Document:

d1378176_ex4-36.htm

Exhibit 4.36

 

THIS SECOND SUPPLEMENTAL AGREEMENT made the 29th day of October Two thousand twelve

 

BETWEEN

 

	
(1)

	
MANOLIS SHIPPING LIMITED  being a company incorporated in accordance with the laws of the Republic of the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, Republic of Marshall Islands (referred to below as "the  Borrower");

 

	
(2)

	
SAF-CONCORD SHIPPING LTD, being a company incorporated in accordance with  the laws of the Republic of Liberia whose registered office is situated at 80, Broad Street, Monrovia, Liberia (referred to below as the "Additional Corporate Guarantor A");

 

	
(3)

	
TIGER NAVIGATION CORP., being a company incorporated in accordance with the laws of the Republic of the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, Republic of Marshall Islands (referred to below as the "Additional Corporate Guarantor B");

 

	
(4)

	
ALTERWALL BUSINESS INC. being a company incorporated in accordance with the laws of the Republic of Panama, whose registered office is at c/o Quijano y Asociates, Salbuda Building, top floor, East 53rd  Street, Urbanizacion Obarrio, P.O. BOX 7284, Panama 5, Panama (referred to below as the "Additional Corporate Guarantor C");

 

	
(5)

	
Eurobank Private Bank Luxembourg SA (formerly known as Eurobank EFG Private Bank Luxembourg SA), a banking societe anonyme duly incorporated under the laws of Luxembourg, having its registered office at 5, rue, Jean Monnet, L-2180 Luxembourg (referred to below as the "Bank");

 

	
(6)

	
Eurobank Ergasias S.A. (formerly known as EFG Eurobank Ergasias S.A.), a banking societe anonyme duly incorporated under the laws of Greece, having its registered office at 8, Othonos Street, Athens, Greece, acting for the purposes of this Agreement through its office at 83, Akti Miaouli, 185 38 Piraeus, Greece, in its capacity as agent for the Bank (referred to below as the "Agent"); and

 

	
(7)

	
Eurobank Ergasias S.A. (formerly known as EFG Eurobank Ergasias S.A.), a banking societe anonyme duly incorporated under the laws of Greece, having its registered office at 8, Othonos Street, Athens, Greece, acting for the purposes of this Agreement through its office at 83, Akti Miaouli, 185 38 Piraeus, Greece (referred to below as the "Party A to the Master Swap Agreement").

 

IS SUPPLEMENTAL to a loan agreement dated 7th June, 2007 (hereinafter called the "Original Loan Agreement") made between the Borrower, as borrower and EFG Eurobank Ergasias S.A. (now called "Eurobank Ergasias S.A."), a banking societe anonyme duly incorporated under the laws of Greece, having its registered office at 8, Othonos Street, Athens, Greece acting through its office at 83, Akti Miaouli, 185 38 Piraeus, Greece as original lender, (in such capacity, referred to below as the "Original Bank"), as amended by a first supplemental agreement dated 5th August,

 

  

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2009 made between the Borrower, Saf-Concord Shipping Ltd, of Liberia as additional corporate guarantor and the Original Bank (hereinafter called the "First Supplemental Agreement" and, together with the Original Loan Agreement and, wherever the context so requires, this Second Supplemental Agreement, the "Loan Agreement"), on the terms and conditions of which the Original Bank advanced to the Borrower a secured loan facility in the amount of Ten Million United States Dollars (US$10,000,000) (the "Original Loan") for the purposes therein specified.

 

WHEREAS

 

	
(A)

	
The Borrower hereby acknowledges receipt of the whole amount of the Original Loan and further acknowledges that, the total amount of principal of the Original Loan remaining currently outstanding under the Loan Agreement amounts to United States Dollars Six Million Six Hundred Forty Thousand (US$6,640,000) ("the Loan").

 

	
(B)

	
The Borrower has also entered with the Party A to the Master Swap Agreement into a master swap agreement (on the 1992 ISDA (Multicurrency-Crossborder) form) and the schedule thereto dated 7th June 2007 including all Designated Transactions from time to time entered into and Confirmations of Designation Transactions from time to time exchanged under the said master swap agreement (the "Master Swap Agreement").

 

	
(C)

	
Pursuant to the Loan Agreement and as security for the prompt performance by the Borrower of all its obligations under the Loan Agreement and the other documents referred therein as "Security Documents", there were executed and are currently in full of force and effect inter alia: (a) a security deed dated 7th June, 2007 executed by the Borrower in favour of the Original Bank (the "Master Agreement Security Deed"), (b) a corporate guarantee and indemnity dated 7th June, 2007 executed by Euroseas Ltd. of the Marshall Islands (the "Corporate Guarantor") in favour of the Original Bank (the "Corporate Guarantee"), (c) a pledge agreement on the Operating Account No 0026.0029.20.1200284659 dated 7th June, 2007 entered into between the Original Bank and the Borrower and duly served through a Court Bailiff with the Original Bank), (d) a pledge agreement on the Operating Account No 0026.0029.21.1200236674 dated 7th June, 2007 entered into between the Original Bank and the Corporate Guarantor and duly served through a Court Bailiff with the Original Bank, (e) a pledge agreement on the Retention Account No 0026.0029.28.1200284747 dated 7th January, 2007 entered into between the Original Bank and the Borrower and duly served through a Court Bailiff with the Original Bank (documents referred under (c) to (e), the "Account Pledges"), (f) a first preferred ship mortgage on the m.v Manolis P (the "Vessel") made between the Borrower and the Original Bank dated the 7th June 2007, duly registered with the Maritime Office in Piraeus of the Republic of the Marshall Islands on June 7th, 2007 at 12:50 P.M., E.E.S.T. (the "Mortgage"), (g) a deed of assignment in respect of the Vessel dated 7th June 2007, made between the Borrower and the Original Bank together with the relevant notices of assignment and loss payable clause in respect of the Vessel's insurances earnings, charter rights and requisition compensation (the "General Assignment"), (h) a manager's undertaking dated 7 June 2007 in relation to the Vessel (the "Original Manager's Undertaking"), (i) a corporate guarantee and indemnity

 

  

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dated 5th August 2009 executed by the Saf-Concord Shipping Ltd as additional corporate guarantor in favour of the Original Bank  (the "Existing Additional Corporate Guarantee") and (j) a manager's undertaking dated 5 August 2009 in relation to the Vessel and Monica P ("Manager's Undertaking 2009").

 

	
(D)

	
Pursuant to an assignment agreement dated 29th July 2011 as same was amended by an amendment agreement dated 29th November 2011 (together, "Assignment Agreement"), made between the Original Bank and the Bank, (a) the Original Bank assigned to the Bank and the Bank accepted, as if originally named as an original bank/lender, all the rights and benefits liabilities and obligations of the Original Bank under or in respect of (inter alia) the Loan Agreement, the Master Agreement Security Deed, the Corporate Guarantee, the Account Pledges, the Mortgage, the General Assignment, the Original Manager's Undertaking, the Existing Additional Corporate Guarantee and the Manager's Undertaking 2009 (as all these terms are defined in Recital (C) above and any other agreement or instrument relating to the same (save from the Master Swap Agreement) ("Manolis Facility Assigned Assets") and (b) the Bank appointed the Original Bank to act as the Bank's agent and authorized the Agent to perform the duties and exercise the rights, powers and discretions that are specifically given to it under the  Loan Agreement and the Manolis Facility Assigned Assets, all on the terms and subject to the conditions contained therein and the Borrower hereby acknowledges that it has received notice of the assignment effected by virtue of the Assignment Agreement.

 

	
(E)

	
The parties have further agreed to terminate the Master Swap Agreement and the Master Agreement Security Deed and the parties thereto to be released from any rights and/or obligations thereunder.

 

	
(F)

	
In view of the decline observed in the value of the Vessel (as this term is defined in the Original Loan Agreement) and in order for the Bank to continue to make the Loan available to the Borrower, the Bank has requested, that the Borrower provides to the Bank in accordance with the provisions of Clause 13.5 of the Original Loan Agreement with additional security (acceptable to the Bank) for so long as the Security Value is less than the Minimum Value (as these terms are defined in the Original Loan Agreement), which the Borrower has agreed to do on the terms and subject to the conditions of this Second Supplemental Agreement.

 

	
(G)

	
As a condition precedent to the Bank's agreement to continue to make the Loan available to the Borrower, the Borrower has agreed, inter alia, to procure that additional security (acceptable to the Bank) be provided and more particularly to procure Additional Corporate Guarantor A to execute and deliver a confirmation to the Existing Additional Corporate Guarantee and each of the Additional Corporate Guarantor B and the Additional Corporate Guarantor C (as hereinafter defined), each being a company affiliated to the Borrower to execute and deliver the respective Additional Corporate Guarantee (as hereinafter defined) of the Borrower's obligations under the Loan Agreement each Additional Corporate Guarantee to be secured by the relevant Collateral Mortgage, the relevant Collateral Assignment, (where applicable) the relevant Collateral Pledge, and the New Manager's Undertaking (as these terms are hereinafter defined) and to accept certain amendments to be made to the Loan Agreement as described hereinafter.

 

  

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(H)

	
The Bank has agreed to give its consent to the above on the terms and subject to the conditions of this Second Supplemental Agreement which shall be read as one with the Original Loan Agreement and the definitions contained in the Original Loan Agreement shall apply to the provisions of this Second Supplemental Agreement, save to the extent that such definitions are amended hereunder and in consequence thereof the parties hereto enter into this Second Supplemental Agreement.

 

NOW THEREFORE IT IS HEREBY AGREED

 

1.           DEFINITIONS

 

	
1.1

	
Words and expressions defined in the Loan Agreement (as hereby supplemented and amended) 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 meaning attributed to them below:

 

"Additional Corporate Guarantees" means:

 

	
  

	
(a)

	
the Existing Additional Corporate Guarantee (the "Additional Corporate Guarantee A");

 

	
  

	
(b)

	
the guarantee and indemnity given or, as the context may require, to be given by the Additional Corporate Guarantor B in form and substance satisfactory to the Bank, as security for the Indebtedness and any and all obligations of the Borrower under the Loan Agreement, such guarantee to be released by the Bank at the request of the Additional Corporate Guarantor B and in its expense provided that the Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement) (the "Additional Corporate Guarantee B"); and

 

	
  

	
(c)

	
the guarantee and indemnity given or, as the context may require, to be given by the Additional Corporate Guarantor C in form and substance satisfactory to the Bank, as security for the Indebtedness and any and all obligations of the Borrower under the Loan Agreement, such guarantee to be released by the Bank at the request of the Additional Corporate Guarantor C  and in its expense provided that the Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement) (the "Additional Corporate Guarantee C");

 

and "Additional Corporate Guarantee" means any of them;

"Additional Corporate Guarantors" means:

	
  

	
(a)

	
SAF-CONCORD SHIPPING LTD, being a company incorporated in accordance with the laws of the Republic of Liberia whose registered office is situated at 80, Broad Street, Monrovia, Liberia (the "Additional Corporate Guarantor A");

 

  

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(b)

	
TIGER NAVIGATION CORP., being a company incorporated in accordance with the laws of the Republic of the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, Republic of Marshall Islands (the "Additional Corporate Guarantor B"); and

 

	
  

	
(c)

	
ALTERWALL BUSINESS INC. being a company incorporated in accordance with the laws of the Republic of Panama (the "Additional Corporate Guarantor C");

 

and "Additional Corporate Guarantor" means any of them;

 

"Additional Security Documents" means the Mortgage Amendment and Assignment, the Existing General Assignment Amendment, the Corporate Guarantee's Confirmation, the Existing Additional Corporate Guarantee's Confirmation, the Collateral Security Documents and the New Manager's Undertaking;

"Agent" means Eurobank Ergasias S.A. (formerly known as EFG Eurobank Ergasias S.A.), a banking societe anonyme duly incorporated under the laws of Greece, having its registered office at 8, Othonos Street, Athens, Greece, acting for the purposes of this Agreement through its office at 83, Akti Miaouli, 185 38 Piraeus, Greece and includes its successors in title.

 

"Bank" means Eurobank Private Bank Luxembourg SA (formerly known as Eurobank EFG Private Bank Luxembourg SA), a banking societe anonyme duly incorporated under the laws of Luxembourg, having its registered office at 5, rue, Jean Monnet, L-2180 Luxembourg;

 

"Collateral General Assignments" means the second priority deed of assignment of the Insurances Earnings and Requisition Compensation in respect of each of Collateral Vessel A and Collateral Vessel B and the first priority deed of assignment of the Insurances Earnings and Requisition Compensation in respect of Collateral Vessel C executed or, as the context may require, to be executed by the relevant Additional Corporate Guarantor in favour of the Bank, as security of the relevant Additional Corporate Guarantor's obligations under the relevant Additional Corporate Guarantee, each of such assignments to be released by the Bank at the request of the relevant Additional Corporate Guarantor and in its expense provided that the Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement) and a "Collateral General Assignment" means any of them;

"Collateral Mortgages" means:

	
  

	
(a)

	
the second preferred ship mortgage on the Collateral Vessel A executed or, as the context may require, to be executed by the Additional Corporate Guarantor A in favour of the Bank, as security of the obligations of the Additional Corporate Guarantor A under the Additional Corporate Guarantee A, such mortgage to be released by the Bank at the request of the Additional Corporate Guarantor A and in its expense provided that the

 

  

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Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement ("Collateral Mortgage A");

 

	
  

	
(b)

	
the second preferred ship mortgage on the Collateral Vessel B executed or, as the context may require, to be executed by the Additional Corporate Guarantor B in favour of the Bank, as security of the obligations of the Additional Corporate Guarantor B under the Additional Corporate Guarantee B, such mortgage to be released by the Bank at the request of the Additional Corporate Guarantor B and in its expense provided that the Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement ("Collateral Mortgage B"); and

 

	
  

	
(c)

	
the first preferred ship mortgage on the Collateral Vessel C executed or, as the context may require, to be executed by the Additional Corporate Guarantor C in favour of the Bank, as security of the obligations of the Additional Corporate Guarantor C under the Additional Corporate Guarantee C, such mortgage to be released by the Bank at the request of the Additional Corporate Guarantor C and in its expense provided that the Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement ("Collateral Mortgage C");

 

and a "Collateral Mortgage" means any of them;

"Collateral Pledge" means a first priority pledge over the operating account to be opened by the Additional Corporate Guarantor C with the Bank and/or the Agent in respect of the earnings of the Collateral Vessel C, executed or to be executed by the Additional Corporate Guarantor C in favour of the Bank and/or the Agent, as security of the obligations of the Additional Corporate Guarantor C under the Additional Corporate Guarantee C, such pledge to be released by the Bank at the request of the Additional Corporate Guarantor C and in its expense provided that the Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement;

"Collateral Security Documents" means together the Additional Corporate Guarantees, the Collateral Mortgages, the Collateral Assignments and the Collateral Pledge;

"Collateral Vessels" means:

	
  

	
(a)

	
the m.v. MONICA P. built in 1998, being of 27011 gross tons and of 16011 net tons currently registered under the Liberian flag with Official Number 10909 in the ownership of the Additional Corporate Guarantor A ("Collateral Vessel A"), and

	
  

	
(b)

	
the m.v. "TIGER BRIDGE" built in 1990, being of 24495 gross tons and of 10403 net tons currently registered under the Marshall Islands flag in the ownership of the Additional Corporate Guarantor B ("Collateral Vessel B"); and

	
  

	
(c)

	
the m.v. NINOS, built in 1990, being of 15122 gross tons and of 6244 net tons currently registered under the Panama flag with IMO N 8909082 in the ownership of the Additional Corporate Guarantor C ("Collateral Vessel C");

  

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and a "Collateral Vessel" means any of them;

 

"Corporate Guarantee" means the corporate guarantee and indemnity dated 7th June, 2007 executed by the Corporate Guarantor in favour of the Original Bank, which has been re-confirmed pursuant to a letter of undertaking-assignment dated 7 December 2011 executed by the Corporate Guarantor addressed to the Agent incorporating also a first priority assignment of all the rights which the Corporate Guarantor may have in the Insurances relating to the Vessel, as same will be re-confirmed by the Corporate Guarantee's Confirmation in favour of the Bank;

 

"Corporate Guarantee's Confirmation" means the deed of confirmation executed or to be executed by the Corporate Guarantor in relation to the Corporate Guarantee, in such form as the Bank may approve or require;

 

"Effective Date" means the date on which the Bank certifies to the Borrower that all of the conditions referred to in Clause 4 have been satisfied;

 

"Existing Additional Corporate Guarantee" means the corporate guarantee and indemnity dated 5th August 2009 executed by the Additional Corporate Guarantor A as additional corporate guarantor in favour of the Original Bank, as same will be amended and re-confirmed by the Existing Additional Corporate Guarantee's Confirmation;

"Existing Additional Corporate Guarantee's Confirmation" means the deed of confirmation executed or to be executed by the Additional Corporate Guarantor A in relation to the Existing Additional Corporate Guarantee, pursuant to which same will be amended as to the obligations same is securing and also as to its duration to remain in full force and effect for so long as the Security Value is less than the Minimum Value (as these terms are defined in the Original Loan Agreement) and to be released by the Bank at the request of Additional Corporate Guarantor A and in its expense provided that the Security Value is in excess of the Minimum Value (as these terms are defined in the Original Loan Agreement);

"Existing General Assignment" means the first priority deed of assignment in respect of the Vessel dated 7th June 2007, made between the Borrower and the Original Bank together with the relevant notices of assignment and loss payable clause in respect of the Vessel's insurances earnings, charter rights and requisition compensation, as same has been amended (or as the case may be) will be amended pursuant to the Existing General Assignment Amendment;

 

"Existing General Assignment Amendment" means a first deed of amendment of the existing general assignment dated the 7th June 2007 made or, as the case may be, to be made between the Bank, and the Borrower, pursuant to which all amendments agreed pursuant to this Second Supplemental Agreement will be reflected to the Existing General Assignment;

 

"General Assignments" means:

 

	
  

	
(a)

	
the Existing General Assignment; and

 

  

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(b)

	
the Collateral General Assignments;

and a "General Assignment" means any of them;

 

"Guarantor" means the Corporate Guarantor and the Additional Corporate Guarantors;

 

"Loan Agreement" means the Loan Agreement dated 7th June, 2007, as same was amended by a first supplemental agreement dated 5th August, 2009, both   made between the Borrower, as borrower and the Original Bank and more particularly described in Recital (A) hereto, as same was thereafter assigned by the Original Bank to the Bank pursuant to the Assignment Agreement and further amended by the present Second Supplemental Agreement and as the same may from time to time be amended or supplemented;

 

"Manager's Undertaking" means the Original Manager's Undertaking, as same was re-confirmed, amended and supplemented by the Manager's Undertaking 2009, as same was supplemented by a manager's undertaking dated 7 December 2011 executed by the Manager and addressed to the Agent incorporating also a first priority assignment of all the rights which the Manager may have in the Insurances relating to the Vessel and as same will be re-confirmed, amended and supplemented by the New Manager's Undertaking(s);

 

"Manager's Undertaking 2009" means the manager's undertaking dated 5 August 2009 in relation to the m.v. Manolis and the m.v. Monica P. re-confirming, amending and supplementing the Original Manager's Undertaking;

"Manager's Undertaking 2011" means the manager's undertaking dated 7 December 2011 in relation to the m.v. Manolis re-confirming, amending and supplementing the Original Manager's Undertaking;

"Mortgages" means:

	
  

	
(a)

	
the first preferred Marshall Islands Ship Mortgage dated 7th June 2007 made between the Borrower and the Original Bank, duly registered with the Maritime Office in Piraeus of the Republic of the Marshall Islands on June 7th, 2007 at 12:50 P.M., E.E.S.T. which has been assigned (or as the case may be) will be assigned to the Bank pursuant to the Assignment Agreement and the Mortgage Amendment and Assignment (the "Vessel's Mortgage"); and

	
  

	
(b)

	
the Collateral Mortgages; and

and a "Mortgage" means any of them;

"Mortgage Amendment and Assignment" means a first deed of amendment and assignment of the first preferred ship mortgage dated 7th June 2007 on the Vessel made or, as the case may be, to be made between the Original Bank (as original mortgagee), the Bank, and the Borrower and recorded on the Vessel in favor of the Bank pursuant to which all amendments agreed pursuant to this Second Supplemental Agreement will be reflected to the Mortgage;

 

  

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"New Manager's Undertaking(s)" means a manager's undertaking to be granted by the Manager in favour of the Bank and/or the Agent in form and substance satisfactory to the Bank and/or the Agent in relation to each of the Vessel, the Collateral Vessel A, the Collateral Vessel B and the Collateral Vessel C re-confirming, amending and supplementing the Original Manager's Undertaking, the Manager's Undertaking 2009 and the Manager's Undertaking 2011 and incorporating also a first priority assignment of all the rights which the Manager may have in the insurances relating to the Collateral Vessels;

"Operating Accounts" means:

(a)           the operating account  No 0026.0029.20.1200284659 opened with the Original Bank in the name of the Borrower;

(b)           the operating account  No 0026.0029.21.1200236674 opened with the Original Bank in the name of the Corporate Guarantor;

(c)           the operating account  to be opened with the Bank in the name of the Additional Corporate Guarantor C and to be pledged pursuant to the Collateral Pledge;

"Operating Account Pledges" means:

(a)           the pledge over the operating account  No 0026.0029.20.1200284659 dated 7 June 2007 executed  by the Borrower in favour of the Original Bank; and

(b)           the pledge over the operating account  No 0026.0029.21.1200236674 dated 7 June 2007 executed  by the Corporate Guarantor in favour of the Original Bank; and

(c)           the Collateral Pledge;

"Original Bank" means EFG EUROBANK ERGASIAS S.A. (now called EUROBANK ERGASIAS S.A.), a banking societe anonyme duly incorporated under the laws of Greece, having its registered office at 8, Othonos Street, Athens, Greece;

"Original Manager's Undertaking" means the manager's undertaking dated 7 June 2007 in relation to the m.v. Manolis P.;

"Party A to the Master Swap Agreement" means Eurobank Ergasias SA (formerly known as EFG Eurobank Ergasias S.A.), a banking societe anonyme duly incorporated under the laws of Greece, having its registered office at 8, Othonos Street, Athens, Greece, acting for the purposes of this Agreement through its office at 83, Akti Miaouli, 185 38 Piraeus, Greece;

 

"Pledges" means:

(a)           the Operating Account Pledges; and

 

(b)           the Retention Account Pledge,

"Retention Account" means the retention account No 0026.0029.28.1200284747 dated 7th January, 2007 opened with the Original Bank in the name of the Borrower

"Retention Account Pledge" means the pledge over the Retention Account dated 7 June 2007 executed by the Borrower in favour of the Original Bank;

  

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"Vessels" means:

 

(a)           the m.v. Manolis P. built in 1995, being of 14962 tons gross, 7579 tons net, currently registered under the flag of the Republic of the Marshall Islands with Official Number 2849  in the name of the Borrower (hereinafter called  the "Vessel"); and

(b)           the Collateral Vessels;

and "a Vessel" means either of them as the context may require.

"Released Documents" means the Master Swap Agreement and the Master Agreement Security Deed;

	
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

	
Each of the Borrower and the Additional Corporate Guarantors hereby represents and warrants to the Bank and/or the Agent, as of the date of this Second Supplemental Agreement, each of the representations and warranties contained in Clause 4 of the Original Loan Agreement are true and correct, including to the extent that they may have been or shall  be amended by this Second Supplemental Agreement and shall be deemed repeated herein as if contained in extenso and as if made with reference to the facts and circumstances existing on the date hereof, as if references to the Security Documents included this Second Supplemental Agreement and the Additional Security Documents and excluded the Released Documents and as if references to the Security Parties included the Additional Corporate Guarantors.

 

	
2.2

	
Each of the Borrower and the Additional Corporate Guarantors hereby expressly agrees and acknowledges and represents and warrants to the Bank that the Loan Agreement as amended hereby shall remain in full force and effect and the security constituted by the Security Documents, including the Additional Security Documents, executed by the Borrower, the Corporate Guarantor and the Additional Corporate Guarantors and/or the Manager (as the case may be) shall continue to remain valid and enforceable and in full force and effect.

 

	
2.3

	
Each of the Borrower and the Additional Corporate Guarantors hereby further represents and warrants to the Bank that, as of the date of this Second Supplemental Agreement:

 

  

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(a)           each of the  Borrower and the Additional Corporate Guarantors is a body corporate duly formed and validly existing in good standing under the laws of its respective jurisdiction;

 

(b)           each of the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors and/or the Manager (as the case may be) has full power to enter into and perform their respective obligations under this Second Supplemental Agreement and all documents required to be executed thereunder to which they are a party, has complied with all statutory and other requirements relative to its business and does not have an established place of business in the United Kingdom or the United States of America;

 

(c)           all necessary governmental authorisations, approvals, licences, consents or waivers for the execution, delivery, performance, validity and/or enforceability of this Second Supplemental Agreement and all documents required to be executed thereunder, have been obtained and will be maintained in full force and effect throughout the Facility Period;

 

(d)           each of the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors, and/or the Manager (as the case may be) has taken all necessary action to authorise the execution, delivery and performance of its/his obligations under this Second Supplemental Agreement and all documents required to be executed hereunder to which they are a party and such documents do or will upon execution thereof constitute, valid and binding obligations of each of them enforceable in accordance with their respective terms, subject to any applicable bankruptcy, insolvency, re-organisation, moratorium or other laws relating to the enforcement of creditors' rights;

 

(e)           the execution, delivery and performance of this Second Supplemental Agreement and all documents required to be executed hereunder do not and will not during the Security Period constitute a breach of any contractual restriction or any existing applicable law, regulation, consent or authorisation binding on the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors, and/or the Manager on any of their property or assets and will not result in the creation or imposition of any security interest, lien, charge or encumbrance on any of such property or assets, save in favour of the Bank;

 

(f)           at the date of this Second Supplemental Agreement, none of the Borrower or any of the Additional Corporate Guarantors is liable under or in respect of any Indebtedness other than in relation to the financing contemplated by and under the Loan Agreement, the Security Documents to which it is a party, and also such Indebtedness as shall have been notified to, and approved by, the Bank and/or the Agent on or prior to the date of this Second Supplemental Agreement;

 

(g)           each of the Borrower and the Additional Corporate Guarantors has fully disclosed in writing to the Bank and/or the Agent all facts which they know or which they could reasonably know and which are material for disclosure to the Bank and/or the Agent in the context of this Second Supplemental Agreement and all information furnished by them or on their 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

 

  

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

 

	
3.

	
AGREEMENT OF THE BANK

 

The Bank, relying upon each of the representations and warranties set out in Clause 2, hereby agrees with the Borrower and the Additional Corporate Guarantors to continue making the Loan available to 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 and to the amendments of certain terms of the terms of the Loan Agreement in accordance with the terms of Clause 5.

 

	
4.

	
CONDITIONS PRECEDENT AND CONDITIONS SUBSEQUENT

 

	
4.1

	
Conditions precedent

 

The agreement of the Bank contained in Clause 3 shall be expressly subject to the condition that the Bank and/or the Agent shall have received the following documents and evidence in form and substance satisfactory to the Bank and/or the Agent and/or their legal advisors on the Effective Date:

 

	
(a)

	
In the case of the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors, and/or the Manager:

 

	
  

	
(i)

	
a recent certificate of good standing in relation to the Borrower, the Corporate Guarantor, each Additional Corporate Guarantor, and/or the Manager issued by the relevant authorities of the country of its incorporation together with certified copies of the Articles of Incorporation (or equivalent documents) and all amendments thereto and any other documents required to be filed or registered or issued under the laws of the country of its respective incorporation to establish the incorporation and/or good standing (as the case may be) of each of the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors, and/or the Manager under the laws of such country;

 

	
  

	
 (ii)

	
certified and duly legalised copies of resolutions passed at a meeting of the Board of Directors of, and of the resolutions passed at a meeting of the Shareholders of the Borrower, the Corporate Guarantor, each Additional Corporate Guarantor, and/or the Manager evidencing approval to the variation of the Loan Agreement pursuant to Clause 5 and the execution of all documents contemplated hereby to which each of the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors, and/or the Manager is a party and authorising appropriate officers or attorneys to execute the same and to sign any other documents, notices, letters or other communications required to be given by it pursuant hereto and thereto or other evidence of such approvals and authorisations as shall be acceptable to the Bank and/or the Agent;

 

	
  

	
(iii)

	
the original of a duly legalised power(s) of attorney issued by each of the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors, and/or the Manager, pursuant to the resolutions referred to in Clause 4.1 (a)(ii) under which any documents (including this Second Supplemental Agreement) are to be executed or transactions to be undertaken by the Security Parties under or pursuant to this Second Supplemental Agreement including for the avoidance of doubt the Additional Security Documents;

 

	
  

	
(iv)

	
a list (certified by the Secretary or a Director or other appropriate officer of the the Borrower, the Corporate

 

  

12

  

Guarantor, the Additional Corporate Guarantors, and/or the Manager to be true and complete) of the directors and officers (together with signature specimen) of each of them stating also the authorised and issued capital and the number, value and type of shares, the names of the shareholders and the number of shares held by each;

 

	
  

	
(v)

	
copies of all governmental and other consents, licenses, approvals and authorisations as may be necessary to authorise the performance by the Borrower, the Corporate Guarantor, the Additional Corporate Guarantors, and/or the Manager of their respective obligations under those of this Second Supplemental Agreement and the Additional Security Documents to which each of the above entities is a party and the execution, validity and enforceability of this Second Supplemental Agreement and the Additional Security Documents;

 

	
(b)

	
this Second Supplemental Agreement and the Additional Security Documents in favour of the Bank, duly executed by the relevant Security Party and in the case of the Collateral Mortgages registered with second priority in the case of Collateral Mortgage A and Collateral Mortgage B and with first priority in the case of Collateral Mortgage C at the competent port of registry together with all items and documents to be delivered pursuant thereto;

 

	
(c)

	
evidence that the Vessel continues to be:

 

	
  

	
(i)

	
duly and permanently registered under the Marshall Islands flag in the absolute and unencumbered ownership of the Borrower save for the Mortgage and save as contemplated by this Second Supplemental Agreement and continues to trade in full compliance with all applicable laws;

 

	
  

	
(ii)

	
managed by the Manager pursuant to the terms of the relevant management agreement, a copy of which will have been delivered to and approved by the Bank and/or the Agent; and

 

	
  

	
(iii)

	
insured in the name of the Borrower and/or of the Corporate Guarantor and/or the Manager as co-assured in accordance with the terms and conditions of the Mortgage;

 

	
(d)

	
updated class maintenance certificate issued by the classification society of the Vessel which will be at all terms satisfactory to the Bank and/or the Agent;

 

	
(e)

	
evidence that each Collateral Vessel is:

 

  

13

  

 

	
  

	
(i)

	
duly and permanently registered under the relevant flag in the absolute and unencumbered ownership of the relevant Additional Corporate Guarantor save for the first priority mortgage in favour of the Bank in the case of Collateral Vessel A and Collateral Vessel B and save as contemplated by this Second Supplemental Agreement and continues to trade in full compliance with all applicable laws;

 

	
  

	
(ii)

	
managed by the Manager pursuant to the terms of the relevant management agreement, copy of which will have been delivered to and approved by the Bank and/or the Agent; and

 

	
  

	
(iii)

	
insured in the name of the relevant Additional Corporate Guarantee and of the Corporate Guarantor and the Manager as co-assured in accordance with the terms and conditions of the relevant Collateral Mortgage and that appropriate letters of undertaking will be issued in the manner specified by the relevant Collateral Mortgage;

 

	
(f)

	

photocopies, certified as true, accurate and complete, by a director of each Additional Corporate Guarantor in relation to each Collateral Vessel of Safety Construction, Safety Equipment, Safety Radio and Load Line Certificates (including SMC, ISSC and DOC) in relation to each Collateral Vessel;

 

	
  

	
(g)

	
photocopies of any charterparty or other contract of employment in relation to each Collateral Vessel which will be in force at the Effective Date;

 

	
  

	
(h)

	
copy of the Confirmation of Class for Hull and Machinery confirming that each Collateral Vessel is classed with the highest class of Lloyd's or equivalent

 

	
  

	
(i)

	
evidence that each Additional Corporate Guarantor and the Manager are in current compliance with the requirements of the International Management Code for the Safe Operation of Ships and for Pollution Prevention (as adopted by the International Maritime Organisation as Resolution A.741 (18) (the "ISM Code");

 

	
(i)

	
evidence that each Additional Corporate Guarantor and the Manager are in current compliance with the provisions of the International Ship and Port Facilities Security (ISPS) Code and the other respective amendments of SOLAS and will maintain at all times throughout the Facility Period a valid International Ship Security Certificate (ISSC) in respect of its vessel and all other valid certificates evidencing compliance with this Clause;

 

	
4.2

	
Conditions subsequent The Borrower undertakes to deliver or to cause to be delivered to the Bank on, or as soon as practicable after the Effective Date:

 

	
  

	
(a)

	
Certificate issued by the competent ships register or other evidence satisfactory to the Bank confirming that each Collateral Vessel is owned by the relevant Additional Corporate Guarantor and that the respective Collateral Mortgage is duly registered with second priority in the case of Collateral Vessel A and Collateral Vessel B and with first priority in the case of Collateral Vessel C and otherwise free of registered encumbrances;

 

	
  

	
(b)

	
confirmation from the relevant insurance brokers that the interest of the Bank as Mortgagee and Assignee of the Vessel has been duly endorsed and letters of

 

  

14

  

 

Undertaking issued by hull and machinery brokers and War Risks Association or brokers and Protection and Indemnity Association or Club in form acceptable to the Bank and accompanied by copies of all current policies of insurance, cover notes and certificates of entry in respect of each Collateral Vessel in the name of the relevant Additional Corporate Guarantor and of the Corporate Guarantor and the Manager as co-assured;

 

	
(c)

	
evidence that the person(s) referred to in Clause 25 of the Loan Agreement has accepted his/their appointment as Process Agent (antiklitos);

 

	
(d)

	
such favourable legal opinions from lawyers acceptable to the Bank and/or the Agent and its legal advisors on such matters concerning the laws of the Republic of the Marshall Islands, the Republic of Liberia and such other relevant jurisdiction as the Bank and/or the Agent shall require;

 

	
(e)

	
evidence that the Bank and/or the Agent has received the amount required for settlement of the fees and costs relating to the execution of this Second Supplemental Agreement and all other documents contemplated hereby including those relating to all necessary filings, registrations and legalisations thereof.

 

	
4.3

	
Without prejudice to the provisions of Clause 4.1, each of the Borrower and each of the Additional Corporate Guarantors hereby jointly and severally undertakes with the Bank and/or the Agent to make or procure to be made such amendments and/or additions to any of the documents delivered to the Bank and/or the Agent in accordance with Clause 4.1 and to execute and/or deliver to the Bank and/or the Agent or procure to be executed and/or delivered to the Bank and/or the Agent such further documents as the Bank and/or the Agent and its legal advisors may reasonably require to satisfy themselves that all the terms and requirements of this Second Supplemental Agreement have been complied with.

 

	
4.4

	
Without prejudice to the provisions of Clause 4.1, 4.2 and 4.3, in the event of any of the conditions referred to in this Clause 4 not being satisfied (whether with the express or implied agreement of the Bank and/or the Agent or otherwise), the Borrower will comply or procure compliance with all such conditions by no later than fourteen (14) days from the Effective Date or within such longer period as the Bank and/or the Agent shall agree to.

 

	
5

	
VARIATIONS TO THE LOAN AGREEMENT

 

	
5.1

	
In consideration of the agreement of the Bank contained in Clause 3 hereof each of the Borrower, the Additional Corporate Guarantors jointly and severally agree with the Bank that (subject to the satisfaction of the conditions contained in Clause 4) the provisions of the Loan Agreement will be and are hereby agreed to be varied and/or amended and/or supplemented as follows:

 

	
(a)

	

the definitions set out in Clause 1.2 of this Second Supplemental Agreement shall be included mutatis mutandis, in Clause 1. of the Original Loan Agreement replacing the relevant definitions of Clause 1. of the Original Loan Agreement and Clause 1. of the First Supplemental Agreement where the context permits and for the avoidance of any doubt:

 

  

15

  

 

	
  

	
(i)

	
the definitions "Bank" "Corporate Guarantee, "Guarantor", "Manager's Undertaking", "Operating Accounts", "Operating Account Pledges" shall be deleted from Clause 1 of the Original Loan Agreement and be replaced by the relevant definitions set out in Clause 1.2 of this Second Supplemental Agreement;

 

	
  

	
(ii)

	
the definitions of "Additional Corporate Guarantee", "Additional Corporate Guarantor", "Additional Security Documents", "Collateral Assignment", "Collateral Mortgage", "Collateral Security Documents", "Collateral Vessel", "General Assignments", "Loan Agreement", "New Manager's Undertaking",  "Mortgages" and "Vessels" shall be deleted from Clause 1 of the First Supplemental Agreement and be replaced by the relevant definitions set out in Clause 1.2 of this Second Supplemental Agreement;

 

	
(b)

	

by adding in the definition of "Banking Day", the word "Luxembourg";

 

	
(c)

	
by deleting the definition of "Confirmation", "Credit Support Document", "Credit Support Provider", "Designated Transactions" "Master Agreement Security Deed", "Master Swap Agreement", "Swap Exposure". "Transaction" and Clause 9, Clause 13.3.9, Clause 14.4.3, Clause 16.2.2 and Schedule V in their entirety and all references thereto in the Loan Agreement and in the Security Documents and construing the Master Swap Agreement as having been terminated/released;

 

	
(d)

	
by deleting the words "any Swap Exposure" from the definition of "Indebtedness" and the words "and the Swap Exposure" from the definition of "Minimum Value" and from Clause 4.3. (f) (iv), Clause 13.5.2 (i) and from Schedule II C. 4.;

 

	
(e)

	
by replacing the words "of the aggregate amount of the Loan and the Swap Exposure" by the words "of the amount of the Loan" in sub-clauses 4.3 (f) (i) and 4.3.(f) (v);

 

	
(f)

	
by deleting the following words "to enter into Designated Transactions under the Master Swap Agreement and to make all the payments contemplated by, and to comply with, those Finance Documents to which the Borrower is a party and the Master Swap Agreement" from Clause 4.1. (b) of the Loan Agreement;

 

	
(g)

	
by deleting sub-clauses 12.1. (a) and (b) from the Loan Agreement;

 

	
(h)

	
by deleting:

 

(i)           the words "and the Master Swap Agreement (in respect of Designated Transaction)" from Clause 15.1 First (i),

 

(ii)           the words "and the Master Swap Agreement (in respect of Designated Transaction) (and, for this purpose, the expression "interest" shall include any net amount which the Borrower shall have become liable to pay or deliver under section 2(e) (Obligations) of the Master Swap Agreement (in respect of Designated Transaction)" from Clause 15.1 First (ii);

 

  

16

  

 

(iii)           the words "and the Swap Exposure (in the case of the latter, calculated as at the actual Early Termination Date applying to each particular Designated Transaction, or if no such Early Termination Date shall have occurred, calculated as if an Early Termination Date occurred on the date of application or distribution hereunder)" from Clause 15.1 First (iii); and

 

(iv)           the words "or the Master Swap Agreement (in respect of Designated Transaction)" from Clause 15.1 Secondly;

 

	
(i)

	
by adding in the definitions of "Operating Account" "Pledges" and "Retention Account", in Clause 16. or, wherever the context requires, after the words "with the Bank" or "the Bank", the words "or the Agent";

 

	
(j)

	
construing all references in the Original Loan Agreement to "the Guarantor", or "such Guarantor" as references to the Corporate Guarantor and the Additional Corporate Guarantors and by construing all references in the Loan Agreement  to the "Security Parties",  "each Security Party", "a Security Party" so as to include the Additional Corporate Guarantors;

	
(k)

	
by reading and construing hereafter the definition of "Security Documents" in Clause 1. of the Loan Agreement so as to include each of the Additional Security Documents and exclude the Released Documents and by construing all references to each of the Security Documents as being references to each such document as it is from time to time supplemented and/or amended;

	
(l)

	
by interpreting all references in the Security Documents to the Security Documents as if they included the Additional Security Documents and excluded the Released Documents;

 

	
(m)

	
by construing all security documents as securing the Indebtedness as herein defined;

 

	
(n)

	
by interpreting all references in the Security Documents to the Loan Agreement (however described) as references to the Loan Agreement as amended and supplemented by this Second Supplemental Agreement;

 

	
(o)

	
by replacing the words "or the Additional Corporate Guarantor" by the words "or the relevant Additional Corporate Guarantor" and by replacing in clauses 4.1 (g) and 25 (a) the words "Additional Corporate Guarantee" by the words "an Additional Corporate Guarantee;

	
(p)

	
by construing all references in the Original Loan Agreement to "the Vessel" or "Vessel" as if they included the Collateral Vessels as well;

	
(q)

	
by replacing references to "Additional Corporate Guarantee", "Additional Corporate Guarantor", "Additional Security Documents", "Collateral Assignment", "Collateral Mortgage", "Collateral Security Documents", "Collateral Vessel", "Corporate Guarantee", "General Assignments", "Loan Agreement", "Mortgages", "Manager's Undertaking",  "New Manager's Undertaking",  "Operating Accounts", "Operating Account Pledges", and "Vessels" by references to "Additional Corporate Guarantees", "Additional Corporate Guarantor", "Additional Security Documents", "Collateral General Assignments", "Collateral Mortgages", "Collateral Security

  

17

  

Documents", "Collateral Vessels", "Corporate Guarantee" "General Assignments", "Loan Agreement", "Manager's Undertaking", "Mortgages", "New Manager's Undertaking", "Operating Accounts", "Operating Account Pledges",  and "Vessels" as herein defined and the definitions set out in Clause 1. of this Supplemental Agreement shall be included mutatis mutandis, in Clause 1. of the Loan Agreement replacing the relevant definitions where the context permits;

	
(r)

	
by replacing sub-clauses (j) to (m) in Clause 12.1 by the followings new sub-clauses reading as follows:

"(j)           the Additional Corporate Guarantees executed by the relevant Additional Corporate Guarantor in favour of the Bank;

(k)           the Collateral Mortgages executed by the relevant Additional Corporate Guarantor in favour of the Bank;

(l)           the Collateral Assignments executed by the relevant Additional Corporate Guarantor in favour of the Bank;

(m)           the New Manager's Undertaking(s)."

	
(s)

	
by replacing in Clause 16 of the Original Loan Agreement (a) references to "the Borrower", by references to "the Borrower and the Additional Corporate Guarantors" and (b) references to the Operating Account by references to the Operating Accounts as herein defined;

	
(t)

	
by construing all references in the Loan Agreement to "EFG Eurobank Ergasias S.A." or to the Bank as references to the Bank, or, where the context requires, as the case may be to the Bank and/or the Agent or to the Agent as both terms are herein defined;

 

	
(u)

	
by replacing the words and numbers "8, Othonos Street, Athens, Greece" and "83, Akti Miaouli, 185 38 Piraeus, Greece" by the following words and numbers "5, rue, Jean Monnet, L-2180 Luxembourg" (exception being made in connection with clause 24.1 of the Loan Agreement and all notices to the Bank and/or communications with the Bank of whatsoever nature which will be effected through the Agent);

 

	
(v)

	
by replacing (i) in the definition of Manager the words "40, Agiou Konstantinou Str., Aethrion Maroussi, Greece" and (ii) clause 24.1. the words "40, Agiou Konstantinou Str. 151 24 Maroussi, Greece" by the words "4, Messogiou & Evropis Street, 151 24 Maroussi, Greece";

 

	
(w)

	
by replacing in Clause 24.2 the words and numbers "three (3)" by the words and numbers "five (5)".

 

	
6.

	
CONTINUANCE OF LOAN AGREEMENT AND SECURITY DOCUMENTS

 

Save for the alterations to the Loan Agreement made pursuant to the Assignment Agreement and 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 Security Documents executed by each of the Borrower and the other parties to

 

  

18

  

the Security Documents shall continue to remain valid and enforceable and in full force and effect.

 

	
7.

	
FEES AND EXPENSES

 

The Borrower shall pay to the Bank upon demand and from time to time all costs, charges and expenses (including legal fees) incurred by the Bank and/or the Agent in connection with the preparation, negotiation, execution and enforcement or attempted enforcement of this Second Supplemental Agreement and the Additional Security Documents or in release of any of them.

 

	
8.

	
NOTICES

 

The provisions of Clause 24 of the Loan Agreement (save as hereby amended) shall apply to this Second Supplemental Agreement.

 

	
9.

	
APPLICABLE LAW AND JURISDICTION

 

This Second Supplemental Agreement shall be governed by and construed in accordance with English law and the provisions of Clause 25 of the Loan Agreement shall apply mutatis mutandis.

 

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

	
SIGNED by

	  	  	
)

	  
	
duly authorised

	  	  	
)

	  
	
attorney for and on behalf of

	  	  	
)

	  
	
MANOLIS SHIPPING LIMITED

	  	  	
)

	  
	
in its capacity as borrower

	  	  	
)

	  
	  	  	  	  	  
	
SIGNED by

	  	  	
)

	  
	
duly authorised

	  	  	
)

	  
	
attorney for and on behalf of

	  	  	
)

	  
	
SAF-CONCORD SHIPPING LTD

	  	  	
)

	  
	
in its capacity as additional corporate guarantor

	  	  	
)

	  
	  	  	  	  	  
	
SIGNED by

	  	  	
)

	  
	
duly authorised

	  	  	
)

	  
	
attorney for and on behalf of

	  	  	
)

	  
	
TIGER NAVIGATION CORP.

	  	  	
)

	  
	
in its capacity as additional corporate guarantor

	  	  	
)

	  
	  	  	  	  	  
	
SIGNED by

	  	  	
)

	  
	
duly authorised

	  	  	
)

	  
	
attorney for and on behalf of

	  	  	
)

	  
	
ALTERWALL BUSINESS INC.

	  	  	
)

	  
	
in its capacity as additional corporate guarantor

	  	  	
)

	  

  

19

  

	  	  	  	  	  
	
SIGNED by

	  	  	
)

	  
	
the duly authorised

	  	  	
)

	  
	
attorneys for and on behalf of

	  	  	
)

	  
	
Eurobank Private Bank Luxembourg SA

	  	  	
)

	  
	
(formerly known as Eurobank EFG Private Bank Luxembourg SA)

	  	  	
)

	  
	
in its capacity as bank/lender

	  	  	  	  
	  	  	  	  	  
	  	  	  	
)

	  
	
SIGNED by

	  	  	
)

	  
	
and

	  	  	
)

	  
	
the duly authorised

	  	  	
)

	  
	
attorneys for and on behalf of

	  	  	
)

	  
	
Eurobank Ergasias S.A.

	  	  	
)

	  
	
(formerly known as EFG Eurobank Ergasias S.A.)

	  	  	
)

	  
	
in its capacity as agent for the bank/lender

	  	  	
)

	  
	  	  	  	  	  
	
SIGNED by

	  	  	
)

	  
	
and

	  	  	
)

	  
	
the duly authorised

	  	  	
)

	  
	
attorneys for and on behalf of

	  	  	
)

	  
	
Eurobank Ergasias S.A.

	  	  	
)

	  
	
(formerly known as EFG Eurobank Ergasias S.A.)

	  	  	
)

	  
	
in its capacity as Party A to the Master Swap Agreement

	  	
)

	
)

	  

  

20d1378182_ex4-37.htm

Exhibit 4.37

 

 

Dated 5 April 2013

 

_________________________

 

XINGANG SHIPPING LTD

as borrower

 

and

 

 

DIANA TRADING LTD.

and

EUROSEAS LTD.

as Corporate Guarantors

 

and

 

ALCINOE SHIPPING LIMITED

GREGOS SHIPPING LIMITED

as Corporate Guarantors

 

- and -

 

HSBC BANK PLC

as Bank

 

 

_______________________________________

 

Addendum Nr. 2 to the Loan Agreement

dated 14 November 2006

in respect of a certain loan facility of US$20,000,000

_______________________________________

 

 

 

 

 

 

  

1

  

 

 

TABLE OF CONTENTS

 

 

	
1

	
Definitions

	
6

	  	  	  
	
2

	
Amendments to the Principal Agreement

	
6

	  	  	  
	
3

	
Construction of the Principal Agreement and the other Security Documents

	
10

	  	  	  
	
4

	
Supplemental Security Documents

	
10

	  	  	  
	
5

	
Conditions Precedent

	
11

	  	  	  
	
6

	
Representations, Warranties and Covenants

	
12

	  	  	  
	
7

	
Agreement of the Bank

	
14

	  	  	  
	
8

	
Fees Costs and Expenses

	
14

	  	  	  
	
9

	
Headings and Counterparts

	
15

	  	  	  
	
10

	
Continuation of the Principal Agreement and other Security Documents

	
15

	  	  	  
	
11

	
Further Assurance

	
15

	  	  	  
	
12

	
Joint and Several Liability

	
15

	  	  	  
	
13

	
Notices

	
16

	  	  	  
	
14

	
Applicable Law-Jurisdiction

	
16

	  	  	  
	
EXECUTION PAGE

	
18

	  	  	  

 

 

  

2

  

THIS ADDENDUM Nr. 2 is made this 5th day of April 2013.

 

BY AND AMONG

 

	
1.

	
XINGANG SHIPPING LTD, a corporation organised and existing under the laws of the Republic of Liberia, having its registered office at 80 Broad Street, Monrovia, Liberia (the "Borrower"); as borrower and

 

	
2.

	
DIANA TRADING LTD., a company organised and existing under the laws of the Marshall Islands, having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the "First Corporate Guarantor"); as corporate guarantor and

 

	
3.

	
EUROSEAS LTD., a company organised and existing under the laws of the Marshall Islands, having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the "Second Corporate Guarantor") (and together with the First Corporate Guarantor the "Corporate Guarantors"); as corporate guarantor and

 

	
4.

	
ALCINOE SHIPPING LIMITED a corporation duly formed and existing under the laws of the Republic of Cyprus, whose registered office is at Tribune House, 10 Skopa street, Nicosia, Cyprus, ("Alcinoe"), as corporate guarantor and

 

	
5.

	
GREGOS SHIPPING LIMITED, a company organised and existing under the laws of the Marshall Islands, having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 ("Gregos" and together with Alcinoe the "Released Guarantors"), as corporate guarantor and

 

	
6.

	
HSBC BANK PLC, a banking company duly incorporated under the laws of England whose registered office is at 8 Canada Square, London E14 5HQ England, acting for the purposes hereof through its branch at European Corporate & Structured Banking Centre, L28, 8 Canada Square, London E14 5HQ, United Kingdom (the "Bank" which includes its successors and assigns) as lender.

 

WHEREAS

 

	
A.

	
Pursuant to a loan agreement dated 14 November 2006 (hereinafter called as it has been amended by an addendum Nr. 1 thereto dated 14 April 2010 the "Principal Agreement" and as the same is hereby amended and as it may, from time to time, be further amended, supplemented or varied, the "Loan Agreement") made by and among the Bank as lender and the Borrower as borrower and the Corporate Guarantors as joint and several guarantors, the Bank has advanced to the Borrower a certain term loan facility in the amount of United States Dollars Twenty million (US$20,000,000) (the "Loan" which expression includes the amount thereof from time to time outstanding and owing to the Bank thereunder) for the purposes and upon the terms and conditions referred to therein.

 

  

3

  

 

	
B.

	
The Borrower and the Bank have entered into a master swap agreement (on the 1992 ISDA Master Agreement Multicurrency-Cross-border form) dated 14 November 2006 (hereinafter called, together with its schedule, the "Principal ISDA Master Agreement" and as amended by the ISDA Amendment Agreement, hereinbelow defined, and as it may from time to time be further amended, supplemented or varied hereinafter referred to as the "ISDA Master Agreement").

 

	
C.

	
Pursuant to the Principal Agreement, and as security for, inter alia, the due and punctual repayment of the Loan and payment of interest and fees accrued thereon and of all other sums of money whatsoever from time to time due and owing from the Borrower to the Bank and the performance of all the obligations of the Borrower under the Principal Agreement, the Principal ISDA Master Agreement and the other Security Documents, the Bank has been provided, inter alia, with:

 

	
  

	
(i)

	
a first preferred Liberian mortgage dated 15 November 2006 executed by the Borrower in favour of the Bank over the m/v "YM XINGANG I", registered in the ownership of the Borrower under the Liberian flag, with Official Number 13124 which was renamed to "MARINOS" on 25 October 2011 (hereinafter called "MARINOS"), which mortgage was recorded with the Office of the Deputy Commissioner of Maritime Affairs of the Republic of Liberia at 06:01 A.M. E.S.T. on 15 November 2006 in Book PM 58, at Page 759 (hereinafter called the "Marinos Mortgage");

 

	
  

	
(ii)

	
a third preferred Marshall Islands mortgage dated 15 November 2006 executed by the First Corporate Guarantor in favour of the Bank over the m/v "IRINI", registered in the ownership of the First Corporate Guarantor under the Marshall Islands flag, with Official Number 1773 ("IRINI"), which mortgage was recorded in the indexes maintained by the Maritime Administrator of the Marshall Islands on 15 November 2006 at 11:00 AM E.E.T at Piraeus, Greece, in Book PM-17 at Page 754;  (hereinafter the "Irini Mortgage");

 

	
  

	
(iii)

	
a certain corporate guarantee dated 2 April 2006 granted by Alcinoe, whereby Alcinoe has irrevocably and unconditionally guaranteed by way of indemnity, as primary obligor and debtor (and not as surety only), the full, prompt and punctual payment of the Loan and interest thereon and of all other moneys and liabilities whether actual or contingent which may be owed to the Bank by the Borrower, under the Loan Agreement and the other Security Documents and the performance and observance of all terms and conditions to be performed and observed by the Borrower under the Loan Agreement and the other Security Documents (the "Alcinoe Guarantee").

 

	
  

	
(iv)

	
a first priority statutory Cypriot mortgage dated 2 April 2007 over the m/v "GREGOS", registered in the ownership of Alcinoe under the laws and flag of Cyprus with IMO nr. 8307210 (the "Collateral Vessel"), and a deed of covenants collateral thereto wherein a first priority assignment of all the

 

  

4

  

Earnings and Insurances and any Requisition Compensation of the Collateral Vessel in favour of the Bank was also incorporated, and which mortgage was discharged on 14 June 2007, whereat the Collateral Vessel was sold to Gregos and was registered in the ownership of Gregos under the Marshall Islands flag;

 

	
  

	
(v)

	
a certain corporate guarantee dated 14 June 2007 granted by Gregos, whereby Gregos has irrevocably and unconditionally guaranteed by way of indemnity, as primary obligor and debtor (and not as surety only), the full, prompt and punctual payment of the Loan and interest thereon and of all other moneys and liabilities whether actual or contingent which may be owed to the Bank by the Borrower, under the Loan Agreement and the other Security Documents and the performance and observance of all terms and conditions to be performed and observed by the Borrower under the Loan Agreement and the other Security Documents (the "Gregos Guarantee" and together with the Alcinoe Guarantee the "Released Guarantees").

 

	
  

	
(vi)

	
(a) a first preferred Marshall Islands mortgage dated 14 June 2007 executed by Gregos in favour of the Bank over the Collateral Vessel, which mortgage was discharged on 11 December 2009 following the sale of the Collateral Vessel; and (b) a first priority assignment of all the Earnings and Insurances and any Requisition Compensation of the Collateral Vessel in favour of the Bank (the "Gregos Assignment" and together with the Alcinoe Guarantee, and the Gregos Guarantee, the "Released Documents").

 

	
D.

	
By a letter dated 28th May 2012 the Bank has notified to the Borrower and the other Obligors that pursuant to Clause 14 of the Loan Agreement the lending office of the Bank has changed as from 1 June 2012 and the Bank for the purposes of the Loan Agreement and the other Security Documents is acting through its office at European Corporate & Structured Banking Centre, L28, 8 Canada Square, London E14 5HQ, United Kingdom.

 

	
E.

	
The Obligors have made certain repayments of the Loan and on the date hereof the outstanding principal amount of the Loan is United States Dollars Five million Seven hundred Fifty thousand (US$ 5,750,000).

 

	
F.

	
The Obligors have requested the Bank to (i) release the Released Guarantors from their respective obligations, as against the Bank, under the Released Documents and (ii) consent to the amendment of the repayment schedule of the Loan in the manner hereinafter set forth.

 

	
G.

	
The Bank has agreed to consent to the requests referred to in Recital F above on the condition (inter alia) that:

 

	
  

	
 (i)

	
the Borrower and the Corporate Guarantors enter into this Addendum Nr. 2 with

 

  

5

  

	
  

	
the Bank; and

 

	
  

	
(ii)

	
the Borrower enters into an amendment to the Principal ISDA Master Agreement with the Bank incorporating certain amendments thereto (the "ISDA Amendment Agreement"); and

 

	
  

	
(iii)

	
the Borrower enters into an amendment to the Marinos Mortgage  (the "Marinos Mortgage Amendment"); and

 

	
  

	
(iv)

	
the First Corporate Guarantor enters into an amendment to the Irini Mortgage (the "Irini Mortgage Amendment")

 

	
H.

	
In connection with the foregoing, the parties hereto have agreed to partially amend the Principal Agreement by entering into this Addendum Nr. 2, keeping all the other provisions of the Principal Agreement in full force and effect.

 

NOW THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration (receipt of which is hereby acknowledged) the parties do hereby agree as follows:

 

 

	
1

	
DEFINITIONS

 

	
1.01

	
In this Addendum Nr. 2 (which term shall include any addenda, amendments or supplements hereto) and in the Recitals hereof capitalised terms not otherwise defined herein shall have the meanings ascribed to them in the Principal Agreement and furthermore:

 

"Supplemental Security Documents" means each of the documents referred to in Clause 4 hereof which are to be executed and delivered on or prior to the date hereof in accordance with the terms hereof;

 

	
2

	
AMENDMENTS TO THE PRINCIPAL AGREEMENT

 

	
2.01

	
With effect from the date hereof the following definitions of Clause 1.02 of the Principal Agreement are amended to read as follows:

 

"Bank" means HSBC BANK PLC, a banking company duly incorporated under the laws of England whose registered office is at 8 Canada Square, London E14 5HQ England, acting for the purposes hereof through its branch at European Corporate & Structured Banking Centre, L28, 8 Canada Square, London E14 5HQ, United Kingdom, and includes its successors and assignees.

 

"Final Maturity Date" means the 15 November 2015.

 

"Margin" means (i) as from the Drawdown Date up to (and including) the 1 April 2007 zero point nine hundred thirty five per cent (0.935%) per annum, (ii) as from 2 April 2007 up to and including the 14 March 2013 zero point ninety per cent (0.90%) per annum and (ii) from as from the 15 March 2013 (inclusive) and thereafter throughout the Security Period five point thirty per cent (5.30%) per annum.

 

  

6

  

 

"Mortgages" means collectively the First Preferred Liberian Mortgage on the vessel "YM XINGANG I", which has been renamed to "MARINOS" on 25 October 2011 as same has been or will be amended by the Marinos Mortgage Amendment, and the Third Preferred Marshall Islands mortgage on the vessel "IRINI", as the same has been or will be amended by the Irini Mortgage Amendment, and as either of them may be further amended, varied or supplemented from time to time and in the singular means either of them.

 

"Security Documents" means collectively this Agreement, as amended by the Addendum Nr. 1 and the Addendum Nr. 2, the ISDA Master Agreement, the Guarantees, the Mortgages, the Assignments, the Specific Assignment, and any such other documents as may have been or shall hereafter be executed to secure all, or any of the sums of money from time to time owing (whether the same shall be due and payable or not) by the Borrower hereunder.

 

	
2.02

	
With effect from the date hereof the following definitions are inserted in Clause 1.02 of the Principal Agreement, in their proper alphabetical order, to read follows:

 

"Addendum Nr. 1" means the addendum to this Agreement, entered (inter alios) into by and among the Bank, as lender the Borrower, as borrower and the Corporate Guarantors as joint and several guarantors dated 14 April 2010.

 

"Addendum Nr. 2" means the addendum to this Agreement, entered (inter alios) into by and among the Bank, as lender the Borrower, as borrower and the Corporate Guarantors as joint and several guarantors dated 5 April 2013.

 

"Group" means the Obligors and all subsidiaries of the Second Corporate Guarantor;

 

"Irini Mortgage Amendment" means the amendment agreement of the Third Preferred Marshall Islands mortgage on the Vessel "IRINI" dated 5 April 2013.

 

"ISDA Master Agreement" means the master agreement (on the 1992 ISDA (Multicurrency – Cross-border) form) together with the Schedule thereto, both dated 14 November 2006, as amended and supplemented by the ISDA Amendment Agreement, each made between the Borrower and the Bank, and as it may from time to time be further amended, varied or supplemented and includes all Transactions (as defined therein) entered into and Confirmations (as defined therein) exchanged thereunder from time to time.

 

"ISDA Amendment Agreement" means the amendment to the ISDA Master Agreement dated 5 April 2013.

 

"Marinos Mortgage Amendment" means the amendment agreement of the First Preferred Liberian mortgage on the Vessel "YM XINGANG I" (renamed to "MARINOS" on 25 October 2011) dated 5 April 2013.

 

	
2.03

	
With effect from the date hereof Clause 4.01 shall be amended in its entirety so as to read as follows:

 

  

7

  

 

"4.01 The Borrower shall repay the Loan by (i) eleven (11) consecutive quarterly Repayment Instalments, the first three (3) such Repayment Instalment being in the amount of Two hundred Fifty thousand U.S. Dollars ($250,000) each, and the next eight (8) such Repayment Instalments being in the amount of Two hundred thousand U.S. Dollars ($200,000) each, the first such Repayment Instalment being due and payable on the 15 May 2013 and each subsequent such Repayment Instalment being due and payable on each of the dates falling three (3) months after the immediately preceding Repayment Date; and (ii) one (1) Balloon Instalment equal to Three million Four hundred thousand U.S. Dollars ($3,400,000) payable together with the last (11th) Repayment Instalment; PROVIDED that (a) if the last Repayment Instalment would otherwise fall after the Final Maturity Date, the final Repayment Instalment shall be paid on the Final Maturity Date, and (b) there shall be no Repayment Dates after the Final Maturity Date."

 

	
2.04

	
With effect from the date hereof Clause 4.04 shall be amended in its entirety so as to read as follows:

 

 "4.04 (a) If subject to the provisions of Clause 8.02 (viii), the Vessel YM XINGANG I (renamed to MARINOS) is sold, the Borrower shall prepay to the Bank the Loan together with the accrued interest."

 

	
2.05

	
With effect from the date hereof the new Clauses 4.05, 4.06 and 4.07 shall be inserted after clause 4.04 reading as follows:

 

"4.05                 (a)           If subject to the provisions of Clause 8.02 (viii) the Vessel Irini is sold, the Borrower shall prepay to the Bank the Loan together with the accrued interest.

(b)       Without prejudice to the provision of Clause 4.05(a) above, in case the Vessel IRINI is sold on or prior to the 28th February 2014 and PROVIDED ALWAYS that no Event of Default (or an event which with the giving of notice, lapse of time or other condition or a combination thereof would constitute and Event of Default) has occurred and is continuing, the Borrower shall have the option, to be exercised in writing at any time before payment becomes due (the "Due Date") to the Bank pursuant to Clause 4.05(a), to nominate to the Bank an alternative ship as security for the obligations of the first Corporate Guarantor under the Corporate Guarantee and this Loan Agreement and the other Security Documents.

(c)      The Bank in its reasonable discretion, may accept such nominated ship (the "Substitute Ship") as security, and the Borrower shall, in lieu of making payment of the amount due on the Due Date, provide the documents and evidence referred to in Clause 4.06 on or before the Due Date.

(d)  If the Bank does not accept a Substitute Ship (acting reasonably), the Borrower shall comply with Clause 4.05(a).

 

4.06                 If the Bank approves a Substitute Ship, the Borrower, at its own cost, shall [and ensure and procure that the other Obligors and the owner of such Substitute Ship (the "Collateral Owner") shall] on or before the Due Date:

 

(i)      provide to the Bank documentation and evidence in respect of the Substitute Ship and the Collateral Owner as the Bank, may reasonably require and in form and

 

  

8

  

substance satisfactory to the Bank and its legal advisors;

(ii)      enter into such documentation supplemental to this Loan Agreement, the ISDA Master Agreement and the other Security Documents as the Bank, may reasonably require and in form and substance satisfactory to the Bank and its legal advisors;

(iii)                 provide to the Bank, duly executed and, where appropriate, registered in favour of the Bank (a) a guarantee and indemnity by the Collateral Owner, (b) a first priority mortgage over the Substitute Ship, (c) a first priority assignment of the Earnings, Insurances and Requisition Compensation of the Substitute Ship and (d) a first priority assignment pledge and charge over an account in the name of the Collateral Owner where the Earnings of the Substitute Ship shall be paid, all in form and substance satisfactory to the Bank and its legal advisors.

 

4.07                 Following the execution and registration of the documents referred to in Clauses 4.06 (ii) and (iii):

 

(i) the Substitute Ship shall be considered as a Vessel hereunder and

(ii) the Collateral Owner shall be considered as an Obligor and an Owner hereunder and

(iii) the documents referred to in Clause 4.06 (ii) and (iii) shall be considered as Security Documents hereunder."

 

	
2.06

	
With effect from the date hereof a new Clause 8.12 shall be inserted after Clause 8.11 reading as follows:

 

"8.12                 As from the 1st November 2013 and thereafter at any time throughout the whole Security Period the Obligors shall ensure and procure that unencumbered deposits are maintained with the Bank, to the credit of an account or accounts held with the Bank in the name of any member of the Group, in an amount at least equal to United States Dollars Four hundred thousand ($400,000)."

 

	
2.07

	
With effect from the date hereof Clause 16.02 shall be amended in its entirety so as to read as follows:

 

	  	
"16.02. Every notice, request, demand or other communication shall be sent:

	  	  
	  	
(1)

	
to the Obligors at:

	  	  	
c/o EUROBULK LTD

	  	  	
4, Messogiou & Evropis Street,

	  	  	
151 24 Marousi,

	  	  	
Athens,

	  	  	
Greece.

	  	  	
Tel: +30 211 180 4066

	  	  	
Fax: +30 211 180 4097

	  	  	  
	  	
(2)

	
to the Bank at:

	  	  	
European Corporate & Structured Banking Centre,

	  	  	
L28, 8 Canada Square,

	  	  	
London E14 5HQ,

	  	  	
United Kingdom.

	  	  	
Tel: +44 (0)207 992 1188

  

9

  

 

	  	  	
Fax: +44 (0)207 991 4619

	  	  	
Attn. Nr. Alastair Muir.

Or such other address or telex number as is notified by one party to the other party hereunder."

 

 

	
3

	
CONSTRUCTION OF THE PRINCIPAL AGREEMENT AND THE OTHER SECURITY DOCUMENTS

 

	
3.01

	
With effect from the date hereof all references in the Principal Agreement to "this Agreement" shall be construed as references to the Principal Agreement as amended and/or supplemented by this Addendum Nr. 2 and the words "hereby", "hereof", "herein", "hereunder" and the like shall be construed accordingly; and

 

	
3.02

	
With effect from the date hereof all references in the Principal Agreement to "the ISDA Master Agreement" shall be construed as references to the Principal ISDA Master Agreement as amended and/or supplemented by the ISDA Amendment Agreement and the words "thereby", "thereof", therein", "thereunder" and the like shall be construed accordingly; and

 

	
3.03

	
With effect from the date hereof all references in any of the Security Documents to the "Agreement" or to the "Loan Agreement" or to the "ISDA Master Agreement" shall be construed respectively as references to the Principal Agreement as amended and/or supplemented by this Addendum Nr. 2 and to the Principal ISDA Master Agreement as amended and/or supplemented by the ISDA Amendment Agreement and the words "thereby", "thereof", therein", "thereunder" and the  like shall be construed accordingly; and

 

	
3.04

	
With effect from the date hereof all references in the Loan Agreement or in the ISDA Master Agreement or in any other of the Security Documents to the Security Documents (including references in the Security Document in question to itself) shall be construed as to include the Supplemental Security Documents referred to in Clause 4 hereof and the words "herein", "hereof", "hereunder", "therein", "thereof" and the like shall be construed accordingly.

 

 

	
4

	
SUPPLEMENTAL SECURITY DOCUMENTS

 

	
4.01

	
On or prior to the date hereof the Borrower and the Corporate Guarantors shall ensure and procure that the Bank is provided in form and substance satisfactory to the Bank and its legal advisors with:

 

	
4.01.01

	
the Marinos Mortgage Amendment duly executed by the Borrower and registered with the Liberian Registry; and

 

	
4.01.02

	
the Irini Mortgage Amendment duly executed by the First Corporate Guarantor and registered with the Marshall Islands Registry; and

 

	
4.01.03

	
the ISDA Amendment Agreement duly executed by the Borrower.

 

  

10

  

 

 

	
5

	
CONDITIONS PRECEDENT

 

	
5.01

	
The Bank shall have no obligation to consent to the requests of the Obligors referred to in Recital F hereof unless the Bank has received the following in form and substance satisfactory to the Bank, in all respects, on or prior to the date hereof:

 

	
5.01.01

	
this Addendum Nr. 2 duly executed;

 

	
5.01.02

	
certificate of incumbency of each Obligor signed by its respective secretary or a director thereof, stating, inter alia, the officers and/or directors of same as well as details as to the share capital, as well as to the due authority of any person signing this Addendum Nr. 2, the Supplemental Security Documents and any other documents executed pursuant hereto or thereto;

 

	
5.01.03

	
minutes of meeting of the directors and shareholders of each of the Borrower and the First Corporate Guarantor (and any corporate shareholder thereof) at which there was approved the entry into, execution delivery and performance of this Addendum Nr. 2, the Supplemental Security Documents and any other documents executed pursuant hereto or thereto to which each Corporate Obligor is a party;

 

	
5.01.04

	
evidence of the due authority of any person signing this Addendum Nr. 2, the Supplemental Security Documents and any other documents executed pursuant hereto or thereto on behalf of each Corporate Obligor;

 

	
5.01.05

	
certificate or other evidence satisfactory to the Bank, in respect of the existence and good standing of the Corporate Obligors;

 

	
5.01.06

	
the Supplemental Security Documents referred to in Clause 4 hereof, all duly executed, delivered to the Bank and where appropriate duly registered with the relevant authorities;

 

	
5.01.07

	
confirmation from any agents for service of process nominated in this Addendum Nr. 2 and elsewhere in the Supplemental Security Documents for the acceptance of any notice of service of process that they consent to such nomination;

 

	
5.01.08

	
(if required by the Bank) opinions from lawyers appointed by the Bank at the Obligors' expense as to all such aspects of law as the Bank shall deem relevant for this Addendum Nr. 2 and the Supplemental Security Documents and any other documents executed pursuant thereto or hereto;

 

	
5.01.09

	
payment to the Bank of an amount of Two thousand Five hundred Euros (€2,500) plus disbursements and VAT thereon in respect of legal fees of the Greek legal advisors of the Bank in respect of this Addendum Nr. 2 and the Supplemental Security Documents;

 

	
5.01.10

	
payment to the Bank of an amount of Nine hundred US Dollars ($900) plus disbursements and VAT thereon (if applicable) in respect of legal fees of the

 

  

11

  

Liberian/Marshall Islands legal advisors of the Bank in respect of this Addendum Nr. 2 and the Supplemental Security Documents;

 

	
5.01.11

	
payment to the Liberian Registry of all fees and expenses for the registration of the Marinos Mortgage Amendment;

 

	
5.01.12

	
payment to the Marshall Islands Registry of all fees and expenses for the registration of the Irini Mortgage Amendment; and

 

	
5.01.13

	
any other document as the Bank may reasonably request.

 

PROVIDED HOWEVER THAT the Bank may in its absolute discretion consent to the requests referred to in Recital F hereof notwithstanding that all the conditions specified in this Clause 5 have not been fulfilled and in this event the Obligors hereby covenant to procure the fulfilment of such conditions within ten (10) days after the date hereof or at such other time specified by the Bank.

 

	
5.02

	
Notwithstanding the foregoing, the Bank shall have no obligation to consent to the requests referred to in Recital F hereof if an Event of Default or an event which with the giving of notice, or lapse of time or otherwise, might constitute an Event of Default, has occurred and is continuing.

 

 

	
6

	
REPRESENTATIONS, WARRANTIES AND COVENANTS

 

	
6.01

	
As at the date hereof the Borrower and the Corporate Guarantors make, repeat and restate, as the case may be, all the representations, warranties and covenants set forth in the Principal Agreement, mutatis mutandis, as of the date hereof.

 

	
6.02

	
In addition to the above the Borrower and the Corporate Guarantors hereby represent and warrant to the Bank as at the date of this Addendum Nr. 2 that:

 

	
6.02.01

	
each Corporate Obligor is a legal entity duly formed and validly existing under the laws of the country of its incorporation and has the power and authority to own its assets and carry on its business in each jurisdiction in which it owns assets or carries on business;

 

	
6.02.02

	
each Obligor has power to enter into this Addendum Nr. 2 and the Supplemental Security Documents to which each it is a party and to perform and discharge its duties and liabilities hereunder and thereunder and that all necessary action (whether corporate or otherwise) required to authorise the execution, delivery and performance of this Addendum Nr. 2 and the Supplemental Security Documents has been duly taken;

 

	
6.02.03

	
the execution, delivery and performance of this Addendum Nr. 2 and the Supplemental Security Documents will not contravene or exceed the powers granted to each Corporate Obligor by, or any provision of, any law or regulation in any jurisdiction to which such Corporate Obligor is subject, any order or decree of any governmental agency or court of or in any jurisdiction to which each Corporate Obligor is subject, the certificates of incorporation, memoranda and articles of association of each Corporate

 

  

12

  

Obligor or any mortgage, deed, contract or agreement to which such Corporate Obligor is a party and which is binding upon such Corporate Obligor's assets, and will not cause any Encumbrance to arise over or attach to all or any part of its revenues or assets nor require any Corporate Obligor to create any such Encumbrance save for the Encumbrances contemplated by the Security Documents;

 

	
6.02.04

	
all consents, licences, approvals, registrations, authorisations or declarations in any jurisdiction to which each Corporate Obligor is subject as required to enable each Corporate Obligor to lawfully enter into and perform and discharge its duties and liabilities under this Addendum Nr. 2 and the Supplemental Security Documents to which it is a party and to ensure that the duties and liabilities of each Corporate Obligor hereunder and thereunder are legal, valid and enforceable in accordance with the terms of this Addendum Nr. 2 and the Supplemental Security Documents to which it is a party and to make this Addendum Nr. 2 and the Supplemental Security Documents admissible in evidence in such aforesaid jurisdictions have been obtained or made and are in full force and effect;

 

	
6.02.05

	
this Addendum Nr. 2 and the Supplemental Security Documents constitute legal, valid, binding and unconditional duties and liabilities of the Obligors, enforceable against the Obligors in accordance with the terms hereof;

 

	
6.02.06

	
the information provided to the Bank in relation to this transaction is true and correct in all material respects and does not omit any material detail;

 

	
6.02.07

	
save for the recordation of the Marinos Mortgage Amendment with the competent Liberian authority and of the Irini Mortgage Amendment with the competent Marshall Islands authority, it is not necessary or advisable to ensure the legality, validity, enforceability or admissibility in evidence of this Addendum Nr. 2 and the Supplemental Security Documents, that any of them be filed, recorded or enrolled with any governmental authority or agency or that they be stamped with any stamp, registration or similar transaction tax in the Republic of Greece, or the Republic of Liberia, or the Republic of the Marshall Islands, or in any other country where any Corporate Obligor carries on business;

 

	
6.02.08

	
no Obligor is in default under any agreement to which it is a party or by which it may be bound and no litigation, arbitration, tax claim or administrative proceeding for an amount exceeding US Dollars Two hundred Fifty thousand (US$250,000) is current or pending or (to the knowledge of the Obligors) threatened;

 

	
6.02.09

	
the financial condition of the Obligors has not suffered any material deterioration since that condition was last disclosed to the Bank;

 

	
6.02.10

	
the choice of law agreed to govern this Addendum Nr. 2 and the Supplemental Security Documents and the submission to the jurisdiction of the courts agreed in each of this Addendum Nr. 2 and the Supplemental Security Documents are or will be

 

  

13

  

on execution of the respective Supplemental Security Documents valid and binding on the Obligors; and

 

	
6.02.11

	
the authority of the representatives of each Corporate Obligor executing this Addendum Nr. 2 and the Supplemental Security Documents or any one of them has not been revoked or otherwise ceased and remains in full force and effect.

 

	
7

	
AGREEMENT OF THE BANK

 

	
7.01

	
The Bank relying upon each of the representations and warranties set out in Clause 6 and subject to and upon the terms and conditions of this Addendum Nr. 2 and in particular but without limitation subject to the fulfilment of the conditions precedent set out in Clause 5.01 on or before the date hereof and to the condition that no Event of Default or an event which with the giving of notice, or lapse of time or otherwise, might constitute an Event of Default, has occurred and continues, hereby:

 

	
7.01.01

	
agrees to the amendments of the Principal Agreement on the terms set out in Clause 2 of this Addendum Nr. 2 and

 

	
7.01.02

	
releases the Released Guarantors from their respective obligations against the Bank arising under the Released Documents;

 

	
8

	
FEES COSTS AND EXPENSES

 

	
8.01

	
Whether or not the transactions contemplated by this Addendum Nr. 2 and the Supplemental Security Documents or any of them take effect, the Borrower covenants and agrees to pay to the Bank on demand, on a full indemnity basis, all costs and expenses (including without limitation the fees and disbursements of the Bank's legal advisors) incurred by the Bank (i) in connection with the negotiation, preparation, execution and delivery of this Addendum Nr. 2 and of the Supplemental Security Documents and/or any other document executed pursuant hereto or thereto, (ii) in enforcing or attempting to enforce the provisions of this Addendum Nr. 2, and of the Supplemental Security Documents and/or any other document executed pursuant hereto or thereto and (iii) in preserving or protecting or attempting to preserve or protect the security created hereunder and/or under any other document executed pursuant hereto or thereto.

 

	
8.02

	
The Borrower covenants and agrees to pay and discharge all stamp duties, registration and recording fees and charges (if any) and any other charges whatsoever and wherever payable or due in respect of, and all losses, costs, expenses, damages, claims, demands, rights of set-off and/or any counterclaim directly or indirectly incurred by the Bank as a result of or in connection with this Addendum Nr. 2 and of the Supplemental Security Documents and/or any other document executed pursuant hereto or thereto.

 

  

14

  

 

 

	
9

	
HEADINGS AND COUNTERPARTS

 

	
9.01

	
The headings in this Addendum Nr. 2 are for the purpose of reference only, and shall not limit or otherwise affect any of the terms hereof. This Addendum Nr. 2 may be executed in any number of counterparts. Any single counterpart or set of counterparts signed, in either case, by all the parties hereto shall constitute a full and original agreement for all purposes.

 

 

	
10

	
CONTINUATION OF THE PRINCIPAL AGREEMENT AND OTHER SECURITY DOCUMENTS

 

	
10.01

	
Subject to the amendments to the Principal Agreement set out in or to be made pursuant to this Addendum Nr. 2 and such further modifications (if any) thereof as may be necessary to make same consistent with the terms of this Addendum Nr. 2 or the documents supplementing and amending same (as the case may be) the Loan Agreement and the other Security Documents shall remain in full force and effect and, without prejudice to the generality of the foregoing, the Security Documents shall continue to secure the obligations of the Obligors under the Principal Agreement as supplemented and amended by this Addendum Nr. 2.

 

	
10.02

	
Without prejudice to the generality of the foregoing, the Corporate Guarantors hereby confirm and acknowledge that each of them fully agrees to the terms of this Addendum Nr. 2 (including the release of the Released Guarantors contained in Clause 7.01.02 hereof), and the provision of the Supplemental Security Documents referred to herein and that the Corporate Guarantees of the Corporate Guarantors are and remain in full force and effect securing all the obligations of the Borrower to the Bank under the Principal Agreement as amended and supplemented by this Addendum Nr. 2 and as it may be further amended, varied or supplemented.

 

	
11

	
FURTHER ASSURANCE

 

	
11.01

	
The Borrowers and the Corporate Guarantors agree with the Bank to execute, deliver and, if appropriate, register at their own expense any and all such further assurances or documents as the Bank may require for the purpose of more fully carrying into effect the purposes of this Addendum Nr. 2 and/or ensuring that the Bank's security is maintained.

 

	
12

	
JOINT AND SEVERAL LIABILITY

 

	
12.01

	
Each of the obligations of the Borrower and the Corporate Guarantors hereunder are joint and several. Neither the Borrower's obligations nor the Corporate Guarantors' obligations shall in any way be avoided, discharged or released or otherwise adversely affected if for any reason whatsoever (i) any one of the Corporate Obligors does not become a party to this Addendum Nr. 2 or any of the Supplemental Security Document or is at any time not effectively bound by the terms hereof or thereof or (ii) this Addendum Nr. 2 or any of the Supplemental Security Document or the liabilities of any

 

  

15

  

Obligor are at any time in any way or to any extent avoided invalidated discharged released or otherwise adversely affected. For the purpose of this Addendum Nr. 2 and the Supplemental Security Documents, the agreement by one Obligor with the Bank to any matter or thing shall be deemed to be agreement of all the Obligors who shall be bound accordingly.

 

 

	
13

	
NOTICES

 

	
13.01

	
Clause 16 (Notices) of the Principal Agreement as amended by virtue of this Addendum Nr. 2 shall apply to this Addendum Nr. 2 as if the same was set out in full herein.

 

 

	
14

	
APPLICABLE LAW-JURISDICTION

 

	
14.01

	
This Addendum Nr. 2 shall be governed by, and construed in accordance with English Law.

 

	
14.02

	
Subject to Clause 14.03, the High Court of Justice in England shall have non-exclusive jurisdiction to settle any disputes, which may arise out of or in connection with this Addendum Nr. 2.

 

	
14.03

	
Clause 14.02 is for the exclusive benefit of the Bank, which reserves the right:

 

	
14.03.01

	
to commence proceedings in relation to any matter which arises out of or in connection with this Addendum Nr. 2 in the courts of Piraeus, of the Republic of Greece and/or any country other than England or Greece and which have or claim jurisdiction to that matter; and

 

	
14.03.02

	
to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or Greece or without commencing proceedings in England or Greece.

 

	
14.04

	
The Obligors hereby irrevocably designate and appoint Mr. Patrick Hawkins of Messrs Hill Taylor Dickinson, of 2, Defteras Merarchias Street 185 35 Piraeus, Greece, as agent for the service of process ("antiklitos") upon whom any judicial process may be served and agrees to consider any legal process or any demand or notice made served by or on behalf of the Bank on the said agent as being made to the Obligors. The designation of such an authorized agent ("antiklitos") shall remain irrevocable throughout the whole Security Period.

 

	
14.05

	
The Obligors hereby irrevocably designate and appoint Messrs Hill Taylor Dickinson, presently located at Irongate House, Duke's Place, London EC3A 7LP, London, England, to act as its agent to receive and accept on their behalf any process or other document relating to any proceedings in the English courts which are connected with this Addendum Nr. 2 and the Supplemental Security Documents

 

	
14.06

	
Nothing in this Clause 14 shall exclude or limit any right, which the Bank may have (whether under the law of any country, an international convention or otherwise) with

 

  

16

  

regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction.

 

	
14.07

	
In this Clause 14,  "proceedings" means proceedings of any kind, including an application for a provisional or protective measure or enforcement court order (diatagi pliromis).

 

  

17

  

 

EXECUTION PAGE

 

 

IN WITNESS of which this Deed has been duly executed and delivered the day and year first before written.

 

 

	
SIGNED and DELIVERED

	
)

	  
	
as a DEED

	
)

	  
	
by XINGANG SHIPPING LTD

	
)

	  
	
acting by

	
)

	  
	
Mrs. Sterania Karmiri

	
)

	  
	
its duly authorised

	
)

	  
	
Attorney in Fact

	
)

	  
	
in the presence of:

	
)

	  

Witness signature:..............................

Name:

Address:

	
SIGNED and DELIVERED

	
)

	  
	
as a DEED

	
)

	  
	
by DIANA TRADING LTD.

	
)

	  
	
acting by

	
)

	  
	
Mrs. Sterania Karmiri

	
)

	  
	
its duly authorised

	
)

	  
	
Attorney in Fact

	
)

	  
	
in the presence of:

	
)

	  
	  	  	  

Witness signature:..............................

Name:

Address:

	
SIGNED and DELIVERED

	
)

	  
	
as a DEED

	
)

	  
	
by EUROSEAS LTD.

	
)

	  
	
acting by

	
)

	  
	
Mrs. Sterania Karmiri

	
)

	  
	
its duly authorised

	
)

	  
	
Attorney in Fact

	
)

	  
	
in the presence of:

	
)

	  

Witness signature:..............................

Name:

Address:

  

18

  

	
SIGNED and DELIVERED

	
)

	  
	
as a DEED

	
)

	  
	
by ALCINOE SHIPPING LIMITED

	
)

	  
	
acting by

	
)

	  
	
Mrs. Sterania Karmiri

	
)

	  
	
its duly authorised

	
)

	  
	
Attorney in Fact

	
)

	  
	
in the presence of:

	
)

	  

Witness signature:..............................

Name:

Address:

	
SIGNED and DELIVERED

	
)

	  
	
as a DEED

	
)

	  
	
by GREGOS SHIPPING LIMITED

	
)

	  
	
acting by

	
)

	  
	
Mrs. Sterania Karmiri

	
)

	  
	
its duly authorised

	
)

	  
	
Attorney in Fact

	
)

	  
	
in the presence of:

	
)

	  

Witness signature:..............................

Name:

Address:

	
SIGNED and DELIVERED

	
)

	  
	
as a DEED

	
)

	  
	
by HSBC BANK PLC

	
)

	  
	
acting by

	
)

	  
	
Mr. Antonis Lamnides

	
)

	  
	
its duly authorised

	
)

	  
	
Attorney in Fact

	
)

	  
	
in the presence of:

	
)

	  

Witness signature:..............................

Name:

Address:

  

19

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