Loan Agreement



 Exhibit 4.17 
 Date May 27 2011 
 PARAGON SHIPPING INC. 

as Lender 
 - and-

 BOX SHIPS INC. 
 as Borrower 
  
  

 
 LOAN AGREEMENT

  
 relating to an unsecured term loan facility 
 of up to US$30,000,000 to be used for

 general corporate purposes and working 
 capital needs 







 THIS AGREEMENT is made on May 27th, 2011 
 BETWEEN 
  

	(1)	PARAGON SHIPPING INC. a corporation incorporated in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Marshall Islands MH 96960 (as “Lender”); and 

  

	(2)	BOX SHIPS INC. a corporation incorporated in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall
Islands MH 96960 (as “Borrower”). 

 BACKGROUND 

The Lender has agreed to make available to the Borrower an unsecured term loan facility of up to $30,000,000 (Thirty million United States
Dollars) in up to five advances for general corporate purposes and working capital needs. 
 IT IS AGREED as follows: 

1    INTERPRETATION 
  

	1.1	Definitions. 


“Advance” means the principal amount of each borrowing by the Borrower under this agreement; 

“Availability Period” means the period commencing on the date of this Agreement and ending on the date falling six months
after such date; 
 “Borrower” means BOX SHIPS INC. a corporation incorporated in the Marshall Islands whose
registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 

“Business Day” means a day on which banks are open in London, Athens, New York and, in respect of a day on which a
payment is required to be made under the Loan Agreement; 
 “Commitment” means an amount of up to $30,000,000 as
that amount may be reduced, cancelled or terminated in accordance with this Agreement; 
 “Dollars” and
“$” means the lawful currency for the time being of the United States of America; 
 “Drawdown
Date” means in relation to an Advance, the date requested by the Borrower for any advance to be made, or the date on which the Advance is actually made; 
 “Drawdown Notice” means a notice by which an Advance is requested to be made by the Borrower; 
 “Events of Default” means any of the events or circumstances described in Clause 7; 
 “Interest Period” means a period determined in accordance with Clause 5; 







 “Lender” means PARAGON SHIPPING INC. a corporation incorporated in the
Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 or its successor or assignee; 
 “LlBOR” means the rate per annum equal to the offered quotation for deposits in Dollars for a period equal to, or as near as possible equal to, the relevant Interest Period which appears
on REUTERS BBA Page LIBOR 01 at or about 11.00 a.m. (London time) on the Quotation Date for that Interest Period (and, for the purposes of this Agreement, “REUTERS BBA Page LIBOR 01” means the display designated as the “REUTERS BBA
Page LlBOR 01” on the Reuters Money News Service or such other page as may replace REUTERS BBA Page LlBOR 01 on that service for the purpose of displaying rates comparable to that rate or on such other service as may be nominated by the British
Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for Dollars).; 
 “Loan” means the principal amount outstanding under this Agreement; 
 “Margin” means 4 per cent. per annum; 
 “Repayment
Date” means the second anniversary of the closing of the Initial Public Offering of the Borrower with the New York Stock Exchange (the “IPO”) and on which the whole of the facility is required to be repaid; 

2    FACILITY 
  

	2.1	Amount of facility. Subject to the other provisions of this Agreement, the Lender shall make a loan facility not exceeding $30,000,000 available to the Borrower
in up to five advances. 

  

	2.2	Purpose of Loan. The Borrower undertakes to use the Loan for general corporate purposes and working capital needs . . 


3    DRAWDOWN 
  

	3.1	Request for Advance. Subject to the following conditions, the Borrower may request an advance to be made by no later than 2 Business Days prior to the intended
Drawdown Date. 

  

	3.2	Availability. The conditions referred to in Clause 3.1 are that: 

  

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


 

	 	b)	the Loan shall not exceed $30,000,000 and shall be made available in up to 5 (five) advances 

 4    INTEREST 
  

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









	4.2	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest on the Loan shall be the aggregate of (i) the Margin, and
(ii) LIBOR for that Interest Period. 

 5    INTEREST PERIODS 

 

	5.1	Commencement of Interest Periods. The first Interest Period applicable to an Advance shall commence on the Drawdown Date relative to that Advance and each subsequent
Interest Period shall commence on the expiry of the preceding Interest Period. 

  

	5.2	Duration of Interest Periods 

  

	 	each	Interest Period shall be: 

  

	 	a)	3, 6, 9 or 12 months as notified by the Borrower to the Lender; or 

  

	 	b)	3 months, if the Borrower fails to notify the Lender; or 

  

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

 6    REPAYMENT AND PREPAYMENT 
  

	6.1	Repayment. The Borrower shall repay the whole Loan by: 

 one repayment instalment on the second anniversary of the Borrower’s completion of the IPO 
  

	6.2	Voluntary prepayment. the Borrower may prepay the whole or any part of the Loan, without penalty, at any time during the life of the facility.


 7    EVENTS OF DEFAULT 

 

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

  

	 	a)	the Borrower fails to pay when due or (if so payable) on demand any sum payable under this agreement; or 


 

	 	b)	any formal declaration of bankruptcy or any formal statement to the effect that the Borrower is insolvent or likely to become insolvent is made by any third party; or
a provisional liquidator is appointed in respect of the Borrower, a winding up order is made in relation to the Borrower; or 

  

	 	c)	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 Lender is
similar to any of the foregoing; or 

  

	 	d)	a change in the Chief Executive Officer of the Borrower without the prior written consent of the Lender; or a change of control, merger or acquisition with respect to
the Borrower. 









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


 

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


 

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

  

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

  

	7.3	Termination of Commitment. On the service of a notice under paragraph (a) of Clause 7.2, the Commitment and all other obligations of the Lender to the
Borrower under this Agreement shall terminate. 

  

	7.4	Acceleration of Loan. On the service of a notice under paragraph (b) of Clause 7.2, the Loan, all accrued interest and all other amounts accrued or owing
from the Borrower under this Agreement shall become immediately due and payable or, as the case may be, payable on demand. 


8    NOTICES 
  

	8.1	General. Unless otherwise specifically provided, any notice under or in connection with this agreement shall be given by letter or fax; 


 

	8.2	Addresses for communications. A notice shall be sent: 

  

							
	a)	 	to the Borrower:	    		 	Box Ships Inc.
		 		    		 	15 Karamanli Ave.
		 		    		 	166 73 Voula
		 		    		 	Greece
		 	Fax No.	    		 	+30 210-8995088
				
	b)	 	to the Lender	    		 	Paragon Shipping Inc.
		 		    		 	15 Karamanli Ave.
		 		    		 	166 73 Voula
		 		    		 	Greece
		 	Fax No.	    		 	+30 210 895 5140

 Effective date of notices. 
 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; and 

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

 9    LAW AND JURISDICTION 
  

	9.1	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. 









	9.2	Exclusive English jurisdiction. the courts of England shall have exclusive jurisdiction to settle any Dispute. 


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

 

			
	BORROWER	    	
		
	SIGNED by	    	)
		    	)
	for and on behalf of	    	)        /s/ Robert Perri         /s/ [Illegible]
	Box Ships Inc.	    	)
	in the presence of:	    	)
		
	LENDER	    	
		
	SIGNED by	    	)
		    	)
	for and on behalf of	    	)        /s/ George Skrimizeas        /s/ Maria Stefanou
	Paragon Shipping Inc.	    	)
	in the presence of:	    	)








 SCHEDULE 1 
 DRAWDOWN NOTICE 
  

	To:	Paragon Shipping Inc. 

 15
Karamanli Avenue 
 166 73, Voula 

	 	Greece	

 Attention: Accounts Manager

  

			
		  	[—]

 DRAWDOWN NOTICE 
 We refer to the loan agreement (the “Loan Agreement”) dated [—] and made between ourselves, as Borrowers, and
yourselves as Lender in connection with a facility of up to US$30,000,000. Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice. 
 We request to borrow as follows: 
 Amount of Tranche:
US$[—]; 
 Drawdown Date: [—]; 

Duration of the first Interest Period shall be [—] months; and 

Payment instructions: account in our name and numbered [—] with
[—] of [—]. 
 We represent and warrant
that: 
 no Event of Default or Potential Event of Default has occurred or will result from the borrowing of the Tranche. 

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

	
	[name of signatory]
	
	  
	Chief Financial Officer
	for and on behalf of
	Box Ships Inc.