Document:

d929463_ex10-16.htm

    Exhibit
10.16

     

    SHARES
PURCHASE AGREEMENT

     

    This
Shares Purchase Agreement (“Agreement”), dated as of 1st October
2008, is by and between PROTAGORAS CHALLENGE INC. of the Marshall Islands
(“Buyer”), and CONSOLIDATED FINANCE TWO LTD of the Marshall Islands
(“Seller”).

     

    RECITALS

     

    WHEREAS,
Seller owns all the 500 shares (“the Shares”) of the issued and outstanding
common stock of CHARTER NAVIGATION INC. of the Marshall Islands (“the Owner”),
which shareholding represents a 100% interest in the Owner; (the
“Shares”);

     

    WHEREAS,
Buyer is a wholly owned subsidiary of DryShips Inc. (“DRYS”), a company
incorporated in The Marshall Islands and the shares of which are traded on the
Nasdaq Global Market;

     

    WHEREAS,
the Owner has purchased Hull 1119 SWS (the “Vessel”), currently under
construction at Shanghai Waigaoqiao Shipbuilding Company Limited (the “Builder”)
as per S/B Contract dated 30th March 2006 (the “S/B Contract”).

     

    WHEREAS,
Seller wishes to sell and Buyer wishes to buy, the Shares, on the terms and
conditions contained herein;

     

    WHEREAS,
the parties acknowledge that the prior written consent of certain lenders to
Seller may be required for Seller to deliver the Shares to Buyer;

     

    WHEREAS,
pending delivery of the Shares, Seller wishes to convey to Buyer, and Buyer
wishes to assume from Seller, all of the economic benefits and burdens of the
Owner.

     

    NOW,
THEREFORE, in consideration of the premises and the respective representations,
warranties, covenants and agreements stated herein, the parties agree as
follows:

     

    ARTICLE
I

    DEFINITIONS

     

    Capitalized
terms used in this Agreement have the meanings specified in (a) the preamble,
(b) the recitals,
(c) this Article I or (d) elsewhere in this Agreement, as the case may
be:

     

    Governmental Body
means any (a) nation, state, country, city, town, village, district, or other
jurisdiction of any nature, (b) federal, state, local, municipal, foreign, or
other government, (c) governmental or quasi-governmental authority of any nature
(including any governmental agency, branch, department, official, or entity and
any court or other tribunal), (d) multinational governmental organization or
body, or (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Laws means all
statutes, treaties, codes, ordinances, decrees, rules, regulations, municipal
bylaws, judicial or arbitral or administrative or ministerial or departmental or
regulatory judgments, orders, decisions, rulings or awards, policies,
certificates, codes, licenses, permits, approvals, guidelines, voluntary
restraints, inspection reports, or any provisions of such laws, including
general principles of common law and equity and the requirements of all
Governmental Bodies, binding or affecting the Person referred to in the context
in which such word is used; and “Law” means any one of them.

     

    Lien means, with
respect to the Shares and assets owned by the Seller, (whether the same is
consensual or nonconsensual or arises by contract, operation of law, legal
process or otherwise): (i) any mortgage, lien, security interest, pledge,
attachment, levy or other charge or encumbrance of any kind thereupon or in
respect thereof; or (ii) any other arrangement under which the same is
transferred, sequestered or otherwise identified with the intention of
subjecting the same to, or making the same available for, the payment or
performance of any liability in priority to the payment of the ordinary,
unsecured creditors, and which under applicable law has the foregoing effect,
including any “adverse claim.

     

    Person means any
individual, firm, corporation, partnership, limited liability company, joint
venture, association, trust, unincorporated organization, government or agency
or subdivision thereof or any other entity.

     

    ARTICLE
II

    PURCHASE
OF SHARES; CLOSINGS

     

    Section
2.1  Purchase of
Shares. Upon the terms and subject to the conditions of this Agreement,
and on the basis of the representations and warranties hereinafter set forth,
Seller agrees to sell, transfer, convey, assign and deliver to Buyer, and Buyer
agrees to acquire and buy from Seller, the Shares, free and clear of all liens
immediately upon receipt of the requisite consents of Seller’s
lenders.

     

    Section
2.2  (a)  Pending delivery of the Shares, Seller agrees to
convey to Buyer, and Buyer agrees to assume from Seller, all of the economic
benefits and burdens of the Owner and of ownership of the Vessel. In furtherance
of the foregoing, as of 12:01 AM, Athens Time, on the Initial Closing Date (as
defined below), Seller shall cause the Owner to hold any funds received from
whatever source, on account and to the benefit of Buyer subject to payment of
the Owner’s liabilities and obligations; provided, however, that Seller shall
not permit the Owner to incur any new obligations or liabilities without the
consent of Buyer. It is clarified that any earnings of the Owner collected or to
be collected by the Owner and any and all expenses incurred or to be incurred by
the Owner in connection with the time up to 12.00 AM, Athens time, on the
Initial Closing Date shall be to the benefit or at the expense, respectively, of
Seller.

     

    (b)           Commencing
with the delivery of the Vessel from the Builder, Seller shall cause all charter
hire to be received at the account of the Owner with the Lending Bank and will
cause such charter hire to be utilized from such account to
cover:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	
                 
      

              	
                (i)

              	
                the
      Vessel’s running expenses under her management by CARDIFF MARINE
      INC.;

              

      

       

    

    
      	
               
      

            	
              (ii)

            	
              the
      retention account for the payment of principal under the relevant loan
      facility agreement between the Owner and Nordea Bank acting on behalf of a
      syndicate of Banks;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              interest
      and any other amounts payable under the relevant
  loan;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      liquidity requirements for the relevant
loan;

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      contractual liabilities of the Owner pursuant to any swaps
      Agreement;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              any
      other obligations that have been incurred with Buyer’s
      consent.

            

    

     

    The
surplus, if any, will be held by the Owner for the account of Buyer and shall be
distributed / remitted to Buyer on request as permitted by the existing
Loan Agreement.

     

    The Owner
is and shall remain the beneficiary of the warranties from the
Builder.

     

    Section
2.3  Voting.
Pending the delivery of the Shares, Seller hereby agrees to follow the
instructions and to cause the Board of Directors and officers of the Owner to
follow the instructions of Buyer.

     

    It is
hereby clarified that the Owner may at any time sell the Vessel provided Buyer
approves the terms and conditions of such sale.

     

    Section
2.4  Closings:
The closings of the transactions contemplated hereby (the “Closings”)
shall take place on dates to be mutually agreed in the premises of Deverakis Law
Office (Omega Building, 80 Kifisias Avenue, Marousi) in Athens, Greece, or at
such other place upon which Buyer and Seller shall agree. The dates on which the
Closings are to be held are referred to in this Agreement as the “Initial
Closing Date” and “Final Closing Date respectively.” The Initial Closing Date
shall be a date to be agreed by the parties while the Final Closing Date will be
a date to be agreed by the parties when the transfer of Shares of the Owner to
Buyer will be effected. The parties need not be present at Closings, and
documents may be delivered through counsel.

     

    Section
2.5  Purchase Price.
The aggregate purchase price payable to Seller for the Shares shall
consist of a number of common shares issued by DryShips Inc. (“DRYS”) estimated
by both Seller and Buyer to represent the fair market value of the assets
ultimately owned by the Seller, namely the Vessel, which is Hull 1119 scheduled
to be registered under Malta flag. These common shares of DryShips Inc. shall be
made available to Seller as follows:

     

    On the
Initial Closing Date 1,625,963 shares of the common stock of DRYS. The number of
these shares has been calculated basis USD 35.5 per share. This price reflects
the closing price of the shares of DRYS on the Nasdaq Global Market on the last
trading day excluding the date of the Agreement, that is, USD 35.5 per share. In
the event that the actual instalments paid to the Builder on the Initial Closing
Date are more than the amount described hereinbelow under 3.1 Buyer will pay
Seller an amount equal to the difference between the additional shipyard
instalment and the additional debt incurred in cash or in shares of common stock
of DRYS at USD 35.5 per share at Seller’s option. It is agreed by the parties
that (i) from the
Initial Closing Date Seller will enjoy all benefits in respect of above shares
(including but not limited receipt of dividends and voting rights) (ii) these
shares of the Common Stock of DRYS will be held in escrow until the Final
Closing Date in case such shares are issued in paper form they shall be held in
escrow by Seward & Kissel LLP, N.Y.; In case such shares are issued in
electronic form such restriction will be noted and such shares will be held by
AST & T, N.Y. (iii) These shares of the Common Stock of DRYS will be
released by the Escrow Agent without any condition to Seller against transfer of
the Shares of the Owner by Seller to Buyer on the Final Closing
Date.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES OF SELLER

     

    Seller
represents and warrants to Buyer as follows:

     

    Section
3.1  Authorization .
Seller has full corporate power and authority under its governing
documents, directors have taken all necessary action to authorize it, to execute
and deliver this Agreement, to consummate the transactions contemplated herein
and to take all actions required to be taken by it pursuant to the provisions
hereof. It is noted that currently the acquisition of the Vessel is financed by
NORDEA BANK acting on behalf of a syndicate of Banks (the “Lending Bank”). In
above context Buyer hereby undertakes to either obtain the Consent of NORDEA
BANK in respect of the transactions contemplated herein until or latest on the
Final Closing Date or timely and fully repay the amount of loan due under the
loan agreement between the Owner and NORDEA BANK acting on behalf of a syndicate
of Banks as per the repayment schedule attached to this Agreement as Exhibit A.
Buyer hereby undertakes to pay the Builder the outstanding balance of the
purchase price as per S/B Contract (payment Schedule is attached to this
Agreement forming Exhibit B).

     

    This
Agreement constitutes the valid and binding obligation of Seller enforceable in
accordance with its terms.

     

    Section
3.2  Title to
Shares. Seller owns beneficially and on record all of the Shares and at
the Final Closing will own beneficially and on record all of the Shares, in each
case free and clear of all Liens, debts, dues and duties of whatsoever nature
except as disclosed in clause 3.1 thereof. Such Shares at Final Closing will not
be subject to any agreements or understandings with respect to the voting or
transfer of any of the Shares. The Shares have been duly authorized and validly
issued and are fully paid and nonassessable. At Final Closing Date Seller will
have full right to sell, assign, convey and transfer the Shares to Buyer
pursuant to the terms hereof and will, upon delivery of a certificate or
certificates representing such Shares to Buyer, endorsed, transfer to Buyer
title to such Shares, free and clear of any liens, debts, dues and duties of
whatsoever nature.

     

    (a)           At
Final Closing Date there will not be any, outstanding subscriptions, options,
convertible securities, warrants or calls or preemptive rights of any kind
issued or granted by, or binding upon, Seller to purchase or otherwise acquire
or to sell or otherwise dispose of the Shares or any interest in
them.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.3  Non-Contravention.
Except as stated in clause 3.1 thereof neither the execution and delivery
of this Agreement or any documents executed in connection herewith, nor the
consummation of the transactions contemplated herein on the Final Closing Date
shall:

     

    (a)           violate,
conflict with, result in a breach of or require notice or consent under (i) any
Law, (ii) the governing documents of Seller or (iii) any provision of any
agreement or instrument to which Seller is a party;

     

    (b)           contravene,
conflict with, or result in a violation of, or give any Governmental Body or
other Person the right to challenge any of such transactions or to exercise any
remedy or obtain any relief under, any Law, to which Seller or the Shares, is
subject;

     

    (c)           require
notice to or consent of any Governmental Body; or

     

    (d)           result
in the imposition or creation of any Lien or duty upon or with respect to the
Shares.

     

    Section
3.4  Validity.
Except as stated in clause 3.1 thereof, there is no investigation, claim,
proceeding or litigation of any type pending or, threatened to which Seller is a
party that (i) questions or involves the validity or enforceability of any of
Seller’s obligations under this Agreement or (ii) seeks (or reasonably might be
expected to seek) (A) to prevent or delay the consummation by Seller of the
transactions contemplated by this Agreement or (B) damages in connection with
any such consummation.

     

    Section
3.5  Litigation.
There is no investigation, claim, proceeding or litigation of any type
pending or, against the Seller.

     

    ARTICLE
IV

    REPRESENTATIONS
AND WARRANTIES OF BUYER

     

    Buyer
represents and warrants to Seller as follows:

     

    Section
4.1  Authorization.
Buyer has full corporate power and authority under governing documents,
and its board of directors have taken all necessary action to authorize it, to
execute and deliver this Agreement, to consummate the transactions contemplated
herein or therein and to take all actions required to be taken by it pursuant to
the provisions hereof or thereof, and this Agreement constitutes the valid and
binding obligation of Buyer, enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and other similar laws affecting creditors’ rights generally and to the
principles of equity (whether enforcement is sought in a proceeding in equity or
at law).

     

    Section
4.2  Non-Contravention.
Neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated herein or therein, does or shall
violate, conflict with or result in breach of or require notice or consent under
any Law, the governing documents of Buyer nor any provision of any agreement or
instrument to which Buyer is a party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
4.3  Validity.
There is no investigation, claim, proceeding or litigation of any type
pending or, threatened to which Buyer is a party that (i) questions or involves
the validity or enforceability of any of Buyer’s obligations under this
Agreement or (ii) seeks (or reasonably might be expected to seek) (A) to prevent
or delay the consummation by Buyer of the transactions contemplated by this
Agreement or (B) damages in connection with any such consummation.

     

    ARTICLE
V

    COVENANTS

     

    Section
5.1  Conduct of
Business Pending Final Closing. Buyer and Seller agree that between the
date of the execution of this Agreement and the Final Closing Date Buyer and
Seller shall (i) conduct the business and maintain and preserve the assets of
Seller in the ordinary course of business, and (ii) use their reasonable efforts
to cause all of the representations and warranties in Article III hereof to
continue to be true and correct.

     

    Section
5.2  Further
Assurances. Subject to the prior written consent of Seller’s Lending Bank
or full repayment by Buyer of the balance of the loan due by the Owner to the
present Lending Bank(s), Seller shall execute, acknowledge and deliver or cause
to be executed, acknowledged and delivered to the Buyer such assignments or
other instruments of transfer, assignment and conveyance, in form and substance
reasonably satisfactory to Buyer, as shall be necessary to vest in Buyer all of
the right, title and interest in and to the Shares undertaken to be sold to
Buyer by Seller pursuant to this Agreement, free and clear of all Liens, debts,
dues and duties of whatsoever nature, and any other document reasonably
requested by Buyer in connection with this Agreement. It is noted that at the
time of transfer of the Shares of the Owner to Buyer, the amount of 1,625,963
shares of the Common Stock of DRYS agreed to be held in escrow as described in
Article 2.5 will be released to Seller by the Escrow Agent without any
condition.

     

    Section
5.3  Governmental
Filings. As promptly as practicable after the execution of this
Agreement, each party shall, in cooperation with the other, file any reports or
notifications that may be required to be filed by it under applicable law, if
any.

     

    Section
5.4  Consents.
After the Final Closing Date, Seller shall obtain any consents or
approvals or assist in any filings reasonably required in connection with the
transactions contemplated hereby that are requested by Buyer and that have not
been previously obtained or made.

     

    Section
5.5  Public
Announcements. Neither party shall, without the prior approval of the
other party, issue, or permit any of its partners, stockholders, directors,
officers, employees, members, managers, agents to issue, any press release or
other public announcement with respect to this Agreement or the transactions
contemplated hereby, except as may be required by Law or any regulatory
Authority to which relevant party is accountable.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
VI

    INDEMNIFICATION

     

    Section
6.1  Seller’s
Indemnity Obligations. Seller agrees to indemnify Buyer against, and hold
Buyer harmless from and against, any amounts that arise from, are based on or
relate or otherwise are attributable to (a) any error, inaccuracy, breach or
misrepresentation in any of the representations and warranties made by or on
behalf of Seller in this Agreement, (b) any violation or breach by Seller of or
default by Seller under the terms of this Agreement. Buyer shall be entitled to
recover its reasonable and necessary attorneys’ fees and litigation expenses
incurred in connection with successful enforcement of its rights under this
Section 6.1.

     

    Section
6.2  Buyer’s
Indemnity Obligations. Buyer shall indemnify Seller against, and hold
Seller harmless from and against, any and all amounts that arise from, are based
on or relate or otherwise are attributable to (a) any error, inaccuracy, breach
or misrepresentation in any of the representations and warranties made by or on
behalf of Buyer in this Agreement, (b) any violation or breach by Buyer of or
default by Buyer under the terms of this Agreement. Seller shall be entitled to
recover its reasonable and necessary attorneys’ fees and litigation expenses
incurred in connection with successful enforcement of their rights under this
Section 6.2.

     

    Section
6.3  Survival of
Indemnity Obligation. The rights and duties contained in this Article VI
shall survive the Final Closing.

     

    ARTICLE
VII

    CONDITIONS
TO INITIAL AND FINAL CLOSINGS

     

    Section
7.1  Conditions to
Obligations of Buyer. The obligations of Buyer to consummate the
transactions contemplated herein are subject, at the option of Buyer, to
satisfaction of the following conditions:

     

    (a)           Compliance. Prior to or
latest on the Final Closing Date Seller shall have complied with its covenants
and agreements contained herein, and the representations and warranties
contained in Article III hereof shall be true and correct in all material
respects (except those representations and warranties qualified by materiality
shall be true and correct in all respects) on the date hereof and as of the
Final Closing Date.

     

    (b)           Share Certificate. Latest on
the Final Closing Date, Seller shall deliver certificates evidencing the Shares
each endorsed in favour of Buyer executed by Seller.

     

    (c)           Orders, Etc. No action, suit
or proceeding shall have been commenced or shall be pending or threatened, and
no statute, rule, regulation or order shall have been enacted, promulgated,
issued or deemed applicable to the transactions contemplated by this Agreement,
by any Governmental Body or court that reasonably may be expected to prohibit
consummation of the transactions contemplated by this Agreement.

     

    (d)           Consents. All consents and
approvals required in connection with the execution, delivery and performance of
this Agreement shall have been obtained, save for any consent required from the
present Lending Bank(s).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
7.2  Conditions to Obligations of
Seller. The obligations of Seller to consummate the transactions
contemplated herein are subject, at the option of Seller, to satisfaction of the
following conditions:

     

    (a)           Compliance.  Buyer
shall have complied with its covenants and agreements contained herein, and the
representations and warranties contained in Article IV hereof shall be true and
correct in all material respects (except those representations and warranties
qualified by materiality shall be true and correct in all respects) on the date
hereof and as of the Initial Closing Date.

     

    (b)           Orders, Etc. No action, suit
or proceeding shall have been commenced or shall be pending or threatened, and
no statute, rule, regulation or order shall have been enacted, promulgated,
issued or deemed applicable to the transactions contemplated by this Agreement,
by any Governmental Body or court that reasonably may be expected to prohibit
consummation of the transactions contemplated by this Agreement.

     

    (c)           Consents. All consents and
approvals required in connection with the execution, delivery and performance of
this Agreement shall have been obtained; however, Seller shall only obtain and
provide evidence in connection with the sale of the shares to the Buyer upon
either (a) consent of the Lending Bank to the sale of the shares or (b)
repayment at the expense of Buyer latest upon the Final Closing
Date.

     

    (d)           Purchase Price. Buyer shall
have advanced to the Seller the Purchase Price due under Section 2.
5.

     

    ARTICLE
VIII

    TERMINATION

     

    Section
8.1  Grounds for
Termination. This Agreement may be terminated at any time prior to the
Final Closing Date:

     

    (a)           By
the mutual written agreement of Buyer and Seller;

     

    (b)           By
Buyer if any of the conditions set forth in Section 7.1 hereof shall have become
incapable of fulfillment and shall not have been waived by Buyer;

     

    (c)           By
Seller if any of the conditions set forth in Section 7.2 hereof shall have
become incapable of fulfillment and shall not have been waived by
Seller;

     

    (d)           By
either party by written notice thereof to the other, if the Final Closing
contemplated hereby shall not have been consummated on or before 31 December
2009 or such other date, if any, as Buyer and Seller shall agree upon in
writing; or

     

    (e)           By
Buyer or Seller if the consummation of the transactions contemplated hereby
would violate any nonappealable final order, decree or judgment of any court or
Governmental Body having competent jurisdiction enjoining, restraining or
otherwise preventing, or awarding substantial damages in connection with, or
imposing a material adverse condition upon, the consummation of this Agreement
or the transactions contemplated hereby; provided, however, that a
party shall not be allowed to exercise any right of termination pursuant to this
Section 8.1 if the event giving rise to such termination right shall be due to
the negligent or willful failure of the party seeking to terminate this
Agreement to perform or observe in any material respect any of the covenants or
agreements set forth herein to be performed or observed by such
party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
IX

    GENERAL
PROVISIONS

     

    Section
9.1  Entire
Agreement. This Agreement constitutes the entire agreement of the parties
with respect to the subject matter hereof. This Agreement may not be modified,
amended or terminated except by a written instrument specifically referring to
this Agreement signed by all the parties hereto.

     

    Section
9.2  Waivers and
Consents. All waivers and consents given hereunder shall be in writing.
No waiver by any party hereto of any breach or anticipated breach of any
provision hereof by any other party shall be deemed a waiver of any other
contemporaneous, preceding or succeeding breach or anticipated breach, whether
or not similar. Except as provided in this Agreement, no action taken pursuant
to this Agreement, including any investigation by or on behalf of any party,
shall be deemed to constitute a waiver by the party taking such action of
compliance with any representations, warranties, covenants or agreements
contained in this Agreement.

     

    Section
9.3  Notices.
All notices and other communications hereunder shall be in writing and
shall be deemed to have been received only if and when (a) personally delivered,
(b) on the fifth day after mailing, by mail, first class, postage prepaid or by
certified mail return receipt requested, addressed in each case as follows (or
to such other address as may be specified by like notice), (c) at the time
receipt is acknowledged when delivered by private mail or courier service or (d)
received by facsimile at the phone number listed below:

     

    (a)           If
to Buyer to:

     

    c/o
DryShips Inc.

    Omega
Building

    80
Kifisias Avenue

    Marousi,
Athens, Greece 

    Attn: The
CEO

    Telefax:
+30 210 8090505

     

    

    (b)           If
to Seller to:

     

    c/o
CARDIFF MARINE INC. 

    Omega
Building

    80
Kifisias Avenue

    Marousi,
Athens, Greece

    Attn: Mr.
A. Ioannidis, G.M. 

    Fax: +30
210 8090205

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
9.4   Assignments,
Successors and No Third-Party Rights. No party may assign any of its
rights or delegate any of its obligations under this Agreement without the prior
written consent of the other party. Subject to the preceding sentence, this
Agreement will apply to, be binding in all respects upon and inure to the
benefit of the successors and permitted assigns of the parties.

     

    Section
9.5  Choice of Law;
Resolution of Disputes. This Agreement shall be governed by the laws of
England (without regard to the choice of law provisions thereof). All disputes,
differences, controversies or claims arising out of or in connection with this
Agreement shall be arbitrated at London in the following manner. One arbitrator
is to be appointed by each of the parties hereto and the two appointed
arbitrators shall appoint a third arbitrator. Their decision or that of any two
of them shall be final . The arbitrators shall be commercial persons, conversant
with shipping matters and members of the London Maritime Arbitrators
Association. Such arbitration is to be conducted in accordance with the rules
and on the terms current at the time when the arbitration proceedings are
commenced and in accordance with the Arbitration Act 1996 or any statutory
modification or reenactment thereof.

     

    Section
9.6  Construction;
Section Headings; Table of Contents. The language used in this Agreement
shall be deemed to be the language the parties hereto have chosen to express
their mutual intent, and no rule of strict construction will be applied against
any party hereto. The section headings and any table of contents contained in
this Agreement are for reference purposes only and shall not affect the meaning
or interpretation of this Agreement.

     

    Section
9.7  Severability.
Any term or provision of this Agreement which is invalid or unenforceable
in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
of such invalidity or unenforceability without rendering invalid or
unenforceable the remaining terms and provisions of this Agreement or affecting
the validity or enforceability of any of the terms or provisions of this
Agreement in any other jurisdiction. If any provision of this Agreement is so
broad as to be unenforceable, the provision shall be interpreted to be only so
broad as is enforceable.

     

    Section
9.8  Counterparts.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first above written.

     

    
      	 
      	 
      	
              For
      the Buyer

            
	 
      	 
      	 
      
	 
      	 
      	
              By:

            	
              /s/
      Angelos Papoulias

            
	 
      	 
      	 
      	
              Name:
      Angelos Papoulias

            
	 
      	 
      	 
      	
              Title:  Attorney-in-fact

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              For
      the Seller

            
	 
      	 
      	 
      
	 
      	 
      	
              By:

            	
              /s/
      Charalambos Alivizatos

            
	 
      	 
      	 
      	
              Name:
      Charalambos Alivizatos

            
	 
      	 
      	 
      	
              Title:
      Attorney-in-fact

            
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Summary
of Principal Terms of Nordea Loan Facility

    re
:m/v H.1119

     

    
      	
               
      

            	
              1.

            	
              Loan
      Facility dated November 2007.

            

    

     

    
      	
               
      

            	
              2.

            	
              Initial
      Amount of Principal : USD
60,000,000

            

    

     

    
      	
               
      

            	
              3.

            	
              Repayment
      Period: Four (4) years from vessel
delivery.

            

    

     

    
      	
               
      

            	
              4.

            	
              Interest
      Rate: USD Libor plus:

            

    

     

    
      	
               
      

            	
              1.

            	
              0,80%
      if equity ratio > or equal to
0,55

            

    

    
      	
               
      

            	
              2.

            	
              0,90%
      if equity ratio > or equal to 0.45 and <
  0,55

            

    

    
      	
               
      

            	
              3.

            	
              1%
      if equity ratio < 0,45

            

    

     

    
      	
               
      

            	
              5.

            	
              Loan
      Repayment Schedule attached.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    HULL 1119
(Nordea)

    LOAN
REPAYMENT SCHEDULE

     

    
      	
              DATE

            	
              INSTALMENT

            	
              0/S
      BALANCE

            
	
              30-Sep-10

            	 
      	
              60.000.000

            
	
              31-Dec-10

            	
              1.250.000

            	
              58.750.000

            
	
              31-Mar-11

            	
              1.250.000

            	
              57.500.000

            
	
              30-Jun-11

            	
              1.250.000

            	
              56.250.000

            
	
              30-Sep-11

            	
              1.250.000

            	
              55.000.000

            
	
              31-Dec-11

            	
              1.250.000

            	
              53.750.000

            
	
              31-Mar-12

            	
              1.250.000

            	
              52.500.000

            
	
              30-Jun-12

            	
              1.250.000

            	
              51.250.000

            
	
              30-Sep-12

            	
              1.250.000

            	
              50.000.000

            
	
              31-Dec-12

            	
              1.250.000

            	
              48.750.000

            
	
              31-Mar-13

            	
              1.250.000

            	
              47.500.000

            
	
              30-Jun-13

            	
              1.250.000

            	
              46.250.000

            
	
              30-Sep-13

            	
              1.250.000

            	
              45.000.000

            
	
              31-Dec-13

            	
              1.000.000

            	
              44.000.000

            
	
              31-Mar-14

            	
              1.000.000

            	
              43.000.000

            
	
              30-Jun-14

            	
              1.000.000

            	
              42.000.000

            
	
              30-Sep-14

            	
              42.000.000

            	
              0

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Hull 1119 (Capesize Bulk
Carrier DWT 177,000) CAPESHIPS

    
      	
              Bank

            	
              Nordea

            	 
      	 
      	 
      	 
      
	
              Loan

            	
              60,000,000

            	 
      	 
      	 
      	 
      
	
              Contract
      Price

            	
              65,700,000

            	 
      	 
      	 
      	 
      
	
              Builders

            	
              Shanghai
      Waigaoqiao Shipbuilding Co Ltd.

            	 
      	 
      
	
              Delivery
      as per contract

            	
              31-Oct-10

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              Date

            	
              Loan

            	
              Owners contribution

            	
              Total Yard Installments

            	 
      
	
              1st
      Signing 10%

            	
              26-Jan-07

            	
              870,000

            	
              5,700,000

            	
              6,570,000

            	
              paid

            
	
              2nd
      Signing 15%

            	
              30-May-07

            	
              9,855,000

            	 
      	
              9,855,000

            	
              paid

            
	
              3rd
      Steel Cutting 10%

            	
              Dec-09

            	
              6,570,000

            	 
      	
              6,570,000

            	 
      
	
              4th
      Keel Laying 10%

            	
              Feb-10

            	
              6,570,000

            	
              0

            	
              6,570,000

            	 
      
	
              5th
      Launching 10%

            	
              Jul-10

            	
              6,570,000

            	
              0

            	
              6,570,000

            	 
      
	
              6th
      Delivery 45%

            	
              Sep-10

            	
              29,565,000

            	
              0

            	
              29,565,000

            	 
      
	 
      	 
      	
              60,000,000

            	
              5,700,000

            	
              65,700,000exhibit4b.htm

    Exhibit 4(b)

      
        

         

        

      

       

      PPL
ELECTRIC UTILITIES CORPORATION

      

       

      TO

       

      THE BANK OF NEW YORK
MELLON,

       

      

       

      Trustee

       

      

      

      

      

      _____________________________

       

      Supplemental
Indenture No. 8

      Dated
as of October 1, 2008

      

       

      _____________________________

       

      Supplemental
to the Indenture

      dated
as of August 1, 2001

      

       

      _____________________________

       

      Establishing
Terms of

      

      Senior
Secured Bonds, 7.125% Series due 2013

       

      

      

      

      
        

         

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Supplemental
Indenture No. 8

       

      SUPPLEMENTAL
INDENTURE No. 8,
dated as of the 1st day of October, 2008, made and entered into by and between
PPL ELECTRIC UTILITIES CORPORATION, a corporation of the Commonwealth of
Pennsylvania, having its principal corporate offices at Two North Ninth Street,
Allentown, Pennsylvania 18101 (hereinafter sometimes called the “Company”), and
THE BANK OF NEW YORK MELLON, a New York banking corporation, having its
corporate trust office at 101 Barclay Street, 4th Floor, New York, New
York  10286 (hereinafter sometimes called the “Trustee”), as Trustee
under the Indenture, dated as of August 1, 2001 (hereinafter called the
“Original Indenture”), this Supplemental Indenture No. 8 being supplemental
thereto.  The Original Indenture and any and all indentures and
instruments supplemental thereto are hereinafter sometimes collectively called
the “Indenture.”

       

      RECITALS
OF THE COMPANY

       

      The
Original Indenture was authorized, executed and delivered by the Company to
provide for the issuance from time to time of its Securities (such term and all
other capitalized terms used herein without definition having the meanings
assigned to them in the Original Indenture), to be issued in one or more series
as contemplated therein, and to provide security for the payment of the
principal of and premium, if any, and interest, if any, on such
Securities.

       

      The
Company has heretofore executed and delivered to the Trustee Supplemental
Indentures for the purposes recited therein and for the purpose of creating
series of securities as set forth in Schedule A hereto.

       

      Pursuant
to Article Three of the Original Indenture, the Company wishes to establish a
tenth series of Securities, such series of Securities to be hereinafter
sometimes called “Securities of the Tenth Series.”

       

      As
contemplated in Section 301 of the Original Indenture, the Company further
wishes to establish the designation and certain terms of the Securities of the
Tenth Series.  The Company has duly authorized the execution and
delivery of this Supplemental Indenture No. 8 to establish the designation and
certain terms of the Securities of the Tenth Series and has duly authorized the
issuance of such Securities; and all acts necessary to make this Supplemental
Indenture No. 8 a valid agreement of the Company, and to make the Securities of
the Tenth Series valid obligations of the Company, have been
performed.

       

      NOW,
THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 8 WITNESSETH, that, for and in
consideration of the premises and of the purchase of the Securities by the
Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of the Holders of the Securities of the Tenth Series, as
follows:

       

      ARTICLE
ONE.

       

      Tenth
Series Of Securities

       

      SECTION
101.   There is
hereby created a series of Securities designated “Senior Secured Bonds, 7.125%
Series due 2013,” and the Securities of such series shall have the terms
provided therefor in this Article One of this Supplemental Indenture No. 8,
shall be limited in aggregate principal amount (except as contemplated in
Section 301(b) of the Original Indenture) to $400,000,000, and shall have such
terms as are hereby established for such Securities of the Tenth Series as
contemplated in Section 301 of the Original Indenture.  The form or
forms and additional terms of the Securities of the Tenth Series shall be
established in an Officer’s Certificate of the Company, as contemplated by
Section 201 of the Original Indenture.

       

      SECTION
102.   Covenants.  So long
as any Securities of the Tenth Series shall remain Outstanding, each of the
following shall be an additional covenant of the Company under the
Indenture:

       

      (a) After the
date of the first authentication of Securities of the Tenth Series, the Company
shall not issue additional Class A Bonds under the PPL 1945 Mortgage except for
Class A Bonds (i) to replace mutilated, destroyed, lost or stolen Class A Bonds
of the same series or to effect transfers, exchanges, or partial redemptions,
payments or retirements of Class A Bonds; (ii) to be delivered to the Trustee
under the Indenture; or (iii) to refund or refinance outstanding Class A
Bonds.

       

      (b) So long
as any Securities of the Tenth Series shall remain Outstanding, the Company
shall not cause or permit the Release Date to be established, as contemplated in
Section 1811 of the Original Indenture.

       

      SECTION
103.   Release of Mortgaged
Property.  So long as any Securities of the Tenth Series shall
remain Outstanding, any Officer’s Certificate delivered pursuant to Section
1803(b) of the Original Indenture shall also state that (except in any case
where a Governmental Authority has lawfully ordered the Company to divest itself
of such property) such release is, in the judgment of the signers, desirable in
the conduct of the business of the Company.

       

      SECTION
104.   Satisfaction and
Discharge.  The Company hereby agrees that, if the Company
shall make any deposit of money and/or Eligible Obligations with respect to any
Securities of the Tenth Series, or any portion of the principal amount thereof,
as contemplated by Section 801 of the Indenture, the Company shall not deliver
an Officer’s Certificate described in clause (z) in the first paragraph of said
Section 801 unless the Company shall also deliver to the Trustee, together with
such Officer’s Certificate, either:

       

      (a) an
instrument wherein the Company, notwithstanding the satisfaction and discharge
of its indebtedness in respect of such Securities, shall retain the obligation
(which shall be absolute and unconditional) to irrevocably deposit with the
Trustee or Paying Agent such additional sums of money, if any, or additional
Eligible Obligations (meeting the requirements of Section 801), if any, or any
combination thereof, at such time or times, as shall be necessary, together with
the money and/or Eligible Obligations theretofore so deposited, to pay when due
the principal of and premium, if any, and interest due and to become due on such
Securities or portions thereof, all in accordance with and subject to the
provisions of said Section 801; provided, however, that such instrument may
state that the obligation of the Company to make additional deposits as
aforesaid shall be subject to the delivery to the Company by the Trustee of a
notice asserting the deficiency accompanied by an opinion of an independent
public accountant of nationally recognized standing, selected by the Trustee,
showing the calculation thereof (which opinion shall be obtained at the expense
of the Company); or

       

      (b) an
Opinion of Counsel to the effect that the Holders of such Securities, or
portions of the principal and amount thereof, will not recognize income, gain or
loss for United States federal income tax purposes as a result of the
satisfaction and discharge of the Company’s indebtedness in respect thereof and
will be subject to United States federal income tax on the same amounts, at the
same times and in the same manner as if such satisfaction and discharge had not
been effected.

       

      
        SECTION 105.  Trustee to Hold Class A
Bonds In New York.  So long as any Securities of the Tenth
Series remain Outstanding, the Trustee shall hold in the State of New York all
Class A Bonds delivered to and to be held by it pursuant to Sections 1602 and
1701 of the Indenture; provided that the Trustee may hold such Class A Bonds in
another jurisdiction if it receives an Opinion of Counsel to the effect that the
perfection and priority of the security interest, if any, created by the last
sentence of such Section 1701 will continue in such other jurisdiction and
notifies the Company of such change in jurisdiction.

         

        ARTICLE
TWO.

         

        Miscellaneous
Provisions

         

        SECTION 201.  This
Supplemental Indenture No. 8 is a supplement to the Original
Indenture.  As supplemented by this Supplemental Indenture No 8, the
Indenture is in all respects ratified, approved and confirmed, and the Original
Indenture and this Supplemental Indenture No. 8 shall together constitute the
Indenture.

         

        SECTION 202.  The
recitals contained in this Supplemental Indenture No. 8 shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for their
correctness and makes no representations as to the validity or sufficiency of
this Supplemental Indenture No. 8.

         
This
instrument may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No.
8 to be duly executed as of the day and year first written above.

       

      PPL
ELECTRIC UTILITIES CORPORATION

       

      
        	
                 
      

              	
                By

              	 	 

      

      
        	
                 
      

              	
                Name:

              	
                James
      E. Abel

              

      

      
        	
                 
      

              	
                Title:

              	
                Treasurer

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      THE BANK
OF NEW YORK MELLON, as Trustee

       

      
        	
                 
      

              	
                By

              	 	 

      

      
        	
                 
      

              	
                Name:

              

      

      
        	
                 
      

              	
                Title:

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        
          
            
              	
                      COMMONWEALTH
      OF PENNSYLVANIA

                    	
                      )

                    	 
      
	 
      	
                      )

                    	
                      ss.:

                    
	
                      COUNTY
      OF LEHIGH

                    	
                      )

                    	 
      

            

          

        

         

      

       

       

      
On this
17th day of October, 2008, before me, a notary public, the undersigned,
personally appeared James E. Abel, who acknowledged himself to be the Treasurer
of PPL ELECTRIC UTILITIES CORPORATION, a corporation of the Commonwealth of
Pennsylvania and that he, as such Treasurer, being authorized to do so, executed
the foregoing instrument for the purposes therein contained, by signing the name
of the corporation by himself as Treasurer.

       

      In
witness whereof, I hereunto set my hand and official seal.

       

       

      
         

        
          	
                   
      

                	
                  By:

                	 	 

        

        
          	
                   
      

                	
                  Notary
      Public

                

        

        

      

      
 

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

       

       

      
        
          

          
            	
                    STATE
      OF NEW YORK

                  	
                    )

                  	 
      
	 
      	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
      OF NEW YORK

                  	
                    )

                  	 
      

          

          

        

         

      

       

      On this
17th day of October, 2008, before me, a notary public, the undersigned,
personally appeared _________________, who acknowledged herself to be Vice
President of THE BANK OF NEW YORK MELLON, a corporation and that she, as Vice
President, being authorized to do so, executed the foregoing instrument for the
purposes therein contained, by signing the name of the corporation by herself as
Vice President.

       

      In
witness whereof, I hereunto set my hand and official seal.

       

      
        	
                 
      

              	
                By:

              	 	 

      

      
        	
                 
      

              	
                Notary
      Public

              

      

      

       

      The Bank
of New York Mellon hereby certifies that its precise name and address as Trustee
hereunder are:

       

      The Bank
of New York Mellon

      Global
Structured Finance

      101
Barclay Street, 4th Floor

      New York,
New York 10286

      Attn:  Global
Americas

       

      THE BANK
OF NEW YORK MELLON, as Trustee

       

      By:                                                

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
A

       

      
        	
                Supplemental
 Indenture
      No.

                 

              	
                Dated as
      of

                 

              	
                Series

                 

              	
                Series
      Designation

                 

              	
                Principal
Amount
Authorized

                 

              	
                Principal
      
Amount Issued

                 

              	
                Principal
Amount
Outstanding1

                 

              
	
                1

              	
                August
      1, 2001

              	
                First

              	
                Senior
      Secured Bonds,

                5
      7/8% Series due 2007

              	
                $300,000,000

              	
                $300,000,000

              	
                None

              
	
                1

              	
                August
      1, 2001

              	
                Second

              	
                Senior
      Secured bonds,

                6
      1⁄4% Series due 2009

              	
                $500,000,000

              	
                $500,000,000

              	
                $485,785,000

              
	
                2

              	
                February
      1, 2003

              	
                Third

              	
                Senior
      Secured Bonds, 3.125% Pollution Control Series due 2008

              	
                $90,000,000

              	
                $90,000,000

              	
                $90,000,0002

              
	
                3

              	
                May
      1, 2003

              	
                Fourth

              	
                Senior
      Secured Bonds, 4.30% Series due 2013

              	
                $100,000,000

              	
                $100,000,000

              	
                $100,000,000

              
	
                4

              	
                February
      1, 2005

              	
                Fifth

              	
                Senior
      Secured Bonds, 4.70% Pollution Control Series due 2029

              	
                $115,500,000

              	
                $115,500,000

              	
                $115,500,000

              
	
                5

              	
                May
      1, 2005

              	
                Sixth

              	
                Senior
      Secured Bonds, 4.75% Pollution Control Series due 2027

              	
                $108,250,000

              	
                $108,250,000

              	
                $108,250,000

              
	
                6

              	
                December
      1, 2005

              	
                Seventh

              	
                Senior
      Secured Bonds, 4.95% Series due 2015

              	
                $100,000,000

              	
                $100,000,000

              	
                $100,000,000

              
	
                6

              	
                December
      1, 2005

              	
                Eighth

              	
                Senior
      Secured Bonds, 5.15% Series due 2020

              	
                $100,000,000

              	
                $100,000,000

              	
                $100,000,000

              
	
                7

              	
                August
      1, 2007

              	
                Ninth

              	
                Senior
      Secured Bonds, 6.45% Series due 2037

              	
                $250,000,000

              	
                $250,000,000

              	
                $250,000,000

              

      

      

       

      1  As
of October 1, 2008.

      2 To
mature November 1, 2008.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]