Document:

Exhibit
4.2

 

DESCRIPTION OF SECURITIES REGISTERED PURSUANT
TO SECTION 12 OF THE EXCHANGE ACT

 

The following summary
describes our common stock, par value $0.001 per share (the “Common Stock”), of CBAK Energy Technology, Inc. (the “Company,”
“we,” “us,” and “our”), which are the only securities of the Company registered pursuant to Section
12 of the Exchange Act.

 

DESCRIPTION OF COMMON
STOCK

 

The following summary
describes the material terms of our Common Stock. This summary does not purport to be complete and is qualified in its entirety by reference
to our Articles of Incorporation, Certificate of Change Pursuant to NRS 78.209, Certificate of Amendment to Articles of Incorporation
filed on June 23, 2015, Certificate of Amendment to Articles of Incorporation filed on December 9, 2021, Articles of Merger and By-laws
incorporated by reference as Exhibits 3.1, 3.3, 3.4, 3.5, 2.1 and 3.2, respectively, to the Annual Report on Form 10-K of which this Exhibit
4.2 is a part. We encourage you to read the foregoing exhibits and the applicable provisions of the Nevada Revised Statutes,
Chapter 78, for a complete description of our Common Stock.

 

Authorized Capital
Stock

 

The Company is authorized
to issue up to 500,000,000 shares of Common Stock and 10,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred
Stock”). The Common Stock may be issued from time to time for such consideration as may be fixed by the Board of Directors, provided
that the consideration fixed is not less than par value.

 

The Board of Directors
is authorized, at any time and from time to time, to provide for the issuance of shares of Preferred Stock in one or more series with
such designations, preferences, voting powers and relative, participating, optional or other special rights and qualifications, limitations
or restrictions thereof as are stated and expressed in the resolution or resolutions providing for the issuance of such Preferred Stock
adopted by the Board of Directors, and as are not stated and expressed in the Company’s articles of incorporation or any amendment
thereto. As of December 31, 2021, there were 88,705,016 shares of Common Stock and no Preferred Stock outstanding.

 

Voting Rights

 

Each outstanding share
of Common Stock entitles the holder thereof to one vote per share on all matters coming before the stockholders for a vote. Our articles
of incorporation do not permit cumulative voting for the election of directors. Likewise, our articles of incorporation do not vary the
size of the vote necessary for the stockholders to act on various matters from the size of the vote required by Nevada law, which means,
unless a different vote is required by express provisions of Nevada law, an action by the stockholders on a matter other than the election
of directors shall be approved if the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the
action. The directors of a Nevada corporation are elected at the annual meeting of the stockholders by a plurality of the votes cast at
the election.

 

Dividends

 

The holders of shares
of our Common Stock are entitled to dividends out of funds legally available when and as declared by our board of directors. Our board
of directors has never declared a dividend or otherwise authorized any cash or other distribution with respect to the shares of our Common
Stock and does not anticipate declaring a dividend in the foreseeable future. Should we decide in the future to pay dividends, as a holding
company, our ability to do so and meet other obligations depends upon the receipt of dividends or other payments from our operating subsidiaries
and other holdings and investments. In addition, our operating subsidiaries, from time to time, may be subject to restrictions on their
ability to make distributions to us, including as a result of restrictive covenants in loan agreements, restrictions on the conversion
of local currency into dollars or other hard currency and other regulatory restrictions.

 

     

     

    

 

Liquidation

 

the event of our liquidation,
dissolution or winding up, holders of our Common Stock are entitled to receive, ratably, the net assets available to stockholders after
payment of all creditors.

Rights and Preferences

 

Our Common Stock has no preemptive or subscription
rights, and no redemption, sinking fund, or conversion provisions.

 

Fully Paid and Nonassessable

 

All of the issued and
outstanding shares of our Common Stock are duly authorized, validly issued, fully paid and non-assessable. To the extent that additional
shares of our Common Stock are issued, the relative interests of existing stockholders will be diluted.

 

Anti-takeover Effects
of Our Articles of Incorporation and Bylaws

 

articles of incorporation
and bylaws contain certain provisions that may have the effect of entrenching our existing board members, delaying, deferring or preventing
a future takeover or change in control of the company unless such takeover or change in control is approved by the board of directors.
These provisions include:

 

		●	Special
Meetings of Stockholders — Our articles of incorporation provide that special meetings of the stockholders can only be
called by our president or any other executive officer, or the board of directors, or any member thereof, the record holder or holders
of at least 10% of all shares entitled to vote at the meeting, and our bylaws provide that a special meeting will be called by the president
or secretary at the written request of our stockholders holding not less than 30% of all the shares issued, outstanding and entitled
to vote.

 

		●	Advance
Notice Procedures — At an annual meeting, our stockholders elect a board of directors and transact such other business
as may properly be brought before the meeting. By contrast, at a special meeting, our stockholders may transact only the business for
the purposes specified in the notice of the meeting unless all of our stockholders entitled to vote are present at the special meeting
and consent.

 

		●	Contracts
and Transactions with Interested Directors — We may enter into a contract or a transaction with an entity in which our
directors or officers have a financial or other interest as long as such relationship has been disclosed to, or is known by, our board
of directors, or is otherwise fair to the Company at the time it is authorized or approved.

 

		●	Amendment
of Bylaws — Our Bylaws may be amended by our board of directors alone.

 

		●	Authorized
but Unissued Shares — Our board of directors may cause us to issue our authorized but unissued shares of Common Stock
or Preferred Stock in the future without stockholders’ approval. These additional shares may be utilized for a variety of corporate
purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence
of authorized but unissued shares of Common Stock and Preferred Stock could render more difficult or discourage an attempt to obtain
control of a majority of the voting power of our outstanding capital stock by means of a proxy contest, tender offer, merger or otherwise.

 

Anti-Takeover Effects
of Nevada Law

 

Nevada Business Combination
Statute

 

We are subject to the
“business combination” provisions of Sections 78.411 to 78.444 of the Nevada Revised Statutes. In general, such provisions
prohibit a Nevada corporation with at least 200 stockholders from engaging in various “combination” transactions with any
interested stockholder for a period of two years after the date of the transaction in which the person became an interested stockholder,
unless the transaction is approved by the board of directors prior to the date the interested stockholder obtained such status or the
combination is approved by the board of directors and thereafter is approved at a meeting of stockholders by the affirmative vote of stockholders
representing at least 60% of the outstanding voting power held by disinterested stockholders, and extends beyond the expiration of the
two-year period, unless (a) the combination was approved by the board of directors prior to the person becoming an interested stockholder;
(b) the transaction by which the person first became an interested stockholder was approved by the board of directors before the person
became an interested stockholder; (c) the combination is later approved by a majority of the voting power held by disinterested stockholders;
or (d) if the consideration to be paid by the interested stockholder is at least equal to the highest of: (i) the highest price per share
paid by the interested stockholder within the two years immediately preceding the date of the announcement of the combination or in the
transaction in which it became an interested stockholder, whichever is higher, or (ii) the market value per share of common stock on the
date of announcement of the combination and the date the interested stockholder acquired the shares, whichever is higher.

 

    2

     

    

 

A “combination”
is generally defined to include mergers or consolidations or any sale, lease, exchange, mortgage, pledge, transfer, or other disposition,
in one transaction or a series of transactions, with an “interested stockholder” or any affiliate or associate of an interested
stockholder having: (a) an aggregate market value equal to more than 5% of the aggregate market value of the assets of the corporation,
(b) an aggregate market value equal to more than 5% of the aggregate market value of all outstanding voting shares of the corporation,
and (c) more than 10% of the earning power or net income of the corporation.

  

An “interested
stockholder” is generally defined to mean a beneficial owner of at least 10% of the outstanding voting power or an affiliate or
associate of the corporation that has been a 10% beneficial owner within the preceding 2 years. The statutes could prohibit or delay mergers
or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire our company even though such a transaction
may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.

 

Nevada Acquisition
of Controlling Interest Statute

 

Nevada’s Acquisition
of Controlling Interest Statute (NRS Sections 78.378-78.3793) applies only to Nevada corporations with at least 200 stockholders, including
at least 100 stockholders of record who are Nevada residents, which conduct business directly or indirectly in Nevada and whose articles
of incorporation or bylaws in effect 10 days following the acquisition of a controlling interest by an acquiror do not prohibit its application.
As of the date of this prospectus, we do not believe we have 100 stockholders of record who are residents of Nevada, although there can
be no assurance that in the future the acquisition of controlling interest statutes will not apply to us.

 

Nevada’s Acquisition of Controlling Interest
Statute, prohibits an acquiror, under certain circumstances, from voting shares of a target corporation’s stock after crossing certain
threshold ownership percentages, unless the acquiror obtains the approval of the target corporation’s stockholders. The statute
specifies three thresholds that constitute a controlling interest: (a) at least one-fifth but less than one-third; (b) at least one-third
but less than a majority; and (c) a majority or more, of the outstanding voting power. Once an acquiror crosses one of these thresholds,
shares which it acquired in the transaction exceeding the threshold (or within ninety days preceding the date thereof) become “control
shares” which could be deprived of the right to vote until a majority of the disinterested stockholders restore that right.

 

A special stockholders meeting may be called at
the request of the acquiror to consider the voting rights of the acquiror’s shares. If the acquiror requests a special meeting and
gives an undertaking to pay the expenses of said meeting, then the meeting must take place no earlier than 30 days (unless the acquiror
requests that the meeting be held sooner) and no more than 50 days (unless the acquiror agrees to a later date) after the delivery by
the acquiror to the corporation of an information statement which sets forth the range of voting power that the acquiror has acquired
or proposes to acquire and certain other information concerning the acquiror and the proposed control share acquisition.

 

    3

     

    

 

If no such request for a stockholders meeting
is made, consideration of the voting rights of the acquiror’s shares must be taken at the next special or annual stockholders meeting.
If the stockholders fail to restore voting rights to the acquiror, or if the acquiror fails to timely deliver an information statement
to the corporation, then the corporation may, if so provided in its articles of incorporation or bylaws, call certain of the acquiror’s
shares for redemption at the average price paid for the control shares by the acquiror.

 

In the event the stockholders restore full voting
rights to a holder of control shares that owns a majority of the voting stock, then all other stockholders who do not vote in favor of
restoring voting rights to the control shares may demand payment for the “fair value” of their shares as determined by a court
in dissenters rights proceeding pursuant to Chapter 92A of the Nevada Revised Statutes.

 

Listing

 

Our Common Stock is listed
on Nasdaq Capital Market under the symbol “CBAT.”

 

Transfer Agent and
Registrar

 

Our transfer agent and registrar is Securities Transfer Corporation,
2901 N Dallas Parkway, Suite 380, Plano, Texas 75093.

 

Warrants

 

As of December 31, 2021, the Company had the following outstanding
warrants to purchase the Common Stock:

 

		·	warrants
to purchase 3,795,920 shares of Common Stock of the Company at an exercise price of $6.46 per share, subject to full-ratchet anti-dilution
adjustment in the case of future issuances or deemed issuances of shares of Common Stock below the warrants’ exercise price then
in effect, as well as customary adjustment in case of stock splits, stock dividends, stock combinations and similar recapitalization
transactions. These warrants are exercisable for 36 months from the date of issuance,  December 10, 2020;

 

		·	Series A-1 warrants to purchase 4,469,988 shares
of Common Stock of the Company, at a per share exercise price of $7.67, subject to full-ratchet anti-dilution adjustment in the case of
future issuances or deemed issuances of shares of Common Stock below the Series A-1 warrants’ exercise price then in effect, as
well as customary adjustment in case of stock splits, stock dividends, stock combinations and similar recapitalization transactions. The
Series A-1 warrants are exercisable for 42 months from the date of issuance,  February 10, 2021.

 

		●	warrants to purchase 446,999 shares of Common Stock, at an
exercise price of $9.204 per share, with a term of 42 months from the issuance date,  February 10, 2021, subject to customary adjustment
in case of stock dividends, stock splits, stock combinations and similar recapitalization transactions; and

 

		●	warrants to purchase 379,592 shares of Common Stock, at an
exercise price of $6.475, with a term of 36 months from the issuance date,  December 10, 2020, subject to customary adjustment in case
of stock dividends, stock splits, stock combinations and similar recapitalization transactions.

 

 

4ex_350425.htm

Exhibit 4.20

 

 

 

 

Dated: 2 February, 2022

 

ALPHA BANK S.A.

 

(as Lender)

 

- and -

 

CALIFORNIA 19 INC. and

CALIFORNIA 20 INC.

(as joint and several Borrowers)

 

- and -

 

CENTRAL MARE INC.

TOP SHIPS INC.

(as Corporate Guarantors)

 

 

	
			 

			SECOND SUPPLEMENTAL AGREEMENT

			in relation to a Loan Agreement dated 12th March, 2020

			for a loan facility of (originally) US $37,660,000

			 

			

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	CLAUSE 	
			HEADINGS        

				PAGE
	 	 	 
	1.	
			DEFINITIONS

				2
	 	 	 
	2.	
			REPRESENTATIONS AND WARRANTIES

				3
	 	 	 
	3.	
			AGREEMENT OF THE LENDER

				4
	 	 	 
	4.	
			CONDITIONS

				4
	 	 	 
	5.	
			VARIATIONS TO THE PRINCIPAL AGREEMENT

				5
	 	 	 
	6.	RECONFIRMATION	8
	 	 	 
	7.	CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS	8
	 	 	 
	8.	ENTIRE AGREEMENT AND AMENDMENT	8
	 	 	 
	9.	
			FEES AND EXPENSES

				8
	 	 	 
	10.	ASSIGNMENT	9
	 	 	 
	11.	
			MISCELLANEOUS

				9
	 	 	 
	12.	
			LAW AND JURISDICTION

				9

 

 

 

 

 

 

 

 

THIS SUPPLEMENTAL AGREEMENT (“this Supplemental Agreement”) is made this 2nd day of February, 2022;

 

B E T W E E N

 

	 	
			(1)

				
			ALPHA BANK S.A., (formerly known as ALPHA BANK A.E.) a banking société anonyme incorporated in and pursuant to the laws of the Hellenic Republic with its head office at 40 Stadiou Street, Athens GR 102 52, Greece, acting through its office at 93 Akti Miaouli, Piraeus, Greece (the “Lender”); and

			

 

	 	
			(2)

				
			 (a)CALIFORNIA 19 INC., a company duly incorporated in the Republic of the Marshall Islands having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, as a Borrower (hereinafter called the “Borrower A”, which expression shall include its successors), as a borrower; and

			

 

(b)         CALIFORNIA 20 INC., a company duly incorporated in the Republic of the Marshall Islands having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, as a borrower (hereinafter called the “Borrower B”, which expression shall include its successors),

 

as joint and several borrowers (hereinafter together called the “Borrowers” and singly a “Borrower”); and

 

	 	
			(3)

				
			CENTRAL MARE INC., a corporation incorporated in the Republic of the Marshall Islands, having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, as Corporate Guarantor (the “First Corporate Guarantor” or the “Approved Manager”, each of which expressions shall include its successors); and

			

 

	 	
			(4)

				
			TOP SHIPS INC., a company duly incorporated in the Republic of the Marshall Islands having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 and which is floating in the NASDAQ (hereinafter called the “Second Corporate Guarantor”, which expression shall include its successors),

			

 

IS SUPPLEMENTAL to a loan agreement dated 12th March, 2020 made between (i) the Lender as lender, and (ii) the Borrowers, as joint and several borrowers, as amended by a first supplemental agreement dated 8th December 2020 (the said loan agreement together with the said first supplemental agreement is hereinafter called the “Principal Agreement”) on the terms and conditions of which the Lender agreed to advance and has advanced to the Borrowers a secured floating interest rate term loan facility in the amount of up to United States Dollars Thirty seven million six hundred sixty thousand (US$37,660,000) (the “Loan”), for the purposes therein specified (the Principal Agreement as hereby amended and/or supplemented and as the same may hereinafter be amended and/or supplemented called the “Loan Agreement”).

 

W H E R E A S:

 

(A)         a Master Agreement (on the 2002 ISDA Master Agreement (Multicurrency-Crossborder) form) dated as of 12th March, 2020 has been entered into between the Borrowers, as Party B and the Lender, acting as Swap Bank, as Party A, whereunder the Borrowers may enter or have already entered, as the case may be, into certain Designated Transactions (as such term is defined in the said Master Agreement) pursuant to separate Confirmations (as such term is defined in the said Master Agreement) providing for, amongst other things, the payment of certain amounts by the Borrowers to the Swap Bank (the Master Agreement, the Schedule thereto, the Credit Support Annex and all Designated Transactions from time to time entered into or Confirmations exchanged under the Master Agreement and any amending, supplemental or replacement agreement are hereinafter called the “Master Agreement”)

 

 

 

1

 

 

(B)        the First Corporate Guarantor has executed an irrevocable and unconditional Corporate Guarantee dated 12th March, 2020 in favour of the Lender by way of security for all monies now or hereafter due or payable by the Borrowers to the Lender under or pursuant to the Loan Agreement and the other Finance Documents (the “First Corporate Guarantee”); and

 

(C)         the Second Corporate Guarantor has executed an irrevocable and unconditional Corporate Guarantee dated 8th December, 2020 in favour of the Lender by way of security for all monies now or hereafter due or payable by the Borrowers to the Lender under or pursuant to the Loan Agreement and the other Finance Documents (the “Second Corporate Guarantee”); and

 

(D)         the Approved Manager has executed two Approved Manager’s Undertakings, the first one dated 16th March, 2020 in respect of m/v “ECO YOSEMITE PARK” and the other dated 26th March, 2020 in respect of m/v “ECO JOSHUA PARK” (together, the “Approved Manager’s Undertakings”), as manager of the Vessels in favour of the Lender, whereby the Approved Manager has (inter alia) subordinated any claims it may have against the Borrowers (or either of them) and/or the Vessels (or either of them) to the claims of the Lender under the Loan Agreement, the Master Agreement and the other Finance Documents in security of the Outstanding Indebtedness.

 

(E)         the Borrowers hereby acknowledge and confirm that (a) the Lender, as lender, has advanced to the Borrowers, as joint and several borrowers, the full amount of the Commitment in the principal amount of United States Dollars Thirty seven million six hundred sixty thousand (US$37,660,000) and (b) as the date hereof the principal amount of United States Dollars Thirty Seven Million (US$37,000,000) in respect of the Loan remains outstanding; and

 

(F)         the Borrowers and the other Security Parties have requested the Lender to grant its consent to (inter alia) amendment of the Security Requirement, and the Lender has agreed thereto conditionally upon terms that the Principal Agreement shall be amended in the manner hereinafter set out in Clause 5 (Variations to the Principal Agreement) of this Supplemental Agreement.

 

NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

 

	 	
			1.

				
			DEFINITIONS

			

 

	 	
			1.1

				
			Defined terms and expressions 

			

 

Words and expressions defined in the Principal Agreement and not otherwise defined herein (including the Recitals hereto) shall have the same meanings when used in this Supplemental Agreement.

 

	 	
			1.2

				
			Additional definitions

			

 

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

 

2

 

 

“Effective Date” means the date hereof or such earlier or later date as the Lender may agree in writing upon which all the conditions contained in Clause 5 (Variations to the Principal Agreement) shall have been satisfied and this Supplemental Agreement shall become effective;

 

“Loan Agreement” means the Principal Agreement as hereby amended and as the same may from time to time be further amended and/or supplemented;

 

“Corporate Guarantee Addendum” in relation to the Second Corporate Guarantee means the Addendum no. 1 to the Second Corporate Guarantee to be executed by the Second Personal Guarantor in form satisfactory to the Lender, whereby the Second Corporate Guarantee shall be amended and/or supplemented as therein provided;”

 

	 	
			1.3

				
			Application of interpretation provisions of Loan Agreement

			

 

Clause 1.3 (Interpretation) and Clause 1.4 (Construction of certain terms) of the Loan Agreement applies to this Supplemental Agreement as if it were expressly incorporated in it with any necessary modifications.

 

	 	
			2.

				
			REPRESENTATIONS AND WARRANTIES

			

 

	 	
			2.1

				
			Representations and warranties of the Principal Agreement

			

 

The Borrowers hereby, jointly and severally, represent and warrant to the Lender as at the date hereof that the representations and warranties set forth in the Principal Agreement and the Security Documents (updated mutatis mutandis to the date of this Supplemental Agreement) are (and will be on the Effective Date) true and correct as if all references therein to “this Agreement” were references to the Principal Agreement as amended and supplemented by this Supplemental Agreement.

 

	 	
			2.2

				
			Additional Representations and warranties

			

 

In addition to the above, the Borrowers, jointly and severally, hereby represent and warrant to the Lender as at the date of this Supplemental Agreement that:

 

	 	
			a.

				
			each of the Security Parties is duly formed, is validly existing and in good standing under the laws of the place of its incorporation has full power to carry on its business as it is now being conducted and to enter into and perform its obligations under the Principal Agreement, and this Supplemental Agreement and has complied with all statutory and other requirements relative to its business;

			

 

	 	
			b.

				
			all necessary licences, consents and authorities, governmental or otherwise under this Supplemental Agreement, and the Principal Agreement have been obtained and, as of the date of this Supplemental Agreement, no further consents or authorities are necessary for any of the Security Parties to enter into this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, or otherwise perform its obligations hereunder;

			

 

	 	
			c.

				
			this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, constitute the legal, valid and binding obligations of the Security Parties thereto enforceable in accordance with its terms;

			

 

	 	
			d.

				
			the execution and delivery of, and the performance of the provisions of this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, do not, and will not contravene any applicable law or regulation existing at the date hereof or any contractual restriction binding on any of the Security Parties or its respective constitutional documents;

			

 

 

3

 

 

	 	
			e.

				
			no action, suit or proceeding is pending or threatened against any of the Borrowers and the other Security Parties or their assets before any court, board of arbitration or administrative agency which could or might result in any material adverse change in the business or condition (financial or otherwise) of any of the Borrowers or the other Security Parties; and

			

 

	 	
			f.

				
			none of the Borrowers and the other Security Parties is and at the Effective Date will be in default under any agreement by which it is or will be at the Effective Date bound or in respect of any financial commitment, or obligation.

			

 

	 	
			3.

				
			AGREEMENT OF THE LENDER

			

 

The Lender, relying upon each of the representations and warranties set out in Clause 2 (Representations and warranties) hereby agrees with the Borrowers, subject to and upon the terms and conditions of this Supplemental Agreement and in particular, but without limitation, subject to the fulfilment of the conditions precedent set out in Clause 4 (Conditions), to consent to the amendment of the Principal Agreement in the manner more particularly set out in Clause 5 (Variations to the Principal Agreement).

 

	 	
			4.

				
			CONDITIONS

			

 

	 	
			4.1

				
			Conditions

			

 

The agreement of the Lender contained in Clause 3 (Agreement of the Lender) shall be expressly subject to the condition that the Lender shall have received on or before the Effective Date in form and substance satisfactory to the Lender and its legal advisers:

 

	 	
			a.

				
			a certificate of good standing or equivalent document issued by the competent authorities of the place of its incorporation in respect of each of the Borrowers and the other corporate Security Parties;

			

 

	 	
			b.

				
			a recent certificate of incumbency of each corporate Security Party issued by the appropriate authority or, as appropriate, signed by the secretary or a director thereof, stating the officers and the directors of each of them;

			

 

	 	
			c.

				
			if required by the Lender, resolutions duly passed by the Board of Directors, or the Sole Director as the case may be, of each of the Borrowers and the other Security Parties and resolutions passed at a meeting of the shareholders of each of the Borrowers and the other Security Parties (and of any corporate shareholder thereof) evidencing approval of this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, to which the relevant Security Party is or is to be a party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given under this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, on its behalf or other evidence of such approvals and authorisations as shall be acceptable to the Lender;

			

 

	 	
			d.

				
			all documents evidencing any other necessary action or approvals or consents with respect to this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, evidencing approval of this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given under this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable, on its behalf or other evidence of such approvals and authorisations as shall be acceptable to the Lender;

			

 

4

 

 

	 	
			e.

				
			if required by the Lender, the original of any power(s) of attorney issued in favour of any person executing this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable;

			

 

	 	
			f.

				
			all documents evidencing any other necessary action or approvals or consents with respect to this Supplemental Agreement and the Corporate Guarantee Addendum, as applicable;

			

 

	 	
			g.

				
			such favourable legal opinions from lawyers acceptable to the Lender and its legal advisors in this Supplemental Agreement as the Lender shall require; and

			

 

	 	
			h.

				
			the Corporate Guarantee Addendum, as applicable, duly executed by the respective parties thereto.

			

 

	 	
			5.

				
			VARIATIONS TO THE PRINCIPAL AGREEMENT 

			

 

	 	
			5.1

				
			Amendments

			

 

In consideration of the agreement of the Lender contained in Clause 3 (Agreement of the Lender), the Borrowers hereby agree with the Lender that (subject to the satisfaction of the conditions precedent contained in Clause 4 (Conditions), the provisions of the Principal Agreement shall be varied and/or amended and/or supplemented as follows:

 

	 	
			a.

				
			with effect as from the Effective Date, the following new definitions shall be added to Clause 1.2 (Definitions) of the Principal Agreement reading as follows:

			

 

“Second Supplemental Agreement” means the Second Supplemental Agreement dated ...... 2022 supplemental to this Agreement executed and made between the Borrowers and the Lender, whereby this Agreement has been amended as therein provided.”;

 

	 	
			b.

				
			with effect as from the Effective Date, Clause 8.2(o) (No dividends or distribution) of the Principal Agreement shall have a new sub-paragraph (iv) added to it as follows:

			

 

“(iv)         there is no breach of any of the Financial Covenants set forth in Clause 8.10 (Financial Covenants - Compliance Certificate) and Clause 5.2 (Negative Undertakings) of the Guarantee of the Corporate Guarantor;”

 

	 	
			c.

				
			with effect as from the Effective Date, Clause 8.10 (Financial covenants) of the Principal Agreement shall be deleted and substituted to read as follows:

			

 

5

 

 

“8.10         Financial covenants-Compliance Certificate

 

	 	
			(a)

				
			Financial covenants-Compliance Certificate: the Borrowers will ensure that:

			

 

	 	
			(i)

				
			for the duration of the Security Period, the Top Ships Group’s consolidated financial position, based on the most recent Accounting Information to comply with the financial covenants set out below:

			

 

 

	 	
			aa)

				
			Corporate Liquidity: ensure that throughout the remainder of the Security Period, the Corporate Liquidity of Top Ships maintained with the Lending Office οr other financial institutions at any relevant time in unencumbered current or call accounts in the name of entities acceptable to the Lender will be, at the end of any Accounting Period, in an amount not less than Dollars Five hundred thousand ($500,000) per Fleet Vessel; (for clarification purposes, the Pledged Minimum Liquidity and any cash held in debt service reserve accounts and retention accounts (if any) shall be taken into account in the calculation and testing of this covenant) and

			

 

	 	
			bb)

				
			Corporate Leverage Ratio: the Leverage Ratio of the Top Ships Group, at the end of any Accounting Period, not higher than 0.75:1.0; and

			

 

	 	
			(ii)

				
			Compliance Certificate: a compliance certificate for each Accounting Period of Top Ships, commencing from 30 June 2021 signed by its Treasurer, is delivered to the Lender at six monthly intervals starting from 30 June, 2021 by the Borrowers within 180 days after the end of the respective Accounting Period, substantially in the form set out in Schedule 4, duly completed and supported by calculations setting out in reasonable detail the materials underling the statements made in such compliance certificate.

			

 

The Liquid Funds and the Leverage Ratio to be tested and confirmed to the Lender on each Financial Semester Testing Day starting from 30 June, 2021 on the basis of the semi-annual unaudited and annual audited Financial Statements and the Compliance Certificate to be delivered to the Lender as per Clause 8.1(f) (Financial statements).

 

	 	
			(b)

				
			Construction: The expressions used in this Clause 8.10 shall be construed in accordance with law and accounting principles internationally accepted as used in the Accounting Information produced in accordance with Clause 8.1(f) (Financial statements).

			

 

 

	 	
			(c)

				
			Definitions: For the purposes of this Agreement:

			

 

“Accounting Information” means the annual audited consolidated financial statements of the Top Ships Group and the interim semi-annual un-audited financial statements of the Top Ships Group, to be provided by the Borrowers to the Lender in accordance with clause 8.10 (Financial Statements - Compliance Certificate); 

 

“Accounting Period” means each Financial Year and each half-year of each Financial Year falling during the Security Period for which the Accounting Information is required to be delivered to the Lender pursuant to Clause 8.10 (Financial Statements - Compliance Certificate);

 

“Cash” and “Cash Equivalents” means, at any relevant time, the aggregate of cash in hand or on deposit with any prime international bank;

 

“Corporate Leverage Ratio” means, in respect of an Accounting Period, the ratio of the Total Debt (after deducting all Cash and Cash Equivalents and restricted cash) to the aggregate Market Value of all Fleet Vessels provided however that the Fleet Vessels included in Total Assets should be adjusted to their market values which shall be acceptable to the Lender;

 

6

 

 

“Financial First Semester Testing Day” means, 30 June in any year;

 

“Financial Second Semester Testing Day” means, 31 December in any year;

 

“Financial Semester Testing Day” means each of the Financial First Semester Testing Day and the Financial Second Semester Testing Day on which the Corporate Leverage Ratio of the Top Ships Group shall be tested as provided in this Clause 8.10 (together, the “Financial Semester Testing Days”);

 

“Fleet Market Value” means, as of the date of calculation, the aggregate market value of all the Fleet Vessels as determined in accordance with the provisions (mutatis-mutandis) of Clause 8.5 (b) (Valuation of Vessels) of this Agreement;

 

“Fleet Vessels” means, together, all of the vessels (including, but not limited to, the Vessels) from time to time owned or leased by members of the Top Ships Group which, at the relevant time, are included within the Total Assets of the Top Ships Group in the balance sheet of the Accounting Information (each a “Fleet Vessel”);

 

“Total Assets” means, in respect of an Accounting Period, the aggregate value of all assets of the Top Ships Group included in the Accounting Information as “current assets” and the value of all investments and all other tangible and intangible assets of the Top Ships Group properly included in the Accounting Information as “fixed assets” in accordance with US GAAP; and

 

“Total Debt” means, in respect of an Accounting Period, the aggregate on a consolidated basis of the Top Ships Group of all short term interest bearing bank debt included in the financial statements of the Top Ships Group under current liabilities plus the long term interest bearing bank debt.”

 

	5.2.	Security Documents

         

With effect as from the Effective Date the definition “Security Documents” shall be deemed to include (a) the Security Documents as amended and/or supplemented in pursuance to the terms hereof, (b) the Corporate Guarantee Addendum and (c) any document or documents (including if the context requires the Loan Agreement) that may now or hereafter be executed as security for the repayment of the Loan, interest thereon and any other moneys payable by the Borrowers under the Principal Agreement and the Security Documents (as herein defined) as well as for the performance by the Borrowers and the other Security Parties (as herein defined) of all obligations, covenants and agreements pursuant to the Principal Agreement, this Supplemental Agreement, the Corporate Guarantee Addendum and/or the Security Documents.

 

	 	
			5.3

				
			Construction

			

 

With effect from the date hereof all references in the Principal Agreement to:

 

“this Agreement”, “hereunder” and the like and in the Security Documents to the “Loan Agreement” shall be construed as references to the Principal Agreement as amended and/or supplemented by this Supplemental Agreement.

 

 

7

 

 

	 	
			6.

				
			RECONFIRMATION

			

 

	 	
			6.1

				
			Reconfirmation of obligations

			

 

Each of the Borrowers hereby reconfirms its obligations under the Principal Agreement and its compliance with the covenants contained therein, as amended herein, of the Principal Agreement.

 

	 	
			6.2

				
			Acknowledgement

			

 

Each of the Security Parties acknowledges and agrees, for the avoidance of doubt, that each of the Security Documents to which it is a party and its obligations thereunder, shall remain in full force and effect notwithstanding the amendments made to the Principal Agreement by this Supplemental Agreement and the Corporate Guarantee Addendum and the waivers and other amendments agreed by the Lender in this Supplemental Agreement.

 

	 	
			7.

				
			CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS

			

Save for the alterations to the Principal Agreement, and the Security Documents made or to be made pursuant to this Supplemental Agreement and the Corporate Guarantee Addendum, and such further modifications (if any) thereto as may be necessary to make the same consistent with the terms of this Supplemental Agreement and the Corporate Guarantee Addendum, the Principal Agreement shall remain in full force and effect and the security constituted by the Security Documents shall continue to remain valid and enforceable and the Borrowers hereby jointly and severally reconfirm their respective obligations under the Principal Agreement as hereby amended and under the Security Documents to which each of them is a party.

 

	 	
			8.

				
			ENTIRE AGREEMENT AND AMENDMENT

			

 

	 	
			8.1

				
			Entire Agreement

			

 

The Principal Agreement, the other Security Documents, and this Supplemental Agreement and the Corporate Guarantee Addendum represent the entire agreement among the parties hereto with respect to the subject matter hereof and supersede any prior expressions of intent or understanding with respect to this transaction and may be amended only by an instrument in writing executed by the parties to be bound or burdened thereby.

 

	 	
			8.2

				
			Supplemental Agreement - Application of Principal Agreement provisions

			

 

This Supplemental Agreement is supplementary to and incorporated in the Principal Agreement, all terms and conditions whereof, including, but not limited to, provisions on payments, calculation of interest and Events of Default, shall apply to the performance and interpretation of this Supplemental Agreement.

 

	 	
			9.

				
			FEES AND EXPENSES

			

 

9.1 Costs and expenses

 

The Borrowers covenant and agree to pay to the Lender upon demand and from time to time all reasonable and documented costs, charges, registration and recording fees, duties and expenses (including legal fees) incurred by the Lender in connection with the negotiation, preparation, execution and enforcement or attempted enforcement of this Supplemental Agreement and any document executed pursuant thereto and/or in preserving or protecting or attempting to preserve or protect the security created hereunder and/or under the Security Documents.

 

 

8

 

 

	 	
			9.2

				
			Stamp Duty

			

 

The Borrowers covenant and agree to pay and discharge all stamp duties, registration and recording fees and charges and any other charges whatsoever and wheresoever payable or due in respect of this Supplemental Agreement and/or any document executed pursuant hereto.

 

	 	
			10.

				
			ASSIGNMENT

			

 

The provisions of Clause 14 (Assignment, Transfer, Participation, Lending Office) of the Principal Agreement shall apply to this Supplemental Agreement as if the same were set out herein in full.

 

	 	
			11.

				
			MISCELLANEOUS

			

 

	 	
			11.1

				
			Incorporation of Loan Agreement provisions

			

 

Without prejudice to Clauses 6 (Reconfirmation), 7 (Continuance of Principal Agreement and the Security Documents) and 8 (Entire agreement and amendment) of this Supplemental Agreement, the provisions of Clauses 2.9 (Evidence), 15.7 (Invalidity of Terms) and 17.1 (Notices) of the Principal Agreement apply to this Supplemental Agreement as well and they are deemed to be repeated as if set forth in extenso herein.

 

	11.2	Counterparts

         

This Supplemental Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument.

 

	 	
			12.

				
			LAW AND JURISDICTION

			

 

	 	
			12.1

				
			Governing Law

			

 

This Supplemental Agreement and any non-contractual obligations arising out of or in relation to it shall be governed by and construed in accordance with English law and the provisions of Clause 18 (Law and Jurisdiction) of the Principal Agreement shall apply mutatis mutandis to this Supplemental Agreement as if the same were set out herein in full.

 

	 	
			12.2

				
			Third Party Rights

			

 

A person who is not a party to this Supplemental 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 Supplemental Agreement.

 

IN WITNESS whereof the parties hereto have caused this Supplemental Agreement to be duly executed the date first above written.

 

 

9

 

 

[Intentionally left blank]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

EXECUTION PAGE

 

THE BORROWERS

 

	 	SIGNED by         	)	 	 
	 	Mr. Andreas Louka and    	)	 	 
	 	Mrs. Dimitra Karkaletsi   	)	/s/ Andreas Louka	 
	 	for and on behalf of      	)	Attorney-in-fact	 
	 	CALIFORNIA 19 INC.    	)	 	 
	 	of the Marshall Islands,   	)	/s/ Dimitra Karkaletsi	 
	 	in the presence of:       	)	Attorney-in-fact	 

 

	 	SIGNED by         	)	 	 
	 	Mr. Andreas Louka and    	)	 	 
	 	Mrs. Dimitra Karkaletsi   	)	/s/ Andreas Louka	 
	 	for and on behalf of      	)	Attorney-in-fact	 
	 	CALIFORNIA 20 INC.    	)	 	 
	 	of the Marshall Islands,   	)	/s/ Dimitra Karkaletsi	 
	 	in the presence of:       	)	Attorney-in-fact	 

 

THE CORPORATE GUARANTORS

 

	 	SIGNED by         	)	 	 
	 	Mr. Andreas Louka and    	)	 	 
	 	Mrs. Dimitra Karkaletsi   	)	/s/ Andreas Louka	 
	 	for and on behalf of      	)	Attorney-in-fact	 
	 	CENTRAL MARE INC.      	)	 	 
	 	of the Marshall Islands,   	)	/s/ Dimitra Karkaletsi	 
	 	in the presence of:       	)	Attorney-in-fact	 

 

	 	SIGNED by         	)	 	 
	 	Mr. Andreas Louka and    	)	 	 
	 	Mrs. Dimitra Karkaletsi   	)	/s/ Andreas Louka	 
	 	for and on behalf of      	)	Attorney-in-fact	 
	 	TOP SHIPS INC.  	)	 	 
	 	of the Marshall Islands,   	)	/s/ Dimitra Karkaletsi	 
	 	in the presence of:       	)	Attorney-in-fact	 

 

Witness to all above signatures: 

 

	/s/ Vasiliki Kouleri	 

 Name: Vasiliki Kouleri

Address: 13 Defteras Merarchias Piraeus, Greece

Occupation: Attorney-at-Law

 

 

11

 

 

THE LENDER

 

	 	SIGNED by         	)	 	 
	 	Mr. Konstantinos Flokos and 	)	 	 
	 	Mrs. Chrysanthi Papathanasopoulou  	)	/s/ Konstantinos Flokos	 
	 	for and on behalf of      	)	Attorney-in-fact	 
	 	ALPHA BANK S.A.,  	)	 	 
	 	of Greece, 	)	/s/ Chrysanthi Papathanasopoulo	 
	 	in the presence of:       	)	Attorney-in-fact	 

 

	/s/ Vasiliki Kouleri	 

 Name: Vasiliki Kouleri

Address: Defteras Merarchias 13 Piraeus, Greece

Occupation: Attorney-at-law

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

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