Document:

d1183619_ex4-6.htm

 

Exhibit 4.6

 

Dated 27 January 2010

 

STAR BULK CARRIERS CORP.

as Borrower

 

STAR EPSILON LLC

STAR GAMMA LLC

STAR DELTA LLC

STAR THETA LLC and

STAR ZETA LLC

as Owners

 

-and-

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Appendix 1

as Lenders

 

-and-

 

COMMERZBANK AG

as Agent and as Security Trustee

 

_______________________________

 

SECOND SUPPLEMENTAL AGREEMENT

_______________________________

 

 

in relation to a Loan Agreement dated 27 December 2007

(as amended and supplemented by a first supplemental agreement dated 10 June 2009)

in respect of a loan facility of (originally) US$120,000,000

 

 

WATSON, FARLEY & WILLIAMS

Piraeus

 

  

  

  

INDEX

 

	
Clause

	  	
Page

	  	  	  
	
1

	
DEFINITIONS

	
2

	
2

	
REPRESENTATIONS AND WARRANTIES

	
2

	
3

	
AGREEMENT OF THE CREDITOR PARTIES

	
3

	
4

	
CONDITIONS

	
4

	
5

	
VARIATIONS TO LOAN AGREEMENT AND FINANCE DOCUMENTS

	
4

	
6

	
CONTINUANCE OF LOAN AGREEMENT AND FINANCE DOCUMENTS

	
7

	
7

	
EXPENSES

	
7

	
8

	
COMMUNICATIONS

	
8

	
9

	
SUPPLEMENTAL

	
8

	
10

	
LAW AND JURISDICTION

	
8

	
SCHEDULE 1 LENDERS

	
9

	
SCHEDULE 2 DETAILS OF INITIAL CHARTERPARTIES

	
10

  

  

  

THIS SECOND SUPPLEMENTAL AGREEMENT is dated 27 January 2010 and made

 

BETWEEN:

 

	
(1)

	
STAR BULK CARRIERS CORP., a corporation incorporated in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (including its successors) as Borrower;

 

	
(2)

	
STAR EPSILON LLC, STAR GAMMA LLC, STAR DELTA LLC, STAR THETA LLC and STAR ZETA LLC, each a limited liability company formed in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands (each an "Owner" and, together, the "Owners");

 

	
(3)

	
THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders; and

 

	
(4)

	
COMMERZBANK AG, acting through its office at Ness 7-9, D-20457, Hamburg, Germany, as Agent and Security Trustee.

 

BACKGROUND

 

	
(A)

	
By a loan agreement dated 27 December 2007 (as amended and supplemented by a supplemental agreement dated 10 June 2009, the "Loan Agreement") made between (i) the Borrower as borrower, (ii) the Lenders as lenders, (iii) the Agent and (iv) the Security Trustee, it was agreed that the Lenders would make available to the Borrower a loan facility of (originally) up to US$120,000,000 (the "Loan").

 

	
(B)

	
The Borrower has requested that the Lenders agree to (inter alia):

 

	
  

	
(i)

	
reduce the security cover requirement to:

 

	
  

	
(a)

	
111 per cent. for the period 1 February 2010 to 30 June 2010; and

 

	
  

	
(b)

	
per cent. for the period 1 July 2010 to 31 January 2011;

 

	
  

	
(ii)

	
consent to the sale of "STAR ALPHA", the release of an amount of US$19,850,000 from the sales proceeds of such ship to its Owner; and

 

	
  

	
(iii)

	
consent to payment of dividends not exceeding US$0.05 per share in each financial quarter; and

 

	
  

	
(iv)

	
a temporary reduction (from US$1,000,000 to US$650,000) in the minimum liquidity to be maintained by the Borrower in respect of each Fleet Vessel.

 

	
(C)

	
This Agreement sets out the terms and conditions on which the Lenders agree to:

 

	
  

	
(i)

	
the Borrower's requests referred to in Recital (B) above subject to:

 

	
  

	
(a)

	
maintaining the Margin of 2 per cent. during the Second Waiver Period (as defined below);

 

	
  

	
(b)

	
the amendment and/or variation of certain other provisions of the Loan Agreement; and

 

  

  

  

 

	
  

	
(ii)

	
the consequential amendments to the Loan Agreement and the other Finance Documents in connection with those matters.

 

NOW THEREFORE IT IS HEREBY AGREED

 

	
1.

	
DEFINITIONS

 

	
1.1

	
Words and expressions defined in the Loan Agreement (as hereby amended) and the recitals hereto and not otherwise defined herein shall have the same meanings when used in this Second Supplemental Agreement.

 

	
1.2

	
In this Second Supplemental Agreement the words and expressions specified below shall have the meanings attributed to them below:

 

"Effective Date" means the date on which the conditions precedent in Clause 4 are satisfied;

 

"Existing Ships" means, together, "C DUCKLING", "F DUCKLING", "G DUCKLING", "I DUCKLING" and "J DUCKLING" and, in the singular, means any of them;

 

"Second Mortgage Addendum" means, in relation to each Existing Ship, the second addendum to the Mortgage on that Existing Ship, executed or to be executed by the Owner of that Ship in favour of the Lenders in such form as the Lenders may approve or require and, in the plural, means all of them; and

 

"Second Waiver Period" means the period commencing 1 February 2010 and ending on (and including) 31 January 2011.

 

	
1.3

	
Where the context so admits words importing the singular number only shall include the plural and vice versa and words importing persons shall include firms and corporations. Clause headings are inserted for convenience of reference only and shall be ignored in construing this Second Supplemental Agreement. References to Clauses are to clauses of this Second Supplemental Agreement save as may be otherwise expressly provided in this Second Supplemental Agreement.

 

	
2.

	
REPRESENTATIONS AND WARRANTIES

 

	
2.1

	
The Borrower hereby represents and warrants to the Agent, as at the date of this Second Supplemental Agreement, that the representations and warranties set forth in Clause 10 of the Loan Agreement (updated mutatis mutandis to the date of this Second Supplemental Agreement) are true and correct as if all references therein to "this Agreement" were references to the Loan Agreement as further amended by this Second Supplemental Agreement.

 

	
2.2

	
The Borrower hereby further represents and warrants to the Agent that as at the date of this Second Supplemental Agreement:

 

	
(a)

	
it is duly incorporated and validly existing and in good standing under the laws of the Marshall Islands and has full power to enter into and perform its obligations under this Second Supplemental Agreement and has complied with all statutory and other requirements relative to its business, and does not have an established place of business in any part of the United Kingdom or the United States of America;

 

	
(b)

	
all necessary governmental or other official consents, authorisations, approvals, licences, consents or waivers for the execution, delivery, performance, validity and/or enforceability of this Second Supplemental Agreement and all other documents to be executed in connection with the amendments to the Loan Agreement (including, but not

 

  

2

  

limited to and the Second Mortgage Addenda) and the other Finance Documents as contemplated hereby have been obtained and will be maintained in full force and effect, from the date of this Second Supplemental Agreement and so long as any moneys are owing under any of the Finance Documents and while all or any part of the Commitment remains outstanding;

 

	
(c)

	
it has taken all necessary corporate and other action to authorise the execution, delivery and performance of its obligations under this Second Supplemental Agreement and such other documents to which it is a party and such documents do or will upon execution thereof constitute its valid and binding obligations enforceable in accordance with their respective terms;

 

	
(d)

	
the execution, delivery and performance of this Second Supplemental Agreement and all such other documents as contemplated hereby (including, but not limited to, the Second Mortgage Addenda) does not and will not, from the date of this Second Supplemental Agreement and so long as any moneys are owing under any of the Finance Documents and while all or any part of the Commitment remains outstanding, constitute a breach of any contractual restriction or any existing applicable law, regulation, consent or authorisation binding on the Borrower or on any of its property or assets and will not result in the creation or imposition of any security interest, lien, charge or encumbrance (other than under the Finance Documents) on any of such property or assets; and

 

	
(e)

	
it has fully disclosed in writing to the Agent all facts which it knows or which it should reasonably know and which are material for disclosure to the Agent in the context of this Second Supplemental Agreement and all information furnished by the Borrower or on its behalf relating to its business and affairs in connection with this Second Supplemental Agreement was and remains true, correct and complete in all material respects and there are no other material facts or considerations the omission of which would render any such information misleading.

 

	
3.

	
AGREEMENT OF THE CREDITOR PARTIES

 

	
3.1

	
The Lenders, relying upon each of the representations and warranties set out in Clauses 2.1 and 2.2 of this Second Supplemental Agreement, hereby agree with the Borrower, subject to and upon the terms and conditions of this Second Supplemental Agreement and in particular, but without limitation, subject to the fulfilment of the conditions precedent set out in Clause 4, to:

 

	
(a)

	
reduce the Relevant Percentage to (as that term is defined in clause 15.1 of the Loan Agreement):

 

	
  

	
(i)

	
111 per cent. for the period 1 February 2010 to (and including) 30 June 2010; and

 

	
  

	
(ii)

	
118 per cent. at all times thereafter during the Second Waiver Period;

 

	
(b)

	
the sale of "STAR ALPHA" and the release of an amount of $19,850,000 from the sales proceeds of such Ship to its Owner;

 

	
(c)

	
the distribution by the Borrower of dividends not exceeding $0.05 per share in each financial quarter;

 

	
(d)

	
a temporary reduction in the minimum liquidity requirement set out in clause 12.5(b) of the Loan Agreement (from $1,000,000 per Fleet Vessel to $650,000); and

 

	
(e)

	
the amendments/variations of the Loan Agreement and the other Finance Documents referred to in Clause 5.

 

  

3

  

 

	
3.2

	
The Borrower and the Owners agree and confirm that the Loan Agreement and the Finance Documents to which each is a party shall remain in full force and effect and each of the Borrower and each Owner shall remain liable under the Loan Agreement and the Finance Documents to which each is a party for all obligations and liabilities assumed by it thereunder.

 

	
3.3

	
The agreement of the Creditor Parties contained in Clauses 3.1 and 3.2 shall have effect on and from the Effective Date.

 

	
4.

	
CONDITIONS

 

	
4.1

	
The agreements of the Lenders contained in Clause 3.1 of this Second Supplemental Agreement shall all be expressly subject to the condition that the Agent shall have received in form and substance satisfactory to it and its legal advisers on or before on or before the Effective Date:

 

	
(a)

	
evidence that the persons executing this Second Supplemental Agreement on behalf of the Borrower and the Owners are duly authorised to execute the same;

 

	
(b)

	
a true and complete copy of the resolution passed at a meeting of the directors of the Borrower authorising and approving the execution of this Second Supplemental Agreement and any other document or action to which it is or is to be a party and authorising its directors or other representatives to execute the same on its behalf;

 

	
(c)

	
true and complete copies of the resolutions passed at separate meetings of the sole director and shareholders of each Owner authorising and approving this Second Supplemental Agreement and the relevant Second Mortgage Addendum and any other document or action to which each is or is to be a party and authorising its sole director or other representatives to execute the same on its behalf;

 

	
(d)

	
the original of any power of attorney issued by the Borrower and each Owner pursuant to such resolutions aforesaid;

 

	
(e)

	
each Second Mortgage Addendum (and each document to be delivered pursuant to each of them) has been duly executed by the relevant Owner together with evidence that each Second Mortgage Addendum has been duly registered as an addendum to the Mortgage to which it relates in accordance with the laws of the Marshall Islands;

 

	
(f)

	
certified copies of all documents (with a certified translation if an original is not in English) evidencing any other necessary action, approvals or consents with respect to this Second Supplemental Agreement (including without limitation) all necessary governmental and other official approvals and consents in such pertinent jurisdictions as the Agent deems appropriate;

 

	
(g)

	
such legal opinions as the Agent may require in respect of the matters contained in this Second Supplemental Agreement and each Second Mortgage Addendum; and

 

	
(h)

	
evidence that the agent referred to in clause 30.4 of the Loan Agreement has accepted its appointment as agent for service of process under this Second Supplemental Agreement.

 

	
5.

	
VARIATIONS TO LOAN AGREEMENT AND FINANCE DOCUMENTS

 

	
5.1

	
In consideration of the agreement of the Lenders contained in Clause 3.1 of this Second Supplemental Agreement, the Borrower hereby agrees with the Lenders that upon satisfaction of the conditions referred to in Clause 4.1, the provisions of the Loan Agreement shall be varied and/or amended and/or supplemented with effect on and from the Effective Date as follows:

 

  

4

  

 

	
(a)

	
by inserting in clause 1.2 thereof the definition of "Second Mortgage Addendum", set out in Clause 1.2;

 

	
(b)

	
the definition of, and references throughout each of the Finance Documents to, a Mortgage relevant to an Existing Ship, shall be construed as if the same referred to that Mortgage as amended and supplemented by the relevant Second Mortgage Addendum;

 

	
(c)

	
by deleting the definitions of "ALPHA", "Intercreditor Deed", "Star A" and "Waiver Period" in clause 1.2 thereof;

 

	
(d)

	
by adding the following new definitions in clause 1.2 thereof:

 

""Waiver Period" means the period commencing on 31 December 2008 and ending on 31 January 2011;

 

"Waiver Period A" means the period commencing on 31 December 2008 and ending on 31 January 2010;

 

"Waiver Period B" means the period commencing on 1 February 2010 and ending on 30 June 2010;

 

"Waiver Period C" means the period commencing on 1 July 2010 and ending on 3I January 2011;";

 

	
(e)

	
by deleting sub-paragraph (j) and redesignating the existing sub-paragraph (k) as a new sub-paragraph (j) in the definition of "Finance Documents" in clause 1.2 thereof;:

 

	
(f)

	
by deleting sub-paragraph (a) and redesignating the existing sub-paragraphs (b), (c), (d), (e) and (f) as new sub-paragraphs (a), (b), (c), (d) and (e) respectively in the definition of "Owner" in clause 1.2 thereof;

 

	
(g)

	
by deleting the word ""ALPHA"," after the word "together," in the definition of "Ships" in clause 1.2 thereof;

 

	
(h)

	
by deleting clause 8.2 thereof and replacing it with the following:

 

"8.2 Repayment Dates. The first repayment instalment for each Tranche shall be repaid on 29 January 2010, each subsequent repayment instalment shall be repaid at 3-monthly intervals thereafter and the last instalment shall be repaid together with the relevant Balloon Instalment, on 31 October 2016.";

 

	
(i)

	

by adding the words "and the supplemental agreement dated January 2010, each" after the words "10 June 2009" in the fifth line of clause 11.21 thereof;

 

	
(j)

	
by deleting clause 12.5(b) thereof and replacing it with the following:

 

"(b)           the members of the Group will maintain Liquid Funds in an amount of:

 

	
  

	
(i)

	
for as long as the Borrower maintains the Minimum Amount in the Cash Collateral Account pursuant to Clause 12.8, $650,000 per Fleet Vessel; and

 

	
  

	
(ii)

	
at all other times, at least the higher of $10,000,000 and (ii) $1,000,000 per Fleet Vessel.";

 

	
(k)

	
by deleting clause 12.7 thereof and replacing it with the following new clause:

 

  

5

  

 

"12.7 Dividends and investments. The Borrower will not:

 

(a)           during the Waiver Period A:

 

	
  

	
(i)

	
declare or pay any dividend or effect any form of distribution to shareholders, or

 

	
  

	
(ii)

	
make any kind of investment (other than in the ordinary course of its business); and

 

(b)           during the Waiver Period B and the Waiver Period C:

 

	
  

	
(i)

	
declare or pay any dividend or effect any form of distribution to shareholders which exceeds $0.05 per share in any quarterly period falling within a financial year of the Borrower.";

 

	
  

	
(ii)

	
repurchase of any of its issued share capital; or

 

	
  

	
(iii)

	
make any kind of investment (other than in the ordinary course of its business),

 

Provided that the Agent (acting on the instructions of the Majority Lenders) may agree, on a case-by-case basis, to a request from the Borrower to a waiver of any of the provisions of this clause 12.7(b) subject to (i) the provisions of Clause 12.1 and (ii) no Event of Default being in existence on the date of the Borrower's request and the Agent being satisfied that no Event of Default will occur following the Agent's consent to such request.";

 

	
(l)

	
by deleting clause 12.8 thereof and replacing it with the following new clause:

 

"12.8 Minimum Liquidity. The Borrowers shall maintain during the Waiver Period with the Agent in the Cash Collateral Account an amount of at least $7,250,000 (the "Minimum Amount") in freely available cash deposits unless the Borrower applies the Minimum Amount in prepayment of the Loan in accordance with the terms of Clause 8. If on the last day of the Waiver Period the Agent is satisfied that the Relevant Percentage of the Loan is equal to or more than 135 per cent it shall, following a request of the Borrower, release any balance then standing to the credit of the Cash Collateral Account to the Borrower subject to no Event of Default then being in existence or occurring as a result of the release of such funds.";

 

	
(m)

	
by adding at the end of paragraph (b) of Clause 15.1 thereof the words "(including, without limitation, the amount standing from time to time to the credit of the Cash Collateral Account)";

 

	
(n)

	
by deleting the definition "Relevant Percentage" in clause 15.1 thereof and replacing it with the following new definition:

 

""Relevant Percentage" means:

 

	
  

	
(A)

	
for the period commencing on the date of this Agreement and ending on 30 December 2008, 125 per cent;

 

	
  

	
(B)

	
during the Waiver Period A and the Waiver Period B, 111 per cent.;

 

	
  

	
(C)

	
during the Waiver Period C, 118 per cent; and

 

  

6

  

 

	
  

	
(D)

	
at all times thereafter, 135 per cent";

 

(q)           by adding the following new clause 20.1(c) thereof:

 

	
  

	
"(c)

	
on the earlier of (i) the date on which the Borrower makes any prepayment in accordance with clause 8 of the Loan Agreement and (ii) 29 January 2010, a restructuring fee of $180,000 to be distributed equally between the Lenders.";

 

(r)           by deleting Schedule 2 thereof and replacing it with Schedule 2 hereto;

 

	
(s)

	
by construing all references therein to "this Agreement" where the context admits as being references to "this Agreement as the same is amended and supplemented by this Second Supplemental Agreement and as the same may from time to time be further supplemented and/or amended"; and

 

	
(t)

	
by construing references to each of the Finance Documents as being references to each such document as it is from time to time supplemented and/or amended.

 

	
5.2

	
Amendments to Finance Documents. With effect on and from the Effective Date each of the Finance Documents other than the Loan Agreement shall be, and shall be deemed by this Agreement to have been, amended as follows:

 

	
(a)

	
the definition of, and references throughout each of the Finance Documents to, the Loan Agreement and any of the other Finance Documents shall be construed as if the same referred to the Loan Agreement and those Finance Documents as amended and supplemented by this Second Supplemental Agreement; and

 

	
(b)

	
by construing references throughout each of the Finance Documents to "this Agreement", "this Deed", "hereunder and other like expressions as if the same referred to such Finance Documents as amended and supplemented by this Second Supplemental Agreement.

 

	
5.3

	
Finance Documents to remain in full force and effect. The Finance Documents shall remain in full force and effect as amended and supplemented by:

 

	
(a)

	
the amendments to the Finance Documents contained or referred to in Clauses 5.1 and 5.2; and

 

	
(b)

	
such further or consequential modifications as may be necessary to make the same consistent with, and to give full effect to, the terms of this Second Supplemental Agreement.

 

	
6.

	
CONTINUANCE OF LOAN AGREEMENT AND FINANCE DOCUMENTS

 

	
6.1

	
Continuance of Loan Agreement and the other Finance Documents. Save for the alterations to the Loan Agreement and the other Finance Documents made or to be made pursuant to this Second Supplemental Agreement and such further modifications (if any) thereto as may be necessary to make the same consistent with the terms of this Second Supplemental Agreement, the Loan Agreement shall remain in full force and effect and the security constituted by the other Finance Documents shall continue and remain valid and enforceable.

 

	
7.

	
EXPENSES

 

	
7.1

	
Fees and expenses. The provisions of clause 20 (fees and expenses) of the Loan Agreement shall apply to this Agreement as if they were expressly incorporated in this Agreement with any necessary amendments.

 

  

7

  

 

	
8.

	
COMMUNICATIONS

 

	
8.1

	
General. The provisions of clause 28 (notices) of the Loan Agreement, as amended and supplemented by this Agreement, shall apply to this Agreement as if they were expressly incorporated in this Agreement with any necessary modifications.

 

	
9.

	
SUPPLEMENTAL

 

	
9.1

	
Counterparts. This Agreement may be executed in any number of counterparts.

 

	
9.2

	
Third Party rights. A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.

 

	
10.

	
LAW AND JURISDICTION

 

	
10.1

	
Governing law. This Agreement shall be governed by and construed in accordance with English law.

 

	
10.2

	
Incorporation of the Loan Agreement provisions. The provisions of clause 30 (law and jurisdiction) of the Loan Agreement, as amended and supplemented by this Agreement, shall apply to this Agreement as if they were expressly incorporated in this Agreement with any necessary medications.

 

IN WITNESS WHEREOF the parties hereto have caused this Second Supplemental Agreement to be duly executed the day and year first above written.

 

  

8

  

EXECUTION PAGE

	
BORROWER

	  	  
	  	  	  
	
SIGNED by Georgia Mastagaki

	
)

	  
	
for and on behalf of

	
)

	
/s/ Georgia Mastagaki

	
STAR BULK CARRIERS CORP.

	
)

	  
	  	  	  
	  	  	  
	
OWNERS

	  	  
	  	  	  
	
SIGNED by Georgia Mastagaki

	
)

	  
	
for and on behalf of

	
)

	
/s/ Georgia Mastagaki

	
STAR EPSILON LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by Georgia Mastagaki

	
)

	  
	
for and on behalf of

	
)

	
/s/ Georgia Mastagaki

	
STAR GAMMA LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by Georgia Mastagaki

	
)

	  
	
for and on behalf of

	
)

	
/s/ Georgia Mastagaki

	
STAR DELTA LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by Georgia Mastagaki

	
)

	  
	
for and on behalf of

	
)

	
/s/ Georgia Mastagaki

	
STAR THETA LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by Georgia Mastagaki

	
)

	  
	
for and on behalf of

	
)

	
/s/ Georgia Mastagaki

	
STAR ZETA LLC

	
)

	  
	  	  	  

 

	  	  	  
	
LENDER

	  	  
	  	  	  
	
SIGNED by Irene Graff

	
)

	  
	
for and on behalf of

	
)

	
/s/ Irene Graff

	
COMMERZBANK AG

	
)

	  

 

	  	  	  
	
AGENT

	  	  
	  	  	  
	
SIGNED by Irene Graff

	
)

	  
	
for and on behalf of

	
)

	
/s/ Irene Graff

	
COMMERZBANK AG

	
)

	  

 

	  	  	  
	  	  	  
	
SECURITY TRUSTEE

	  	  
	  	  	  
	
SIGNED by Irene Graff

	
)

	  
	
for and on behalf of

	
)

	
/s/ Irene Graff

	
COMMERZBANK AG

	
)

	  
	  	  	  
	  	  	  

 

	
Witness to all the

	
)

	
above signatures

	
)

	  	  

	
Name:

	
CHRISOFOROS BISMPIKOS                                 /s/ CHRISOFOROS BISMPIKOS       

	  	
SOLICITOR

	  	  
	
Address:

	
Watson, Farley & Williams

	  	89 AKTI MIAOULI  
	  	
PIRAEUS 185 36 – GREECE

	  	
 

 

SK 25767 0001 1183619d1183663_ex4-10.htm

Exhibit 4.10

Dated 7 May 2009

 

STAR BULK CARRIERS CORP.

as Borrower

 

STAR BETA LLC

STAR EPSILON LLC

STAR GAMMA LLC

STAR DELTA LLC

STAR OMICRON LLC

STAR THETA LLC

STAR ZETA LLC and

LAMDA LLC

as Existing Owners

 

-and-

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Appendix 1

as Lenders

 

-and-

 

PIRAEUS BANK A.E.

as Agent, Swap Bank and Security Trustee

 

-and-

 

HSH NORDBANK AG

 

as Swap Bank

 

	  	
 

FIRST SUPPLEMENTAL AGREEMENT

 

	  

 

in relation to a Loan Agreement dated 14 April 2008

(as amended and supplemented by a supplemental letter

dated 17 April 2008 and as further amended and restated

by an amending and restating agreement dated 18 September 2008)

in respect of a loan facility of (originally) US$170,000,000

 

 

WATSON, FARLEY & WILLIAMS

Piraeus

 

  

  

  

 

 

INDEX

	
Clause

	  	
Page

	  	  	  
	
1

	
DEFINITIONS

	
2

	
2

	
REPRESENTATIONS AND WARRANTIES

	
4

	
3

	
AGREEMENT OF THE CREDITOR PARTIES

	
5

	
4

	
CONDITIONS

	
5

	
5

	
VARIATIONS TO LOAN AGREEMENT AND FINANCE DOCUMENTS

	
7

	
6

	
CONTINUANCE OF LOAN AGREEMENT AND FINANCE DOCUMENTS

	
11

	
7

	
EXPENSES

	
12

	
8

	
COMMUNICATIONS

	
12

	
9

	
SUPPLEMENTAL

	
12

	
10

	
LAW AND JURISDICTION

	
12

	
SCHEDULE 1 LENDERS

	
13

	
SCHEDULE 2 DETAILS OF INITIAL CHARTERPARTIES

	
14

	
SCHEDULE 3

	
15

	
PART B FORM OF COMPLIANCE CERTIFICATE

	
15

  

  

  

THIS FIRST SUPPLEMENTAL AGREEMENT is dated 7 May 2009 and made BETWEEN:

 

	
(1)

	
STAR BULK CARRIERS CORP., a corporation incorporated in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (including its successors) as Borrower;

 

	
(2)

	
STAR BETA LLC, STAR EPSILON LLC, STAR GAMMA LLC, STAR DELTA LLC, STAR OMICRON LLC, STAR THETA LLC, STAR ZETA LLC and LAMDA LLC, each a limited liability company formed in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands (each an "Existing Owner" and, together, the "Existing Owners");

 

	
(3)

	
THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders;

 

	
(4)

	
PIRAEUS BANK A,E. acting through its office at 47-49 Akti Miaouli, Piraeus, Greece, as Agent, First Swap Bank and Security Trustee; and

 

	
(5)

	
HSH NORDBANK AG acting through its office at Martensdamm 6, D-24103 Kiel, Federal Republic of Germany as Second Swap Bank.

 

BACKGROUND

 

	
(A)

	
By a loan agreement dated 14 April 2008 (as amended and supplemented by a supplemental letter dated 17 April 2008 and as further amended and restated by an amending and restating agreement dated 18 September 2008, the "Loan Agreement") made between (i) the Borrower as borrower, (ii) the Lenders as lenders, (iii) the Agent, (iv) the First Swap Bank and the Second Swap Bank (together, the "Swap Banks" and each a "Swap Bank") and (v) the Security Trustee, it was agreed that the Lenders would make available to the Borrower a loan facility of (originally) up to US$170,000,000 (the "Loan").

 

	
(B)

	
The Borrower has requested that the Lenders agree to (inter alia):

 

	
  

	
(i)

	
waive the application of the security cover provisions in clause 15.1 of the Loan Agreement during the period commencing on 31 December 2008 and ending on 28 February 2010 (the "Waiver Period");

 

	
  

	
(ii)

	
reduce the security cover requirement to 110 per cent. of the aggregate of the Loan and the Swap Exposure for the period 1 March 2010 to 28 February 2011;

 

	
  

	
(iii)

	
waive the Borrower's financial covenant regarding the Leverage Ratio set out in clause 12.5(b) of the Loan Agreement during the Waiver Period;

 

	
  

	
(iv)

	
waive the Borrower's hedging obligations set out in clause 12.8 of the Loan Agreement;

 

	
  

	
(v)

	
receive certain additional security for the obligations of the Borrower under the Loan Agreement and the other Finance Documents; and

 

	
  

	
(vi)

	
the amendment and/or variation of certain other provisions of the Loan Agreement.

 

(C)           This Agreement sets out the terms and conditions on which the Lenders agree to:

 

  

  

  

 

	
  

	
(i)

	
waive the application of clause 15.1 during the Waiver Period, reduce the security cover requirement during 2010, waive the Borrower's financial covenant regarding the Leverage Ratio set out in clause 12.5(b) of the Loan Agreement during the Waiver Period and waive the Borrower's hedging obligations set out in Clause 12.8 of the Loan Agreement and to receive certain additional security for the obligations of the Borrower under the Loan Agreement and the other Finance Documents;

 

	
  

	
(ii)

	
the consequential amendments to the Loan Agreement and the other Finance Documents in connection with those matters; and

 

	
  

	
(iii)

	
certain other amendments and/or variations to the Loan Agreement and the other Finance Documents.

 

NOW THEREFORE IT IS HEREBY AGREED

 

1              DEFINITIONS

 

	
1.1

	
and expressions defined in the Loan Agreement (as hereby amended) and the recitals hereto and not otherwise defined herein shall have the same meanings when used in this First Supplemental Agreement.

 

	
1.2

	
In this First Supplemental Agreement the words and expressions specified below shall have the meanings attributed to them below:

 

"Cash Deposit Account" means an account opened or to be opened in the name of the Borrower with the Agent in Piraeus designated "Star Bulk Carriers Corp. - Cash Deposit Account", or any other account (with that or another office of the Agent) which is designated by the Agent as the Cash Deposit Account for the purposes of the Loan Agreement;

 

"Cash Deposit Account Pledge" means, in relation to the Cash Deposit Account, the first priority pledge over that account to be executed by the Borrower in favour of the Lenders in such form as the Lenders may approve or require;

 

"Effective Date" means the date on which the conditions precedent in Clause 4 are satisfied;

 

"KAPPA" means the 2001-built bulk carrier of 52,055 metric deadweight tons registered in the ownership of Star K under the Marshall Islands flag with the name "STAR KAPPA".

 

"New Charterparty Assignment" means, in relation to each New Ship, a first priority assignment of any Initial Charterparty or, as the case may be, Future Charterparty in respect thereof executed or to be executed by the relevant New Owner in favour of the Security Trustee in such form as the Lenders may approve or require and, in the plural, means both of them;

 

"New Earnings Account" means, in relation to each New Owner, an account opened or to be opened in the name of the relevant New Owner with the Agent in Piraeus designated "[name of New Owner]-Earnings Account", or any other account (with that or another office of the Agent) which is designated by the Agent as the Earnings Account for that New Ship for the purposes of the Loan Agreement and, in the plural, means both of them;

 

"New Earnings Account Pledge" means, in relation to each New Earnings Account, the first priority pledge over that New Earnings Account to be executed by the New Owner in favour of the Lenders in such form as the Lenders may approve or require;

 

  

2

  

 

"New Finance Documents" means, together, the Cash Deposit Account Pledge, the New Guarantees, the New Mortgages, the New General Assignments, any New Charterparty Assignments, the New Earnings Account Pledges and the New Manager's Undertakings and, in the singular, means any of them;

 

"New General Assignment" means, in relation to each New Ship, a first priority general assignment of the Earnings, Insurances and Requisition Compensation in respect thereof executed or to be executed by the relevant New Owner in favour of the Security Trustee in such form as the Lenders may approve or require and, in the plural, means both of them;

 

"New Guarantee" means, in relation to each New Owner, the guarantee of the obligations of the Borrower under the Loan Agreement and the other Finance Documents executed or to be executed by that New Owner in favour of the Security Trustee in such form as the Lenders may approve or require and, in the plural, means both of them;

 

"New Manager's Undertaking" means, in relation to each New Ship, a first priority letter of undertaking including (inter alia) an assignment of each Approved Manager's interests in the Insurances of that New Ship executed or to be executed by each Approved Manager in favour of the Security Trustee in such form as the Lenders may approve or require agreeing certain matters in relation to the management of that New Ship and subordinating the rights of that Approved Manager against that New Ship and the New Owner thereof to the rights of the Creditor Parties under the Finance Documents and, in the plural, means both of them;

 

"New Mortgage" means, in relation to each New Ship, the first preferred Marshall Islands mortgage over that Ship executed or to be executed by the relevant New Owner in favour of the Security Trustee in such form as the Lenders may approve or require and, in the plural, means both of them;

 

"New Mortgage Addendum" means:

 

	
  

	
(a)

	
in relation to "STAR BETA" and "SINFONIA", the third addendum; and

 

	
  

	
(b)

	
in relation to each Additional Ship and "OMICRON", the first addendum,

 

to the Mortgage on that Ship, executed or to be executed by the Owner of that Ship in favour of the Lenders in such form as the Lenders may approve or require and, in the plural, means both of them;

 

"New Owner" means each of Star K and Star Y and, in the plural, means both of them;

 

"New Ship" means each of "KAPPA" and "YPSILON" and, in the plural, means both of them;

 

"Star K" means Star Kappa LLC, a limited liability company formed in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro MI-196960, The Marshall Islands;

 

"Star Y" means Star Ypsilon LLC, a limited liability company formed in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro ME-196960, The Marshall Islands; and

 

"YPSILON" means the 1991-built bulk carrier of 150,940 metric deadweight tons registered in the ownership of Star Y under the Marshall Islands flag with the name "STAR YPSILON".

 

  

3

  

 

	
1.3

	
Where the context so admits words importing the singular number only shall include the plural and vice versa and words importing persons shall include firms and corporations. Clause headings are inserted for convenience of reference only and shall be ignored in construing this First Supplemental Agreement. References to Clauses are to clauses of this First Supplemental Agreement save as may be otherwise expressly provided in this First Supplemental Agreement.

 

2              REPRESENTATIONS AND WARRANTIES

 

	
2.1

	
The Borrower hereby represents and warrants to the Agent, as at the date of this First Supplemental Agreement, that the representations and warranties set forth in Clause 10 of the Loan Agreement (updated mutatis mutandis to the date of this First Supplemental Agreement) are true and correct as if all references therein to "this Agreement" were references to the Loan Agreement as further amended by this First Supplemental Agreement.

 

	
2.2

	
The Borrower hereby further represents and warrants to the Agent that as at the date of this First Supplemental Agreement:

 

	
(a)

	
it is duly incorporated and validly existing and in good standing under the laws of the Marshall Islands and has full power to enter into and perform its obligations under this First Supplemental Agreement and has complied with all statutory and other requirements relative to its business, and does not have an established place of business in any part of the United Kingdom or the United States of America;

 

	
(b)

	
all necessary governmental or other official consents, authorisations, approvals, licences, consents or waivers for the execution, delivery, performance, validity and/or enforceability of this First Supplemental Agreement and all other documents to be executed in connection with the amendments to the Loan Agreement (including, but not limited to, the New Finance Documents and the New Mortgage Addenda) and the other Finance Documents as contemplated hereby have been obtained and will be maintained in full force and effect, from the date of this First Supplemental Agreement and so long as any moneys are owing under any of the Finance Documents and/or the New Finance Documents and while all or any part of the Commitment remains outstanding;

 

	
(c)

	
it has taken all necessary corporate and other action to authorise the execution, delivery and performance of its obligations under this First Supplemental Agreement, the Cash Deposit Account Pledge and such other documents to which it is a party and such documents do or will upon execution thereof constitute its valid and binding obligations enforceable in accordance with their respective terms;

 

	
(d)

	
the execution, delivery and performance of this First Supplemental Agreement and all such other documents as contemplated hereby (including, but not limited to, the New Finance Documents and the New Mortgage Addenda) does not and will not, from the date of this First Supplemental Agreement and so long as any moneys are owing under any of the Finance Documents and/or the New Finance Documents and while all or any part of the Commitment remains outstanding, constitute a breach of any contractual restriction or any existing applicable law, regulation, consent or authorisation binding on the Borrower or on any of its property or assets and will not result in the creation or imposition of any security interest, lien, charge or encumbrance (other than under the Finance Documents and/or the New Finance Documents) on any of such property or assets; and

 

	
(e)

	
it has fully disclosed in writing to the Agent all facts which it knows or which it should reasonably know and which are material for disclosure to the Agent in the context of this First Supplemental Agreement and all information furnished by such Borrower or on its behalf relating to its business and affairs in connection with this First Supplemental Agreement was and remains true, correct and complete in all material respects and there

 

  

4

  

 

are no other material facts or considerations the omission of which would render any such information misleading.

 

3              AGREEMENT OF THE CREDITOR PARTIES

 

	
3.1

	
The Lenders, relying upon each of the representations and warranties set out in Clauses 2.1 and 2.2 of this First Supplemental Agreement, hereby agrees with the Borrower, subject to and upon the terms and conditions of this First Supplemental Agreement and in particular, but without limitation, subject to the fulfilment of the conditions precedent set out in Clause 4, to:

 

	
(a)

	
waive the application of the security cover provisions of clause 15.1 of the Loan Agreement during the Waiver Period;

 

	
(b)

	
reduce the security cover requirement to 110 per cent. of the aggregate of the Loan and the Swap Exposure for the period 1 March 2010 to 28 February 2011;

 

	
(c)

	
waive the Borrower's financial covenant regarding the Leverage Ratio set out in clause 12.5(b) of the Loan Agreement during the Waiver Period;

 

	
(d)

	
waive the Borrower's hedging obligations set out in Clause 12.8 of the Loan Agreement; and

 

	
(e)

	
the amendments/variations of the Loan Agreement and the other Finance Documents referred to in Clause 5.

 

	
3.2

	
The Borrower and the Existing Owners agree and confirm that the Loan Agreement and the Finance Documents to which each is a party shall remain in full force and effect and each of the Borrower and each Existing Owner shall remain liable under the Loan Agreement and the Finance Documents to which each is a party for all obligations and liabilities assumed by it thereunder,

 

	
3.3

	
The agreement of the Creditor Parties contained in Clauses 3.1 and 3.2 shall have effect on and from the Effective Date.

 

4              CONDITIONS

 

	
4.1

	
The agreements of the Lenders contained in Clause 3.1 of this First Supplemental Agreement shall all be expressly subject to the condition that the Agent shall have received in form and substance satisfactory to it and its legal advisers on or before on or before the Effective Date:

 

	
(a)

	
evidence that the persons executing this First Supplemental Agreement on behalf of the Borrower and the Existing Owners are duly authorised to execute the same;

 

	
(b)

	
a certificate of an officer of each New Owner confirming the names of all the directors and shareholders of that New Owner and having attached thereto true and complete copies of its incorporation and constitutional documents;

 

	
(c)

	
true and complete copy of the resolution passed at separate meeting of the directors of the Borrower authorising and approving the execution of this First Supplemental Agreement and each New Finance Document to which it is a party and any other document or action to which it is or is to be a party and authorising its directors or other representatives to execute the same on its behalf;

 

	
(d)

	
true and complete copies of the resolutions passed at separate meetings of the sole director and shareholders of each New Owner and each Existing Owner authorising and

 

  

5

  

approving the execution of the New Finance Documents to which each is a party or, as the case may be, the relevant New Mortgage Addendum and any other document or action to which each is or is to be a party and authorising its sole director or other representatives to execute the same on its behalf;

 

	
(e)

	
the original of any power of attorney issued by the Borrower, each New Owner and each Existing Owner pursuant to such resolutions aforesaid;

 

	
(f)

	
the fees referred to in Clause 7.2 of this First Supplemental Agreement have been received in full by the Agent;

 

	
(g)

	
evidence that each New Ship is:

 

	
  

	
(i)

	
registered in the name of the New Owner owning that Ship under the laws and flag of the Marshall Islands; and

 

	
  

	
(ii)

	
insured in accordance with the relevant provisions of the New Mortgage applicable to that New Ship and all requirements thereof in respect of such insurances have been fulfilled;

 

	
(h)

	
each New Finance Document and each New Mortgage Addendum has been, duly executed by the relevant New Owner or, as the case may be, the relevant Existing Owner together with evidence that:

 

	
  

	
(i)

	
each New Mortgage has been registered against the relevant New Ship with first priority in accordance with the laws of the Marshall Islands;

 

	
  

	
(ii)

	
each New Mortgage Addendum in connection with the relevant Ship has been duly registered in accordance with the laws of the Marshall Islands;

 

	
  

	
(iii)

	
all notices required to be served under each New General Assignment and any New Charterparty Assignment have been served and acknowledged in the manner therein provided; and

 

	
  

	
(iv)

	
save for the Security Interests created by or pursuant to the New Mortgages, the New General Assignments and any Charterparty Assignments, there are no Security Interests of any kind whatsoever on either New Ship or her Earnings, Insurances or Requisition Compensation;

 

	
(i)

	
a certified true copy of the Initial Charterparty entered into in respect of a New Ship duly signed by the parties thereof;

 

	
(j)

	
evidence that the New Earnings Accounts and the Cash Deposit Account have been opened and all mandate forms, documentation required by each Creditor Party in relation to the Borrower and any Security Party pursuant to that Creditor Party's "know your customer" requirements have been received;

 

	
(k)

	
copies of the Management Agreements in respect of each New Ship;

 

	
(l)

	
the New Manager's Undertakings executed by the Approved Manager in favour of the Security Trustee;

 

	
(m)

	
evidence that each New Owner is a direct or indirect wholly-owned subsidiary of the Borrower;

 

	
(n)

	
copies of ISM DOC, SMC and the International Ship Security Certificate under the MPS Code in respect of each New Ship;

 

  

6

  

 

	
(o)

	
certified copies of all documents (with a certified translation if an original is not in English) evidencing any other necessary action, approvals or consents with respect to this First Supplemental Agreement and the New Finance Documents (including without limitation) all necessary governmental and other official approvals and consents in such pertinent jurisdictions as the Agent deems appropriate;

 

	
(p)

	
such legal opinions as the Agent may require in respect of the matters contained in this First Supplemental Agreement, the New Finance Documents and the New Mortgage Addenda; and

 

	
(q)

	
evidence that the agent referred to in clause 30.4 of the Loan Agreement has accepted its appointment as agent for service of process under this First Supplemental Agreement and the New Finance Documents.

 

5              VARIATIONS TO LOAN AGREEMENT AND FINANCE DOCUMENTS

 

	
5.1

	
In consideration of the agreement of the Lenders contained in Clause 3.1 of this First Supplemental Agreement, the Borrower hereby agrees with the Lenders that upon satisfaction of the conditions referred to in Clause 4.1, the provisions of the Loan Agreement shall be varied and/or amended and/or supplemented with effect on and from the Effective Date as follows:

 

	
(a)

	
by inserting in clause 1.3 thereof the definitions of "Effective Date", "New Mortgage Addendum", "New Owner" and "New Ship" set out in Clause 1.2;

 

	
(b)

	
the definition of, and references throughout each of the Finance Documents to, the Mortgage relevant to "STAR BETA", "SINFONIA", "OMICRON" and each Additional Ship, shall be construed as if the same referred to that Mortgage as amended and supplemented by the relevant New Mortgage Addendum;

 

	
(c)

	
by adding the words ", the Cash Deposit Account" after the words "Earnings Accounts" in the definition of "Account" in clause 1.3 thereof;

 

	
(d)

	
by adding the words ", the Cash Deposit Account Pledge" after the words "Earnings Accounts Pledges" in the definition of "Account Pledge" in clause 1.3 thereof;

 

	
(e)

	
by adding the words ", New Ship" after the words "Collateral Ship" in:

 

	
  

	
(i)

	
the definition of "Charterparty Assignment";

 

	
  

	
(ii)

	
in sub-paragraph (a) of the definition of "General Assignment";

 

	
  

	
(iii)

	
in sub-paragraph (a) of the definition of "Manager's Undertaking";

 

	
  

	
(iv)

	
in sub-paragraph (a) of the definition of "Mortgage", each in clause 1.1 thereof;

 

	
(f)

	
by deleting the definition of "Margin" in clause 1.3 thereof and replacing it with the following new definition:

 

""Margin" means, subject to Clause 5.14:

 

	
  

	
(a)

	
in respect of the period 1 January 2009 to (and including) the later of (i) the day on which the Borrower shall deliver the Compliance Certificate in respect of the financial year ending on 31 December 2010 in accordance with Clause 12.6 and (ii) 31 December 2010 (the "Applicable Date"), 2 per cent. per annum; and

 

  

7

  

 

	
  

	
(b)

	
in respect of the period commencing on the date following the Applicable Date and ending on the Margin Review Date, 1.5 per cent. per annum;";

 

	
(g)

	
by adding to the definition of "Finance Documents" in clause 1.3 thereof a new sub­paragraph (1) as follows:

 

"(l)    the Cash Deposit Account Pledge;";

 

	
(h)

	
by redesignating the existing sub-paragraph (1) of the definition of "Finance Documents" in clause 1.3 thereof as a new sub-paragraph (m) respectively;

 

	
(i)

	
by deleting the definition of "SINFONIA" in clause 1.3 thereof and replacing it with the following new definition:

 

""SINFONIA" means, the 1991-built capsize bulk carrier of 184,400 deadweight tons registered in the name of Star L under the Marshall Islands flag with the name "STAR SIGMA";";

 

	
(j)

	
by adding the following new definitions in clause 1.3 thereof:

 

""Cash Deposit Account" means an account opened or to be opened in the name of the Borrower with the Agent in Piraeus designated "Star Bulk Carriers Corp. - Cash Deposit Account", or any other account (with that or another office of the Agent) which is designated by the Agent as the Cash Deposit Account for the purposes of this Agreement;

 

"Cash Deposit Account Pledge" means, in relation to the Cash Deposit Account, the first priority pledge over that Account executed or to be executed by the Borrower in favour of the Lenders in such form as the Lenders may approve or require;

 

"KAPPA" means the 2001-built bulk carrier of 52,055 metric deadweight tons registered in the ownership of Star K under the Marshall Islands flag with the name of "STAR KAPPA";

 

"YPSILON" means the 1991-built bulk carrier of 150,940 metric deadweight tons registered in the ownership of Star Y under the Marshall Islands flag with the name of "STAR YPSILON";

 

"Star K" means Star Kappa LLC, a limited liability company formed in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro MI-196960, The Marshall Islands;

 

"Star Y" means Star Ypsilon LLC, a limited liability company formed in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands;

 

"Waiver Period" means the period commencing on 31 December 2008 and ending on 28 February 2010;";

 

	
(k)

	
by adding after the words "the Additional Owners" the words ", the New Owners" in the definition of "Owner" in clause 1.3 thereof;

 

	
(l)

	
by adding the words ", New Ships" after the words "the Collateral Ships" in the definition of "Ship" in clause 1.3 thereof;

 

	
(m)

	
by adding the words "other than, in the case of 12.5(b) below, during the Waiver Period" after the words "at all times" in the first line of clause 12.5 thereof;

 

  

8

  

 

	
(n)

	
by deleting clause 12.7 thereof in its entirety and replacing it with the following:

 

"12.7 Dividends. The Borrower:

 

	
  

	
(a)

	
may, at any time other than during the Waiver Period, pay dividends or make any other form of distribution subject to the satisfaction of the following conditions:

 

	
  

	
(i)

	
the Agent has received a certificate issued by the chief financial office of the Borrower on the date on which the payment of the dividend is declared which confirms that no Event of Default has occurred which is continuing and that no Event of Default or Potential Event of Default will result from the payment of the dividend or the making of the distribution; and

 

	
  

	
(ii)

	
the Agent is satisfied that on the date on which the certificate referred to in paragraph (i) is issued:

 

	
  

	
(A)

	
the Security Cover Percentage is equal to at least 125 per cent.; and

 

	
  

	
(B)

	
the Borrower is in compliance with the financial covenants set out in Clause 12.5; and

 

	
  

	
(b)

	
may not, during the Waiver Period, pay any dividends or make any other form of distribution without the prior written consent of the Agent (to be given upon the instructions of all the Lenders).";

 

	
(o)

	
by adding at the end of clause 12.8 the following new paragraph:

 

"Provided that until (and including 31 December 2009) the Borrower shall not be obliged to enter into any of the hedging arrangements referred to in this Clause 12.8 unless the circumstances referred to in paragraph (e) above shall occur before 31 December 2009 in which case the Borrower shall promptly enter into all the hedging arrangements referred to in this Clause 12.8."1

 

	
(p)

	
by adding the following new clause 12.9:

 

"12.9 Minimum Liquidity. The Borrower shall maintain throughout the Security Period in the Cash Deposit Account an amount of $9,000,000.";

 

	
(q)

	
by adding the words "at any time other than during the Waiver Period" after the words "the Borrower" in the second line of clause 15.1 thereof;

 

	
(r)

	
by deleting the words "Ships" in clause 15.1 thereof and replacing them with the words "Collateral Ships, "SINFON1A" and the New Ships";

 

	
(s)

	
by deleting sub-paragraphs (i) and (ii) in clause 15.1 thereof and replacing them with the following new sub-paragraphs:

 

	
  

	
(i)

	
for the period commencing on 1 March 2010 and ending on 28 February 2011, 110 per cent. of the aggregate of the Loan and the Swap Exposure (if any exists at the relevant time);

 

	
  

	
(ii)

	
for the period commencing on 1 March 2011 and ending on 18 September 2011, 125 per cent. of the aggregate of the Loan and the Swap Exposure (if any exists at the relevant time); and

 

  

9

  

 

EXECUTION PAGE

	
BORROWER

	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR BULK CARRIERS CORP.

	
)

	  
	  	  	  
	  	  	  
	
EXISTING OWNERS

	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR BETA LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR EPSILON LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR GAMMA LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR DELTA LLC

	
)

	  
	  	  	  
	  	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR OMICRON LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR THETA LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
STAR ZETA LLC

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by George Syllantavos

	
)

	  
	
for and on behalf of

	
)

	
/s/ George Syllantavos

	
LAMDA LLC

	
)

	  
	  	  	  

 

  

 

  

	
LENDERS

	  	  
	  	  	  
	
SIGNED by J. Dallas / S. Kriempardis

	
)

	  
	
for and on behalf of

	
)

	
/s/ J. Dallas / S. Kriempardis

	
PIRAEUS BANK A.E.

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by Alexia Hatzimichalis

	
)

	  
	
for and on behalf of

	
)

	
/s/ Alexia Hatzimichalis

	
HSH NORDBANK AG

	
)

	  
	  	  	  
	  	  	  
	
AGENT

	  	  
	  	  	  
	
SIGNED by Dallas / S. Kriempardis

	
)

	  
	
for and on behalf of

	
)

	
/s/ J. Dallas / S. Kriempardis

	
PIRAEUS BANK A.E.

	
)

	  
	  	  	  
	  	  	  
	
SECURITY TRUSTEE

	  	  
	  	  	  
	
SIGNED by J. Dallas / S. Kriempardis

	
)

	  
	
for and on behalf of

	
)

	
/s/ J. Dallas / S. Kriempardis

	
PIRAEUS BANK A.E.

	
)

	  
	  	  	  
	  	  	  
	
SWAPS BANKS

	  	  
	  	  	  
	
SIGNED by J. Dallas / S. Kriempardis

	
)

	  
	
for and on behalf of

	
)

	
/s/ J. Dallas / S. Kriempardis

	
PIRAEUS BANK A.E.

	
)

	  
	  	  	  
	  	  	  
	
SIGNED by Alexia Hatzimichalis

	
)

	  
	
for and on behalf of

	
)

	
/s/ Alexia Hatzimichalis

	
HSH NORDBANK AG

	
)

	  
	  	  	  
	
Witness to all the

	
)

	  
	
above signatures

	
)

	
/s/ Pat Skala

	  	  	  

	
Name:

	
Pat Skala

	  	  
	  	  
	
Address:

	
Watson, Farley & Williams

	  	
2, DEFTERAS MERARCHIAS

	  	
PIRAEUS 185 36 – GREECE

 

SK 25767 0001 1183663

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