Document:

Amendment to Credit Agreement

 

Exhibit 4.28

AMENDMENT AGREEMENT

The undersigned:

	1.	 	Adventure Three S.A., established in Majuro, Marshall
Islands,
hereinafter referred to as ‘the Borrower’,

	2.	 	HOLLANDSCHE BANK-UNIE N.V., having its registered office in Amsterdam, the
Netherlands, hereinafter referred to as ‘HBU’

whereas

	-	 	the Borrower and HBU entered into a credit agreement on 23/26 September 2005,
hereinafter
referred to as ‘the Credit Agreement’, to which the terms and conditions stated in the Credit
Agreement apply;

	-	 	the Borrower and HBU wish to amend the conditions of the Credit Agreement in the manner
described below and otherwise wish to continue the Credit Agreement unaltered;

have agreed as follows:

existing condition:

Security and covenants

new condition:

Security and covenants

	-	 	First preferred mortgage of USD 6,000,000 on the vessel m.v. “Free Envoy”, registered
under
the flag of the Marshall Islands. Official number 2161, call letters V7GR6. Fuller details
are included in the mortgage deed. On this mortgage the laws of the Marshall Islands will be
applicable.
	 
	 	 	As far as possible HBU’s General Conditions applicable to Ship Mortgages are
incorporated in the mortgage deed.

	-	 	Joint and several liability of Adventure Two S.A.

	-	 	Corporate guarantee of USD 500,000, plus interest and costs, from FreeSeas Inc.,
established
in Majuro, Marshall
Islands.             (new)
	 
	-	 	Pledge of rights and earnings under time charter contracts concluded or to be concluded.
	 
	-	 	Pledge of rights under hull and machinery insurance policy.
	 
	-	 	Pledge of rights under protection and indemnity risk
insurance policy.
	 
	-	 	Pursuant to Art. 18 of the HBU General Banking Conditions HBU has a right of pledge on
all goods and documents of title which are in possession or will come into the possession of
HBU or a third party on HBU’s behalf from or for the benefit of the Borrower on any
account whatsoever and on all present or future claims of the Borrower vis-a-vis HBU on
any account whatsoever to secure any obligations of the Borrower to HBU on any account
whatsoever.

	 	 	 
	 

	 	HOLLANDSCHE BANK-UNIE N.V.
	 

	 	Handelsregister K.v.K. Amsterdam nr 33259495
	 

	 	B.T.W. ident.nr. NL 00.30.27.144.B01

 

 

Insofar as such pledge has not been created yet, this agreement shall be
considered as an instrument of pledge and, insofar as necessary, as notification of such
pledge.

Signature:

Rotterdam, 23 January 2006

HOLLANDSCHE BANK-UNIE N.V.

	 	 	 	 	 	 	 
	/s/
[ILLEGIBLE]
 

	 	 
	 	 	 	 

Majuro, 27/2/2006

	 	 	 	 	 	 	 
	/s/ [ILLEGIBLE]
 

	 	 
	 	/s/ [ILLEGIBLE]
 

	 	 
	Adventure Three S.A.
	 	 	 	 	 	 

	 	 	 
	 

	 	HOLLANDSCHE BANK-UNIE N.V.
	 

	 	Handelsregister K.v.K. Amsterdam nr 33259495
	 

	 	B.T.W. ident.nr. NL 00.30.27.144.B01Amendment Number One to Loan Agreement

 

Exhibit 4.29

THIS ADDENDUM NUMBER ONE to a Loan Agreement dated 9th day of June Two Thousand Five
is dated the 3rd day of March Two Thousand Six and made

BETWEEN

	1.	 	EGNATIA BANK S.A., a Banking Corporation, having its registered office at 4, Danaidon Street,
Thessaloniki, Greece, acting for the purposes of this Agreement through its office at 116
Kolokotroni Street, Piraeus 185 35, Greece and

	2.	 	ADVENTURE FOUR S.A. a company duly incorporated under the laws of the Republic of The
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Island,
Majuro, The Republic of the Marshall Islands

WHEREAS

A. By a Loan Agreement dated 9th day of June 2005 (“the Loan Agreement”) and made
between (i) the Bank as lender and ii) ADVENTURE FOUR S.A. a company duly incorporated under the
laws of the Republic of The Marshall Islands as borrower (the “Borrower”) the Bank has agreed to
advance a sum of up to United States Dollars SEVEN MILLION (US$ 7,000,000) (the “Loan”) to the
Borrower upon the terms and conditions set forth in the Loan Agreement.

B. As security for the due repayment of all sums from time to time payable to the Bank under the
Loan Agreement, the Borrower ensured and procured that the following Security Documents are duly
executed and, where required properly registered in favour of the Bank at the time specified in the
Loan Agreement, or otherwise as required by the Bank and ensured that such security, apart from the
Loan Agreement, consists among others of

	(a)	 	A Corporate Guarantee from the Manager and each of the Corporate Guarantors in form and
substance satisfactory to the Bank (the “Corporate Guarantee(s)”).

The Corporate Guarantees were given by the Corporate Guarantors others than the Manager according
to Clause 13.7. of the Loan Agreement upon the condition that they shall be activated and become
effective only in case that the corporate shareholder of the Borrower declared to the Bank prior to
the execution of the Loan Agreement and represented to the Bank in the Certificate of legal
shareholding given to the Bank pursuant to Schedule I Part 1 of the Loan Agreement (the
“Shareholder”) is not listed in the NASDAQ or the AMEX or any other major U.S. Stock Exchange by
the 30th September 2005.

	(b)	 	A Personal Guarantee from each of the Personal Guarantors in form and substance
satisfactory to the Bank (the “Personal Guarantee(s)”

 

 

	 	 	The Corporate Guarantee of the Manager and the Personal Guarantees of the Personal Guarantors
shall according to Clause 13.7. of the Loan Agreement be replaced by a Manager’s Letter of
Undertaking and a Corporate Guarantee of the Shareholder when and in the case the Shareholder
is listed in the NASDAQ or the AMEX or any other major U.S. Stock Exchange.

	C.	 	The Shareholder has been listed in the NASDAQ by the 15th December 2005.

IT IS HEREBY AGREED as follows:-

1. DEFINITIONS 

Expressions defined in the Loan Agreement shall have the same meanings when used in this Addendum
Number One unless for the definitions expressly amended hereby. 

2. SECURITY

2.1. a) The Corporate Guarantors others than the Manager shall be released from their obligations
under the Corporate Guarantees given by them in favour of the Bank. The Corporate Guarantees given
by the Corporate Guarantors others than the Manager shall be deactivated and not be effective.

       b) The Corporate Guarantee of the Manager and the Personal Guarantees of the Personal
Guarantors shall be replaced by a Manager’s Letter of Undertaking and a Corporate Guarantee of the
Shareholder.

2.2. The Borrower and the Bank therefore hereby absolutely and unconditionally covenant and agree
to amend Clause 12 of the Loan Agreement and to replace Clause 12 d) and e) as follows:

“ d) a Manager’s Letter of Undertaking in form and substance satisfactory to the Bank (the
“Manager’s Letter of Undertaking”)

   e) a Corporate Guarantee of the Shareholder in form and substance satisfactory to the Bank
(the “Corporate Guarantee”) ”

2.3. Clause 13.7. of the Loan Agreement has become obsolete and shall be cancelled hereby.

3. DATE OF EFFECT

This Addendum Number One to the Loan Agreement shall take effect as of the date hereof.

4. GOVERNING LAW 

This Addendum Number One to the Loan Agreement shall be governed by and construed in accordance
with English Law.

5. NO IMPLIED AMENDMENT 

 

 

The Loan Agreement shall remain in full force and effect between the parties hereto unless for the
provisions expressly amended or cancelled hereby, so that this Addendum Number One together with
those parts of the Loan Agreement not expressly amended hereby constitute henceforth the whole
agreement in force between the parties hereto.

        .

IN WITNESS whereof the parties hereto have caused this Addendum Number One to the Loan Agreement to
be executed the day and year first above written.

	 	 	 	 	 
	SIGNED by

	 	)	 	 
	Stefanos Kardamakis

	 	)	 	 
	Pantelis Vokos

	 	)	 	 
	the duly authorised attorneys

	 	)	 	 
	for and on behalf of

	 	)	 	 
	EGNATIA BANK S.A.

	 	)	 	 
	 
	 	 	 	 
	SIGNED by

	 	)	 	 
	/s/
[ILLEGIBLE]          
	 	)	 	 
	the duly authorised attorney

	 	)	 	 
	for and on behalf of

	 	)	 	 
	ADVENTURE FOUR S.A.

	 	)Guarantee dated March 3, 2006

 

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Exhibit 4.30

THIS GUARANTEE is made on the 3rd day of March 2006

BETWEEN

1. FREESEAS INC. (former ADVENTURE HOLDINGS S.A.) a company duly incorporated under the laws of
the Republic of The Marshall Islands and having its registered office at Trust Company Complex,
Ajeltake Island, Majuro, the Republic of the Marshall Islands (the “Guarantor”), and

2. EGNATIA BANK S.A., a company incorporated in Greece having its registered office at 4, Danaidon
Street, Thessaloniki, Greece, acting for the purposes of this Agreement through its office at 116
Kolokotroni Street, Piraeus 185 35, Greece (the “Bank”).

WHEREAS

A. By a Loan Agreement dated 9th June 2005 as amended by an Addendum Number One
dated 3rd March 2006 (the “Loan Agreement”) and made between (1) the Bank and (2)
ADVENTURE FOUR S.A. of the Republic of The Marshall Islands, having its registered office at Trust
Company Complex, Ajeltake Island, Majuro, The Republic of the Marshall Islands (the “Borrower”) (a
copy of which Loan Agreement is attached hereto for the purposes of identification) it was agreed
amongst other things that the Bank would make available to the Borrower upon the terms and
conditions therein described a sum of up to United States Dollars seven million (US$ 7,000,000).

B. It is a condition precedent to the Bank making available the said sum to the Borrower that
the Guarantor shall execute and deliver to the Bank this Guarantee which is the Guarantee referred
to in the Loan Agreement.

C. The Guarantor has a benefit from granting this Guarantee, since the Guarantor has a close
relationship and mutual assistance with the Borrower and shares mutual commercial interests with
the latter.

NOW THIS GUARANTEE WITNESSETH AND IT IS HEREBY AGREED

 

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1. DEFINITION AND INTERPRETATION

1.01. Expressions defined in the Loan Agreement shall, unless the context otherwise requires, have
the same meanings when used in this Guarantee.

1.02. In this Guarantee:

	(a)	 	Clause headings are inserted for convenience only and shall not affect the construction of
this Guarantee and unless otherwise specified, all references to Clauses are to clauses of
this Guarantee;
	 
	(b)	 	unless the context otherwise requires, words denoting the singular number shall include the
plural and vice versa;
	 
	(c)	 	references to persons include bodies corporate and unincorporate;
	 
	(d)	 	references to assets include property, rights and assets of every description;
	 
	(e)	 	references to any document are to be construed as references to such document as amended or
supplemented from time to time; and
	 
	(f)	 	references to any enactment include re-enactments, amendments and extensions thereof.

2. GUARANTEE

2.01. For and in consideration of the Bank’s agreement to making available the Loan to the Borrower
and for other good and valuable consideration (the receipt of which is hereby acknowledged by the
Guarantor), the Guarantor as primary obligor and not merely as surety, whereby the Bank shall at
the same time proceed against the Borrower, hereby jointly and severally with any other guarantor
irrevocably and unconditionally:

	(a)	 	guarantees to the Bank prompt performance by the Borrower of all its obligations under or in
connection with the Loan Agreement and payment on the due date of all sums payable now or in
the future to the Bank by the Borrower thereunder or in connection therewith when and as the
same shall become due (or in the case of sums expressed to be payable by the

 

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	 	 	Borrower on demand (whether following acceleration or otherwise), when and as the same
shall be demanded by the Bank);
	 
	(b)	 	undertakes with the Bank that, if and whenever the Borrower shall be in default in the
payment of any sum whatsoever under or in connection with the Loan Agreement, the Guarantor
will pay such sum on demand; and

(c) undertakes with the Bank that if and whenever the Borrower shall be in default in the
performance of any of its obligations whatsoever under or in connection with the Loan Agreement,
the Guarantor will perform such obligations on demand.

2.02. The Guarantor unconditionally and irrevocably agrees that, if any sums hereby guaranteed are
not recoverable on the basis of a guarantee (whether by reason of any legal limitation, illegality,
disability or incapacity on or of the Borrower, and/or the other Security Parties, or the Guarantor
or any other person or by reason of any other fact or circumstance, and whether or not known to or
discoverable by the Guarantor, the Borrower, the Bank or any other person), then the Guarantor
will, as a separate and independent stipulation and as a primary obligor, pay to the Bank on demand
an amount or amounts equal to the amount or amounts which the Guarantor would have been liable to
pay but for such irrecoverability suffered or incurred by the Bank as a result of such
irrecoverability.

2.03. It is declared and agreed that:

(a) this Guarantee shall be held by the Bank as a continuing security and shall not be satisfied
by any intermediate payment or satisfaction of any part of the moneys and liabilities hereby
guaranteed;

(b) the security so created shall be in addition to and shall not in any way be prejudiced or
affected by any of the other Security Documents;

(c) the Bank shall not be bound to enforce any of the other Security Documents before enforcing
its rights under this Guarantee;

(d) no delay or omission on the part of the Bank in exercising any right, power or remedy under
this Guarantee shall impair such right, power or remedy or be construed as a waiver thereof
nor shall any single or partial

 

4

	 	 	exercise of any such right, power or remedy preclude any further exercise thereof or the
exercise of any other right, power or remedy. The rights powers and remedies provided in
this Guarantee are cumulative and not exclusive of any rights, powers and remedies
provided by law and may be exercised from time to time and as often as the Bank may deem
expedient; and

2.04. Any settlement or discharge under this Guarantee between the Bank and the Guarantor shall be
conditional upon no security or payment to the Bank by the Borrower, the Security Parties, the
Guarantor or any other person being avoided or set-aside or ordered to be refunded or reduced by
virtue of any provision or enactment relating to bankruptcy, insolvency or liquidation for the time
being in force, and if such condition is not satisfied, the Bank shall be entitled to recover from
the Guarantor on demand the value of such security or the amount of any such payment as if such
settlement or discharge had not occurred.

2.05. The obligations of the Guarantor under this Guarantee shall not be affected by any act,
omission, matter or thing which, but for this provision, might operate to release or otherwise
exonerate the Guarantor from the Guarantor’s obligations hereunder in whole or in part, including
without limitation, and whether or not known to or discoverable by the Guarantor, the Borrower, the
Security Parties, the Bank or any other person:

	(a)	 	any time or waiver granted to or composition with the Borrower and/or the other Security
Parties, or any other person; or
	 
	(b)	 	the taking, variation, compromise, renewal or release of or refusal or neglect to perfect or
enforce any rights, remedies or securities against the Borrower and/or the other Security
Parties, or any other person; or
	 
	(c)	 	any legal limitation, disability, incapacity or other circumstances relating to the Borrower
and/or the other Security Parties, or any other person; or
	 
	(d)	 	any amendment or supplement to the Loan Agreement or any other document or security; or
	 
	(e)	 	the dissolution, liquidation, amalgamation, reconstruction or reorganisation of the Borrower
and/or the other Security Parties, or any

 

5

	 	 	other person; or
	 
	(f)	 	the unenforceability or invalidity of any obligations of the Borrower and/or the other
Security Parties, or any other person under the Loan Agreement or any other document or
security.

2.06. Until the moneys and liabilities hereby guaranteed have been unconditionally and irrevocably
paid and discharged in full to the satisfaction of the Bank, the Guarantor shall not by virtue of
any payment made or performance hereunder on account of such moneys and liabilities or by virtue of
any relationship between, or transaction involving the Guarantor, the Borrower and/or the other
Security Parties (whether such relationship or transaction shall constitute the Guarantor a
creditor of the Borrower and/or the other Security Parties, a guarantor of the obligations of the
Borrower and/or the other Security Parties or a party subrogated to the rights of others against
the Borrower and/or the other Security Parties or otherwise howsoever and whether or not such
relationship or transaction shall be related to, or in connection with, the subject-matter of this
Guarantee):

	(a)	 	exercise any rights of subrogation in relation to any rights, security or moneys held or
received or receivable by the Bank or any other person; or
	 
	(b)	 	exercise any right of contribution from any co-surety liable in respect of such moneys and
liabilities under any other guarantee, security or agreement; or
	 
	(c)	 	exercise any right of set-off or counterclaim against the Borrower, and/or the other Security
Parties, or any such co-surety; or
	 
	(d)	 	in case of an continuing Event of Default receive, claim or have the benefit of any payment,
distribution, security or indemnity from the Borrower, and/or the other Security Parties, or
any such co-surety; or
	 
	(e)	 	unless so directed by the Bank (when the Guarantor will prove in accordance with such
directions), claim as a creditor of the Borrower, and/or the other Security Parties, or any
such co-surety in competition with the Bank.

The Guarantor shall hold in trust for the Bank and forthwith pay or transfer (as appropriate) to
the Bank any such payment (including an amount equal to any such

 

6

set-off), distribution or benefit of such security, indemnity or claim in fact received by the
Guarantor.

2.07. Until all moneys and liabilities hereby guaranteed have been unconditionally and irrevocably
paid in full to the satisfaction of the Bank, the Bank may at any time keep in a separate
interest-bearing account for as long as it may reasonably think fit, any moneys received, recovered
or realised under this Guarantee or under any other guarantee, security or agreement relating in
whole or in part to the moneys and liabilities hereby guaranteed in order to apply the same or any
part thereof in or towards the discharge of such amount.

3. REPRESENTATIONS AND WARRANTIES

3.01. The Guarantor hereby represents and warrants to the Bank that:

	(a)	 	the Guarantor has no established offices in Greece
	 
	(b)	 	the Guarantor has full power and authority (i) to execute and deliver this Guarantee and all
notices, certificates and other documents related to this transaction and (ii) to comply with
the provisions of, and perform all the Guarantor’s obligations under this Guarantee;
	 
	(c)	 	to the Guarantor’s best knowledge this Guarantee constitutes the Guarantor’s legal, valid and
binding obligations enforceable against the Guarantor in accordance with its terms except as
such enforcement may be limited by any relevant bankruptcy, insolvency, administration or
similar laws affecting creditors’ rights generally;
	 
	(d)	 	to the Guarantor’s best knowledge the entry into and performance by the Guarantor of this
Guarantee does not and will not violate in any respect (i) any law or regulation of any
governmental or official authority or body, or (ii) any agreement, contract or other
undertaking to which the Guarantor is a party or which is binding upon the Guarantor or any of
the Guarantor’s property or assets;
	 
	(e)	 	to the Guarantor’s best knowledge all consents, licences, approvals and authorisations
required in connection with the entry into, performance,

 

7

validity and enforceability of this Guarantee and the transactions contemplated hereby
have been obtained and are in full force and effect and will be so maintained throughout
the Security Period;

(f)
  it is not necessary for the legality, validity, enforceability or admissibility in evidence
of this Guarantee that this Guarantee or any document relating hereto be registered, filed,
recorded or enrolled with any court or authority in any relevant jurisdiction or that any
stamp, registration or similar tax be paid on or in relation to this Guarantee;

	(g)	 	no action, suit, proceeding, litigation or dispute against the Guarantor is presently taking
place or pending or to the Guarantor’s knowledge threatened nor is there subsisting any
judgment or award given against the Guarantor before any Court, board of arbitration or other
body which, in either case, could or might result in any material adverse change in the
business or financial condition of the Guarantor;
	 
	(h)	 	to the Guarantor’s best knowledge the Guarantor is not in default under any material
agreement to which the Guarantor is a party or by which the Guarantor is bound, and no Event
of Default relating to the Guarantor (or event which, with the giving of notice and/or lapse
of time or other applicable condition might constitute an Event of Default relating to the
Guarantor) has occurred and is continuing nor will such a default or Event of Default (or such
event) result from the entry by the Guarantor into this Guarantee or the performance by the
Guarantor of any of the Guarantor’s obligations under this Guarantee;
	 
	(i)	 	none of the assets of the Guarantor is subject to any security interest except as disclosed
to the Bank on or prior to the date of this Guarantee;
	 
	(j)	 	to the Guarantor’s best knowledge all financial and other information furnished by the
Guarantor in connection with the negotiation of this Guarantee or delivered to the Bank
pursuant to this Guarantee was true and accurate when given and there were no other facts or
matters the omission of which would have made any statement or information therein contained
misleading;
	 
	(k)	 	all payments made or to be made by the Guarantor under or pursuant to

 

8

	 	 	this Guarantee may be made free and clear of, and without deduction or withholding for or
on account of, any Taxes;
	 
	(l)	 	the Guarantor is fully familiar with and agrees to all the provisions of the Loan Agreement
and the other Security Documents;
	 
	(m)	 	the Guarantor has read and understood the provisions of this Guarantee and has taken
independent legal advice as to the effect hereof and, in particular, the Guarantor understands
that failure to comply with this Guarantee may result in the Guarantor’s assets being seized
and
	 
	(n)	 	no oral or written statement has been made by or on behalf of the Bank which could be
construed as a waiver of any provisions of this Guarantee or a statement of intention not to
enforce the same in accordance with its terms.

3.02. The representations and warranties of the Guarantor set out in Clause 3.01 shall survive the
execution of this Guarantee and shall be deemed to be repeated at the commencement of each Interest
Period and, if different, on each Repayment Date, with respect to the facts and circumstances
existing at each such time, as if made at each such time and shall terminate upon payment in full
of the Loan.

4. UNDERTAKINGS

The Guarantor undertakes that, as and from the date of this Guarantee and throughout the Loan
Period, the Guarantor will comply in full with the following undertakings;

	(a)	 	the Guarantor will send (or procure that there is sent) to the Bank:

	 	(i)	 	as soon as the same is instituted (or, to the knowledge of the Guarantor,
threatened), details of any litigation, arbitration or administrative proceedings
against or involving the Guarantor which could or might result in any adverse change
in the business or financial condition of the Guarantor; and
	 
	 	(ii)	 	from time to time, and on demand, such financial or other

 

9

	 	 	 	information except as may be prohibited by any applicable law and keep the Bank
advised of all major financial developments (such as new acquisitions, or sales of
vessels, new loans, refinancing or restructuring of existing loans contracts for
any employment of vessels and any other borrowed money) relating to the Guarantor
as may be reasonably requested by the Bank;

	(b)	 	Furnish the Bank, in form and substance satisfactory to the Bank, with annual, combined
financial statements of the Guarantor within 120 days after the end of the financial year
concerned commencing as of 31st December 2004 prepared in accordance with generally accepted
accounting principles consistently applied;

	(c)	 	the Guarantor will notify the Bank in writing of any Event of Default relating to the
Guarantor (or event which, with the giving of notice and/or lapse of time or other applicable
condition, might constitute an Event of Default relating to the Guarantor) forthwith upon the
occurrence thereof;

	(d)	 	the Guarantor will obtain and promptly renew from time to time, and will promptly furnish
certified copies to the Bank of all such authorisations, approvals, consents and licenses as
may be required under any applicable law or regulation to enable the Guarantor to perform the
Guarantor’s obligations under this Guarantee, or required for the validity or enforceability
of this Guarantee and the Guarantor shall comply with the terms of the same;

	(e)	 	the Guarantor undertakes that from the date of this Agreement and as long as any sums are due
and/or outstanding under this Agreement or any of the other Security Documents, the Guarantor
will incur no further Indebtedness nor make any loans or advances or pay dividends and grant
no guarantee to and/or in favour of anybody without the written advice to the Bank.

5. PAYMENTS AND CALCULATIONS, INTEREST

5.01. All payments to be made by the Guarantor to the Bank under this Guarantee shall be made by
not later than 10.00 a.m. on the due date in same day

 

10

Dollar funds settled through the New York Interbank Payments System (or in such other funds and/or
settled in such other manner as the Bank shall specify as being required by the terms of the Loan
Agreement or as being customary at the time for the settlement of international transactions of the
type contemplated by this Guarantee) to the account of the Bank (Account No. 890-0055-561 with Bank
of New York Swift Code IRVTUS3N) or to such other bank account as the Bank may from time to time
notify to the Guarantor.

5.02. If any sum shall become due on a day which is not a Banking Day, the due date thereof shall
be extended to the next succeeding Banking Day, unless such Banking Day falls in the next calendar
month, in which event such due date shall be the immediately preceding Banking Day.

5.03. In the event that the Bank does not receive on the due date any sum due under this Guarantee,
the Guarantor shall pay to the Bank on demand interest on such sum from and including the due date
therefor to the date of actual payment (as well after as before judgement) at the rate per annum
determined by the Bank from time to time to be the aggregate of (a) two per cent per annum, (b) the
Margin, (c) LIBOR for such period. Any such interest which is not paid shall be compounded at the
end of each such period. All payments of interest hereunder shall be calculated on the basis of
actual days elapsed in a 360 day year.

6. EXPENSES

6.01. The Guarantor shall pay to the Bank on demand all reasonablecosts, fees and expenses
(including, but not limited to, legal fees and expenses) and Taxes thereon incurred by the Bank in
connection with:

(a) the negotiation, preparation and execution of this Guarantee; and/or

	(b)	 	the preserving or enforcing of, or attempting to preserve or enforce, any of its rights under
this Guarantee.

6.02. The Guarantor shall pay to the Bank on demand all costs, fees and expenses (including, but
not limited to, legal fees and expenses) and Taxes thereon incurred by the Bank in connection with:

 

11

	(a)	 	any variation of, or amendment or supplement to, any of the terms of this Guarantee; and/or

	(b)	 	any consent or waiver required from the Bank in relation to this Guarantee, and in each case,
regardless of whether the same is actually implemented, completed or granted, as the case may
be.

6.03. The Guarantor shall pay promptly all stamp, documentary and other like duties and Taxes to
which this Guarantee may be subject or give rise and shall indemnify the Bank on demand against any
and all liabilities with respect to or resulting from any delay or omission on the part of the
Guarantor to pay any such duties or Taxes.

7. CURRENCY INDEMNITY

If, under any applicable law or regulation, and whether pursuant to a judgment being made or
registered against the Guarantor or the bankruptcy of the Guarantor or for any other reason, any
payment under or in connection with this Guarantee is made or falls to be satisfied in a currency
(the “payment currency”) other than the currency in which such payment is due under or in
connection with this Guarantee (the “contractual currency”), then to the extent that the amount of
such payment actually received by the Bank, when converted into the contractual currency at the
rate of exchange, falls short of the amount due under or in connection with this Guarantee, the
Guarantor, as a separate and independent obligation, shall indemnify and hold harmless the Bank
against the amount of such shortfall. For the purposes of this Clause 7, “rate of exchange” means
the rate at which the Bank is able on or about the date of such payment to purchase the contractual
currency with the payment currency and shall take into account any premium and other costs of
exchange with respect thereto.

8. NO COUNTERCLAIM, TAXATION

8.01. All payments to be made by or on behalf of the Guarantor to the Bank pursuant to this
Guarantee shall be made (a) without any set-off, counterclaim or

 

12

condition whatsoever and (b) free and clear of, and without deduction for or on account of, any
present or future Taxes, unless the Guarantor is required by law or regulation to make any such
payment subject to any Taxes.

8.02. In the event that the Guarantor is required by any law or regulation to make any deduction or
withholding on account of any Taxes from any payment due under this Guarantee, then:

	(a)	 	the Guarantor shall notify the Bank promptly as soon as it becomes aware of such requirement;
	 
	(b)	 	the Guarantor shall remit promptly the amount of such Taxes to the appropriate taxation
authority, and in any event prior to the date on which penalties attach thereto;
	 
	(c)	 	such payment shall be increased by such amount as may be necessary to ensure that the Bank
receives a net amount, free and clear of all Taxes, equal to the full amount which the Bank
would have received had such payment not been subject to such Taxes; and
	 
	(d)	 	the Guarantor shall indemnify the Bank against any liability of the Bank in respect of such
Taxes.

8.03. Not later than thirty days after each deduction or withholding of any such Taxes, the
Guarantor shall forward to the Bank evidence satisfactory to the Bank that such Taxes have been
remitted to the appropriate taxation authority.

9. SET - OFF

The Guarantor authorises the Bank (without prejudice to any of the Bank’s rights at law or
otherwise), at any time and without notice to the Guarantor to apply any credit balance to which
the Guarantor is then entitled and/or to whatever currency standing upon any such account of the
relevant Guarantor with any branch of the Bank in or towards satisfaction of the Indebtedness. For
this purpose, the Bank is authorised to purchase with the moneys standing to the credit of such
account such other currencies as may be necessary to effect such application. The Bank shall not be
obliged to exercise any right given to it by this clause. The Bank shall notify the

 

13

Guarantor forthwith upon the exercise or purported exercise of any right of set-off giving full
details in relation thereto.

10. COMMUNICATIONS

10.01. Except as otherwise provided for in this Guarantee all notices or other communications under
or in respect of this Guarantee to either party hereto shall be in writing and shall be deemed to
be duly given or made when delivered and received (in the case of personal delivery or letter) and
when despatched (in the case of the telex and/or facsimile) to such party addressed to it at the
address appearing below (or at such other address as such party hereafter specify for such purpose
to the other by notice in writing):

	 	1.	 	In the case of the Guarantor c/o FREE BULKERS S.A., 93 Akti Miaouli Street, 185 38
Piraeus , Greece, fax no +30 210 4291010, email
freebulk@otenet.gr, for the att. of Mr
George D. Gourdomichalis and/or Efstathios D. Gourdomichalis and/or Ion Varouxakis, each
one
	 
	 	2.	 	In the case of the Bank at 116, Kolokotroni Street, Piraeus, Greece.

A written notice includes a notice by telex and/or facsimile. A notice or other communication
received on a non-working day or after business hours in the place of receipt shall be deemed to be
served on the next following working day in such place.

10.02. All communications and documents delivered pursuant to or otherwise relating to this
Guarantee shall either be in Greek or English or accompanied by a certified Greek or English
translation prepared by a translator approved by the Bank.

10.03. A certificate or determination of the Bank as to any matter provided for in this Guarantee,
in the absence of manifest error, shall be conclusive and binding on the Guarantor.

 

14

11. ASSIGNMENTS

11.01. This Guarantee shall be binding upon and inure to the benefit of the Bank and the Guarantor
and their respective successors and permitted assigns and references in this Guarantee to either of
them shall be construed accordingly.

11.02. The Guarantor may not assign or transfer any of the Guarantor’s rights
and/or obligations under this Guarantee.

11.03. The Bank may after prior written notice to the Guarantor of not less than fifteen (15) days
assign or transfer all or part of its rights or obligations hereunder to any assignee or
transfereeof all or a similar proportion of its rights and/or obligations under the Loan Agreement
or change its lending office.

11.04. The Bank may disclose to any potential assignee or transferee of all or any part of its
rights or obligations under this Guarantee or to any person who may otherwise enter into
contractual relations with the Bank in relation to this Guarantee, such information about the
Guarantor and/or the Guarantor’s related entities as the Bank thinks fit subject to the Bank giving
prior notice thereof to the Guarantor.

12. MISCELLANEOUS

12.01. Time shall be of the essence of this Guarantee. No delay or omission on the part of the Bank
in exercising any right, power or remedy under this Guarantee shall impair such right, power or
remedy or be construed as a waiver thereof nor shall any single or partial exercise of any such
right, power or remedy preclude any further exercise thereof or the exercise of any other right,
power or remedy. The rights, powers, and remedies herein provided are cumulative and not exclusive
of any rights, powers and remedies provided by law and may be exercised from time to time and as
often as the Bank deems expedient.

12.02. Any waiver by the Bank of any terms of this Guarantee, or any consent or approval given by
the Bank under this Guarantee, shall only be effective if given in writing and then only for the
purpose and upon the terms for which it is given.

 

15

12.03. If at any time any one or more of the provisions in this Guarantee is or becomes invalid,
illegal or unenforceable in any respect under any law or regulation, the validity, legality and
enforceability of the remaining provisions of this Guarantee shall not be in any way affected or
impaired thereby.

12.04. The obligations of the Guarantor under this Guarantee shall remain in full force and effect
(always subject to Recital D hereof) until the Bank shall have received all amounts due or to
become due to it hereunder in accordance with the terms hereof. Without prejudice to the foregoing,
the obligations of the Guarantor under Clauses 2.04., 5.03., 6, and 7 shall survive the repayment
of the Loan.

13. LAW AND JURISDICTION

13.01 This Guarantee and Indemnity shall in all respects be governed by and construed in accordance
with the law of England

13.02 For the exclusive benefit of the Bank, the Guarantor irrevocably agrees that the Courts of
Piraeus Greece are to have jurisdiction to settle any disputes arising out of or in connection with
this Guarantee and Indemnity and that any suit, action or proceedings arising out of or in
connection with this Guarantee and Indemnity may be brought in those courts PROVIDED THAT nothing
contained in this Clause shall limit the right of the Bank to take any suit, action or proceedings
against the Guarantor in any other court of competent jurisdiction nor shall the taking of any
suit, action or proceedings against the Guarantor in one or more jurisdictions preclude the taking
of any suit, action or proceedings in any other competent jurisdiction whether concurrently or
not.

13.03 The Guarantor irrevocably waives any objection which it may now or in the future have to the
laying of the venue of any suit, action or proceedings in any such court as is referred to in
Clause 13.2 and any claim that such suit, action or proceedings has been brought in an inconvenient
or inappropriate forum and irrevocably agrees that a judgement in any such suit, action or
proceedings brought in any such court shall be conclusive and binding on the Guarantor and may be
enforced in the courts of any other jurisdiction.

 

16

13.04 The Guarantor irrevocably agrees that any writ, notice, judgement or other legal process
shall be sufficiently served on it if addressed to the Guarantor and left at or sent by post to the
Address for Service.

	13.05	 	Mr John Hadjis at 6, Bouboulinas Street, 185 35 Piraeus , Greece, fax no +30 210 4225300
is hereby appointed by the Guarantor as agent to accept service (hereinafter “Process Agent”)
upon whom any judicial process may be served and any notice, request, demand or other
communication under this Agreement or any of the other Security Documents. In the event that
the Process Agent (or any substitute process agent notified to the Bank in accordance with the
foregoing) cannot be found at the address specified above (or, as the case may be, notified to
the Bank), which will be conclusively proved by a deed of a process server to the effect that
the Process Agent was not found at such address, any process notice, request, demand or other
communication to be sent to the Guarantor may be validly effected upon the District Attorney
of the First Instance Court of Piraeus.

IN WITNESS whereof the parties hereto have entered into this Guarantee on the date first above
written.

	 	 	 	 	 
	SIGNED by

	 	 	)	 
	Stefanos Kardamakis

	 	 	)	 
	Pantelis Vokos

	 	 	)	 
	the duly authorised attorneys

	 	 	)	 
	for and on behalf of

	 	 	)	 
	EGNATIA BANK S.A.

	 	 	)	 
	 
	 	 	 	 
	SIGNED by

	 	 	)	 
	/s/
[ILLEGIBLE]          

	 	 	)	 
	the duly authorised attorney

	 	 	)	 
	for and on behalf of

	 	 	)	 
	FREESEAS INC

	 	 	)	 

 

17

ANNEX 1:

LOAN AGREEMENT

 

18

ANNEX 2:

ADDENDUM NUMBER ONE

 

19

INDEX

	 	 	 	 	 
	     CLAUSE	 	PAGE
	1.     DEFINITION AND INTERPRETATION

	 	 	2	 
	2.     GUARANTEE

	 	 	2	 
	3.     REPRESENTATIONS AND WARRANTIES

	 	 	6	 
	4.     UNDERTAKINGS

	 	 	8	 
	5.     PAYMENTS AND CALCULATIONS, INTEREST

	 	 	9	 
	6.     EXPENSES

	 	 	10	 
	7.     CURRENCY INDEMNITY

	 	 	11	 
	8.     NO COUNTERCLAIM, TAXATION

	 	 	11	 
	9.     SET - OFF

	 	 	12	 
	10.   COMMUNICATIONS

	 	 	13	 
	11.   ASSIGNMENTS

	 	 	13	 
	12.   MISCELLANEOUS

	 	 	14	 
	13.   LAW AND JURISDICTION

	 	 	15	 
	ANNEX 1:

	 	 	17	 
	ANNEX 2:

	 	 	18

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