested that the Lenders amend the Waiver and
Forbearance Agreement in certain respects and, subject to the terms and
conditions hereof, the Lenders party hereto are willing to agree to such
request, but only upon the terms and conditions set forth herein.
 
AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:
 
1.           Terms.  Capitalized terms used herein, but not otherwise defined,
shall have the meanings given to them in the Waiver and Forbearance Agreement or
the Credit Agreement, as applicable.
 
2.           Amendment to Waiver and Forbearance Agreement.  The Waiver and
Forbearance Agreement is hereby amended as follows:
 
(a)           The reference to "April 15, 2014" appearing in Section 2(a)(i) of
the Waiver and Forbearance Agreement is hereby deleted, and replaced with "April
30, 2014".
 

 
 

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(b)           The phrase "conditions or agreements" appearing in Section
2(a)(ii) of the Waiver and Forbearance Agreement is hereby amended by adding the
phrase ", representations, warranties" after the word "conditions."
 
(c)           Section 4(f) of the Waiver and Forbearance Agreement is hereby
replaced in its entirety with the following:  "The Loan Parties shall pay the
fees and expenses incurred by Paul, Weiss, Rifkind, Wharton & Garrison LLP,
Houlihan Lokey Capital, Inc., and English and maritime counsel, as advisors to
the Lenders, in accordance with the terms of their respective engagement
letters."
 
3.           Additional Agreements.
 
(a)           Further to and by way of supplement to the covenant and agreement
of the Loan Parties set forth in Section 4(a) of the Waiver and Forbearance
Agreement, the Loan Parties shall deliver to Paul, Weiss, Rifkind, Wharton &
Garrison LLP the documents and comments requested, or otherwise reasonably
satisfy, the requirements set forth on Schedule 1 hereto.
 
(b)           Each of the Loan Parties hereby agrees to take, at its own
expense, promptly, whatever commercially reasonable action is necessary or
desirable or may be requested by the Security Trustee for perfecting and
maintaining perfection (including facilitating perfection by possession, as
appropriate) and the priority of, a security interest in (i) the respective
right, title and interest of each of Borrower and Eagle Shipping International
(USA) LLC ("Eagle International") in the equity interests that the Borrower and
Eagle International, respectively, hold in the Subsidiaries listed on Schedule 2
hereto, and (ii) those certain equity interests in Korea Lines Corporation
received by certain Loan Parties (the "KLC Shares"), and the proceeds and
products of, and accessions to, all of the foregoing equity interests.
 
(c)           Schedule 17 of the Credit Agreement is hereby amended to include
each of the accounts set forth on Schedule 3 hereto.
 
4.           Agreements and Acknowledgements.  Each Loan Party hereby agrees,
confirms and acknowledges as follows:
 
(a)           As of the Amendment Effective Date (as defined below), the
Borrower is indebted to the Lenders in an aggregate amount of $1,202,612,561,
comprised of (i) $20,000,000 in Revolving Loan Commitments and $0 in Revolving
Loans outstanding, (ii) $1,129,478,742 in Term Loan Commitments and
$1,129,478,742 in Term Loans outstanding, and (iii) $53,133,819 of PIK Loans,
plus accrued but unpaid interest, plus the costs and expenses incurred by the
Agent and the Lenders and payable under the Finance Documents.
 
(b)           As of the Amendment Effective Date, each Loan Party continues to
be in compliance with all of the terms and provisions set forth in the Waiver
and Forbearance Agreement (as amended by this Amendment).
 
(c)           As of the Amendment Effective Date, the representations and
warranties set forth in the recitals hereto and in the Waiver and Forbearance
Agreement are true and correct with the same effect as though such
representations and warranties had been made on the date hereof.
 

 
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(d)           The Waiver and Forbearance Agreement (as amended by this
Amendment) has been duly executed and delivered on each Loan Party's behalf by a
duly authorized officer, and constitutes each Loan Party's legal, valid and
binding obligation enforceable in accordance with its terms.
 
5.           Effect of Waiver and Forbearance Agreement.  Except as specifically
amended hereby, the terms and provisions of the Waiver and Forbearance Agreement
are in all other respects ratified and confirmed and remain in full force and
effect without modification or limitation.  This Amendment is not intended to
be, nor shall it be construed to create, a novation, a waiver or accord and
satisfaction of the Waiver and Forbearance Agreement or any obligations
thereunder.  No reference to this Amendment need be made in any notice, writing
or other communication relating to the Waiver and Forbearance Agreement, and any
such reference to the Waiver and Forbearance Agreement is deemed a reference
thereto as amended by this Amendment.
 
6.           Condition Precedent to Amendment Effective Date.  This Amendment
shall not become effective unless and until each of the following occurs (the
date on which each of the following occurs, the "Amendment Effective Date"):
 
(a)           The Amendment is duly executed by the Parties, including Lenders
constituting the "Majority Lenders" under the Credit Agreement.
 
(b)           The Loan Parties pay any outstanding fees and expenses incurred by
Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Houlihan Lokey Capital, Inc.,
as advisors to the Lenders, in accordance with the terms of their respective
engagement letters, that were invoiced to the Borrower on or before April 11,
2014.
 
7.           Release.
 
In consideration of the agreements contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Loan Party, on behalf of itself and its successors and
assigns, and its present and former members, affiliates, employees, agents,
officers, directors, shareholders, legal representatives and other
representatives (each, a "Releasing Party" and collectively, the "Releasing
Parties"), does hereby remise, release and discharge, and shall be deemed to
have forever remised, released and discharged each of the Lenders, and each
Lender's respective successors and assigns, and past, present and future
officers, directors, affiliates, shareholders, trustees, agents, employees,
consultants, experts, advisors, attorneys and other professionals and all other
persons and entities to whom any of the foregoing would be liable if such
persons or entities were found to be liable to any Releasing Party, or any of
them (collectively hereinafter the "Released Parties"), of and from any and all
manner of action and actions, cause and causes of action, claims, demands,
suits, damages and any and all other claims, counterclaims, defenses, rights of
setoff, demands and liabilities whatsoever (each, a "Claim" and collectively,
the "Claims") of every kind and nature, whether in law, equity or otherwise,
known or unknown, fixed or contingent, joint and/or
 

 
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several, secured or unsecured, liquidated or unliquidated, suspected or
unsuspected, which any Releasing Party may now or hereafter own, hold, have or
claims to have against the Released Parties, in their capacities as such under
the Credit Agreement or other Finance Documents, for, upon, or by reason of any
circumstance, action, fact, event or omission or other matter occurring at or
from any time prior to and including the Amendment Effective Date in any way
arising out of, connected with or relating to this Amendment, the Waiver and
Forbearance Agreement, the Credit Agreement, any other Finance Document and the
transactions contemplated thereby or hereunder; provided, however, that no
Released Party shall be released from any act or omission that constitutes gross
negligence, fraud or wilful misconduct.
 
8.           Governing Law; Jurisdiction; Waiver of Jury Trial.  This Amendment
shall be governed by and construed in accordance with the law of the State of
New York, without reference to the conflicts or choice of law provisions
thereof.  Each of the Parties hereby consents and agrees that the jurisdiction
provisions of the Credit Agreement shall govern any action, claim or other
proceeding in respect of this Amendment or any matters arising out of or related
thereto.  Each of the Parties hereby waives its respective rights to a jury
trial with respect to any action, claim or other proceeding arising out of any
dispute in connection with this Amendment, any rights or obligations hereunder,
or the performance of such rights and obligations.
 
9.           Counterparts.  This Amendment may be executed by one or more of the
Parties on any number of separate counterparts (including by electronic
transmission of signature pages hereto), and all of such counterparts taken
together shall be deemed an original and to constitute one and the same
instrument.
 
10.         Reference to Waiver and Forbearance Agreement. All references to the
"Waiver and Forbearance Agreement", "hereunder", "hereof" or words of like
import in the Waiver and Forbearance Agreement shall mean and be a reference to
the Waiver and Forbearance Agreement as modified hereby and as may in the future
be amended, restated, supplemented or modified from time to time.
 
11.         No Other Amendment; Reservation of Rights; No Waiver; Finance
Document.  This Amendment shall be part of the Waiver and Forbearance Agreement
and shall constitute a Finance Document as that term is defined in the Credit
Agreement.  Other than as otherwise expressly provided herein and in the Waiver
and Forbearance Agreement, this Amendment shall not be deemed to operate as an
amendment or waiver of, or to prejudice, any right, power, privilege, or remedy
of the Lenders under this Amendment, the Forbearance Agreement, the Credit
Agreement, any other Finance Document, or applicable law, nor shall entering
into this Amendment preclude the Lenders from refusing to enter into any further
amendments, waivers or forbearances with respect to the Credit Agreement.
 
 

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IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.
 

 
BORROWER
 
Eagle Bulk Shipping Inc.
 
 
By:  /s/ Adir Katzav
Name: Adir Katzav
Title:   Chief Financial Officer
 
 
GUARANTORS
 
Agali Shipping S.A.
Anemi Maritime Services S.A.
Avocet Shipping LLC
Bittern Shipping LLC
Canary Shipping LLC
Cardinal Shipping LLC
Condor Shipping LLC
Crane Shipping LLC
Crested Eagle Shipping LLC
Crowned Eagle Shipping LLC
Eagle Bulk (Delaware) LLC
Eagle Bulk Pte. Ltd.
Eagle Management Consultancy Pte. Ltd.
Eagle Management Consultants LLC
Eagle Ship Management LLC
Eagle Shipping International (USA) LLC
Egret Shipping LLC
Falcon Shipping LLC
Gannet Shipping LLC
Golden Eagle Shipping LLC
Goldeneye Shipping LLC
Grebe Shipping LLC
Griffon Shipping LLC
Harrier Shipping LLC
Hawk Shipping LLC
Heron Shipping LLC
Ibis Shipping LLC
Imperial Eagle Shipping LLC
Jaeger Shipping LLC
Jay Shipping LLC
Kampia Shipping S.A.
Kestrel Shipping LLC
Kingfisher Shipping LLC
Kite Shipping LLC
Kittiwake Shipping LLC
Marmaro Shipping S.A.
 

 
 
 
[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]
 
 
 

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Martin Shipping LLC
Merlin Shipping LLC
Mesta Shipping S.A.
Mylos Shipping S.A.
Nagos Shipping S.A.
Nighthawk Shipping LLC
Oriole Shipping LLC
Osprey Shipping LLC
Owl Shipping LLC
Peregrine Shipping LLC
Petrel Shipping LLC
Puffin Shipping LLC
Rahi Shipping S.A.
Redwing Shipping LLC
Roadrunner Shipping LLC
Sandpiper Shipping LLC
Shrike Shipping LLC
Sirikari Shipping S.A.
Skua Shipping LLC
Sparrow Shipping LLC
Spilia Shipping S.A.
Stellar Eagle Shipping LLC
Tern Shipping LLC
Thrasher Shipping LLC
Thrush Shipping LLC
Woodstar Shipping LLC
Wren Shipping LLC
 
By:  /s/ Adir Katzav 
Name: Adir Katzav
Title:   Chief Financial Officer
 

 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDERS:
 
BANK OF AMERICA, N.A.
 
 
By:  /s/ Jonathan M. Barnes
Name:  Jonathan M. Barnes
Title:    Vice President
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
Brigade Capital Management
 
 
By:  /s/ Aaron Daniels
Name:  Aaron Daniels
Title:    Associate General Counsel
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
Canyon Capital Advisors LLC, on behalf
of its participating funds and managed
accounts
 
 
By:  /s/ Jonathan M. Kaplan
Name:  Jonathan M. Kaplan
Title:    Authorized Signatory
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
Goldman Sachs
 
 
By:  /s/ Thomas A. Tormey
Name:  Thomas A. Tormey
Title:    Managing Director
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
MERRILL LYNCH CREDIT PRODUCTS, LLC
 
 
By:  /s/ Jonathan M. Barnes
Name:  Jonathan M. Barnes
Title:    Vice President
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
Midtown Acquisitions L.P.
 
By:  Midtown Acquisitions GP LLC, its
general partner
 
 
By:  /s/ Anthony A. Yoseloff
Name:  Anthony A. Yoseloff
Title:    Manager
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
Onex Debt Opportunity Fund, Ltd.
 
By:  Onex Credit Partners, LLC, its
investment manager
 
 
By:  /s/ Steven Gutman
Name:  Steven Gutman
Title:    General Counsel
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
OCP Investment Trust
 
By:  Onex Credit Partners, LLC, its manager
 
 
By:  /s/ Steven Gutman
Name:  Steven Gutman
Title:    General Counsel
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:
 
Panning Capital Management LP
 
 
 
By:  /s/ William M. Kelly
Name:  William M. Kelly
Title:    Chief Operating Officer
 

 
 

 

[signature page to Amendment No. 1 to Waiver and Forbearance Agreement]

 
 

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LENDER:

 

      Oaktree Value Opportunities Fund, L.P.   Oaktree Huntington Invesment
Fund, L.P.           By: 
Oaktree Value Opportunities Fund GP, L.P.
  By:  Oaktree Huntington Investment Fund GP, L.P. Its:  General Partner    Its:
General Partner           By:  Oaktree Value Opportunities Fund GP Ltd.    By:
Oaktree Huntington Investment Fund GP Ltd. Its:  General Partner   Its: General
Partner           By:  Oaktree Capital Management, L.P.    By:  Oaktree Capital
Management, L.P.  Its:  Director    Its: Director           By: /s/Emily
Stephens         By:  /s/Emily Stephens       Name:  Emily Stephens    Name:
Emily Stephens Title:  Managing Director    Title: Managing Director          
By:  /s/Mahesh Balakrishnan      By: /s/Mahash Balakrishnan    Name:  Mahesh
Balakrishnan    Name: Mahash Balakrishnan Title:  Senior Vice President   
Title: Senior Vice President                     OakTree Opportunities Fund
VIIIb Delaware, L.P.   Oaktree Opps 9 HoldCo Ltd.       Oaktree Opps IX
(Parallel 2) HoldCo Ltd. By:  Oaktree Fund GP, LLC   Oaktree VOF (Cayman) 1 CTB
Ltd. Its: General Partner   Oaktree Huntington (Cayman) 5 CTB Ltd.       Oaktree
Opps VIII (Cayman) 3 CTB Ltd.       Oaktree Opps IX Parallel (Cayman) 1 CTB Ltd.
By: Oaktree Fund GP I, L.P.    Oaktree Opps IX (Cayman) 1 CTB Ltd. Its: Managing
Member    Oaktree Opps IX Parallel 2 (Cayman) 1 CTB Ltd.           By: /s/Emily
Stephens         By:  Oaktree Capital Management, L.P. Name: Emily Stephens   
Their: Director  Title: Authoried Signatory              By:  /s/Emily
Stephens       By: /s/Mahesh Balakrishnan      Name:  Emily Stephens  Name:
Mahesh Balakrishnan    Title:  Managing Director  Title: Senior Vice President 
            By:  /s/Mahesh Balakrishnan       Name: Mahesh Balakrishnan      
Title: Senior Vice President          

 
 
 

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Schedule 1

All documentation previously requested by Paul, Weiss and maritime counsel in
connection with the Agency Transfer.
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 

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Schedule 2

 
Pledgor: Eagle Bulk Shipping Inc.
 
 
1.
Anemi Maritime Services S.A.

 
 
2.
Agali Shipping S.A.

 
 
3.
Eagle Bulk Pte. Ltd.

 
 
4.
Eagle Bulk (Delaware) LLC

 
 
5.
Eagle Shipping International (USA) LLC

 
 
6.
Griffon Shipping LLC

 
 
7.
Heron Shipping LLC

 
 
8.
Kampia Shipping S.A.

 
 
9.
Marmaro Shipping S.A.

 
 
10.
Mesta Shipping S.A.

 
 
11.
Mylos Shipping S.A.

 
 
12.
Nagos Shipping S.A.

 
 
13.
Rahi Shipping S.A.

 
 
14.
Sirikari Shipping S.A.

 
 
15.
Spilia Shipping S.A.

 
 
Pledgor: Eagle Shipping International (USA) LLC
 
 
1.
Eagle Management Consultancy Pte. Ltd.

 
 
2.
Eagle Management Consultants LLC

 
 
3.
Eagle Ship Management LLC