Document:

ex4-57.htm

Exhibit 4.57

 

AMENDMENT NO.1 TO

UNIT PURCHASE AGREEMENT

dated December 9, 2013

 

This AMENDMENT NO. 1 is entered into as of the 30th day of June 2015 by and among

 

a)     Coal Essence Prep Plant LLC. a Kentucky limited liability company (hereinafter referred to as the “Purchaser”),

    And

b)     NewLead Holdings Ltd., a corporation established under the Laws of Bermuda with a registered office at Canon's Court, 22 Victoria Street, Hamilton HM 12, Bermuda and a Greek office at 83, Akti Miaouli & Flessa Street, Piraeus, Greece (hereinafter referred to as “NewLead”),

    And

c)     Pallas Highwall Mining LLC. a Delaware limited liability company, with a registered address at 555 S Federal Highway, Suite 380, Boca Raton, FL 33432 (hereinafter referred to as the “Seller”).

 

(jointly the Parties and singly the Party)

 

NewLead and the Seller shall also mean and include their heirs, successors, legal representatives and assigns.

 

Capitalized terms used in this Amendment shall hare the respective meanings set forth in the relevant provisions of the Unit Purchase Agreement dated 9th December 2013.

 

RECITALS

WHEREAS

 

1.   The Parties have entered into a Unit Purchase Agreement dated 9th December 2013 (hereinafter the “Purchase Agreement”), whereby the Seller agreed to sell and the Purchaser agreed to purchase 100% of the Ownership Interests in Viking Prep Plant LLC, a Kentucky limited liability company (hereinafter referred to as “VPP”) for the consideration of USD 30.000.000 (United States Dollars thirty million) (hereinafter referred to as the “Purchase Price”).

 

 

 

 

 

2.    The Purchase Agreement contains certain customary representations, warranties and covenants by the Seller, including among others, that (a) VPP is validly existing under the law of Kentucky, (b) VPP has and at all times has had full power and authority to own and lease its assets and where such assets are now owned and leased, and to conduct its business as and where such business has been and is now being conducted. (c} the Seller is the only and ultimate beneficial owner of VPP, (d) the Financial Statements represent actual, bona fide transactions and present fairly the financial condition of VPP and the results of operations, changes in retained earnings and cash flows for such periods shown thereon are consistent with the books and records, (e) any Liabilities of VPP were disclosed on Schedule 1.3 of the Purchase Agreement, (f) any Litigation, action/ suit/ proceeding or arbitration is set out on Schedule 4.9 of the Purchase Agreement, (g) Legal Compliance Governmental Authorizations are set out on Schedule 4.10, (h) Labor matters are set out on Schedule 4.11, (i) any contracts entered by VPP are set out on Schedule 4.12, (j) the Equipment set out Schedule 4.13 and acquired by the Purchaser on “as is, where is” basis, without any warranties, (k) VPP has good and marketable title to all of its assets, tangible and intangible, as set out on Schedule 4.14.

 

3.    The Parties now mutually desire to amend certain provisions of the Agreement as set forth in this Amendment.

 

NOW, IT IS THEREFORE AGREED AS FOLLOWS:

 

1.     The Seller hereby releases and discharges the Purchaser from any liabilities, which VPP has incurred in its Ordinary Course of Business to third parties prior to the Closing Date as specifically indicated in Schedule 1 attached hereto.

 

2.     Any Receivables prior to the Closing Date and as indicated in Schedule 1.4 of the Unit Purchase Agreement remain with the Sellers. More specifically, the amount of USO 166.268.78 is a receivable of Sellers. In the event the said Receivable is remitted to the Company, then the Purchaser shall arrange for it to be remitted to the Seller.

 

3.     The Parties hereby mutually agree and covenant to each other that neither of them have done, executed or performed any act, deed or thing or suffered an1hing to the contrary whereby any of them are or will be hindered or prevented from the execution of this Amendment.

 

 

 

 

 

4.     Upon execution hereof, the Parties have no liability and or responsibility to each other, waive and release and discharge each other from any obligations, claims and/or demands now or in the future for any losses, damages and/or expenses incurred with respect to the Liabilities.

 

5.     All other terms and conditions of the Unit Purchase Agreement shall remain intact and in full force and effect.

 

 

(Signature Page follows)

 

 

 

 

 

 

In witness whereof the Parties have signed on the day, month and year first above written.

 

	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
For Coal Essence Prep Plant LLC 
	 	 	
 

	
By Mr. Michail S. Zolotas
	
 
	
 
	
 

	
 
	
 
	
 
	
 

 

	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
For New Lead Holdings Ltd.  
	 	 	
 

	
By Mr. Michail S. Zolotas
	
 
	
 
	
 

	
President. CEO and Chairman 
	
 
	
 
	
 

  

	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
For Pallas Highwall Mining LLC 
	
 
	 	
 

	
By Perian Salviola
	
 
	
 
	
 

	
Manager 
	
 
	
 
	
 

 

 

 

 

 

SCHEDULE 1

 

	
0001120 AA Construction & Steel Fab
	 	 	4.250,00	 
	
0001130 AFCO
	 	 	6.769,52	 
	
0001140 Airgas USA, LLC
	 	 	4.701,93	 
	
0001142 AKJ Industries
	 	 	5.847,90	 
	
0001143 Alpine Consulting & Engineerin
	 	 	205,05	 
	
0001146 American Express
	 	 	28.465,64	 
	
0001147 Amercan Express - VPP
	 	 	14.623,01	 
	
0001148 American Mining Insurance Co.
	 	 	0,30	 
	
0001157 Apogee Environmental & Archael
	 	 	1.950,00	 
	
0001160 Appalachian Security Inc
	 	 	10.021,00	 
	
0001165 Appalachian Tire Products
	 	 	3.551,95	 
	
0001167 Appalachian Wireless
	 	 	789,00	 
	
0001201 Baird & Baird, P.S.C.
	 	 	3.034,00	 
	
0001202 Banks Miller Supply
	 	 	1.733,65	 
	
0001207 B&C Vulcanizing
	 	 	9.282,00	 
	
0001212 Belt Tech Inc.
	 	 	8.793,70	 
	
0001215 Big Sandy Pressure Cleaning
	 	 	1.515,00	 
	
0001218 Birch Communications
	 	 	1.833,06	 
	
0001236 Blackhawk Mining, LLC
	 	 	3.000,00	 
	
0001285 Kathryn Burke
	 	 	6.719,07	 
	
0001290 Busy Bee Septic Systems
	 	 	1.462,80	 
	
0001309 Chase
	 	 	51.927,65	 
	
0001310 Coal Operators 1, LLC
	 	 	3.250,00	 
	
0001312 Coal Run Starter & Alternator
	 	 	291,50	 
	
0001321 Conveyor Manufacturing&supply
	 	 	1.908,00	 
	
0001323 Colonial Life Insurance Premiu
	 	 	1.891,36	 
	
0001325 City Insurance Professionals
	 	 	470,32	 
	
0001369 CS&C
	 	 	62.823,14	 
	
0001370 CSX Transportation
	 	 	27.326,22	 
	
0001380 Custom Software Solutions, Inc
	 	 	525,00	 
	
0001450 Dinsmore & Shohl, LLP
	 	 	1.057,75	 
	
0001460 Drives & Conveyors
	 	 	8.861,62	 

 

 

 

 

 

	
0001520 Eastern Screens & Drives
	 	 	27.118,53	 
	
0001522 Eastern Prep
	 	 	28.782,00	 
	
0001523 Eastern Technologies & Telepho
	 	 	2.020,02	 
	
0001606 Fastenal Company
	 	 	46,26	 
	
0001615 Fedex
	 	 	173,85	 
	
0001620 Fenner Dunlop
	 	 	7.700,00	 
	
0001655 FLSmidth Krebs Inc
	 	 	4.098,88	 
	
0001715 Geo/Environmental Assoc Inc
	 	 	6.290,63	 
	
0001720 Gerald Rhea
	 	 	11,49	 
	
0001725 Green Earth Energies
	 	 	100,00	 
	
0001732 Grayco Rentals Inc.
	 	 	1.415,10	 
	
0001800 Hannon Electric Company
	 	 	36.543,00	 
	
0001805 Hampton Inn - Pikeville
	 	 	5.354,35	 
	
0001809 Highland Communications, Inc.
	 	 	2.302,32	 
	
0001820 Holden Machine & Fabrication
	 	 	8.855,84	 
	
0002002 Jabo Supply Corporation
	 	 	26.466,77	 
	
0002003 JBLCo
	 	 	14.069,10	 
	
0002005 Jigsaw Enterprises LLC
	 	 	1.260,00	 
	
0002114 Kanawha Scales & Systems
	 	 	1.180,00	 
	
0002115 Kentucky Power Company
	 	 	76.840,29	 
	
0002235 Leslie Equipment Co
	 	 	845,99	 
	
0002303 McCoy & McCoy Laboratories
	 	 	3.393,79	 
	
0002319 Millard Processing LLC
	 	 	600.499,29	 
	
0002322 Minet Lacing Technology, Inc.
	 	 	1.679,64	 
	
0002324 Morris Coker, Inc.
	 	 	11.685,95	 
	
0002325 Mountaintop Hydroseeding, Inc.
	 	 	11.980,00	 
	
0002326 Mountain Aggregates, Inc.
	 	 	8.458,50	 
	
0002327 M & M Mine Supply Co., Inc.
	 	 	1.202,17	 
	
0002410 National Safety Group LLC
	 	 	1.380,00	 
	
0002618 Phoenix Scale Technologies
	 	 	1.623,92	 
	
0002621 Pike County Clerk
	 	 	9.920,82	 
	
0002623 Pike County Solid Waste
	 	 	135,32	 
	
0002626 P B Dirt Movers, LLC
	 	 	171.810,40	 
	
0002661 Postmaster
	 	 	140,00	 
	
0002663 Precision Product Technologies
	 	 	941,00	 

 

 

 

 

 

	
0002666 Principal financial Ins
	 	 	5.998,21	 
	
0002667 Pruitt and de Bourbon Law Firm
	 	 	5.580,00	 
	
0002702 Quality Magnetite
	 	 	23.164,99	 
	
0002840 rm wilson co.
	 	 	4.514,00	 
	
0002920 SGS North America Inc
	 	 	9.259,80	 
	
0002930 Silver Spur Conveyors, Inc.
	 	 	24.405,90	 
	
0002945 Rick D Smith
	 	 	2,10	 
	
0002946 Smith-Manus
	 	 	19.890,88	 
	
0002963 Sprouse & Ferguson PLLC
	 	 	87.350,42	 
	
0002975 Summit Engineering Inc
	 	 	15.711,73	 
	
0002980 Sure Teck Systems Inc
	 	 	1.992,00	 
	
0003076 Trvellers - Sterling ins serv
	 	 	1.032,25	 
	
0003078 Tri-State Rail Services Inc
	 	 	27.673,50	 
	
0003080 Tri -State Laboratory Services
	 	 	6.611,00	 
	
0003150 US Cellular
	 	 	219,39	 
	
0003250 Xpress Conveyor & Vulcanizing
	 	 	4.614,00	 
	
0003319 Wham Steam Cleaning
	 	 	2.760,00	 
	
0003325 Whayne Supply Company
	 	 	212,07	 
	
0003339 White Armature Works Inc
	 	 	38.931,49	 
	
0003345 Wrightway
	 	 	4.956,00	 
	
0003400 Young Brothers Machine & Elect
	 	 	636,00	 
	
0003420 ZEE Medical, Inc.
	 	 	225,61	 
	 	 	 	1,640,947.70ex4-58.htm

Exhibit 4.58

 

 

 

NEWLEAD HOLDINGS LTD.

 

CERTIFICATE OF DESIGNATIONS OF PREFERENCES, RIGHTS AND LIMITATIONS

OF

SERIES A-1 PREFERENCE SHARES

 

The undersigned, Michail Zolotas and Eleni (Lena) Despotopoulou, hereby certify that:

 

1.                       They are the Chief Executive Officer and Chief Financial Officer, respectively, of NewLead Holdings Ltd., a Bermuda company (the “Company”).

 

2.                       The Company is authorized to issue 500 million Preference shares, of which none are currently designated, issued or outstanding.

 

3.                       The following resolutions were duly adopted by the board of directors of the Company (the “Board”):

 

WHEREAS, the authorized share capital of the Company includes 500 million preference shares of $0.01 par value per share (the “Preference Shares”) and the bye-laws of the Company provide that the board may issue the Preference Shares from time to time in one or more series;

 

WHEREAS, the Board is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms of redemption and liquidation preferences of any wholly unissued series of Preference Shares and the number of shares constituting any Series A-1 and the designation thereof, of any of them;

 

WHEREAS, it is the desire of the Board, pursuant to its authority as aforesaid and as set forth in this Certificate of Designations of Preferences, Rights and Limitations of Series A-1 Preference Shares, to designate the rights, preferences, restrictions and other matters relating to the Series A-1 Preference Shares, which will consist of up to 7,000 Preference Shares which the Company has the authority to issue, as set out below;

 

NOW, THEREFORE, BE IT RESOLVED, that the Board does hereby provide for the issuance of a series of Preference Shares for cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters relating to such series of Preference Shares as follows:

 

I.     Terms of Preference Shares.

 

A.       Designation and Amount. The series of Preference Shares are hereby designated as the Company’s Series A-1 Preference Shares, par value of $0.01 per share (the “Series A-1 Preference Shares”), which Series A-1 Preference Shares may be subject to increase by the Board in accordance with the Company’s bye-laws.

 

 

B.          Ranking and Voting.

 

1.                      Ranking. The Series A-1 Preference Shares will, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank: (a) senior with respect to dividends to the Company’s Common Shares (“Common Shares”); (b) pari passu with respect to rights of liquidation with the Common Shares; and (c) junior to all existing and future indebtedness of the Company.

 

 

 

 

 

2.                      Voting. Except as required by applicable law or as set forth herein, a holder of Series A-1 Preference Shares will have the right to vote on all matters submitted to Shareholders of the Company and shall be entitled to the number of votes for each Series A-1 Preference Shares owned at the record date for the determination of Shareholders entitled to vote on such matter or, if no such record date is established, at the date such vote is taken or any written consent of Shareholders is solicited, equal to the number of Common Shares such Series A-1 Preference Shares are convertible into at such time (voting as a class with Common Shares), but not in excess of 2.0% of the then outstanding Common Shares as of such record date or at such date a vote is taken or any written consent of Shareholders is solicited, as applicable, and when aggregated with the Common Shares owned by a holder of Series A-1 Preference Shares, not in excess of the conversion limitations set forth in Section 4 herein Except as otherwise required by law, the holders of Series A-1 Preference Shares shall vote together with the holders of Common Shares on all matters and shall not vote as a separate class.

 

C.      Dividends.

 

1.                      Commencing on the date of the issuance of any such Series A-1 Preference Shares (each respectively an “Issuance Date”), each outstanding Series A-1 Preference Share will accrue cumulative dividends (“Dividends”), at a rate equal to 8% per annum (“Dividend Rate”), of the Series A-1 Face Value (as defined below). Dividends will be payable with respect to any Series A-1 Preference Shares upon any of the following: (a) redemption of such shares; (b) conversion of such shares; and (c) when, as and if otherwise declared by the Board. Any calculation of the amount of such Dividends accrued and payable will be made based on a 365-day year, annually.

 

2.                      Dividends are payable at the Company’s election, (a) in cash, (b) in Series A1 Preference Shares, or (c) in Common Shares valued at the Closing Price for the immediately preceding the date of any such redemption, conversion or declaration by the Board as identified in Section I.C.1.

 

D.     Protective Provision. So long as any Series A-1 Preference Shares are outstanding, the Company will not, without the affirmative approval of the holders of a majority of the Series A-1 Preference Shares then outstanding (voting separately as one class), alter or change adversely the powers, preferences or rights given to the Series A-1 Preference Shares or alter or amend this Certificate of Designations.

 

 

E.     Liquidation.

 

1.                      Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, after payment or provision for payment of debts and other liabilities of the Company, pari passu with any distribution or payment made to the holders of Series A-1 Preference Shares and Common Shares by reason of their ownership thereof, the holders of Series A-1 Preference Shares will be entitled to be paid out of the assets of the Company available for distribution to its Shareholders an amount with respect to each Series A-1 Preference Share equal to United States Dollars ten thousand (USD10,000.00) (“Series A-1 Face Value”), plus any accrued but unpaid Dividends thereon (collectively with the Series A-1 Face Value, the “Series A-1 Liquidation Value”). If, upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, the amounts payable with respect to the Series A-1 Preference Shares are not paid in full, the holders of Series A-1 Preference Shares will share equally and ratably with the holders of Series A-1 Preference Shares and Common Shares in any distribution of assets of the Company in proportion to the liquidation preference and an amount equal to all accumulated and unpaid Dividends, if any, to which each such holder is entitled.

 

 

 

 

 

2.                      If, upon any liquidation, dissolution or winding up of the Company, the assets of the Company will be insufficient to make payment in full to all holders of Series A-1 Preference Shares, then such assets will be distributed among the holders of Series A-1 Preference Shares at the time outstanding, ratably in proportion to the full amounts to which they would otherwise be respectively entitled.

 

F.     Redemption.

 

1.                      Company’s Redemption Option. The Company will have the right, in its sole discretion and option, to redeem all or a portion of the Series A-1 Preference Shares, at a price per share equal to 100% of the Series A-1 Liquidation Value.

 

2.                      Mechanics of Redemption. If the Company elects to redeem any of Series A1 Preference Shares then outstanding, it will deliver written notice thereof via facsimile and overnight courier (“Notice of Redemption at Option of Company”) to each holder of Series A-1 Preference Shares, which Notice of Redemption at Option of Company will indicate (a) the number of Series A-1 Preference Shares that the Company is electing to redeem and (b) the applicable Series A-1 Liquidation Value.

 

3.     Payment of Redemption Price. Upon receipt by any holder of Series A1 Preference Shares of a Notice of Redemption at Option of Company, such holder will promptly submit to the Company such holder’s Series A-1 Preference Share certificates. Upon receipt of such holder’s Series A-1 Preference Shares certificates, the Company will pay the Series A-1 Liquidation Value to such holder in cash.

 

G.     Conversion.

 

1.                      Mechanics of Conversion.

 

a.     Subject to the terms and conditions hereof, one or more of the Series A1 Preference Shares may be converted, in part or in whole, into Common Shares, at any time or times after the Issuance Date, at the option of the holder of Series A-1 Preference Shares or the Company, by delivery of one or more written notices to the Company (each, a “Holder Conversion Notice”), of the holder’s election to convert the Series A-1 Preference Shares and stating the number of shares to which the holder is then entitled. On the same Trading Day on which the Company has received a Conversion Notice by 11:59 a.m. Eastern time, or the following Trading Day if received after such time or on a non-Trading Day, (each, a “Notice Date”), the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of the Holder Conversion Notice and shall either (a) only if Company is not approved through the Depository Trust Corporation (DTC), issue and surrender to a common carrier for overnight delivery to the address as specified in the Holder Conversion Notice, a certificate bearing registered in the name of the Holder or designee, for the number of Conversion Shares to which Holder is then entitled as set forth in the Holder Conversion Notice, or (b) if the Company is approved through DTC, authorize the credit by the Company’s transfer agent of such aggregate number of Conversion Shares to which Holder is then entitled, as set forth in the Holder Conversion Notice, to Holder’s or its designee’s balance account with the DTC Fast Automated Securities Transfer (FAST) Program, through its Deposit/Withdrawal at Custodian (DWAC) system, time being of the essence.

 

 

 

 

 

b.                                                    No fractional Common Shares are to be issued upon conversion of Series A-1 Preference Shares, but rather if the aggregate issuance would result in the issuance of a fraction of a Common Share, the Company shall round such fraction of a Common Share up to the nearest whole share.

 

c.                                                    The holder of Series A-1 Preference Shares shall be required to deliver the original certificates for the Series A-1 Preference Shares in order to effect a

conversion hereunder.

 

d.                                                    Upon receipt of the Common Shares upon conversion, the holder of Series A-1 Preference Shares agrees, with respect to any sales of such Common Shares, to limit its aggregate trading on any single Trading Day to 20% of the daily trading volume for that day.

 

2.                      Holder Conversion. In the event of a conversion of any Series A1 Preference Shares pursuant to an Holder Conversion Notice, the Company shall issue to the holder of such Series A-1 Preference Shares a number of Conversion Shares equal to (i) the Series A-1 Face Value multiplied by (ii) the number of such Series A-1 Preference Shares subject to the Holder Conversion Notice divided by (iii) the applicable Conversion Price with respect to such Series A-1 Preference Shares.

 

3.                      Conversion Price Adjustment. In the event the Company, shall, at any time following the issuance of the Series A-1 Preference Shares, issue additional Common Shares in a financing transaction the sole purpose of which is to raise capital, at a price per share less than the Conversion Price then in effect, then the Conversion Price upon each such issuance shall be reduced to a price equal to the consideration paid for such additional Common Shares.

 

4.                      Share Splits. If Company at any time on or after this November 24th, 2015subdivides (by any share split, share dividend, recapitalization or otherwise) or combines (by combination, reverse share split or otherwise) one or more classes of its outstanding Common Shares into a greater or lesser number of shares, the share numbers and prices set forth in this Certificate, as in effect immediately prior to such subdivision or combination, will be proportionately reduced or increased, as applicable, effective as of the close of business on the date such subdivision or combination becomes effective.

 

5.                      Definitions. For purposes of this Section I.G, the following terms shall have the following meanings:

 

a.                                                     “Closing Price” means, for any security as of any date, the last close price for such security on the Trading Market, or, if the Trading Market begins to operate on an extended hours basis and does not designate the close price, then the last bid price of such security prior to 4:00 p.m., Eastern time, or, if the Trading Market is not the principal securities exchange or trading market for such security, the last bid price of such security on the principal securities exchange or trading market where such security is listed, quoted or traded, or if the foregoing do not apply, the last bid price of such security in the over-the-counter market on the electronic bulletin board for such security, or, if no last bid price is reported for such security, the average of the bid prices of any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).

 

 

 

 

 

b.                                                     “Conversion Price” means a price of $1.00 per common share, subject to adjustment as provided herein.

 

c.                                                     “Conversion Shares” means Common Shares issuable upon conversion of Series A-1 Preference Shares.

 

d.                                                     “Trading Day” means any day on which the Common Shares are traded or quoted on the Trading Market.

 

e                                                      “Trading Market” whatever is at the time the principal U.S. trading, quoting exchange or market for the Common Shares. All Trading Market data shall be measured as provided by the appropriate function of the Bloomberg Professional service of Bloomberg Financial Markets or its successor performing similar functions.

 

6.                      Issuance Limitations. Notwithstanding anything to the contrary set forth in this Certificate of Designations, at no time may all or a portion of the Series A-1 Preference Shares be converted if the number of Common Shares to be issued pursuant to such conversion would exceed, when aggregated with all other Common Shares owned by the holder of Series A-1 Preference Shares at such time, the number of Common Shares which would result in such holder beneficially owning (as determined in accordance with Section 13(d) of the 1934 Act and the rules thereunder) more than 4.99% of all of the Common Shares outstanding at such time (the “4.99% Beneficial Ownership Limitation”); provided, however, that upon the holder of Series A-1 Preference Shares providing the Company with sixty-one (61) days’ advance notice (the “4.99% Waiver Notice”) that such holder would like to waive this Section 5 with regard to any or all Common Shares issuable upon conversion of the Series A-1 Preference Shares, this Section 5 will be of no force or effect with regard to all or a portion of the Series A-1 Preference Shares referenced in the 4.99% Waiver Notice but shall in no event waive the 9.99% Beneficial Ownership Limitation described below. Notwithstanding anything to the contrary set forth in this Certificate of Designations, at no time may all or a portion of the Series A-1 Preference Shares be converted if the number of Common Shares to be issued pursuant to such conversion, when aggregated with all other Common Shares owned by the holder of Series A-1 Preference Shares at such time, would result in such holder beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and the rules thereunder) in excess of 9.99% of the then issued and outstanding Common Shares outstanding at such time (the “9.99% Beneficial Ownership Limitation” and the lower of the 9.99% Beneficial Ownership Limitation and the 4.99% Beneficial Ownership Limitation then in effect, the “Maximum Percentage”). By written notice to the Company, a holder of Series A-1 Preference Shares may from time to time decrease the Maximum Percentage to any other percentage specified in such notice. For purposes hereof, in determining the number of outstanding Common Shares, the holder of Series A-1 Preference Shares may rely on the number of outstanding Common Shares as reflected in (1) the Company’s most recent Form 20- F, Current Report on Form 6-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company setting forth the number of Common Shares outstanding. For any reason at any time, upon the written or oral request of a holder of Series A-1 Preference Shares, the Company shall within three (3) Business Days confirm orally and in writing to such holder the number of Common Shares then outstanding. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Series A-1 Preference Shares, held by the holder of Series A-1 Preference Shares and its affiliates since the date as of which such number of outstanding Common Shares was reported, which in any event are convertible or exercisable, as the case may be, into Common Shares within 60 days’ of such calculation and which are not subject to a limitation on conversion or exercise analogous to the limitation contained herein. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 5 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation

 

 

 

 

 

Notwithstanding any other provision of this Certificate of Designations, at no time may the Company issue Common Shares pursuant to this Certificate of Designations if the number of Common Shares to be issued, (1) when aggregated with all other Common Shares then beneficially (or deemed beneficially) owned by a holder of Series A-1 Preference Shares, would result in such holder owning, on the date of such proposed issuance, more than 9.99% of all Common Shares outstanding as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.

 

H.                     Share Register. The Company will keep at its principal office, or at the offices of the transfer agent, a register of the Series A-1 Preference Shares, which shall be prima facie indicia of ownership of all outstanding Series A-1 Preference Shares. Upon the surrender of any certificate representing Series A-1 Preference Shares at such place, the Company, at the request of the record holder of such certificate, will execute and deliver (at the holder’s expense) a new certificate or certificates in exchange therefor representing in the aggregate the number of shares represented by the surrendered certificate. Each such new certificate will be registered in such name and will represent such number of shares as is requested by the holder of the surrendered certificate and will be substantially identical in form to the surrendered certificate.

 

 

II.        Miscellaneous.

 

A.                     Notices. Any and all notices to the Company will be addressed to the Company’s Chief Executive Officer or Chief Financial Officer at the Company’s principal place of business on file with Bermuda. Any and all notices or other communications or deliveries to be provided by the Company to any holder of Series A-1 Preference Shares hereunder will be in writing and delivered personally, by electronic mail or facsimile, sent by a nationally recognized overnight courier service addressed to each holder of Series A-1 Preference Shares at the facsimile telephone number or address of such holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of such holder. Any notice or other communication or deliveries hereunder will be deemed given and effective on the earliest of (1) the date of transmission, if such notice or communication is delivered via electronic mail or facsimile

(2) the second business day following the date of mailing, if sent by nationally recognized overnight courier service, or (3) upon actual receipt by the party to whom such notice is required to be given.

 

 

B.        Lost or Mutilated Preference Shares Certificate. Upon receipt of evidence reasonably satisfactory to the Company (an affidavit of the registered holder of Series A-1 Preference Shares will be satisfactory) of the ownership and the loss, theft, destruction or mutilation of any certificate evidencing Series A-1 Preference Shares, and in the case of any such loss, theft or destruction upon receipt of indemnity reasonably satisfactory to the Company (provided that if the holder of Series A-1 Preference Shares is a financial institution or other institutional investor its own agreement will be satisfactory) or in the case of any such mutilation upon surrender of such certificate, the Company will, at its expense, execute and deliver in lieu of such certificate a new certificate of like kind representing the number of such class represented bysuch lost, stolen, destroyed or mutilated certificate and dated the date of such lost, stolen, destroyed or mutilated certificate.

  

 

 

 

 

C.  Headings. The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designations and will not be deemed to limit or affect any of the provisions hereof.

 

 

 

IN WITNESS WHEREOF, the undersigned have executed this Certificate of Designations this 24th day of November, 2015.

 

	
MICHAIL S. ZOLOTAS
	
 
	
 

	
 
	
 
	
 
	
 

	
Signed: _____________________________
	
 
	
 
	
 

	
Name: ______________________________
	 	 	
 

	
Title: _______________________________
	
 
	
 
	
 

	
 
	
 
	
 
	
 

 

	
ELENI (LENA) DESPOTOPOULOU
	
 
	
 

	
 
	
 
	
 
	
 

	
Signed: _____________________________
	
 
	
 
	
 

	
Name: ______________________________
	 	 	
 

	
Title: _______________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]