Document:

Guarantee

 Exhibit 4.17 
 EXECUTION VERSION 
  
  

GUARANTEE 

dated as of December 13, 2012 
 from 
 US AIRWAYS GROUP, INC. 

Seven (7) Airbus A321-200 and Four (4) Airbus A330-200 Aircraft 

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 Section 1.
	  	Guarantee	  	 	1	  
	 Section 2.
	  	No Implied Third Party Beneficiaries	  	 	3	  
	 Section 3.
	  	Waiver; No Set-off; Reinstatement; Subrogation	  	 	3	  
	 Section 4.
	  	Amendments, Etc	  	 	3	  
	 Section 5.
	  	Payments	  	 	3	  
	 Section 6.
	  	Integration; Counterparts; Successors and Assigns; Headings	  	 	3	  
	 Section 7.
	  	Notices	  	 	4	  
	 Section 8.
	  	No Waivers	  	 	4	  
	 Section 9.
	  	Severability	  	 	4	  
	 Section 10.
	  	GOVERNING LAW	  	 	4	  

  
 i 

 GUARANTEE 
 GUARANTEE, dated as of December 13, 2012 (as amended, modified or supplemented from time to time, this “Guarantee”), from US AIRWAYS GROUP, INC., a Delaware corporation (together with its
permitted successors and assigns, the “Guarantor”), to the parties listed in Schedule I hereto (collectively, together with their successors and permitted assigns, the “Parties”, and, individually, a “Party”).

 WHEREAS, US Airways, Inc., a Delaware corporation (“Owner”), a direct wholly-owned subsidiary of the Guarantor, has
entered into that certain Note Purchase Agreement dated as of December 13, 2012 (the “Note Purchase Agreement”), among Owner, Wilmington Trust Company, as pass through trustee under each of the Pass Through Trust Agreements (the
“Pass Through Trustee”), Wilmington Trust Company, as Subordination Agent (the “Subordination Agent”), Wilmington Trust, National Association, as Escrow Agent under each of the Escrow and Paying Agent Agreements, and Wilmington
Trust Company, as Paying Agent under each of the Escrow and Paying Agent Agreements; 
 WHEREAS, capitalized terms used but not
defined herein shall have the meanings set forth in the Note Purchase Agreement; and 
 WHEREAS, in order to finance the
aircraft identified on Schedule II hereto (the “Aircraft”), Owner will issue the Equipment Notes under the Trust Indentures; 
 NOW, THEREFORE, in order to induce the Pass Through Trustee to purchase the Equipment Notes and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree
as follows: 
 Section 1. Guarantee. 
 (a) The Guarantor does hereby acknowledge that it is fully aware of the terms and conditions of the Trust Indentures, the Participation Agreements, the Equipment Notes and the transactions and the other
documents contemplated thereby, and does hereby irrevocably and fully and unconditionally guarantee, as primary obligor and not as surety merely, to the Parties, as their respective interests may appear, the payment by Owner of all payment
obligations when due under the Trust Indentures, the Participation Agreements and the Equipment Notes (such obligations of Owner guaranteed hereby being hereafter referred to, individually, as a “Guaranteed Obligation” and, collectively,
as the “Guaranteed Obligations”) in accordance with the terms of the Financing Agreements. The Guarantor does hereby agree that in the event that Owner fails to pay any Guaranteed Obligation when due for any reason (including, without
limitation, the liquidation, dissolution, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of, or other similar proceedings affecting the status, existence,
assets or obligations of Owner, or the disaffirmance with respect to Owner of any Trust Indenture or any other Financing Agreement to which Owner is a party in any such proceeding) after the date on which such Guaranteed Obligation became due and
payable and the applicable grace period has expired, the Guarantor shall pay or cause to be paid forthwith, upon the receipt of notice from the Indenture Trustee (such notice to be sent to Owner (to the extent the Indenture Trustee is not stayed or
prevented 

 
from doing so by operation of law) and the Guarantor) stating that such Guaranteed Obligation was not paid when due after the applicable grace period has expired and stating the amount of such
Guaranteed Obligation. 
 (b) The obligations of the Guarantor hereunder shall not be, to the fullest extent permitted by law,
affected by the genuineness, validity, regularity or enforceability (or lack thereof) of any of Owner’s obligations under any Trust Indenture or any other Financing Agreement to which Owner is a party, any amendment, waiver or other
modification of any Trust Indenture or such other Financing Agreement (except that any such amendment or other modification shall be given effect in determining the obligations of the Guarantor hereunder), or by any substitution, release or exchange
of collateral for or other guaranty of any of the Guaranteed Obligations (except to the extent that such substitution, release or exchange is not undertaken in accordance with the terms of the Financing Agreements) without the consent of the
Guarantor, or by any priority or preference to which any other obligations of Owner may be entitled over Owner’s obligations under any Trust Indenture and the other Financing Agreements to which Owner is a party, or by any other circumstance
that might otherwise constitute a legal or equitable defense to or discharge of the obligations of a surety or guarantor including, without limitation, any defense arising out of any laws of the United States of America or of any State thereof which
would excuse, discharge, exempt, modify or delay the due or punctual payment and performance of the obligations of the Guarantor hereunder. Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the
following shall not, to the fullest extent permitted by law, affect the liability of the Guarantor hereunder: (a) the extension of the time for or waiver of, at any time or from time to time, without notice to the Guarantor, Owner’s
performance of or compliance with any of its obligations under the Financing Agreements (except that such extension or waiver shall be given effect in determining the obligations of the Guarantor hereunder), (b) any assignment, transfer, lease
or other arrangement by which Owner transfers possession or loses control of the use of any Aircraft, (c) any defect in the title, condition, design, operation or fitness for use of, or damage to or loss or destruction of, any Aircraft, whether
or not due to the fault of Owner, (d) any merger or consolidation of Owner or the Guarantor into or with any other Person, or any sale, transfer, lease or disposal of any of its assets, (e) any issuance of Series C Equipment Notes or
(f) any change in the ownership of any shares of capital stock of Owner. 
 (c) This Guarantee is an absolute, present and
continuing guaranty of payment and performance and not of collection and is in no way conditional or contingent upon any attempt to collect from Owner any unpaid amounts due. The Guarantor specifically agrees, to the fullest extent permitted by law,
that it shall not be necessary or required, and that the Guarantor shall not be entitled to require, that any Party (i) file suit or proceed to obtain or assert a claim for personal judgment against Owner for the Guaranteed Obligations, or
(ii) make any effort at collection of the Guaranteed Obligations from Owner, or (iii) foreclose against or seek to realize upon any security now or hereafter existing for the Guaranteed Obligations, including the Collateral (as defined in
the Trust Indentures), or (iv) file suit or proceed to obtain or assert a claim for personal judgment against any other Person liable for the Guaranteed Obligations, or make any effort at collection of the Guaranteed Obligations from any such
other Person, or exercise or assert any other right or remedy to which any Party is or may be entitled in connection with the Guaranteed Obligations or any security or other guaranty therefor, or (v) assert or file any claim against the assets
of Owner or any other guarantor or other Person 

  
 2 

 
liable for the Guaranteed Obligations, or any part thereof, before or as a condition of enforcing the liability of the Guarantor under this Guarantee or requiring payment of said Guaranteed
Obligations by the Guarantor hereunder, or at any time thereafter. 
 Section 2. No Implied Third Party
Beneficiaries. This Guarantee shall not be deemed to create any right in any Person except a Party and shall not be construed in any respect to be a contract in whole or in part for the benefit of any other Person. 

Section 3. Waiver; No Set-off; Reinstatement; Subrogation. The Guarantor waives notice of the acceptance of this Guarantee
and of the performance or nonperformance by Owner, demand for payment from Owner or any other Person, notice of nonpayment or failure to perform on the part of Owner, diligence, presentment, protest, dishonor and, to the fullest extent permitted by
law, all other demands or notices whatsoever, other than the request for payment hereunder and notice provided for in Section 1 hereof. The obligations of the Guarantor shall be absolute and unconditional and shall remain in full force and
effect until satisfaction of all Guaranteed Obligations and, without limiting the generality of the foregoing, to the extent not prohibited by applicable law, shall not be released, discharged or otherwise affected by the existence of any claims,
set-off, defense or other rights that the Guarantor may have at any time and from time to time against any Party, whether in connection herewith or any unrelated transactions. This Guarantee shall continue to be effective or be reinstated, as the
case may be, if at any time any payment of any Guaranteed Obligation is rescinded or must otherwise be returned by any Party upon the insolvency, bankruptcy, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar
proceeding with respect to Owner or otherwise, all as though such payment had not been made. The Guarantor, by virtue of any payment hereunder to a Party, shall be subrogated to such Party’s claim against Owner or any other Person relating
thereto; provided, however, that the Guarantor shall not be entitled to receive payment from Owner in respect of any claim against Owner arising from a payment by the Guarantor in the event of any insolvency, bankruptcy, liquidation,
reorganization or other similar proceedings relating to Owner, or in the event of any proceedings for voluntary liquidation, dissolution or other winding-up of Owner, whether or not involving insolvency or bankruptcy proceedings, in which case the
Guaranteed Obligations shall be paid and performed in full before any payment in respect of a claim by the Guarantor shall be made by or on behalf of Owner. 
 Section 4. Amendments, Etc. No amendment of or supplement to this Guarantee, or waiver or modification of, or consent under, the terms hereof, shall be effective unless evidenced by an
instrument in writing signed by the Guarantor and each Party against whom such amendment, supplement, waiver, modification or consent is to be enforced. 
 Section 5. Payments. All payments by the Guarantor hereunder in respect of any Obligation shall be made in Dollars and otherwise as provided in the relevant Trust Indenture, the relevant
Participation Agreement or the relevant Equipment Note in which such Guaranteed Obligation is contained. 
 Section 6.
Integration; Counterparts; Successors and Assigns; Headings. This Guarantee (a) constitutes the entire agreement, and supersedes all prior agreements and understandings, both written and oral, among the Guarantor and the Parties, with
respect to the 

  
 3 

 
subject matter hereof, (b) may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and
(c) shall be binding upon the successors and assigns of the Guarantor and shall inure to the benefit of, and shall be enforceable by, each of the Parties to the fullest extent permitted by applicable laws. The headings in this Guarantee are for
purposes of reference only, and shall not limit or otherwise affect the meanings hereof. 
 Section 7. Notices. All
requests, notices or other communications hereunder shall be in writing, addressed as follows: 
 If to the Guarantor: 

US Airways Group, Inc. 
 111 West Rio Salado
Parkway 
 Tempe, Arizona 85281 

Attn: Vice President and Treasurer 

Attention: Vice President and Treasurer 

Facsimile: (480) 693-5886 
 with a
copy to: Deputy General Counsel 
       Fax: (480) 693-5932 

If to a Party: 
 to the address or telecopy
number set forth in the Participation Agreements 
 All requests, notices or other communications shall be given in the manner,
and shall be effective at the times and under the terms, set forth in Section 12.7 of the Participation Agreements. 

Section 8. No Waivers. No failure on the part of any Party to exercise, no delay in exercising, and no course of dealing with
respect to, any right or remedy hereunder will operate as a waiver thereof; nor will any single or partial exercise of any right or remedy hereunder preclude any other or further exercise of such right or remedy or the exercise of any other right or
remedy. 
 Section 9. Severability. To the fullest extent permitted by applicable law, any provision of this
Guarantee that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or any provision in any other
Operative Document, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 10. GOVERNING LAW. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THEREOF
(OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW)). THIS GUARANTEE IS BEING DELIVERED IN NEW YORK, NEW YORK. 

  
 4 

 IN WITNESS WHEREOF, the undersigned has caused this Guarantee to be duly executed as of the
day and year first written above. 
  

					
	 US AIRWAYS GROUP, INC.

		
	 By:
	 	 /s/ Thomas T. Weir

		 	Name:	 	Thomas T. Weir
		 	Title:	 	Vice President and Treasurer

 SCHEDULE I 

TO GUARANTEE 
 PARTIES 
 Wilmington Trust Company, as Indenture Trustee 

Wilmington Trust Company, as Pass Through Trustee 
 Wilmington Trust Company, as Subordination Agent 

  

					
		 	SCHEDULE I	 	
		 	Page 1	 	

 SCHEDULE II 

TO GUARANTEE 
 AIRCRAFT 
  

											
	 U.S. Registration Mark
	  	MSN #	 	  	Aircraft Type	 	  	 Engine Model Type

	 N152UW
	  	 	5588	  	  	 	A321-211	  	  	CFM56-5B3/3B1
	 N153UW
	  	 	5594	  	  	 	A321-211	  	  	CFM56-5B3/3B1
	 N286AY
	  	 	1415	  	  	 	A330-243	  	  	Trent 772B-60/16
	 N287AY
	  	 	1417	  	  	 	A330-243	  	  	Trent 772B-60/16
	 N154UW
	  	 	5644	  	  	 	A321-211	  	  	CFM56-5B3/3B1
	 N155UW
	  	 	5659	  	  	 	A321-211	  	  	CFM56-5B3/3B1
	 N156UW
	  	 	5684	  	  	 	A321-211	  	  	CFM56-5B3/3B1
	 N157UW
	  	 	5696	  	  	 	A321-211	  	  	CFM56-5B3/3B1
	 N288AY
	  	 	1441	  	  	 	A330-243	  	  	Trent 772B-60/16
	 N567UW
	  	 	5728	  	  	 	A321-231	  	  	V2533-A5
	 N289AY
	  	 	1455	  	  	 	A330-243	  	  	Trent 772B-60/16

  

					
		 	SCHEDULE II	 	
		 	Page 1Fifth Supplemental Agreement, dated November 30, 2012

 Exhibit 10.1 
 Private & Confidential 
 Dated 30 November 2012 

FIFTH SUPPLEMENTAL AGREEMENT 
 relating to a secured credit facility of 
 up to US$90,000,000

 to 
 PARAGON SHIPPING INC. 
 as Borrower 

provided by 

THE BANKS AND FINANCIAL INSTITUTIONS 
 listed in schedule 1 
 as Lenders 

Arranger, Agent and Security Trustee 
 UNICREDIT BANK AG 
 (formerly known as BAYERISCHE HYPO- UND VEREINSBANK
AG) 
 Swap Bank 
 UNICREDIT BANK AG 
 (formerly known as BAYERISCHE HYPO- UND VEREINSBANK
AG) 
  
 

 

 Contents 

 

							
	Clause	  	Page	 
			
	 1
	  	 Definitions
	  	 	2	  
			
	 2
	  	 Consent of the Creditor Parties
	  	 	3	  
			
	 3
	  	 Amendments to Principal Agreement
	  	 	4	  
			
	 4
	  	 Representations and warranties
	  	 	10	  
			
	 5
	  	 Conditions
	  	 	11	  
			
	 6
	  	 Relevant Parties’ confirmations
	  	 	13	  
			
	 7
	  	 Fees and expenses
	  	 	13	  
			
	 8
	  	 Miscellaneous and notices
	  	 	14	  
			
	 9
	  	 Applicable law
	  	 	14	  
		
	 Schedule 1 Names and lending offices of the Lenders
	  	 	16	  
		
	 Schedule 2 The Owners
	  	 	17	  
		
	 Schedule 3 The Relevant Ship and its details
	  	 	18	  
		
	 Schedule 4 Documents and evidence required as conditions precedent
	  	 	19	  

 THIS FIFTH SUPPLEMENTAL AGREEMENT is dated 30 November 2012 and made 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 MH96960 (the “Borrower”); 

  

	(2)	THE BANKS AND FINANCIAL INSTITUTIONS listed in schedule 1 as Lenders (together the “Lenders”); 

 

	(3)	UNICREDIT BANK AG (formerly known as BAYERISCHE HYPO- UND VEREINSBANK AG) as Agent (the “Agent”); 

 

	(4)	UNICREDIT BANK AG (formerly known as BAYERISCHE HYPO- UND VEREINSBANK AG) as Arranger (the “Arranger”); 

 

	(5)	UNICREDIT BANK AG (formerly known as BAYERISCHE HYPO- UND VEREINSBANK AG) as Security Trustee (the “Security Trustee”);

  

	(6)	UNICREDIT BANK AG (formerly known as BAYERISCHE HYPO- UND VEREINSBANK AG) as Swap Bank (the “Swap Bank”); 

 

	(7)	THE COMPANIES listed in schedule 2 as Owners (together the “Owners” and each an “Owner”); and 

 

	(8)	ALLSEAS MARINE S.A., a corporation organised and existing under the laws of the Republic of Liberia, having its registered office at 80 Broad Street, Monrovia,
Liberia and maintaining a ship management office at 15, Karamanli Avenue, 166 73 Voula, Greece (the “Approved Manager”). 

 WHEREAS: 
  

	(A)	this Agreement is supplemental to a loan agreement dated 19 November 2007 (the “Original Agreement”) made between (1) the Borrower as
borrower, (2) the Lenders, (3) the Agent, (4) the Arranger, (5) the Security Trustee and (6) the Swap Bank as amended and restated by a first supplemental agreement dated 25 February 2009 (the “First
Supplemental Agreement”), as amended and restated by a second supplemental agreement dated 24 March 2010 (the “Second Supplemental Agreement”), as amended and supplemented by a third supplemental agreement dated
29 December 2010 (the “Third Supplemental Agreement”) and as further amended and supplemented by a fourth supplemental agreement dated 27 October 2011 (the “Fourth Supplemental Agreement” and, together
with the First Supplemental Agreement, the Second Supplemental Agreement and the Third Supplemental Agreement, the “Principal Agreement”), made between (inter alios) the Borrower and the Creditor Parties, relating to a secured
credit facility of up to Ninety million Dollars ($90,000,000), of which the principal amount outstanding at the date hereof is Twenty five million five hundred and eighty seven thousand Dollars ($25,587,000), made available by the Lenders to the
Borrower upon the terms and conditions set out therein; and 

  

	(B)	this Agreement sets out the terms and conditions upon which the Creditor Parties agree, at the request of the Borrower: 

 

	 	(a)	to waive the application of Clause 15.1 of the Principal Agreement from 30 September 2012 until 1 January 2014; 

 

	 	(b)	to waive the application of paragraphs (a), (b) and (d) of Clause 12.4 of the Principal Agreement from 30 September 2012 until 1 January 2014;

  

	 	(c)	to open the New Accounts (as defined below); 

  

	 	(d)	to transfer any existing balances of each of the Existing Accounts (as defined below) to the credit of the equivalent New Accounts; and 

 

	 	(e)	to certain consequential changes to the Principal Agreement required in connection with the above and agreed to by the Borrower and the Creditor Parties.

  
 1 

 NOW IT IS HEREBY AGREED as follows: 

 

	1	Definitions 

  

	1.1	Defined expressions 

Words and expressions defined in the Principal Agreement shall unless the context otherwise requires or unless otherwise defined herein,
have the same meanings when used in this Agreement. 
  

	1.2	Definitions 

 In this
Agreement, unless the context otherwise requires: 
 “Creditor Parties” means the Agent, the Arranger, the
Security Trustee, any Lender and the Swap Bank and “Creditor Party” means any of them; 
 “Effective
Date” means the date, no later than 30 November 2012, on which the Agent notifies the Borrower in writing that the Agent has received the documents and evidence specified in Clause 5 and schedule 4 in a form and substance satisfactory
to it; 
 “Existing Accounts” means, together, the Existing Cash Collateral Account, the Existing Retention
Account and the Existing Ship Earnings Account; 
 “Existing Cash Collateral Account” has the meaning given to
“Cash Collateral Account” in Clause 1.1 of the Principal Agreement; 
 “Existing Retention
Account” has the meaning given to “Retention Account” in Clause 1.1 of the Principal Agreement; 

“Existing Ship Earnings Account” has the meaning given to “Existing Ship Earnings Account” in Clause 1.1
of the Principal Agreement; 
 “Fifth Mortgage Addendum” means, in relation to the Relevant Ship, the addendum
executed or (as the context may require) to be executed by its Owner in favour of the Security Trustee in the form required by the Agent in its sole discretion and supplemental to the Mortgage dated 20 November 2007 executed by such Owner in
favour of the Security Trustee; 
 “Loan Agreement” means the Principal Agreement as amended and supplemented by
this Agreement; 
 “New Account Pledges” means, together, the New Earnings Account Pledges, the New Cash
Collateral Account Pledge and the New Retention Account Pledge; 
 “New Accounts” means, together, the New
Earnings Accounts, the New Cash Collateral Account and the New Retention Account; 
 “New Cash Collateral
Account” means, together, a current account and a time deposit account opened or (as the context may require) to be opened in the name of the Borrower with the Agent (in its office at Neuer Wall 64, D-20354 Hamburg, Germany), or any other
account (with that or another office of the Agent) which is designated by the Agent as the New Cash Collateral Account for the purposes of this Agreement; 
 “New Cash Collateral Account Pledge” means a pledge agreement creating security in favour of the Creditor Parties over the New Cash Collateral Account executed or (as the context may
require) to be executed by the Borrower in such form as the Lenders may approve or require; 

  
 2 

 “New Earnings Account” means together, in relation to each Existing Ship, a
current account and a time deposit account opened or (as the context may require) to be opened in the name of the Owner of that Ship with the Agent (in its office at Neuer Wall 64, D-20354 Hamburg, Germany), or any other account (with that or
another office of the Agent) which is designated by the Agent as the New Earnings Account for that Existing Ship for the purposes of this Agreement; 
 “New Earnings Account Pledge” means, in relation to each New Earnings Account, a pledge agreement creating security in favour of the Creditor Parties over its New Earnings Account
executed or (as the context may require) to be executed by the relevant Owner in such form as the Lenders may approve or require; 
 “New Retention Account” means, together, a current account and a time deposit account opened or (as the context may require) to be opened in the name of the Borrower with the Agent (in
its office at Neuer Wall 64, D-20354 Hamburg, Germany), or any other account (with that or another office of the Agent) which is designated by the Agent as the New Retention Account for the purposes of this Agreement; 

“New Retention Account Pledge” means the pledge agreement creating security in favour of the Creditor Parties over the
New Retention Account executed or (as the context may require) to be executed by the Borrower in such form as the Lenders may approve or require; 
 “Relevant Documents” means this Agreement, the New Account Pledges and the Fifth Mortgage Addendum; 
 “Relevant Parties” means the Borrower, the Owners and the Approved Manager or, where the context so requires or permits, means any or all of them; and 

“Relevant Ship” means the motor vessel listed in schedule 3 (being one (1) of the Ships referred to in the Principal
Agreement). 
  

	1.3	Principal Agreement 

References in the Principal Agreement to “this Agreement” shall, with effect from the Effective Date and unless the
context otherwise requires, be references to the Principal Agreement as amended by this Agreement and words such as “herein”, “hereof”, “hereunder”, “hereafter”,
“hereby” and “hereto”, where they appear in the Principal Agreement, shall be construed accordingly. 
  

	1.4	Headings 

 Clause headings
and the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Agreement. 
  

	1.5	Construction of certain terms 

 Clauses 1.2 to 1.5 (inclusive) of the Principal Agreement shall apply to this agreement (mutatis mutandis) as if set out herein and as if references therein to “this Agreement” were
references to this Agreement. 
  

	2	Consent of the Creditor Parties 

  

	2.1	The Creditor Parties, relying upon the representations and warranties made by each of the Relevant Parties in Clause 4, agree with the Borrower that, subject to the
terms and conditions of this Agreement and in particular, but without prejudice to the generality of the foregoing, fulfilment on or before 30 November 2012 of the conditions contained in Clause 5 and schedule 4, the Creditor Parties agree:

  

	2.1.1	to waive the application of Clause 15.1 of the Principal Agreement from 30 September 2012 until 1 January 2014; 

  
 3 

	2.1.2	to waive the application of paragraphs (a), (b) and (d) of Clause 12.4 of the Principal Agreement from 30 September 2012 until 1 January 2014;

  

	2.1.3	to waive, for the avoidance of doubt, any shortfall in the Security Cover Percentage under Clause 15.1 of the Principal Agreement and any breach of paragraphs (a),
(b) and (d) of Clause 12.4 of the Principal Agreement, as they may have occurred prior to the Effective Date (Provided however that, for the avoidance of doubt, such waiver shall not prejudice the Creditor Parties’ right
to demand compliance by the Borrower and the other Security Parties, and the Borrower’s and the other Security Parties’ obligation to comply, with such Clauses and provisions at any time after the Effective Date (albeit as such provisions
are amended or expressly disapplied by this Agreement); 

  

	2.1.4	to open each of the New Accounts for the purposes of, and under the Finance Documents; 

 

	2.1.5	to transfer all existing balances of each of the Existing Accounts to the credit of the equivalent New Accounts; and 

 

	2.1.6	to the amendment of the Principal Agreement on the terms set out in Clause 3. 

 

	3	Amendments to Principal Agreement 

  

	3.1	Amendments to Principal Agreement 

 The Principal Agreement shall, with effect on and from the Effective Date, be (and it is hereby) amended in accordance with the following provisions and the Principal Agreement (as so amended) will
continue to be binding upon the Creditor Parties and the Borrower in accordance with its terms as so amended: 
  

	3.1.1	by inserting in Clause 1.1 of the Principal Agreement the following new definitions of “Fifth Mortgage Addendum” and “Fifth Supplemental
Agreement” in the correct alphabetical order: 

 ““Fifth Mortgage Addendum” means,
in relation to m.v. “CALM SEAS”, the addendum to the Mortgage over such Ship made or (as the case may be) to be made between the relevant Owner and the Security Trustee”; 

““Fifth Supplemental Agreement” means the agreement dated 30 November 2012 made between (inter alios) the
Borrower and the Creditor Parties supplemental to this Agreement;”; 
  

	3.1.2	by deleting the definition of “Margin” in Clause 1.1 of the Principal Agreement and by inserting in its place the following new definition of
“Margin”: 

 ““Margin” means: 

 

	 	(a)	from the date of this Agreement until 26 February 2009: 

  

	 	(i)	at any time when the Leverage Ratio is above 55 per cent, per annum, 1.40 per cent, per annum; and 

 

	 	(ii)	at all other times, 1.20 per cent, per annum; 

  

	 	(b)	from 26 February 2009 until the Margin Adjustment Date, 1.60 per cent, per annum; 

 

	 	(c)	from the day falling immediately after the Margin Adjustment Date until 29 November 2012, 2.25 per cent, per annum; 

  
 4 

	 	(d)	from 30 November 2012 and at all times thereafter: 

  

	 	(i)	in relation to the amount of the Loan, less any amounts thereof deferred pursuant to Clause 8.16 from time to time, 2.75 per cent per annum;

  

	 	(ii)	in relation to any amounts of the Loan deferred pursuant to Clause 8.16 from time to time, 5.00 per cent, per annum;”; 

 

	3.1.3	by deleting the definition of “Mortgage Addenda” in Clause 1.1 of the Principal Agreement and by inserting in its place the following new definition of
“Mortgage Addenda”: 

 ““Mortgage Addenda” means, together, the First
Mortgage Addenda, the Second Mortgage Addenda, the Third Mortgage Addenda, the Fourth Mortgage Addenda and the Fifth Mortgage Addendum;”; 
  

	3.1.4	by deleting the definition of “Supplemental Agreements” in Clause 1.1 of the Principal Agreement and by inserting in its place the following new
definition of “Supplemental Agreements”: 

 ““Supplemental Agreements”
means, together, the First Supplemental Agreement, the Second Supplemental Agreement, the Third Supplemental Agreement, the Fourth Supplemental Agreement and the Fifth Supplemental Agreement;”; 

 

	3.1.5	by deleting the definitions of “Cash Collateral Account”, “Cash Collateral Account Pledge, “Existing Ship Earnings
Account” “Existing Ship Earnings Account Pledge”, “Retention Account” and “Retention Account Pledge” in Clause 1.1 of the Principal Agreement and by inserting in their place the following
new definitions of “Cash Collateral Account”, “Cash Collateral Account Pledge, “Existing Ship Earnings Account”, “Existing Ship Earnings Account Pledge”, “Retention
Account” and “Retention Account Pledge”: 

 ““Cash Collateral
Account” means any of: 
  

	 	(a)	an account in the name of the Borrower with the Agent at their branch at 7, Heraklitou Street, 106 73 Athens, Greece with account number 123137USD281102 and designated
“Paragon - Cash Collateral Account”; 

  

	 	(b)	a current account in the name of the Borrower opened or (as the context may require) to be opened with the Agent (in its office at Neuer Wall 64, D-20354 Hamburg,
Germany); and 

  

	 	(c)	a time deposit account in the name of the Borrower opened or (as the context may require) to be opened with the Agent (in its office at Neuer Wall 64, D-20354 Hamburg,
Germany), 

 and, in each case, includes any sub-accounts thereof and any other account (with that or another
office of the Agent) designated in writing by the Agent to be a Cash Collateral Account for the purposes of this Agreement;”; 
 ““Cash Collateral Account Pledge” means each of: 
  

	 	(a)	the pledge agreement creating security in favour of (inter alios) the Agent and the Swap Bank over the Cash Collateral Account held with the Agent in Greece executed by
the Borrower, the Lenders and the Swap Bank and dated 25 February 2009; and 

  

	 	(b)	the pledge agreement creating security in favour of the Creditor Parties over each Cash Collateral Account held with the Agent in Germany, executed or (as the context
may require) to be executed by the Borrower in such form as the Lenders may approve or require;”; 

  
 5 

 ““Existing Ship Earnings Account” means, in relation to each Existing
Ship, any of: 
  

	 	(a)	an account in the name of the Owner of that Ship opened with the Agent at their branch at 7, Heraklitou Street, 106 73 Athens, Greece designated “[name of Ship] -
Earnings Account”; 

  

	 	(b)	a current account in the name of the Owner of that Ship opened or (as the context may require) to be opened with the Agent (in its office at Neuer Wall 64, D-20354
Hamburg, Germany); and 

  

	 	(c)	a time deposit account in the name of the Owner of that Ship opened or (as the context may require) to be opened with the Agent (in its office at Neuer Wall 64, D-20354
Hamburg, Germany), 

 and, in each case, includes any sub-accounts thereof and any other account (with that or
another office of the Agent) designated in writing by the Agent to be an Earnings Account for that Existing Ship for the purposes of this Agreement;”; 
 ““Existing Ship Earnings Account Pledge” means, in relation to each Existing Ship, each of: 
  

	 	(a)	the pledge agreement over the Existing Ship Earnings Account held with the Agent in Greece, dated 23 November 2007 executed by the relevant Owner in favour of
certain of the Creditor Parties; and 

  

	 	(b)	the pledge agreement over each Existing Ship Earnings Account held with the Agent in Germany, executed or (as the context may require) to be executed by the relevant
Owner in favour of the Creditor Parties in such form as the Lenders may approve or require;”; 

““Retention Account” means any of: 
  

	 	(a)	an account in the name of the Borrower opened with the Agent at their branch at 7, Heraklitou Street, 106 73 Athens, Greece with account number 123137USD281103 and
designated “Paragon Shipping Inc. - Retention Account”; 

  

	 	(b)	a current account in the name of the Borrower opened or (as the context may require) to be opened with the Agent (in its office at Neuer Wall 64, D-20354 Hamburg,
Germany); and 

  

	 	(c)	a deposit account in the name of the Borrower opened or (as the context may require) to be opened with the Agent (in its office at Neuer Wall 64, D-20354 Hamburg,
Germany), 

 and, in each case, includes any sub-accounts thereof and any other account (with that or another
office of the Agent) designated in writing by the Agent to be a Retention Account for the purposes of this Agreement;”; 

““Retention Account Pledge” means each of: 

 

	 	(a)	the pledge agreement over the Retention Account held with the Agent in Greece, dated 20 November 2007 executed by the Borrower creating security in favour of
certain of the Creditor Parties; and 

  

	 	(b)	the pledge agreement over each Retention Account held with the Agent in Germany, executed or (as the context may require) to be executed by the Borrower creating
security in favour of the Creditor Parties in such form as the Lenders may approve or require;”; 

  
 6 

	3.1.6	by deleting the definition of “Relevant Amount” in Clause 8.10 of the Principal Agreement in its entirety and by inserting in its place the following
new definition of “Relevant Amount”: 

 ““Relevant Amount” means, in
relation to a Ship being sold or which has become a Total Loss, the higher of: 
  

	 	(i)	the Applicable Fraction of the Loan in respect of that Ship; and 

  

	 	(ii)	an amount which after giving credit for the amount of the prepayment made pursuant to this Clause 8.10, results in the Security Cover Percentage being, immediately
after such prepayment, not less than the Security Cover Percentage required to be maintained at that time pursuant to Clause 15.1 as if the application of such Clause 15.1 had not been waived at that time pursuant to the provisions of the Fifth
Supplemental Agreement (assuming the waiver would apply at that time but for the operation of this paragraph) and, for the avoidance of any doubt, it is acknowledged and agreed that for the purposes of this clause 8.10 only, Clause 15.1 shall
continue to apply at all times (including during the period between 30 September 2012 and 1 January 2014 (inclusive)).”; 

  

	3.1.7	by deleting the words “and 8.1.15” after the numbers “8.10” in the second line of Clause 8.12 of the Principal Agreement and by inserting in their
place the words “, 8.15 and 8.16”; 

  

	3.1.8	by inserting after Clause 8.15 of the Principal Agreement the following new Clause 8.16: 

“8.16 Deferral option 
  

	 	8.16.1	Subject to the other provisions of this Clause 8.16, the Borrower may, at any time during the Security Period, elect to defer the payment in part of any one or all of
each of the fifth to twelfth (inclusive) repayment instalments (referred to in Clause in 8.1), as follows: 

  

	 	(a)	an amount of up to $666,000 in respect of each one of the fifth to ninth (inclusive) repayment instalments; and 

 

	 	(b)	an amount of up to $855,500 in respect of each one of the tenth to twelfth (inclusive) repayment instalments. 

 

	 	8.16.2	A repayment instalment which has been deferred pursuant to this Clause 8.16, shall be repaid together with the balloon payment (referred to in Clause 8.1).

  

	 	8.16.3	The deferral option for each repayment instalment shall be exercisable by a written irrevocable notice from the Borrower to the Agent (a “Deferral
Notice”), specifying the relevant repayment instalment which is to be deferred, and the Borrower shall send such Deferral Notice to the Agent not later than ten (10) days prior to the Repayment Date on which the repayment instalment to
be deferred would, but for such proposed deferral, have been due. 

  

	 	8.16.4	The Borrower may not exercise its option referred to in Clause 8.16.1 or send a Deferral Notice if the Borrower has failed to provide the evidence and documents set out
in Clause 5.3 of the Fifth Supplemental Agreement within the time limits specified therein. If notwithstanding the above, the Borrower has exercised its option referred to in Clause 8.16.1 or sent a Deferral Notice prior to the deadlines specified
in Clause 5.3 and in particular Clause 5.3.4 of the Fifth Supplemental Agreement and it subsequently fails to provide the evidence and documents required under such clauses within the time limits specified therein (which, for the avoidance of doubt,
shall constitute an Even of Default), then any repayment instalments so deferred at that time: 

  

	 	(a)	if their original Repayment Date has already passed, shall be due and payable in full by the Borrower on demand by the Agent; or 

 

	 	(b)	if their original Repayment Date had not yet passed, shall be payable on their original Repayment Dates as if no deferral option had been exercised or no Deferral
Notice has been sent by he Borrower to the Agent under this Clause 8.16.”; 

  
 7 

	3.1.9	by inserting the following new paragraph (e) after the existing paragraph (d) in Clause 11.6 of the Principal Agreement, by deleting the word “and”
at the end of paragraph (c) of Clause 11.6 of the Principal Agreement and by deleting the full stop at the end of paragraph (d) of Clause 11.6 of the Principal Agreement and by inserting in its place the word “; and”:

  

	 	“(e)	a letter issued by the Borrower to the Agent together with the audited consolidated Financial Statements of the Group (commencing with the Financial Year ending
31 December 2012) evidencing that the Borrower and other members of the Group have entered into binding agreements with all other lenders and creditors of any Financial Indebtedness of the Group, granting waivers, relaxation and extension
arrangements to the Group as disclosed by the Borrower and/or the other members of the Group in the negotiations of the Fifth Supplemental Agreement.”; 

 

	3.1.10	by deleting paragraph (d) in Clause 12.3 of the Principal Agreement in its entirety and by inserting in its place the following new paragraph (d):

  

	 	“(d)	provide any form of credit, loans or financial assistance, or agree to do so: 

 

	 	(i)	from the date of the Fifth Supplemental Agreement until 1 January 2014, to any person; and 

 

	 	(ii)	from 2 January 2014 and at all times thereafter: 

  

	 	(aa)	to a person who is directly or indirectly interested in the Borrower’s share or loan capital; or 

 

	 	(bb)	to any company in or with which such a person is directly or indirectly interested or connected; or 

 

	 	(cc)	to any person if an Event of Default has occurred and is continuing”; 

 

	3.1.11	by inserting the following new paragraph (e) after paragraph (d) in Clause 12.3 of the Principal Agreement and by re-lettering the existing paragraphs (e),
(f), (g) and (h) in Clause 12.3 in the Principal Agreement as (f), (g), (h) and (i) respectively: 

  

	 	“(e)	until 1 January 2014: 

  

	 	(i)	issue any guarantees or indemnities or otherwise become directly or contingently liable for the obligations of any person, firm, or corporation except (1) pursuant
to the Finance Documents or (2) guarantees in relation to committed, undrawn or replacement loan facilities for the sole purpose of financing or refinancing Fleet Vessels existing on the date of the Fifth Supplemental Agreement or newbuildings
already contracted by the Group under executed shipbuilding contracts as at the date of the Fifth Supplemental Agreement; or 

  

	 	(ii)	incur any Financial Indebtedness except for (1) Financial Indebtedness existing on the date of the Fifth Supplemental Agreement and (2) Financial Indebtedness
in relation to committed, undrawn or replacement loan facilities for the sole purpose of financing or refinancing Fleet Vessels existing on the date of the Fifth Supplemental Agreement or newbuildings already contracted by the Group under executed
shipbuilding contracts as at the date of the Fifth Supplemental Agreement, 

 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 than those which it could obtain in a bargain made at arm’s length;”; 

  
 8 

	3.1.12	by inserting the words “but only after 1 January 2014” in the last line of Clause 12.8 after the words “any Financial Year”;

  

	3.1.13	by deleting Clause 12.10 of the Principal Agreement in its entirety and by replacing it with the following new Clause 12.10: 

 

	 	“12.10	Minimum blocked balances. The Borrower shall maintain at all times in the Cash Collateral Account, cash balances which are no less than $750,000 per Ship which
is subject to a Mortgage Provided however that the Borrower may withdraw moneys from the Cash Collateral Account only for the following purposes and subject to the following conditions: 

 

	 	(a)	to prepay the Loan at that time in accordance with Clause 8.3 and such prepayment should be applied, first, in prepayment of any amounts deferred pursuant to Clause
8.16 which remain outstanding and, secondly, in prepayment of the Loan proportionately; and/or 

  

	 	(b)	as to an amount of no more than $666,000, for payments to the Borrower or to its order but only if the evidence set out in clause 5.3.4 of the Fifth Supplemental
Agreement has been delivered to the Agent within the time-limit specified therein.”; 

  

	3.1.14	by inserting the following new Clause 12.12 in the Principal Agreement: 

  

	 	“12.12	Most favoured nation 

  

	 	(a)	Without prejudice to the other provisions of Clause 12, the Borrower undertakes that it will not, and will procure that no other member of the Group will, agree to or
grant or agree to grant any rights, Security Interests, guarantees, interest rate, fees, commissions or any other provisions (including undertakings, representations, events of default, financial covenants, prepayment obligations or any other
restrictions) to, for the benefit of, or in favour of, any lender or creditor of any Financial Indebtedness incurred by the relevant member of the Group after the Effective Date referred to and defined in the Fifth Supplemental Agreement (the
more favourable rights), which are in any respect more favourable to such lender or creditor than the provisions of this Agreement and the other Finance Documents are in favour of the Creditor Parties. 

 

	 	(b)	Without prejudice to paragraph (a) and the consequences of their breach by the Borrower under Clause 19, in the event that and each time that the Borrower or any
other member of the Group agrees to, or grant, or agree to grant, any more favourable rights in breach of paragraph (a), the Borrower undertakes and agrees with the Agent: 

 

	 	(i)	to notify the Agent forthwith after the relevant agreement to, or the granting of or any agreement to grant (as the case may be), such more favourable rights;

  

	 	(ii)	to agree to, provide and grant, such more favourable rights also in favour of the Creditor Parties under or in connection with this Agreement and the other Finance
Documents (and the transactions contemplated thereunder), by entering into (and/or by procuring that any Security Party or any other person entering into) such documentation as the Agent (acting on the instructions of all the Lenders) shall
reasonably require, immediately after the Agent’s request to the Borrower; and 

  

	 	(iii)	 any such more favourable rights shall in any event apply to this Agreement and the other Finance Documents automatically from the time they are granted
to the other lender or lenders, and irrespective of whether the Borrower and the other Security Parties have complied with their other 

  
 9 

	 	
obligations under this Clause 12.12, except if the Agent at any time advises the Borrower that such or certain of such more favourable rights will not so apply and always without prejudice to the
terms and conditions of this Agreement and the other Finance Documents. 

  

	 	(c)	This Clause 12.12 shall only apply if and to the extent that a similar clause is agreed by the Borrower or any other member of the Group with any other of the lenders
or creditors of the Group.”; 

  

	3.1.15	by deleting the words “and Clause 8.10” after the words “Clause 15.1” in the second line of Clause 15.4(e) of the Principal Agreement and by also
deleting the word “clauses” after the words “in such” in the fourth line of the said Clause 15.4 (e) of the Principal Agreement and by inserting in its place the word “clause”; 

 

	3.1.16	by deleting Clause 18.5 of the Principal Agreement in its entirety and by inserting in its place the following new Clause 18.5: 

 

	 	“18.5	Withdrawals from Retention Account and Cash Collateral Account. Unless the Lenders otherwise agree in writing: 

 

	 	(a)	subject to Clause 18.4, the Borrower shall not be entitled to withdraw any moneys from the Retention Account at any time from the date of this Agreement and throughout
the Security Period; and 

  

	 	(b)	the Borrower shall not be entitled to withdraw any moneys from the Cash Collateral Account except as expressly permitted by the terms of Clause 12.10.”; and

  

	3.1.17	by inserting after the words “or 18.5” in the second line of paragraph (b) of Clause 19.1 of the Principal Agreement the words “of this Agreement or
Clauses 5.3.2 or 5.3.3 or 5.3.4 or 5.3.5 of the Fifth Supplemental Agreement”. 

  

	3.2	Continued force and effect 

Save as amended by this Agreement, the provisions of the Principal Agreement shall continue in full force and effect and the Principal
Agreement and this Agreement shall be read and construed as one instrument. 
  

	4	Representations and warranties 

  

	4.1	Primary representations and warranties 

 Each of the Relevant Parties represents and warrants to the Creditor Parties that: 
  

	4.1.1	Existing representations and warranties 

 the representations and warranties set out in Clause 10 of the Principal Agreement and Clause 4 of each Guarantee were true and correct on the date of the Principal Agreement and are true and correct,
including to the extent that they may have been or shall be amended by this Agreement, as if made on the date of this Agreement with reference to the facts and circumstances existing on such date; 

 

	4.1.2	Corporate power 

 each of the
Relevant Parties has power to execute, deliver and perform its obligations under the Relevant Documents to which it is or is to be a party; all necessary corporate, shareholder and other action has been taken by each of the Relevant Parties to
authorise the execution, delivery and performance of the Relevant Documents to which it is or is to be a party; 

  
 10 

	4.1.3	Binding obligations 

 the
Relevant Documents to which it is or is to be a party constitute valid and legally binding obligations of each of the Relevant Parties enforceable in accordance with their terms; 

 

	4.1.4	No conflict with other obligations 

 the execution, delivery and performance of the Relevant Documents to which it is or is to be a party by each of the Relevant Parties will not (i) contravene any existing law, statute, rule or
regulation or any judgment, decree or permit to which any of the Relevant Parties is subject, (ii) conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which any of the
Relevant Parties is a party or is subject or by which it or any of its property is bound or (iii) contravene or conflict with any provision of the constitutional documents of any of the Relevant Parties or (iv) result in the creation or
imposition of or oblige any of the Relevant Parties to create any Security Interest (other than a Permitted Security Interest) on any of the undertaking, assets, rights or revenues of any of the Relevant Parties; 

 

	4.1.5	No filings required 

 save for
the registration of the Fifth Mortgage Addendum with the relevant ship registry, it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of any of the Relevant Documents that they or any other instrument be
notarised, filed, recorded, registered or enrolled in any court, public office or elsewhere in any Pertinent Jurisdiction or that any stamp, registration or similar tax or charge be paid in any Pertinent Jurisdiction on or in relation to the
Relevant Documents and each of the Relevant Documents is in proper form for its enforcement in the courts of each Pertinent Jurisdiction; 
  

	4.1.6	Choice of law 

 the choice of
English law to govern the Relevant Documents (other than the Fifth Mortgage Addendum and the New Account Pledges), the choice of the Marshall Islands law to govern the Fifth Mortgage Addendum and the choice of German law to govern the New Account
Pledges, and the submissions by the Relevant Parties to the non-exclusive jurisdiction of the English courts or (as the case may be) the German courts are valid and binding; and 

 

	4.1.7	Consents obtained 

 every
consent, authorisation, licence or approval of, or registration or declaration to, governmental or public bodies or authorities or courts required by any of the Relevant Parties in connection with the execution, delivery, validity, enforceability or
admissibility in evidence of the Relevant Documents to which it is or will become a party or the performance by any of the Relevant Parties of their respective obligations under such documents has been obtained or made and is in full force and
effect and there has been no default in the observance of any conditions or restrictions (if any) imposed in, or in connection with, any of the same. 
  

	4.2	Repetition of representations and warranties 

 Each of the representations and warranties contained in Clause 4.1 of this Agreement and Clause 10 of the Principal Agreement (as amended by this Agreement) shall be deemed to be repeated by the Relevant
Parties on the Effective Date as if made with reference to the facts and circumstances existing on such day. 
  

	5	Conditions 

  

	5.1	Documents and evidence 

The consent of the Creditor Parties referred to in Clause 2 shall be subject to the receipt by the Agent or its duly authorised
representative of the documents and evidence specified in schedule 4 in form and substance satisfactory to the Agent. 

  
 11 

	5.2	General conditions precedent 

 The consent of the Creditor Parties referred to in Clause 2 shall be further subject to: 
  

	5.2.1	the representations and warranties in Clause 4 being true and correct on the Effective Date as if each was made with respect to the facts and circumstances existing at
such time; and 

  

	5.2.2	no Event of Default (save for any Event of Default which may exist under Clause 19(f) of the Principal Agreement with regard however only to any Financial Indebtedness
of a Relevant Person to any person other than the Creditor Parties pursuant to the Finance Documents) having occurred and continuing at the time of the Effective Date. 

 

	5.3	Waiver of conditions precedent 

  

	5.3.1	The conditions specified in this Clause 5 are inserted solely for the benefit of the Lenders and the Agent and may be waived by the Agent (acting on the instructions of
the Majority Lenders) in whole or in part with or without conditions. 

  

	5.3.2	If the Borrower has not provided (as required by paragraph 5 of schedule 4) by the Effective Date evidence satisfactory in all respects to the Agent that the Borrower
has raised additional equity (in the form of a rights’ issue or rights’ offering or any other form at the Borrower’s discretion) in an amount of no less than $10,000,000, the Borrower hereby undertakes with the Agent to provide
evidence satisfactory in all respects to the Agent that the Borrower has raised additional equity (in the form of a rights’ issue or rights’ offering or any other form at the Borrower’s discretion) in an amount of no less than
$10,000,000 within ninety (90) days after the Effective Date. Failure by the Borrower to do so by such time will be an Event of Default under the Principal Agreement. 

 

	5.3.3	If the Borrower has not provided (as required by paragraph 4 of schedule 4) by the Effective Date: 

 

	 	(a)	evidence satisfactory in all respect to the Agent that the New Accounts have been opened and duly completed mandate forms in respect thereof duly executed and that all
amounts standing to the credit of: 

  

	 	(i)	each Existing Ship Earnings Account, have been transferred to the credit of the equivalent New Earnings Account for the relevant Existing Ship;

  

	 	(ii)	the Existing Retention Account, have been transferred been transferred to the credit of the New Retention Account; and 

 

	 	(iii)	the Existing Cash Collateral Account, have been transferred to the credit of the New Cash Collateral Account; and/or 

 

	 	(b)	the New Account Pledges and any notice required thereunder, each duly executed by the relevant Relevant Party, 

the Borrower hereby undertakes with the Agent to provide such evidence and documents as set out in paragraphs (a) and (b) above
within 50 days after the Effective Date. Failure by the Borrower to do so by such time will be an Event of Default under the Principal Agreement. 
  

	5.3.4	If the Borrower has not provided (as required by paragraph 6(a) of schedule 4) by the Effective Date evidence in form and substance satisfactory to the Agent in its
sole discretion that the Borrower and other members of the Group have entered into binding agreements with all other lenders and creditors of any Financial Indebtedness of the Group, granting such waivers, relaxation and extension arrangements to
the Group as are satisfactory to the Agent in its absolute discretion (and that in any event are not more favourable to such other lenders or Creditors than the amendments and waivers agreed in this Agreement are to the Creditor Parties) but
notwithstanding that the Borrower may have complied with paragraph 6(b) of schedule 4, the Borrower hereby undertakes with the Agent to provide such evidence within 60 days after the Effective Date. Failure by the Borrower to do so by such time will
be an Event of Default under the Principal Agreement. 

  
 12 

	5.3.5	If the Borrower has not procured by the Effective Date (a) the execution and delivery by Frontline Marine Company, being the Owner of m.v. “CALM SEAS”,
to the Agent of the Fifth Mortgage Addendum in respect of m.v. “CALM SEAS” and (b) its registration with the relevant ship registry, the Borrower hereby undertakes with the Agent to procure (i) the execution and delivery by
Frontline Marine Company to the Agent of the Fifth Mortgage Addendum in respect of m.v. “CALM SEAS” and (ii) its registration with the relevant ship registry by no later than 3 December 2012. Failure by the Borrower to do so by
such time will be an Event of Default under the Principal Agreement. 

  

	6	Relevant Parties’ confirmations 

 Each of the Relevant Parties hereby confirms its consent to the amendments to the Principal Agreement and the other arrangements contained in this Agreement and agrees that: 

 

	6.1	each of the Finance Documents (including any Guarantee) to which it is a party, and its obligations thereunder, shall remain in full force and effect notwithstanding
the amendments made to the Principal Agreement by this Agreement and the other arrangements contained in this Agreement; 

  

	6.2	its obligations under the relevant Finance Documents (including any Guarantee) to which it is a party includes any and all amounts owing by the Borrower under the
Principal Agreement as amended by this Agreement; and 

  

	6.3	with effect from the Effective Date, references to “the Agreement” or the “the Loan Agreement” in any of the Finance Documents
(including any Guarantee) to which it is a party shall henceforth be references to the Principal Agreement as amended by this Agreement and as from time to time hereafter amended. 

 

	7	Fees and expenses 

  

	7.1	Fees 

 The Borrower agrees
to pay to the Agent an amendment and waiver fee of $25,000 on the date of this Agreement. 
  

	7.2	Expenses 

 The Borrower
agrees to pay to the Agent on a full indemnity basis on demand all expenses (including legal and out-of-pocket expenses) incurred by the Creditor Parties or any of them: 

 

	7.2.1	in connection with the negotiation, preparation, execution and, where relevant, registration of the Relevant Documents and of any amendment or extension of, or the
granting of any waiver or consent under, the Relevant Documents; and 

  

	7.2.2	in contemplation of, or otherwise in connection with, the enforcement of, or preservation of any rights under the Relevant Documents or otherwise in respect of the
monies owing and obligations incurred under the Relevant Documents, 

 together with interest at the rate and in
the manner referred to in Clause 7 of the Principal Agreement from the date on which such expenses were incurred to the date of payment (as well after as before judgment). 

 

	7.3	Value Added Tax 

 All
expenses payable pursuant to this Clause 7 shall be paid together with value added tax or any similar tax (if any) properly chargeable thereon. Any value added tax chargeable in respect 

  
 13 

 
of any services supplied by the Creditor Parties or any of them under this Agreement shall, on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid hereunder.

  

	7.4	Stamp and other duties 

The Borrower agrees to pay to the Agent on demand all stamp, documentary, registration or other like duties or taxes (including any duties
or taxes payable by the Creditor Parties or any of them) imposed on or in connection with the Relevant Documents and shall indemnify the Creditor Parties against any liability arising by reason of any delay or omission by the Borrower to pay such
duties or taxes. 
  

	8	Miscellaneous and notices 

  

	8.1	Notices 

 The provisions
of Clause 28 of the Principal Agreement shall extend and apply to the giving or making of notices or demands hereunder as if the same were expressly stated herein and for this purpose any notices to be sent to the Relevant Parties or any of them
hereunder shall be sent to the same address as the address indicated for the “Borrower” in the said Clause 28. 
  

	8.2	Counterparts 

 This
Agreement may be executed in any number of counterparts and by the different parties on separate counterparts, each of which when so executed and delivered shall be an original but all counterparts shall together constitute one and the same
instrument. 
  

	9	Applicable law 

  

	9.1	Law 

 This Agreement and
any non-contractual obligations in connection with this Agreement are governed by, and shall be construed in accordance with, English law. 
  

	9.2	Submission to jurisdiction 

Each of the Relevant Parties agrees, for the benefit of the Creditor Parties, that any legal action or proceedings arising out of or in
connection with this Agreement (including any non-contractual obligations connected with this Agreement) against any of the Relevant Parties or any of its assets may be brought in the English courts. Each of the Relevant Parties irrevocably and
unconditionally submits to the jurisdiction of such courts and irrevocably designates, appoints and empowers Hill Dickinson Services (London) Limited at present of Irongate House, Duke’s Place, London EC3A 7HX, England to receive for it and on
its behalf, service of process issued out of the English courts in any such legal action or proceedings. The submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the Creditor Parties or any of them to
take proceedings against any of the Relevant Parties in the courts of any other competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether
concurrently or not. The parties further agree that only the Courts of England and not those of any other State shall have jurisdiction to determine any claim which any of the Relevant Parties may have against the Creditor Parties or any of them
arising out of or in connection with this Agreement (including any non-contractual obligations connected with this Agreement). 
  

	9.3	Contracts (Rights of Third Parties) Act 1999 

 No term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement. 

  
 14 

 IN WITNESS whereof the parties to this Agreement have caused this Agreement to be duly executed on
the date first above written. 

  
 15 

 Schedule 1 
 Names and lending offices of the Lenders 
  

			
	 Lender
	 	 Lending Office

		
	UniCredit Bank AG (formerly known as	 	62 Notara Street
	Bayerische Hypo- Und Vereinsbank AG)	 	185 35 Piraeus
		 	Greece

  
 16 

 Schedule 2 
 The Owners 
 Frontline Marine Company 

Trade Force Shipping S.A. 
 Opera Navigation Co.

  
 17 

 Schedule 3 
 The Relevant Ship and its details 
  

					
	 (1)
 Name
	  	(2)
IMO No.	  	 (3)

Owner

	 “CALM SEAS”
	  	9184835	  	Frontline Marine Company

  
 18 

 Schedule 4 
 Documents and evidence required as conditions precedent 
 (referred to in
Clause 5.1) 
  

	1	Corporate authorisation 

In relation to each of the Relevant Parties: 
  

	 	(a)	Constitutional documents 

copies certified by an officer of each of the Relevant Parties, as a true, complete and up to date copies, of all documents which contain
or establish or relate to the constitution of that party or a secretary’s certificate confirming that there have been no changes or amendments to the constitutional documents certified copies of which were previously delivered to the Agent
pursuant to the Principal Agreement; 
  

	 	(b)	Resolutions 

 copies of
resolutions of each of its board of directors and, if required, its shareholders/stockholders approving such of the Relevant Documents to which it is or is to be a party and the terms and conditions hereof and thereof and authorising the signature,
delivery and performance of each such party’s obligations thereunder, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date of this Agreement) by an officer of the Relevant Parties as: 

 

	 	(i)	being true and correct; 

  

	 	(ii)	being duly passed at meetings of the directors of such Relevant Party and of the shareholders/stockholders of such Relevant Party, each duly convened and held;

  

	 	(iii)	not having been amended, modified or revoked; and 

  

	 	(iv)	being in full force and effect, 

together with originals or certified copies of any powers of attorney issued by such Relevant Party pursuant to such resolutions; and

  

	 	(c)	Certificate of incumbency 

 a
list of directors and officers of each Relevant Party specifying the names and positions of such persons, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date of this Agreement) by an officer of such
Relevant Party to be true, complete and up to date; 
  

	2	Relevant Documents 

 the
Fifth Mortgage Addendum and the New Account Pledges and any notice required thereunder, each duly executed by the relevant Relevant Party and (in the case of the Fifth Mortgage Addendum only) registered at the relevant ship registry; 

  
 19 

	3	Consents 

 a certificate
(dated no earlier than five (5) Banking Days prior to the date of this Agreement) from an officer of each of the Relevant Parties stating that no consents, authorisations, licences or approvals are necessary for such Relevant Party to
authorise, or are required by each of the Relevant Parties or any other party (other than the Creditor Parties) in connection with, the execution, delivery, and performance of the Relevant Documents to which they are or will be a party; 

 

	4	New Accounts 

 evidence in
all respects satisfactory to the Agent that the New Accounts have been opened and duly completed mandate forms in respect thereof duly executed and that all amounts standing to the credit of: 

 

	 	(a)	each Existing Ship Earnings Account, have been transferred to the credit of the equivalent New Earnings Account for the relevant Existing Ship;

  

	 	(b)	the Existing Retention Account, have been transferred to the credit of the New Retention Account; and 

 

	 	(c)	the Existing Cash Collateral Account, have been transferred to the credit of the New Cash Collateral Account; 

 

	5	Equity 

 evidence
satisfactory in all respects to the Agent that the Borrower has raised additional equity (in the form of a rights’ issue or rights’ offering or any other form at the Borrower’s discretion) in an amount no less than $10,000,000;

  

	6	Agreements with other lenders 

  

	 	(a)	evidence in form and substance satisfactory to the Agent in its sole discretion that the Borrower and other members of the Group have entered into binding agreements
with all other lenders and creditors of any Financial Indebtedness of the Group, granting such waivers, relaxation and extension arrangements to the Group as are satisfactory to the Agent in its absolute discretion (and that in any event are not
more favourable to such other lenders or Creditors than the amendments and waivers agreed in this Agreement are to the Creditor Parties); or 

  

	 	(b)	if the evidence set out in paragraph (a) has not been delivered to the Agent, an additional amount of $666,0000 has been paid into the Cash Collateral Account by
the Borrower such that the credit balance of the same is no less than (i) $750,000 per Ship which is subject to a Mortgage plus (ii) $666,000; 

  

	7	Legal opinions 

 such
legal opinions in relation to the laws of the Marshall Islands and the Republic of Liberia and any other legal opinions as the Agent shall in its reasonable discretion deem appropriate; and 

 

	8	Process agent 

 an
original or certified true copy of a letter from each Relevant Party’s agent for receipt of service of proceedings accepting its appointment under this Agreement in which it is or is to be appointed as such Relevant Party’s agent.

  
 20 

					
	Borrower	  		  	
			
	 EXECUTED as a DEED by Maria Stefanou
 for and on behalf of each of Anastassios Gabrielides
 PARAGON SHIPPING INC.

as Borrower
 in the presence of:
	  	 )
 )

)
 )

)
	  	 

	  	  
	  	  
	  	  
	  	  	Attorney-in-fact
	 

	  		  	
	Witness	  		  	
	Name: MARIA PAPADOPOULOU	  		  	
	Address: NORTON ROSE LLP	  		  	
	Occupation: PIRAEUS	  		  	
			
	 Lenders
  

SIGNED by A. Kerpinioti
 and by P.
Lycoudis
 for and on behalf of

UNICREDIT BANK AG (formerly known as

BAYERISCHE HYPO- UND VEREINSBANK AG)
 as
Lender
	  	 )
 )

)
 )

)
 )
	  	
	  	  	 

	  	  	Authorised Signatory
	  	  	
	  	  	
	  	  	 

	  	  	Authorised Signatory
			
	 Agent
  

SIGNED by A. Kerpinioti
 and by P.
Lycoudis
 for and on behalf of

UNICREDIT BANK AG (formerly known as

BAYERISCHE HYPO- UND VEREINSBANK AG)
 as
Agent
	  	 )
 )

)
 )

)
	  	
	  	  	 

	  	  	Authorised Signatory
	  	  	
	  	  	
	  	  	 

	  	)	  	Authorised Signatory
			
	 Arranger
  

SIGNED by A. Kerpinioti
 and by P.
Lycoudis
 for and on behalf of

UNICREDIT BANK AG (formerly known as

BAYERISCHE HYPO-UND VEREINSBANK AG)
 as
Arranger
	  	 )
 )

)
 )

)
 )
	  	
	  	  	 

	  	  	Authorised Signatory
	  	  	
	  	  	
	  	  	 

	  	  	Authorised Signatory
			
	 Swap Bank
  

SIGNED by A. Kerpinioti
 and by P.
Lycoudis
 for and on behalf of

UNICREDIT BANK AG (formerly known as

BAYERISCHE HYPO- UND VEREINSBANK AG)
 as
Swap Bank
	  	 )
 )

)
 )

)
 )
	  	
	  	  	 

	  	  	Authorised Signatory
	  	  	
	  	  	
	  	  	 

	  	  	Authorised Signatory

  
 21 

					
	Security Trustee	  		  	
			
	SIGNED by	  	)	  	  

	 and by
 for and on
behalf of
 UNICREDIT BANK AG (formerly known as
 BAYERISCHE HYPO- UND VEREINSBANK AG)
 as Security Trustee
	  	 )
 )

)
 )

)
	  	Authorised Signatory
	  	  	
	  	  	
	  	  	 

	  	  	Authorised Signatory        A. Kerpinioti
		  		  	P. Lycoudis
			
	Owners	  		  	
			
	 EXECUTED as a DEED by Maria Stefanou
 for and on behalf of
 FRONTLINE MARINE COMPANY

as Owner
 in the presence of:
	  	 )
 )

)
 )

)
	  	 

	  	  
	  	  
	  	  
	  	  	Attorney-in-fact
			
	 

	  		  	
	Witness	  		  	
	Name: MARIA PAPADOPOULOU	  		  	
	Address:NORTON ROSE LLP	  		  	
	Occupation: PIRAEUS	  		  	
			
	 EXECUTED as a DEED by Maria Stefanou
 for and on behalf of
 TRADE FORCE SHIPPING S.A.

as Owner
 in the presence of:
	  	 )
 )

)
 )

)
	  	 

	  	  
	  	  
	  	  
	  	  	Attorney-in-fact
			
	 

	  		  	
	Witness	  		  	
	Name: MARIA PAPADOPOULOU	  		  	
	Address: NORTON ROSE LLP	  		  	
	Occupation: PIRAEUS	  		  	
			
	 EXECUTED as a DEED by Maria Stefanou
 for and on behalf of
 OPERA NAVIGATION CO.

as Owner
 in the presence of:
	  	 )
 )

)
 )

)
	  	 

	  	  
	  	  
	  	  
	  	  	Attorney-in-fact
			
	 

	  		  	
	Witness	  		  	
	Name: MARIA PAPADOPOULOU	  		  	
	Address: NORTON ROSE LLP	  		  	
	Occupation: PIRAEUS	  		  	

  
 22 

					
	Approved Manager	  		  	
			
	 EXECUTED as a DEED by Maria Stefanou

for and on behalf of
 ALLSEAS MARINE S.A.
 as Approved Manager

in the presence of:
	  	 )
 )
 )
 )
 )
	  	 

	  	  
	  	  
	  	  
	  	  	Attorney-in-fact
			
	 

	  		  	
	 Witness
	  		  	
	 Name: MARIA PAPADOPOULOU
	  		  	
	 Address: NORTON ROSE LLP
	  		  	
	 Occupation: PIRAEUS
	  		  	

  
 23

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