Document:

Exhibit 4.29

 

Dated 8 December 2015

 

PARAGON SHIPPING INC.

as Borrower

 

and

 

READING NAVIGATION CO.

DONNA MARINE CO. and

PROTEA INTERNATIONAL INC.

as Owners

 

and

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in the Schedule

as Lenders

 

and

 

COMMERZBANK AG

as Agent, as Arranger

and as Security Trustee

and

 

COMMERZBANK AG

as Swap Bank

 

SETTLEMENT
AGREEMENT

 

 

     

     

    

 

Index

 

	Clause	 	Page
	 	 	 
	1	Interpretation	2
	2	Undertakings	2
	3	Lenders’ Agreement	3
	4	Representations and Warranties	4
	5	Confidentiality and Non-Disclosure	4
	6	Reservation of Rights	4
	7	Incorporation of Loan Agreement Terms	5
	8	Events of Default	5
	9	Governing Law and Jurisdiction	5
	Schedule 1 Amounts	6
	Execution Pages	7

 

     

     

    

 

THIS AGREEMENT is made on 8 December
2015

 

PARTIES

 

		(1)	PARAGON SHIPPING INC., a corporation incorporated in the Marshall Islands whose registered
office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall Islands MH 96960 (the "Borrower");

 

		(2)	READING NAVIGATION CO. and PROTEA INTERNATIONAL INC., each a corporation incorporated
in Liberia whose registered office is at 80 Broad Street, Monrovia, Liberia and DONNA MARINE CO., a corporation incorporated
in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall
Islands MH 96960 (together, the "Owners" and each an “Owner”);

 

		(3)	THE BANKS AND FINANCIAL INSTITUTIONS listed in the Schedule as Lenders (the "Lenders");

 

		(4)	COMMERZBANK AG, acting through its office at Domstraβe 18, 20095, Hamburg, Germany
(the "Agent");

 

		(5)	COMMERZBANK AG, acting through its office at Domstraβe 18, 20095, Hamburg, Germany
(the "Arranger");

 

		(6)	COMMERZBANK AG, acting through its office at Domstraβe 18, 20095, Hamburg, Germany
(the "Security Trustee"); and

 

		(7)	COMMERZBANK AG, acting through its office at Kaiserstrasse 16, 60621, Frankfurt am Main,
Germany (the "Swap Bank").

 

BACKGROUND

 

		(A)	By a loan agreement dated 12 August 2011 (as amended and restated by two amending and restating
agreements dated 8 February 2013 and 13 May 2015, respectively the “Loan Agreement”) and made between (i) the
Borrower, (ii) the Lenders, (iii) the Agent, (iv) the Arranger, (v) the Security Trustee, and (vi) the Swap Bank, the Lenders have
made available to the Borrower a secured term loan facility of (originally) up to US$57,000,000.

 

		(B)	On 18 August 2011 the Lenders advanced to the Borrower the total amount of US$57,000,000 and as
at the date of this Agreement, the principal amount of the loan facility outstanding is US$38,237,500.

 

		(C)	The Borrower has requested that the Lenders consent to the sale of the Ships on the basis the expected
sale proceeds are significantly less than the principal outstanding amount of the Loan as referred to in Recital (B) above.

 

		(D)	The Lenders have, subject to the terms and conditions outlined in this Agreement, consented to
the sale of the Ships and to the release of the Borrower, the Owners and the Approved Manager from their obligations under the
Loan Agreement and the other Finance Documents in accordance with the terms of this Agreement.

 

		(E)	This Agreement supersedes the settlement agreement dated 22 October 2015 entered into between the
parties to this Agreement (the “Previous Settlement Agreement”) and neither party shall have any continuing
obligations under the Previous Settlement Agreement.

 

     

     

    

 

IT IS AGREED AS FOLLOWS:

 

		1	Interpretation

 

		1.1	Defined expressions

 

Words and expressions
defined in the Loan Agreement and the other Finance Documents shall have the same meanings when used in this Agreement unless the
context otherwise requires.

 

		1.2	Definitions

 

"Buyer”
means, Oldendorff Carriers GmbH & Co. KG Willy-Brandt-Allee 6, 23554 Luebeck, Germany;

 

"Expiry
Date” means, in the case of:

 

		(a)	“SAPPHIRE SEAS” and “DIAMOND SEAS”, 15 December 2015; and

 

		(b)	“PEARL SEAS”, the Final Expiry Date;

 

"Final
Expiry Date” means 15 January 2016;

 

"First
Ship” means the first Ship to be sold and delivered to the Buyer;

 

“MOA”
means, in respect of a Ship, the memorandum of agreement dated 9 November 2015 (as amended and/or supplemented from time to time)
and made between the Owner of that Ship and the Buyer;

 

“Net
Proceeds” means, in the case of:

 

		(a)	“DIAMOND SEAS”, US$3,412,500;

 

		(b)	“SAPPHIRE SEAS”, US$3,412,500; and

 

		(c)	“PEARL SEAS, US$4,875,000;

 

“Purchase
Price” means, in the case of:

 

		(a)	“DIAMOND SEAS”, US$3,500,000;

 

		(b)	“SAPPHIRE SEAS”, US$3,500,000; and

 

		(c)	“PEARL SEAS”, US$5,000,000;

 

"Second
Ship” means the second Ship to be sold and delivered to the Buyer;

 

"Third
Ship” means the third Ship to be sold and delivered to the Buyer.

 

		2	Undertakings

 

		2.1	Each Owner and the Borrower jointly and severally undertake as
follows:

 

		(a)	to take all necessary actions within their control in order to ensure that all the Ships are irrevocably
and unconditionally delivered to the Buyer by no later than the Expiry Date;

 

		(b)	upon the successful delivery of a Ship to the Buyer, to ensure that the Net Proceeds for that Ship
is paid to the Earnings Account of that Ship;

 

    	 	2	 

     

    

 

		(c)	to sell the Ships for cash on normal commercial arm’s length terms and for the Purchase Price
relevant to it;

 

		(d)	to keep the Agent regularly updated regarding the sale process of each Ship;

 

		(e)	to send the Agent, promptly after the execution of the same, a copy of each MOA duly signed by
the parties thereto;

 

		(f)	to confirm in writing on or before the date of this Agreement that no outstanding claim or claims
against the insurers or any Approved Charterer in connection with any Ship remains unpaid;

 

		(g)	to ensure that upon receipt of the Net Proceeds of a Ship, such Net Proceeds are applied (and the
Borrower and each Owner irrevocably and unconditionally authorise the Agent to make such application on their behalf) in prepayment
of the Loan (with the Net Proceeds being applied pro rata against the then outstanding Repayment Instalments in each case in accordance
with clauses 8.11, 8.13 and 8.14 of the Loan Agreement) Provided that if the aggregate of the Net Proceeds of all Ships
is not applied in accordance with this Clause 2.1(g), the Lenders shall be entitled to demand payment of any accrued interest in
respect of the amount prepaid in accordance with clause 8.9 of the Loan Agreement; and

 

		(h)	to ensure that by no later than the Final Expiry Date, the Loan is prepaid by an amount equal to
the aggregate of the Net Proceeds of all the Ships whose sale has been successfully completed.

 

		3	Lenders’ Agreement

 

		3.1	In consideration of the undertakings of the Borrower as set out
in Clauses 2, the Creditor Parties agree as follows:

 

		(a)	upon the conclusion of the sale of each Ship to the Buyer by no later than the Expiry Date (which
for the purposes of this Clause 3.1(a) will be considered to occur upon the Agent receiving from its lawyers a confirmation that
(a) the escrow release in respect of the payment of the deposit due under the MOA and (b) the protocol of delivery and acceptance
concerning the balance due under the MOA have been signed by the relevant Owner and the Buyer, and have been unconditionally and
irrevocably released to the Agent’s lawyers) determined in accordance with Clause 2, to release the Mortgage in respect thereof;

 

		(b)	upon the conclusion of the sale of each Ship (but following the making of the applicable prepayment
of the Loan determined in accordance with Clause 2.1(g) of this Agreement), the Lenders shall, subject to the Borrower being in
compliance with its obligations under or in connection with this Agreement, reduce the Loan by the amounts set out in Schedule
1 to this Agreement and such amounts shall be applied against the Loan in inverse order of maturity (first in reduction of the
Balloon Instalment);

 

		(c)	upon the conclusion of the sale of all Ships and following the making of all the prepayments referred
to in Clause 2.1 and after reduction of the Loan in accordance with Clause 3.1. (b) and provided that the Borrower has complied
with all its obligations and undertakings under this Agreement, to (i) release the Borrower from its obligation to repay the Loan
and any other obligations under the Loan Agreement, (ii) re-assign to the Borrower all Security Interests created by the Finance
Documents to which it is a party, (iii) release the Owners from all their obligations under any Finance Document to which they
are a party, (iv) re-assign to the Owners all Security Interests created by the Finance Documents to which each Owner is a party,
(v) release the Approved Manager from all its obligations under the Manager’s Undertakings and (vi) re-assign to the Approved
Manager all Security Interests created by the Manager’s Undertakings.

 

    	 	3	 

     

    

 

		4	Representations and Warranties

 

		4.1	The Borrower and each Owner represent and warrant to the Agent as follows.

 

		4.2	The Borrower and each Owner have taken all corporate action and obtained all consents necessary
for them to execute this Agreement and to make all payments contemplated by, and to comply with, this Agreement.

 

		4.3	All consents referred to in Clause 4.2 remain in force and nothing has occurred which makes it
liable for revocation.

 

		4.4	The execution by the Borrower and each Owner of this Agreement constitutes the Borrower’s
and that Owner’s legal, valid and binding obligations enforceable against the Borrower and that Owner in accordance with
its respective terms and/or will not involve or lead to a contravention of:

 

		(a)	any law or regulation; or

 

		(b)	the constitutional documents of the Borrower or any Owner; or

 

		(c)	any contractual or other obligation or restriction which is binding on the Borrower or any Owner
or any of their assets.

 

		4.5	No claims against any insurers or any Approved Charterer in respect of any Ship remain pending
or unpaid.

 

		5	Confidentiality and Non-Disclosure

 

		5.1	The terms and conditions of this Agreement, including its existence,
shall remain strictly private and confidential and shall not be disclosed by the parties to any third party (with the exception
of their legal advisers or as required by law or regulation (including, but not limited to any applicable regulations of the US
Securities Exchange Commission and the applicable accounting standards) or for the purposes of the enforcement of this Agreement
and it is hereby agreed that the Borrower may make the following announcement in connection with the arrangements outlined in this
Agreement:

 

“On 8 December 2015, Paragon
Shipping Inc. entered into an agreement with Commerzbank AG for the full and final satisfaction of all amounts outstanding under
a US$57,000,000 facility, of which approximately US$38,237,500 is currently outstanding, in exchange for the net sale proceeds
of the mortgaged vessels, namely m.vs. “DIAMOND SEAS”, “PEARL SEAS” and “SAPPHIRE SEAS” (the
“Vessels”). The Vessels have been committed for sale to an unaffiliated third party under separate Memoranda
of Agreement and are expected to be delivered to their buyer by 12 February 2016.”.

 

		6	Reservation of Rights

 

		6.1	The terms of this Agreement shall be without prejudice to all
of the Creditor Parties’ rights under the Loan Agreement and Finance Documents which rights the Creditor Parties fully reserve
until due performance of all of the terms of this Agreement and any forbearance or delay by the Creditor Parties in exercising
such rights shall in no way amount to or be construed as a waiver by the Creditor Parties of such rights.

 

		6.2	For the avoidance of any doubt, the Borrower shall continue to
remain liable in respect of all its obligations and liabilities under or in connection with the Loan Agreement until it is released
pursuant to Clause 3.1(c).

 

    	 	4	 

     

    

 

		7	Incorporation of Loan Agreement Terms

 

		7.1	The provisions of Clauses 20.2, 20.3 and 28 of the Loan Agreement
shall apply (with all logical modifications) to this Agreement as if the references therein to “this Agreement” or
“a/the Finance Document/s” were references to this Agreement. 

 

		8	Events of Default

 

		8.1	The Borrower and each Owner acknowledge and agree that if any
of them fails to satisfy any obligations undertaken by it under this Agreement in a timely manner or the Ships are not delivered
to the Buyer by the relevant Expiry Date for reasons that are within the Borrower’s or any Owner’s control, such failure
shall constitute an Event of Default entitling the Creditor Parties to take any of the actions referred to in Clause 19.2 of the
Loan Agreement. 

 

		9	Governing Law and Jurisdiction

 

		9.1	The terms of this Agreement shall be governed by and construed
in accordance with English law and the terms of Clause 30 of the Loan Agreement shall apply (with all logical modifications) to
this Agreement as if all references therein to “this Agreement” were references to this Agreement.

 

    	 	5	 

     

    

 

Schedule
1

 

Amounts

 

	 	 	Debt Cut	 
	 	 	 	 
	First Ship	 	US$	2,500,000	 
	 	 	 	 	 
	Second Ship	 	US$	3,000,000	 
	 	 	 	 	 
	Third Ship	 	US$	21,037,500	 

 

    	 	6	 

     

    

 

Execution
Pages

 

	BORROWER	 
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by PARAGON SHIPPING INC.	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)
	 	 
	OWNERS	 
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by READING NAVIGATION CO.	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by DONNA MARINE CO.	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by PROTEA INTERNATIONAL INC.	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)
	 	 
	LENDERS	 
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by COMMERZBANK AG	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)

 

    	 	7	 

     

    

 

	AGENT	 
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by COMMERZBANK AG	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)
	 	 
	ARRANGER	 
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by COMMERZBANK AG	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)
	 	 
	SECURITY TRUSTEE	 
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by COMMERZBANK AG	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)
	 	 
	SWAP BANK	 
	 	 
	EXECUTED and DELIVERED as a DEED	)
	by COMMERZBANK AG	)
	acting by	)
	its duly authorised	)
	attorney-in-fact in the presence of:	)

 

    	 	8Exhibit 4.30

 

Dated        January
2016

 

PARAGON SHIPPING INC.

as Borrower

 

-and-

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1 

as Lenders

 

-and-

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 2

as Swap Banks

 

-and-

 

THE GOVERNOR AND COMPANY OF THE BANK
OF IRELAND

as Arranger, Agent and Security Trustee

 

 

 

 

FIFTH SUPPLEMENTAL AGREEMENT

 

 

 

in relation to a Loan Agreement dated 30
March 2009 (as amended)

for a term loan facility of up to US$30,000,000

secured against m.v. “KIND SEAS”

 

CONSTANT & CONSTANT

149 Karaiskou Street

185 38 Piraeus

Greece

 

     

     

    

 

INDEX

 

	Clause	Page
	 	 	 
	1	DEFINITIONS	1
	 	 	 
	2	REPRESENTATIONS AND WARRANTIES	2
	 	 	 
	3	AGREEMENT OF THE CREDITOR PARTIES	3
	 	 	 
	4	CONDITIONS	3
	 	 	 
	5	VARIATIONS TO Loan AGREEMENT	4
	 	 	 
	6	UNSECURED PIK NOTE	5
	 	 	 
	7	CONTINUANCE OF LOAN AGREEMENT AND FINANCE DOCUMENTS	6
	 	 	 
	8	EXPENSES	6
	 	 	 
	9	NOTICES	6
	 	 	 
	10	APPLICABLE LAW	6
	 	 	 
	11	third party rights	7
	 	 	 
	EXECUTION PAGES	8
	 	 
	SCHEDULE 1  LENDERS AND COMMITMENTS	10
	 	 
	SCHEDULE 2  SWAP BANKS	11
	 	 
	Schedule 3  Form of Confirmation	12
	 	 
	Schedule 4  Form of PIK NOTE CERTIFICATE	13

 

     

     

    

 

THIS FIFTH SUPPLEMENTAL AGREEMENT
dated     January 2016 and made

 

BETWEEN:

 

		(1)	PARAGON SHIPPING INC. as Borrower;

 

		(2)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1 as Lenders;

 

		(3)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 2 as Swap Banks; and

 

		(4)	THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND as Arranger, Agent and Security
Trustee,

 

IS SUPPLEMENTAL to a Loan Agreement
dated 30 March 2009 as amended by a first supplemental agreement dated 23 March 2010, three side letters dated 23 December 2011,
27 September 2012 and 25 July 2014 respectively, a second supplemental agreement dated 28 November 2012, a third supplemental agreement
dated 30 September 2014 and a fourth supplemental agreement dated 28 May 2015 (together, the “Loan Agreement”)
made between (i) the Borrower, (ii) the Lenders, (iii) the Swap Banks, (iv) the Arranger, (v) the Agent and (vi) the Security Trustee
pursuant to which the Lenders made available to the Borrower a term loan facility of up to Thirty Million United States Dollars
($30,000,000) upon the terms and for the purposes therein specified. The current amount of the Loan outstanding is $7,825,000 together
with all accrued but unpaid interest on the Loan.

 

WHEREAS: 

 

		(a)	the Lenders, the Swap Banks, the Arranger, the Agent and the Security Trustee have agreed to give
their consent, subject to the terms and conditions herein contained, to (amongst other things) the sale of m.v. “KIND SEAS”,
the application of the sale proceeds in reduction of the Loan and the conversion of the part of the remaining balance of the Loan
into an unsecured PIK Note, upon the terms and conditions set out herein;

 

		(b)	as at the date hereof, the Borrower has failed to pay an interest payment of US$18,114.29 due to
the Lenders on 30 November 2015.

 

NOW THEREFORE IT IS HEREBY AGREED

 

		1	DEFINITIONS

 

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

 

		1.2	In this Fifth Supplemental Agreement, unless the context otherwise requires:

 

“MOA” means
the memorandum of agreement dated 1 December 2015 for the sale of the Vessel made between the Corporate Guarantor as seller and
Samios Shipping S.A. as buyer, together with all addenda thereto;

 

“Mortgage”
means the first preferred Marshall Islands mortgage over the Vessel dated 31 March 2009, as amended by the first mortgage addendum
dated 23 March 2010, the second mortgage addendum dated 28 November 2012, the third mortgage addendum dated 30 September 2014 and
the fourth mortgage addendum dated 28 May 2015, each executed by the Corporate Guarantor in favour of the Security Trustee;

 

“PIK Note”
means the unsecured Payment-In-Kind Note in favour of the Security Trustee created pursuant to the provisions of Clause 6 hereof;

 

    	 	1	 

     

    

 

“Vessel” means
m.v. “KIND SEAS” registered under Marshall Islands flag in the ownership of the Corporate Guarantor.

 

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

 

		2	REPRESENTATIONS AND WARRANTIES

 

		2.1	The Borrower hereby represents and warrants to the Creditor Parties that, as at the date of this
Fifth Supplemental Agreement, the representations and warranties set forth in clause 10 of the Loan Agreement, except for clauses
10.3 and 10.10 (updated mutatis mutandis to the date of this Fifth Supplemental Agreement) are true and correct as if all references
therein to “this Agreement” were references to the Loan Agreement as further amended by this Fifth Supplemental Agreement.

 

		2.2	The Borrower hereby further represents and warrants to the Creditor Parties that as at the date
of this Fifth Supplemental Agreement:

 

		(a)	it is duly formed and validly existing and in goodstanding under the laws of the country of its
incorporation and has full power to enter into and perform its obligations under this Fifth Supplemental Agreement to which it
is a party and has complied with all statutory and other requirements relative to its business;

 

		(b)	all necessary governmental or other official consents, authorisations, approvals, licences, consents
or waivers for the execution, delivery, performance, validity and/or enforceability of this Fifth Supplemental Agreement and all
other documents to be executed in connection with the amendments to the Loan Agreement as contemplated hereby have been obtained
and will be maintained in full force and effect throughout the Security Period;

 

		(c)	it has taken all necessary corporate and other action to authorise the execution, delivery and
performance of its obligations under this Fifth Supplemental Agreement which constitutes the valid and binding obligations of the
Borrower enforceable in accordance with its terms;

 

		(d)	the execution, delivery and performance of this Fifth Supplemental Agreement and all such other
documents as contemplated hereby does not and will not during the Security Period constitute a breach of any contractual restriction
or any existing applicable law, regulation, consent or authorisation binding on the Borrower or on any of its respective property
or assets and will not result in the creation or imposition of any security interest, lien, charge or encumbrance (other than under
the Finance Documents) on any of such property or assets;

 

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

 

    	 	2	 

     

    

 

		3	AGREEMENT OF THE CREDITOR PARTIES

 

		3.1	The Creditor Parties, relying upon each of the representations and warranties set out in Clauses
2.1 and 2.2 of this Fifth Supplemental Agreement, hereby agree with the Borrower subject to and upon the terms and conditions of
this Fifth Supplemental Agreement and in particular, but without limitation, subject to and with effect from the fulfillment of
the conditions precedent set out in Clause 4, to:

 

		(a)	the sale of the Vessel pursuant to the terms of the MOA and the release of the Mortgage upon receipt
of the sale proceeds by the Lenders;

 

		(b)	the application of the net sale proceeds of the Vessel in the sum of US$3,440,250 in reduction
of the Loan;

 

		(c)	the conversion of part of the Loan in the amount of US$2,192,375 (together with all accrued but
unpaid interest on the Loan, calculated at the time of receipt by the Lenders of the net sale proceeds of the Vessel) into an unsecured
PIK Note obligation of the Borrower;

 

		(d)	the write off of the remaining amount of the Loan in the sum of US$2,192,375;

 

		(e)	the application of the remaining minimum liquidity under the Loan Agreement for payment to agreed
trade creditors of the Vessel, at the discretion of the Lenders.

 

		3.2	The Borrower confirms that it will continue to remain liable to perform only those of its obligations
under the Loan Agreement (as hereby amended) and the Finance Documents (other than the Mortgage, which will be discharged upon
the conclusion of the sale of the Vessel) to which it is a party, which will still be applicable following the modifications to
the Loan Agreement made or to be made pursuant to this Fifth Supplemental Agreement.

 

		4	CONDITIONS

 

		4.1	The agreement of the Creditor Parties contained in Clause 3.1 of this Fifth Supplemental Agreement
shall be subject to the following conditions that the Creditor Parties shall have received in form and substance satisfactory to
the Security Trustee on behalf of the Lenders and their legal advisers on or before the signature hereof:

 

		(a)	a certificate of a Director of the Borrower confirming the names and offices of all the Directors
and/or Officers of the Borrower, and confirming that the Borrower’s incorporation and constitutional documents have not been
altered or amended since 28 May 2015;

 

		(b)	true and complete copies of the resolutions passed at a meeting of the Board of Directors of the
Borrower, authorising and approving the execution of this Fifth Supplemental Agreement and any other document or action to which
the Borrower is a party, and authorising its appropriate officer or officers or other representatives to execute the same on its
behalf;

 

		(c)	the original of any power of attorney issued by the Borrower pursuant to such resolutions aforesaid;

 

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

 

		(e)	a duly executed original of this Fifth Supplemental Agreement;

 

    	 	3	 

     

    

 

		(f)	an executed copy of the MOA, together with evidence that the deposit thereunder has been paid by
the seller and is held in an escrow account with Watson Farley Williams LLP in London upon terms acceptable to the Lenders;

 

		(g)	such legal opinions as the Security Trustee may require in respect of the matters contained in
this Fifth Supplemental Agreement;

 

		(h)	a duly executed confirmation from each Security Party in the form of Schedule 3 hereto, confirming
that (notwithstanding the amendments made to the Loan Agreement pursuant to this Agreement) the Finance Documents to which it is
a party and its obligations thereunder remain valid and binding; and

 

		(i)	receipt by the Lenders of the expenses referred to in Clause 8.

 

		4.2	The agreement of the Creditor Parties contained in Clause 3.1 (d) of this Fifth Supplemental Agreement
shall be further subject to the condition that the Creditor Parties shall receive within forty five (45) days of the date of this
Fifth Supplemental Agreement evidence satisfactory to the Agent of the agreement of Commerzbank AG and UniCredit Bank AG, as parties
to other loan facilities currently in place with Paragon Shipping Inc. as borrower, that they have agreed to the sale of the vessels
which are the subject of those loan facilities and that the terms that relate to the write off of the balance of those loan facilities
are not more favourable than those terms provided for in this Fifth Supplemental Agreement. For the avoidance of doubt, should
the Borrower fail to produce the above mentioned evidence within the above mentioned time period, then the amount of the Loan in
the sum of US$2,192,375 referred to in Clause 3.1 (d) shall be deemed not to have been written off and the Borrower shall instead
provide to the Lenders a further unsecured PIK Note in the sum of US$2,192,375 on the same basis and upon the same terms as described
in Clause 6 hereof.

 

		4.3	Upon receipt by the Lenders’ lawyer at the closing meeting for the Vessel’s sale of
the original of the agreed form Protocol of Delivery and Acceptance duly signed by the seller and the buyer under the MOA in accordance
with the release instructions contained in the MT199 Swift instructions sent to the Agent by the buyer’s remitting bank,
the Lenders shall immediately provide to the Borrower evidence of the discharge of the Mortgage by way of a certificate of ownership
and encumbrances issued by the Marshall Islands Flag Administration (IRI) in Piraeus confirming the Borrower as owner of the Vessel
and showing the Vessel free from all registered encumbrances, dated the date of delivery of the Vessel.

 

		5	VARIATIONS TO Loan AGREEMENT

 

		5.1	In consideration of the agreement of the Creditor Parties contained in Clause 3.1 of this Fifth
Supplemental Agreement, the Borrower hereby agrees with the Creditor Parties that the provisions of the Loan Agreement shall as
of the date on which the conditions precedent set out in Clause 4 have been complied with to the satisfaction of the Creditor Parties
be varied and/or amended and/or supplemented as follows:

 

		(a)	by construing all references therein to “this Agreement” where the context admits as
being references to “this Agreement as the same is amended and supplemented by the Fifth Supplemental Agreement dated
January 2016 and as the same may from time to time be further supplemented and/or amended”; and

 

		(b)	by inserting in clause 1.1 thereof the definitions of “MOA” and “PIK Note”
set out in Clause 1.2 hereof.

 

		5.2	The Borrower and/or the Corporate Guarantor and/or the Approved Manager shall be permitted to utilise
sums held by the Agent as minimum liquidity under the terms of the Loan Agreement in payment of agreed trade creditors of the Vessel.
Any such payments shall be agreed with the Lenders in advance and applied strictly in accordance with the terms of such agreement.

 

    	 	4	 

     

    

 

		5.3	For the avoidance of doubt, the provisions of Clauses 12.5 (minimum balance), 12.7 (financial covenants)
and 12.8 (compliance check) of the Loan Agreement shall no longer apply following receipt by the Lenders of the net sale proceeds
of the Vessel and the issue by the Borrower of the PIK Note pursuant to the terms of Clause 6 of this Fifth Supplemental Agreement.

 

		6	UNSECURED PIK NOTE

 

		6.1	Following receipt by the Lenders of the net sale proceeds of the Vessel in the sum of US$3,440,250
and application of this amount against the outstanding amount of the Loan, the remaining balance of the Loan shall be US$4,384,750
(the “Remaining Balance”) plus all accrued interest thereon. Fifty per cent (50%) of the Remaining Balance,
together with all accrued but unpaid interest on the Loan (calculated at the time of receipt by the Lenders of the net sale proceeds
of the Vessel), shall be converted into an unsecured PIK Note (the “PIK Note”) upon the terms and conditions
set out in Clause 6.2 and the other fifty percent (50%) of the Remaining Balance shall be written off by the Lenders.

 

		6.2	The terms of the PIK Note shall be as follows:

 

		(a)	the principal amount of the PIK Note shall be $2,192,375 together with all accrued but unpaid interest
on the Loan, calculated as at the time of receipt by the Lenders of the net sale proceeds of the Vessel on the basis described
in Clause 6.2 (d) hereof;

 

		(b)	the noteholder shall be The Governor and Company of the Bank of Ireland as Security Trustee under
the Loan Agreement and the Borrower shall register the noteholder in the register of noteholders to be maintained by the Borrower;

 

		(c)	the PIK Note shall be non-amortizing and shall have a maturity date of 31 December 2020 (the “Maturity
Date”) at which time it shall be repaid at par;

 

		(d)	interest on the PIK Note shall accrue on a quarterly basis at an interest rate equal to the aggregate
of the Margin and LIBOR, and shall be treated as Payment-In-Kind;

 

		(e)	the PIK Note shall be unsecured, shall rank pari passu with any other senior unsecured obligations
of the Borrower and shall rank senior to the common shares of the Borrower;

 

		(f)	no application will be made to any stock exchange for the listing of, or for permission to deal
in, the PIK Note;

 

		(g)	the Borrower shall issue a duly executed certificate for the PIK Note substantially in the form
of Schedule 4 in favour of The Governor and Company of the Bank of Ireland as noteholder (in its capacity as Security Trustee under
the Loan Agreement);

 

		(h)	the Borrower shall be entitled, upon giving not less than 30 days prior written notice to the noteholder,
to redeem partially or wholly at par the PIK Note and on expiry of the notice the PIK Note shall be so redeemed;

 

		(i)	the Borrower shall have the right to convert the PIK Note into common shares of the Borrower partially
or wholly at any time until the Maturity Date, at the option of the Borrower, such conversion to be based upon the twenty (20)
day average closing price of the Borrower’s shares immediately prior to the conversion date, provided always that
at the time of such conversion the Borrower shall be listed on the NASDAQ exchange (or another exchange approved by the noteholder)
and shall be in compliance with the terms of such exchange;

 

    	 	5	 

     

    

 

		(j)	the PIK Note shall be transferable in whole but not in part by the noteholder by an instrument
in writing signed by or on behalf of the transferor, which transfer shall be registered by the Company in the register of noteholders,
upon receipt of a copy of the instrument of transfer, provided always that, in the event of a proposed transfer to a company outside
of the Bank of Ireland Group (the “transferee”), the Borrower shall have the right to offer to the noteholder
not less favourable terms than those offered by the transferee or to redeem the PIK Note at par, such right to be exercised and
completed within ten (10) days of the date of notification of proposed transfer by the noteholder to the Borrower;

 

		(k)	the PIK Note shall be treated as a continuing obligation of the Borrower in any formal restructuring
process;

 

		(l)	the PIK Note shall become immediately repayable at par upon the occurrence of any of the events
or circumstances set out in Clause 19.1 (g) and/or Clause 19.1 (h) of the Loan Agreement (provided the same are continuing, but
without prejudice to the Borrower’s right of conversion under Clause 6.2 (i) which shall remain unaffected) and there will
be no other covenants, defaults or early redemption events with respect to the PIK Note;

 

		(m)	the PIK Note and the certificate (and any non-contractual obligations connected with them) shall
be governed by and construed in accordance with English law.

 

		6.3	For the avoidance of doubt, the provisions of Clause 8 of the Loan Agreement with regard to repayment
and prepayment of the Loan shall be superceded by the provisions of Clause 6 of this Fifth Supplemental Agreement and the final
Repayment Date of the Loan shall be the Maturity Date.

 

		7	CONTINUANCE OF LOAN AGREEMENT AND FINANCE DOCUMENTS

 

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

 

		8	EXPENSES

 

		8.1	The Borrower agrees to pay to the Creditor Parties upon demand and from time to time all costs,
charges and expenses (including legal fees and VAT, if applicable) incurred by the Creditor Parties in connection with the preparation,
negotiation, execution and (if required) registration of, or preservation of rights under or the enforcement or attempted enforcement
of, the Loan Agreement, the Finance Documents, this Fifth Supplemental Agreement (including the PIK Note and the certificate) or
otherwise in connection with the Loan or any part thereof.

 

		9	NOTICES

 

		9.1	The provisions of clause 28 (Notices) of the Loan Agreement shall apply to this Fifth Supplemental
Agreement as if the same were set out herein in full.

 

		10	APPLICABLE LAW

 

		10.1	This Fifth Supplemental Agreement (and any non contractual obligations connected with it) shall
be governed by and construed in accordance with English law.

 

    	 	6	 

     

    

 

		10.2	Subject to Clause 10.3, the courts of England shall have exclusive jurisdiction to settle any disputes
which may arise out of or in connection with this Fifth Supplemental Agreement.

 

		10.3	Clause 10.2 is for the exclusive benefit of the Creditor Parties which reserve the right:

 

		(a)	to commence proceedings in relation to any matter which arises out of or in connection with this
Fifth Supplemental Agreement in the courts of any country other than England and which have or claim jurisdiction to that matter;
and

 

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

 

The Borrower shall not commence
any proceedings in any country other than England in relation to a matter which arises out of or in connection with this Fifth
Supplemental Agreement.

 

		10.4	The Borrower irrevocably appoints Hill Dickinson Services (London) Limited at its office for the
time being, presently at The Broadgate Tower 20, Primrose Street, London EC2A 2EW, England to act as its agent to receive and accept
on its behalf any process or other document relating to any proceedings in the English courts which are connected with this Fifth
Supplemental Agreement.

 

		10.5	Nothing in this Clause 10 shall exclude or limit any right which the Creditor Parties may have
(whether under the law of any country, an international convention or otherwise) with regard to the bringing of proceedings, the
service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction.

 

		10.6	In this Clause 10, “proceedings” means proceedings of any kind, including an application
for a provisional or protective measure.

 

		11	third party rights

 

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

 

IN WITNESS WHEREOF the parties hereto
have caused this Fifth Supplemental Agreement to be duly executed and delivered as a deed on the day and year first above written.

 

    	 	7	 

     

    

 

EXECUTION
PAGES

 

	BORROWER	 
	 	 
	SIGNED and DELIVERED	)
	as a DEED	)
	by	)
	 	)
	for and on behalf of	)
	PARAGON SHIPPING INC.	)
	in the presence of:	)
	 	 
	LENDERS	 
	 	 
	SIGNED and DELIVERED	)
	as a DEED	)
	by	)
	 	)
	for and on behalf of	)
	THE GOVERNOR AND	)
	COMPANY OF THE BANK OF	)
	IRELAND	)
	in the presence of:	)
	 	 
	ARRANGER	 
	 	 
	SIGNED and DELIVERED	)
	as a DEED	)
	by	)
	 	)
	for and on behalf of	)
	THE GOVERNOR AND	)
	COMPANY OF THE BANK OF	)
	IRELAND	)
	in the presence of:	)
	 	 
	AGENT	 
	 	 
	SIGNED and DELIVERED	)
	as a DEED	)
	by	)
	 	)
	for and on behalf of	)
	THE GOVERNOR AND	)
	COMPANY OF THE BANK OF	)
	IRELAND	)
	in the presence of:	)

 

    	 	8	 

     

    

 

	SECURITY TRUSTEE	 
	 	 
	SIGNED and DELIVERED	)
	as a DEED	)
	by	)
	 	)
	for and on behalf of	)
	THE GOVERNOR AND	)
	COMPANY OF THE BANK OF	)
	IRELAND	)
	in the presence of:	)

 

    	 	9	 

     

    

 

SCHEDULE
1

 

LENDERS
AND COMMITMENTS

 

	Lender	 	Lending Office	 	Commitment
	 	 	 	 	 
	The Governor and Company of the Bank of Ireland	 	
        Head Office

        40 Mespil Road

        Dublin 4

        Ireland
	 	$30,000,000 (originally)

 

    	 	10	 

     

    

 

SCHEDULE
2

 

SWAP
BANKS

 

	Swap Bank	Booking Office
	 	 
	The Governor and Company	Colvill House
	of the Bank of Ireland	Talbot Street
	 	Dublin 1
	 	Ireland

 

    	 	11	 

     

    

 

Schedule
3

 

Form
of Confirmation

 

[                       ]
2016

 

We hereby confirm and acknowledge we have
read and understood the terms and conditions of the Fifth Supplemental Agreement dated [      ] January
2016 (the “Fifth Supplemental Agreement”) to the Loan Agreement dated 30 March 2009 as amended by a first supplemental
agreement dated 23 March 2010, three side letters dated 23 December 2011, 27 September 2012 and 25 July 2014 respectively, a second
supplemental agreement dated 28 November 2012, a third supplemental agreement dated 30 September 2014 and a fourth supplemental
agreement dated 28 May 2015 (together, the “Loan Agreement”) made between (i) Paragon Shipping Inc. as borrower
(the “Borrower”), (ii) the banks and financial institutions listed in schedule 1 therein as lenders, (iii) the
banks and financial institutions listed in schedule 2 therein as swap banks and (iv) The Governor and Company of the Bank of Ireland
as arranger, agent and security trustee, and agree in all respects to the same and confirm that the Finance Documents (as defined
in the Loan Agreement) to which we are a party (other than the Mortgage, following discharge of the same) shall remain in full
force and effect and shall continue to stand as security for the obligations of the Borrower under the Loan Agreement (as amended
by the Fifth Supplemental Agreement).

 

	 	 
	[                        ] 	 

 

    	 	12	 

     

    

 

Schedule
4

Form of PIK NOTE CERTIFICATE

 

PARAGON SHIPPING INC.

(the “Corporation”)

 

(Incorporated under Laws of the Marshall
Islands)

 

Nominal Amount of PIK Note

Certificate

No. 1                               
$[2,192,375 plus all accrued but unpaid interest on the Loan]

 

ISSUE of Unsecured PIK Note dated [    ]
January 2016.

 

Created and issued pursuant to the Corporation’s
Articles of Association and a Resolution of its Board of Directors passed on 23 December 2015.

 

THIS IS TO CERTIFY that THE GOVERNOR AND
COMPANY OF THE BANK OF IRELAND of Head Office, 40 Mespil Road, Dublin 4, Ireland is the registered holder of US$[2,192,375 plus
all accrued but unpaid interest on the Loan] of the Unsecured PIK Note, which Note is constituted by an agreement supplemental
to a Loan Agreement dated 30 March 2009 (as amended, the “Agreement”) entered into by the Corporation on and
dated [__] January 2016 and is issued subject to the provisions contained in that Agreement.

 

Interest shall accrue on a quarterly basis
at the rate of two point five zero per cent (2.50%) per annum over LIBOR and shall be treated as Payment-In-Kind.

 

No transfer of any part of the PIK Note
represented by this Certificate will be registered unless accompanied by this Certificate. The PIK Note is redeemable in accordance
with the terms and conditions contained in the Agreement a copy of which is available from the Corporation.

 

The date of maturity of the PIK Note is
31 December 2020.

 

	EXECUTED and DELIVERED	)
	as a DEED 	)
	by	)
	 	)
	for and on behalf of	)
	PARAGON SHIPPING INC.	)
	in the presence of:	)

 

    	 	13

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