Document:

WCC-12.31.2013-Ex 10.35

Exhibit 10.35

Notice of Performance Share Award
Under the
WESCO International, Inc. 1999 Long-Term Incentive Plan
(As Restated May 30, 2013)
Notice is hereby given of an award of Performance Shares under the WESCO International, Inc. 1999 Long-Term Incentive Plan, as restated May 30, 2013, and as further amended (the “Plan”) attached hereto as Exhibit A, subject to the Terms and Conditions attached hereto as Exhibit B.
		
	Grantee:
	[  NAME  ]

		
	Date of Grant:
	February 18, 2014

		
	Award Period:
	The three-year period commencing on January 1, 2014 and ending on December 31, 2016, during which the Company’s achievement of the Performance Goals will be measured.  Except as specified in Section 4 or Section 8, if the Grantee’s Active Employment is terminated prior to the date the Committee has certified achievement of the Performance Goals, all rights of the Grantee to the Performance Shares as of the date of termination shall terminate immediately and be forfeited in their entirety.

		
	Performance Goals:
	The Award of Performance Shares will be based on the Company’s achievement of two Performance Goals for the Award Period:  Relative Total Shareholder Return (“Relative TSR”) and the three-year average growth rate of the Company’s net income (“Net Income Growth”).  One half (1/2) of the Award shall be based on Relative TSR and the other one-half (1/2) shall be based on Net Income Growth.

	
			
	Performance At
	Performance Goals

	Relative TSR
(percentile rank among Peer Group) 
	Net Income Growth
(3-year average growth rate)

	Maximum
	80th
	15%

	Target
	50th
	10%

	Threshold
	40th
	5%

		
	Performance Shares:
	The number of Performance Shares earned by a Grantee for the Award Period shall be based 50% on the Company’s Relative TSR and 50% on the Company’s Net Income Growth, as follows (with interpolated amounts for results between threshold and target and maximum and target levels):

	
			
	Performance At
	Performance Shares

	Relative TSR (50% of total award)
	Net Income Growth (50% of total award)

	Maximum
	2x
	2x

	Target
	1x
	1x

	Threshold
	0.5x
	0.5x

If the Company’s actual performance is below the Threshold level for a Performance Goal, the Grantee will earn no Performance Shares for that Performance Goal.
“Relative TSR” ranks the “Return to Shareholders” (as defined below) for the Company over the Award Period in relation to the Return to Shareholders for the “Peer Group” (as defined below).
“Return to Shareholders” for the Company and each of the respective companies in the Peer Group shall mean the quotient of:  (i) the sum of (A) the average closing price, as reported on the securities exchange on which the stock of the relevant company is traded, for the twenty (20) trading days preceding January 1, 2017, and (B) the dividends declared during the period commencing on January 1, 2014 and ending on December 31, 2016, which are presumed to be reinvested on a quarterly basis, divided by, (ii) the average closing price, as reported on the securities exchange on which the stock of the relevant company is traded, for the twenty (20) trading days preceding January 1, 2014.
“Peer Group” shall mean the following companies, subject to adjustments in accordance with the guidelines set forth below.
Fastenal Co.        Hubbell Inc. Cl B
W.W. Grainger, Inc.        Emerson Electric Co.
Avnet Inc.        Genuine Parts Co.
MSC Industrial Direct Co. Inc. Cl A        Ingram Micro Inc. Cl A
Arrow Electronics, Inc.        Watsco Inc.
Anixter International Inc.        Tech Data Corp.
Applied Industrial Technologies, Inc.        United Stationers Inc.
Houston Wire & Cable Co.        Danaher Corp.        
Airgas Inc.        Eaton Corp.        
Rockwell Automation Inc.        Pool Corp.
Beacon Roofing Supply Inc.
If a company in the Peer Group becomes bankrupt, the bankrupt company will remain in the Peer Group, but the stock price of the bankrupt company(ies) will be considered to be $0.00.
If a company in the Peer Group is acquired by another company or entity, including through a management buy-out or going-private transaction, the acquired company will be removed from the Peer Group for the entire Award Period.
If a company in the Peer Group acquires another company in the Peer Group, the acquiring company will remain in the Peer Group.
“Net Income Growth” means the three-year average growth rate of the Company’s net income (i.e. net income attributable to WESCO International, Inc.), as reported in the Company’s financial statements in accordance with generally accepted accounting principles or any other accounting reporting system under which the Company is required to report its financial statements for the 2014, 2015 and 2016 fiscal years.  However, in calculating Net Income Growth, the Committee may exclude certain items that are not indicative of ongoing results.  Examples of items that may be excluded from calculating Net Income Growth include, but are not limited to:  “strategic” items (charges or credits related to the high-level strategic direction of the Company, such as restructurings, acquisitions, divestitures, the purchase or sale of equities, and the issuance or payment of debt); “regulatory” items (charges or credits due to changes in tax or accounting rules); “external” items (charges or credits due to external events such as natural disasters); and “other” significant unusual, nonrecurring or rare items (such as charges or credits due to litigation or legal settlements, the disposal of assets or asset impairment).  The Committee has determined that the attainment of specified levels of net income attributable to WESCO International, Inc. is a specific milestone in connection with the Company’s strategic initiatives. 
The Committee shall adjust the Award, in accordance with Treas. Reg. Sec. 1.162-27(e)(2)(iii)(C), to reflect a change in corporate capitalization, such as a stock split or dividend, or a corporate transaction, such as any merger of a corporation into another corporation, any consolidation of two or more corporations into another corporation, any separation of the Company or a Subsidiary (including a spinoff or other distribution of stock or property by a corporation), any reorganization of the Company or its Subsidiaries (whether or not such reorganization comes within the definition of such term in Code Section 368), or any partial or complete liquidation by the Company or its Subsidiaries; provided that, the Committee shall not make any adjustment that causes the Award to fail to qualify as performance-based compensation under Code Section 162(m) and the regulations thereunder. 
Grantee hereby acknowledges receipt of a copy of the Plan attached hereto as Exhibit A and the Performance Share Award Terms and Conditions attached hereto as Exhibit B. 
Grantee understands and agrees that the Award is granted subject to and in accordance with the terms of the Plan and the Performance Share Award Terms and Conditions.  Grantee further agrees to be bound by the terms of the Plan and the Performance Share Award Terms and Conditions attached hereto. 
All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the Plan or the Performance Share Award Terms and Conditions attached.
Attachments:
Exhibit A – WESCO International, Inc. 1999 Long-Term Incentive Plan
Exhibit B – Performance Share Award Terms and Conditions

EXHIBIT A 
WESCO INTERNATIONAL, INC. 
1999 LONG-TERM INCENTIVE PLAN 

(As Restated May 30, 2013)
 
Incorporated by reference as Appendix A to the Proxy Statement for the 2013 Annual Meeting of Stockholders filed on Schedule 14A on April 16, 2013.
EXHIBIT B
PERFORMANCE SHARE AWARD TERMS AND CONDITIONS
These Performance Share Award Terms and Conditions (the “Terms”), together with the Notice of Performance Share Award (the “Notice”) to the Grantee whose name appears in the Notice, describe the terms and conditions of an award of Performance Shares (the “Award”) from WESCO International, Inc., a Delaware corporation (the “Company”), as of the Date of Grant set forth in the Notice.
The Board of Directors of the Company (the “Board”) has designated the Compensation Committee of the Board (the “Committee”) to administer the Company’s 1999 Long-Term Incentive Plan (as amended from time to time, the “Plan”).
The Board has determined to grant to the Grantee, under the Plan, Performance Shares with respect to the aggregate number of shares of the Company’s Common Stock, par value $.01 per share (the “Common Stock”) set forth below.
1.    Confirmation of Grant.
(a)    Effective as of the Date of Grant set forth in the Notice, the Company grants a Performance Share Award to the Grantee, which consists of the right to receive a specified number of shares of Common Stock contingent upon the extent to which certain pre-established Performance Goals have been met during the Award Period, each as set forth in the Notice, subject to the terms and conditions hereof.  These Terms and the Notice are subordinate and subject to the terms and conditions of the Plan.
(b)    With respect to each Performance Share that has not been forfeited (but only to the extent the award of Performance Shares has not been settled for Common Stock), the Company shall, (i) with respect to any stock dividends paid on the Common Stock, credit to a bookkeeping account established and maintained for the Grantee, a number of Performance Shares equal to the number of shares, including fractional shares, of Common Stock that would have been paid with respect to the Performance Share if it were an outstanding share of Common Stock, and (ii) with respect to any cash dividends paid on the Common Stock, accrue and credit to a bookkeeping account established and maintained for the Grantee, a number of Performance Shares with a Fair Market Value as of the date the dividend is paid equal to the cash dividends that would have been paid with respect to the Performance Share if it were an outstanding share of Common Stock (the “Dividend Equivalent Rights”).  These Dividend Equivalent Rights shall be (i) treated as Performance Shares for purposes of any future dividends payable to this Section 1(b); and (ii) delivered, if at all, after the Committee has certified the achievement of the Performance Goals that apply to the underlying Performance Shares with respect to which the Dividend Equivalent Rights were received (rounded to the nearest whole Performance Share). 
(c)    Timing and Form of Payout.  Except as otherwise provided in these Terms, in accordance with the provisions of this Section 1(c), as soon as administratively feasible after the Committee has certified the achievement of the Performance Goals following the end of the Award Period, the Grantee shall be entitled to receive a number of shares of Common Stock, equal to his or her total number of Performance Shares determined under Section 4 or Section 8, less the number of shares of Common Stock withheld in order to satisfy applicable minimum statutory withholding requirements in accordance with Section 6.  Delivery of such shares of Common Stock shall be made as soon as administratively feasible after the Committee has certified the achievement of the Performance Goals following the end of the Award Period, provided that the Grantee has remained in Active Employment until that date, and upon the satisfaction of all other applicable conditions on the Performance Shares (including the payment by the Grantee of all applicable withholding taxes).  The Committee shall not have the discretion to adjust the Performance Goals once the Award Period has commenced, except as required by the Notice.
(d)    The Performance Shares shall be subject to any restrictions the Company deems advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which Common Stock is listed, any Company policy and any applicable federal or state securities law.
2.    Award Period.  The Award Period for the Performance Shares shall be described in the Notice. 
3.    Performance Goals.  The Performance Goals with respect to the Performance Shares shall be described in the Notice.
4.    Performance Shares.  The number of Performance Shares that a Grantee may earn for an Award Period shall be described in the Notice and calculated as set forth below and in the Notice.  
(a)If the Company’s actual performance is below the Threshold level for a Performance Goal, the Grantee will earn no Performance Shares for that Performance Goal.
(b)If the Company’s actual performance is at Threshold or Target for a Performance Goal, the Performance Shares earned for that Performance Goal shall equal the Performance Shares for Threshold or Target specified in the Notice, as applicable.
(c)If the Company’s actual performance is between “Threshold” and “Target” for a Performance Goal, the Committee shall determine the Performance Shares earned for that Performance Goal by interpolation, rounded to the nearest full share.
(d)If the Company’s actual performance is between “Target” and “Maximum” for a Performance Goal, the Committee shall determine the Performance Shares earned for that Performance Goal by interpolation, rounded to the nearest full share.
(e)If the Company’s actual performance exceeds “Maximum” for a Performance Goal, the Performance Shares earned for that Performance Goal shall equal the Performance Shares for Maximum specified in the Notice.
(f)Notwithstanding the foregoing, the amount of shares of Common Stock earned by and delivered to a Grantee who terminates Active Employment before the Committee has certified achievement of the Performance Goals following the Award Period (or before a Change in Control or Merger under Section 8) due to Grantee's death, Permanent Disability, or Retirement (each as defined in the Plan) will be the amount determined by multiplying (i) the amount of the Award that would have been earned after the end of the Award Period had the Grantee not terminated Active Employment, by (ii) a fraction, the numerator of which is the number of whole months of the Grantee's Active Employment during the Award Period, and the denominator of which is the total number of months during Award Period.  Any such payment made to a Grantee whose employment is terminated due to death, Permanent Disability, or Retirement prior to the date the Committee has certified achievement of the Performance Goals following the Award Period shall be made after the date the Committee has certified achievement of the Performance Goals following the end of such Award Period.  For this purpose, “Active Employment” shall mean active employment with the Company or any Subsidiary.
5.    Forfeiture.  Except as specified in Section 4 or Section 8, if the Grantee’s Active Employment terminates prior to the date the Committee has certified achievement of the Performance Goals, all rights of the Grantee to the Performance Shares as of the date of termination shall terminate immediately and be forfeited in their entirety. 
6.    Tax Consequences and Withholding.  As soon as administratively feasible after the Committee has certified achievement of the Performance Goals, or upon a Change in Control or Merger described in Section 8, the Company will withhold shares of Common Stock to satisfy applicable minimum statutory withholding requirements, subject to the provisions of the Plan and any rules adopted by the Board or the Committee regarding compliance with applicable law, including, but not limited to, Section 16(b) of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).  The Company may also require the Grantee to remit to the Company an amount sufficient to satisfy the employer’s minimum statutory U.S. federal, state and local and non-U.S. tax withholding requirements.  Nothing contained herein shall be construed as a promise, guarantee, or other representation by the Company of any particular tax effect nor shall the Company be liable for any taxes, penalties, or other amounts incurred by the Grantee.  The Grantee acknowledges that he/she has had sufficient opportunity to review with his/her own tax advisors the federal, state, local, and foreign tax consequences of the transactions contemplated by these Terms.  The Grantee acknowledges he/she must rely solely on such advisors and not on any statement or representations of the Company or any of its agents.  The Grantee understands that he/she (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by the Terms.
7.    Representations and Warranties of the Company.  The Company represents and warrants to the Grantee that (a) the Company has been duly incorporated and is an existing corporation in good standing under the laws of the State of Delaware, (b) these Terms and the Notice have been duly authorized and delivered by the Company and constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with their terms, and (c) the shares of Common Stock, if and when issued and delivered after the Committee's certification of the Performance Goals in accordance with these Terms and the Notice, will be duly authorized, validly issued, fully paid and nonassessable, and free and clear of any liens or encumbrances other than those created pursuant to these Terms or otherwise in connection with the transactions contemplated hereby.
8.    Change in Control and Adjustments to Reflect Capital Changes.
(a)    Accelerated Vesting Upon Change in Control.  In the event of a Change in Control (as defined in the Plan), the Performance Shares shall be deemed earned at the Target level of the Performance Goal(s) set forth in the Notice and shall be fully paid to the Grantee within thirty (30) days of the Change in Control, unless such Change in Control results from the Grantee’s beneficial ownership (as defined in the rules under the Exchange Act) of Common Stock or other Company voting securities.
(b)    Recapitalization.  The number and kind of shares of Common Stock subject to the Award shall be appropriately adjusted to reflect any stock dividend, stock split or share combination or any recapitalization, merger, consolidation, exchange of shares, liquidation or dissolution of the Company or other change in capitalization with a similar substantive effect upon the Plan or the Performance Shares. 
(c)    Certain Mergers.  After any Merger (as defined in the Plan) in which the Company is not the surviving corporation or pursuant to which a majority of the shares which are of the same class as the shares of Common Stock that are subject to the Performance Shares are exchanged for, or converted into, or otherwise become shares of another corporation, the surviving, continuing, successor or purchasing corporation, as the case may be (the “Acquiring Corporation”), will either assume the Company’s rights and obligations under these Terms or substitute an award in respect of the Acquiring Corporation’s stock for the Performance Shares, however, if the Acquiring Corporation does not assume or substitute awards for the Performance Shares, the Board shall provide prior to the Merger that the Performance Shares be treated as earned at the Target level of the Performance Goal(s) set forth in the Notice, as of a date prior to the Merger, as the Board so determines, and shall be fully paid to the Grantee, provided that the Merger is consummated.  Comparable rights shall accrue to the Grantee in the event of successive Mergers of the character described above.
9.    No Rights as Stockholder.  The Grantee shall have no voting or other rights as a stockholder of the Company with respect to any Performance Shares until the issuance of a certificate or certificates to him for shares of Common Stock with respect to the Performance Shares.  Except as provided in Section 1(b), no adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of the certificate or certificates.
10.    Non-Competition, Non-Solicitation and Confidentiality.
(a)    Non-Competition and Non-Solicitation.  During Grantee’s Active Employment and for a period of one year thereafter:
(i)    Grantee shall not directly or indirectly call upon, contact or solicit any customer or prospective customer of the Company or its subsidiaries (A) with whom Grantee dealt directly or indirectly or for which Grantee had responsibility while employed by the Company or its subsidiaries, or (B) about whom Grantee acquired confidential information during Grantee’s employment with the Company or its subsidiaries, for the purpose of offering, selling or providing products or services that are competitive with those then offered by the Company or its subsidiaries. Grantee shall not solicit or divert, or attempt to solicit or divert, either directly or indirectly, any opportunity or business of the Company or its subsidiaries to any competitor.
(ii)    Grantee shall not, to the detriment of the Company or its subsidiaries, directly or indirectly, as an owner, partner, employee, agent, consultant, advisor, servant or contractor, engage in or facilitate or support others to engage in the distribution of electrical construction products or electrical and industrial maintenance, repair and operating supplies, or the provision of integrated supply services, or any other business that is in competition with any of the business activities of the Company or its subsidiaries in which Grantee was engaged during Grantee’s Active Employment and in which the Company or its subsidiaries were engaged prior to the termination of Grantee’s Active Employment.  This provision shall not prevent Grantee from owning less than one percent (1%) of a publicly-owned entity or less than three percent (3%) of a private equity fund.
(iii)    Grantee shall not, directly or indirectly, solicit the employment of or hire as an employee or consultant or agent (A) any employee of the Company or its subsidiaries or (B) any former employee of the Company or its subsidiaries whose employment ceased within 180 days prior to the date of such solicitation or hiring.
(b)    Confidentiality.  “Confidential Information” means information regarding the business or operations of the Company or its subsidiaries, both oral and written, including, but not limited to, documents and the Company or subsidiary information contained in such documents; drawings; designs; plans; specifications; instructions; data; manuals; electronic media such as computer disks, computer programs, and data stored electronically; security code numbers; financial, marketing and strategic information; product pricing and customer information, that the Company or its subsidiaries disclose to the Grantee or the Grantee otherwise learns or ascertains in any manner as a result of, or in relation to, Grantee’s employment by the Company or its subsidiaries.  Other than as required by applicable law, Grantee agrees: (i) to use Confidential Information only for the purposes required or appropriate for Grantee’s employment with the Company or its subsidiaries; (ii) not to disclose to anyone Confidential Information without the Company’s prior written approval; and (iii) not to allow anyone’s use or access to Confidential Information, other than as required or appropriate for Grantee’s employment with the Company or its subsidiaries.  The foregoing shall not apply to information that is in the public domain, provided that Grantee was not responsible, directly or indirectly, for such information entering into public domain without the Company’s approval.  Grantee agrees to return to the Company all Confidential Information in Grantee’s possession upon termination of Grantee’s employment or at any time requested by the Company.
(c)    Remedies.  The Grantee agrees that in the event of a breach or threatened breach of any of the covenants contained in this Section 10, in addition to any other penalties or restrictions that may apply under any employment agreement, state law, or otherwise, the Grantee shall forfeit, upon written notice to such effect from the Company:  (i) any rights to receive a Performance Share any and all Performance Shares awarded to him or her under the Plan and these Terms, including vested Performance Shares; (ii) any Shares acquired under this Award, and (iii) any profit the Grantee has realized on the vesting or sale of any Performance Shares acquired under this Award, which the Grantee may be required to repay to the Company).  The forfeiture provisions of this Section 10 shall continue to apply, in accordance with their terms, after the provisions of any employment or other agreement between the Company and the Grantee have lapsed.  The Grantee consents and agrees that if the Grantee violates or threatens to violate any provisions of this Section 10, the Company or its successors in interest shall be entitled, in addition to any other remedies that they may have, including money damages, to an injunction to be issued by a court of competent jurisdiction restraining the Grantee from committing or continuing any violation of this Section 10.  In the event that the Grantee is found to have breached any provision set forth in this Section 10 or elsewhere in these Terms, the time period provided for in that provision shall be deemed tolled (i.e., it will not begin to run) for so long as the Grantee was in violation of that provision.
(d)    The foregoing provisions shall survive and remain in full force and effect regardless of any expiration, termination or cancellation of the Award.
(e)    If any provision of this Section 10 shall be invalid or unenforceable to any extent, the remaining provisions of this Section 10 shall not be affected, and each remaining provision shall be enforceable to the fullest extent permitted by law.  If any provision of this Section 10 is so broad as to be unenforceable, then such provision shall be interpreted to be only as broad as is enforceable.
(f)    Notwithstanding any provision to the contrary, the non-compete, non-solicitation and confidentiality covenants of this Section 10 shall be in addition to, and shall not be deemed to supersede, any existing covenants or other agreements between the Grantee and the Company or any of its subsidiaries.
11.    Miscellaneous.
(a)    Notices.  All notices and other communications required or permitted to be given under this Award shall be in writing and shall be deemed to have been given if delivered personally or sent by certified or express mail, return receipt requested, postage prepaid, or by any recognized international equivalent of such delivery, to the Company, or the Grantee, as the case may be, at the following addresses or to such other address as the Company or the Grantee, as the case may be, shall specify by notice to the others:
(i)    if to the Company, to it at:
WESCO International, Inc.
225 West Station Square Drive, Suite 700
Pittsburgh, Pennsylvania 15219-1122
Attention: Legal Department
(ii)    if to the Grantee, to the Grantee at the last address on file in the Company’s records.
All notices and communications shall be deemed to have been received on the date of delivery or on the third business day after the mailing thereof.
(b)    Binding Effect; Benefits.  This rights and interests of the Grantee under these Terms and the Notice shall be binding upon and inure to the benefit of the parties to these Terms and the Notice and their respective successors and assigns.  Nothing in these Terms or the Notice, express or implied, is intended or shall be construed to give any person other than the parties to these Terms or the Notice or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.
(c)    Waiver.  Any party hereto or beneficiary hereof, may, by written notice to the other parties (i) extend the time for the performance of any of the obligations or other actions of the other parties under this Award, (ii) waive compliance with any of the conditions or covenants of the other parties contained in this Award and (iii) waive or modify performance of any of the obligations of the other parties under this Award.  Except as provided in the preceding sentence, no action taken pursuant to this Award, including, without limitation, any investigation by or on behalf of any party or beneficiary, shall be deemed to constitute a waiver by the party or beneficiary taking such action of compliance with any representations, warranties, covenants or agreements contained herein.  The waiver by any party hereto or beneficiary hereof of a breach of any provision of this Award shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by a party or beneficiary to exercise any right or privilege hereunder shall be deemed a waiver of such party’s or beneficiary’s rights or privileges hereunder or shall be deemed a waiver of such party’s or beneficiary’s rights to exercise the same at any subsequent time or times hereunder.  These Terms (together with the Notice, sometimes collectively referred to herein as the “Award”) constitute all of the terms and conditions relating to the Award, and all prior oral and written representations are merged in these Terms.  
(d)    Assignability.  A Grantee’s rights under this Award and any rights and privileges pertaining to either of them, may not be transferred, assigned, pledged or hypothecated in any manner, by operation of law or otherwise, other than by will or by the laws of descent and distribution, and shall not be subject to execution, attachment or similar process.
(e)    Applicable Law and Forum for Disputes.  This Award (including these Terms and the Notice) shall be governed by and construed in accordance with the law of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws.  Any dispute, action or proceeding arising out of or in connection with the Plan or this Award shall be brought only in the courts in the Commonwealth of Pennsylvania, County of Allegheny, including the Federal Courts located therein, should Federal jurisdiction requirements exist, and the Grantee shall consent to submit to the exclusive jurisdiction of the such court for purposes of any action or proceeding arising out of or in connection with the Plan or these Terms.
(f)    Section and Other Headings, etc.  The section and other headings contained in this Award are for reference purposes only and shall not affect the meaning or interpretation of these Terms or the Notice.  In these Terms and the Notice all references to “dollars” or “$” are to United States dollars. 
(g)    Counterparts.  This Award may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.  This Award may also be executed via acceptance in the electronic system of the Company’s equity awards plan administrator.
(h)    Delegation by the Board.  All of the powers, duties and responsibilities of the Board specified in this Award may, to the full extent permitted by applicable law, be exercised and performed by any duly constituted committee thereof to the extent authorized by the Board to exercise and perform such powers, duties and responsibilities.
(i)    Definitions.  Any terms used in this Award and not otherwise defined shall have the meanings assigned to them in the Plan.
(j)    Plan and Terms Not a Contract of Employment.  Neither the Plan nor the Award is or are a contract of employment, and no terms of employment of the Grantee shall be affected in any way by the Plan, the Terms, the Notice or related instruments except as specifically provided therein.  Neither the establishment of the Plan nor the Terms or the Notice shall be construed as conferring any legal rights upon the Grantee for a continuation of employment, nor shall it interfere with the right of the Company or any affiliate to discharge the Grantee and to treat him or her without regard to the effect that such treatment might have upon him or her as a Grantee.  The awarding of Performance Shares shall not in any way affect the Company’s right or power to make adjustments, reclassifications or changes in its capital or business structure or to merge, consolidate, reincorporate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
(k)    Code Section 409A.  The Performance Shares are intended to be exempt from Code Section 409A under the transfer of property exception set forth in Treasury Regulation Section 1.409A-1(b)(6) or, in the alternative, to otherwise comply with the requirements of Section 409A, and, in the event of any inconsistency between any provision of the Plan or these Terms or the Notice and Code Section 409A, the provisions of Code Section 409A shall control.  Any provision in the Plan or these Terms or the Notice that is determined to violate the requirements of Code Section 409A shall be void and without effect.  Any provision that is required by Code Section 409A to appear in the Plan or these Terms or the Notice that is not expressly set forth therein shall be deemed to be set forth therein, and the Plan shall be administered in all respects as if such provision was expressly set forth herein.  Any reference in the Plan or these Terms or the Notice to Code Section 409A or a Treasury Regulation Section shall be deemed to include any similar or successor provisions thereto.  
(l)    Compensation Recovery Policy.  Performance Shares awarded and Common Stock distributed under these Terms and the Notice shall be subject to any compensation recovery policy adopted by the Company to comply with applicable law or to comport with good corporate governances practices, as such policy may be amended from time to time.Exhibit 4.19 

 

Dated: 28th May, 2013

 

The
Lenders and financial institutions set out in schedule 1

-
and -

Commerzbank
Aktiengesellschaft

(as legal successor of Deutsche
Schiffsbank Aktiengesellschaft)

as joint Arranger, Agent, Swap Bank
and Security Agent

- and -

UniCredit
Bank AG

(formerly
Bayerische Hypo-Und Vereinsbank Aktiengesellschaft)

as joint Arranger, Swap Bank and
Account Bank

-
and -

HSH
Nordbank AG

as Swap Bank

- and -

COSTAMARE
INC.

as Borrower

- and -

The
Corporate Guarantors set out in schedule 2

as Corporate Guarantors

 

 

 

FIFTH SUPPLEMENTAL AGREEMENT

         

        in relation to a Facility Agreement
        dated 22nd July, 2008

for an amount of up to US$1,000,000,000

 

 

 

 

 

Theo V. Sioufas & Co.

Law Offices

Piraeus 

    	 

    	

    

	 	 	TABLE OF CONTENTS	 	 
	 	 	 	 	 
	CLAUSE	 	HEADINGS	 	PAGE
	 	 	 	 	 
	1.	 	Definitions	 	2	 
	 	 	 	 	 	 
	2.	 	Representations and warranties	 	4	 
	 	 	 	 	 	 
	3.	 	Agreement of the Lenders	 	5	 
	 	 	 	 	 	 
	4.	 	Conditions	 	6	 
	 	 	 	 	 	 
	5.	 	Variations to the Principal Agreement	 	8	 
	 	 	 	 	 	 
	6.	 	Entire agreement and amendment	 	9	 
	 	 	 	 	 	 
	7.	 	Continuance of Principal Agreement and the Security
    Documents	 	9	 
	 	 	 	 	 	 
	8.	 	Continuance and reconfirmation
    of the Guarantees	 	9	 
	 	 	 	 	 	 
	9.	 	Fees and expenses	 	9	 
	 	 	 	 	 	 
	10.	 	Miscellaneous	 	10	 
	 	 	 	 	 	 
	11.	 	Applicable law and jurisdiction	 	10	 

    	 

    	

    

THIS AGREEMENT is made this
28th day of May, 2013

 

B E T W E E N

 

	(1)	The Lenders and financial institutions set out in schedule 1, as Lenders;
	 	 
	(2)	Commerzbank Aktiengesellschaft (“CBA”) as legal successor by way of merger of Deutsche Schiffsbank Aktiengesellschaft (“DSB”), as joint Arranger, Agent, Swap Bank and Security Agent;
	 	 
	(3)	UniCredit Bank AG (formerly Bayerische Hypo-Und Vereinsbank Aktiengesellschaft), as joint Arranger, Swap Bank and Account Bank;
	 	 
	(4)	HSH Nordbank AG (“HSH”), as Swap Bank;
	 	 
	(5)	Costamare Inc., as Borrower; and
	 	 
	(6)	The Corporate Guarantors set out in schedule 2, as Corporate Guarantors (hereinafter together called the “Corporate Guarantors” and singly a “Corporate Guarantor”, which expression shall include their respective successors in title)

 

AND IS SUPPLEMENTAL to a term loan and revolving
credit facility agreement dated 22nd July, 2008 (hereinafter called the “Principal Agreement”) made
by and among (1) Costamare Inc., of the Marshall Islands (therein and hereinafter
referred to as the “Borrower”) as borrower, (2) DSB
(whose legal successor by way of merger is CBA),
as joint Arranger, Agent, Swap Bank and Security Agent, (3) UniCredit
Bank AG (then named Bayerische Hypo-Und Vereinsbank
Aktiengesellschaft) (“UCB”),
as joint Arranger, Swap Bank and Account Bank, (4) HSH,
as Swap Bank and (5) The Lenders
and financial institutions set out in schedule 1 to the Principal Agreement, as Lenders (therein and hereinafter together
called the “Lenders”), as amended and/or supplemented by (i) a first supplemental agreement dated 23rd
April, 2010 made between the Lenders, as Lenders, DSB, as joint Arranger, Agent, Swap Bank and Security Agent, UCB, as
joint Arranger, Swap Bank and Account Bank, HSH, as
Swap Bank, the Borrower, as borrower and the Corporate Guarantors, as corporate guarantors, (ii) a second supplemental
agreement dated 22nd June, 2010 made between the Lenders, as Lenders, DSB, as joint Arranger, Agent, Swap Bank and
Security Agent, UCB, as joint Arranger, Swap Bank and Account Bank, HSH,
as Swap Bank, the Borrower, as borrower and the Corporate Guarantors, as corporate guarantors,
(iii) a third supplemental agreement dated 6th September, 2011 made between the Lenders, as Lenders, DSB, as joint
Arranger, Agent, Swap Bank and Security Agent, UCB, as joint Arranger, Swap Bank and Account Bank,
HSH, as Swap Bank, the Borrower,
as borrower and the Corporate Guarantors, as corporate guarantors, and (iv) a fourth supplemental agreement dated 17th
December, 2012 made between the Lenders, as Lenders, CBA, as joint Arranger, Agent, Swap Bank and Security Agent, UCB, as
joint Arranger, Swap Bank and Account Bank, HSH, as
Swap Bank, the Borrower, as borrower and the Corporate Guarantors, as corporate guarantors, on the terms and conditions
of which the Lenders agreed to make available to the Borrower, as borrower (i) a term loan facility
in the amount of up to Seven hundred million United States Dollars

    	1

    	

    

(US$700,000,000) and
(ii) a revolving credit facility in the maximum amount of up to Three hundred million United States Dollars
(US$300,000,000) and in the aggregate not exceeding One billion United States Dollars (US$1,000,000,000), for the
purposes therein specified.

 

W H E R E A S :

 

	(A)	Pursuant to Drawdown Notices from the Borrower to the Agent, the Lenders have advanced to the Borrower the aggregate amount of United States Dollars One billion (US$1,000,000,000) (as the Borrower and the Corporate Guarantors hereby jointly and severally acknowledge), out of which the principal amount outstanding as at the date hereof is United States Dollars Seven hundred forty four million six hundred ninety one thousand seven hundred forty three and ninety nine cents (US$744,691,743.99) (as the Borrower and the Corporate Guarantors hereby jointly and severally acknowledge); and
	 	 
	(B)	The Borrower and the Corporate Guarantors have together requested the Lenders to consent to:
	 	 

	 	(a)	the
    change of flag from Greek to Maltese of the following Ships:
	 	 	 

	 	(i)	“SEALAND ILLINOIS”
	 	 	 
	 	(ii)	“MAERSK KOBE”
	 	 	 
	 	(iii)	“MAERSK KOLKATA”
	 	 	 
	 	(iv)	“MAERSK KINGSTON” and
	 	 	 
	 	(v)	“MAERSK KALAMATA”
	 	 	 

	 	(b)	the discharge of the Greek Mortgages registered over the said Ships; and
	 	 	 
	 	(c)	the transfer of the technical management of the Ships “SEALAND ILLINOIS” and “MAERSK KOBE” to V. Ships Greece Ltd., of Bermuda (the “New Technical Manager”) as from June, 2013,

	 	 
	and the Lenders have agreed so to do conditionally upon terms that (inter alia) the Principal Agreement shall be amended in the manner hereinafter set out.
	 

	NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:
	 

	1.	Definitions
	 	 
	1.1	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 Agreement.
	 	 
	1.2	In addition, in this Agreement the words and expressions specified below shall have the meanings attributed to them below:

    	2

    	

    

	 	“Effective Date” means the date upon which all the conditions
    contained in Clause 4 shall have been satisfied and this Agreement shall become effective;
	 	 
	 	“Facility Agreement” means the Principal Agreement as hereby
    amended and as the same may from time to time be further amended and/or supplemented;
	 	 
	 	“Maltese Flag Ships” means the following
    Ships:
	 	 	 

 

	 	(a)	m/v “MAERSK KALAMATA” currently registered under the Greek flag
    in the ownership of Merten Shipping Co., of Liberia (the “Merten Owner”), having IMO No. 9244946 and which
    vessel on the Effective Date shall be deleted from the Greek flag and shall be registered under the Maltese flag in the ownership
    of the Merten Owner (the “Merten Ship”);
	 	 	 
	 	(b)	m/v “MAERSK KOBE” currently registered under the Greek flag in the
    ownership of Achilleas Maritime Corporation, of Liberia (the “Achilleas Owner”), having IMO No. 9196840
    and which vessel on the Effective Date shall be deleted from the Greek flag and shall be registered under the Maltese flag
    in the ownership of the Achilleas Owner (the “Achilleas Ship”);
	 	 	 
	 	(c)	m/v “MAERSK KOLKATA” currently registered under the Greek flag in
    the ownership of Kalamata Shipping Corporation, of Liberia (the “Kalamata Owner”), having IMO No. 9244922
    and which vessel on the Effective Date shall be deleted from the Greek flag and shall be registered under the Maltese flag
    in the ownership of the Kalamata Owner (the “Kalamata Ship”);
	 	 	 
	 	(d)	m/v “MAERSK KINGSTON” currently registered under the Greek flag
    in the ownership of Navarino Maritime Corporation, of Liberia (the “Navarino Owner”), having IMO
    No. 9244934 and which vessel on the Effective Date shall be deleted from the Greek flag and shall be registered under the
    Maltese flag in the ownership of the Navarino Owner (the “Navarino Ship”); and
	 	 	 
	 	(e)	m/v “SEALAND ILLINOIS” currently registered under the Greek flag
    in the ownership of Miko Shipping Co., of Liberia (the “Miko Owner”), having IMO No. 9197545 and
    which vessel on the Effective Date shall be deleted from the Greek flag and shall be registered under the Maltese flag in
    the ownership of the Miko Owner (the “Miko Ship”);

 

	 	 	 
	 	and “Maltese Flag Ship” means any
    of them as the context may require;
	 	 
	 	“Maltese Mortgage” in relation to each Maltese Flag Ship means
    the first priority Maltese ship mortgage and the deed of covenant supplemental thereto executed
    or (as the context may require) to be executed by the Owner of such Ship in favour of the Security Agent or the Lenders in
    form and substance satisfactory to the Agent (acting on the instructions of the Lenders) (together, the “Maltese
    Mortgages”);

    	3

    	

    

“New Technical
Manager’s Undertaking” in relation to each of “MAERSK KOBE” and “SEALAND ILLINOIS” means
an undertaking and letter of subordination executed or (as the context may require) to be executed by the New Technical Manager
in favour of the Security Agent in form and substance satisfactory to the Agent (acting on the instructions of the Lenders) (together,
the “New Technical Manager’s Undertakings”); and

 

“New Security
Documents” means together the Maltese Mortgages and the New Technical Manager’s Undertakings.

 

	1.3	In this Agreement:

 

	 	(a)	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;

 

		(b)	Clause headings are inserted for convenience of reference only and shall be ignored in construing
this Agreement;

 

		(c)	references to Clauses are to clauses of this Agreement save as may be otherwise expressly provided
in this Agreement; and

 

		(d)	all capitalised terms used herein and not otherwise defined herein shall have the meanings ascribed
to them in the Principal Agreement.

 

		2.	Representations and warranties

 

	2.1	The Borrower and the Corporate Guarantors hereby jointly and severally represent and warrant to
the Creditors 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 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 Agreement.

 

	2.2	In addition to the above the Borrower and the Corporate Guarantors hereby jointly and severally
represent and warrant to the Creditors as at the date of this Agreement that:

 

		a.	each of the corporate Security Parties and the New Technical Manager is duly formed, is validly
existing and in good standing under the laws of the place of its incorporation and each of the Borrower and the Corporate Guarantors
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, this Agreement, each of the New Security Documents and the Security Documents to which it is or is to be a party and
the New Technical Manager has full power to carry on its business as it is now being conducted and to enter into and perform its
obligations under the New Technical

    	4

    	

    

Manager’s Undertakings,
and each of the corporate Security Parties has complied with all statutory and other requirements relative to its business and
does not have an established place of business in any part of the United Kingdom or the USA;

 

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

 

		c.	this Agreement constitutes, and each of the New Security Documents on the execution thereof will
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 Agreement and the
New Security Documents 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;

 

		e.	no litigation, arbitration or administrative proceeding relating to
an amount exceeding in respect of (a) the Group cumulatively US$50,000,000 and (b) each Related Company US$3,000,000 is
taking place, pending or, to the knowledge of the officers of the Borrower, threatened against the Borrower or any of its Related
Companies or any other Security Party which could have a material (in the reasonable opinion of the Majority Lenders) adverse effect
on the business, assets or financial condition of the Borrower or any of its Related Companies or any other Security Party;

 

		f.	none of the Borrower and the Corporate Guarantors 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 Lenders

 

		3.1	The Creditors upon each of the representations and warranties set out in Clause 2 hereby agree
with the Borrower, subject to and upon the terms and conditions of this Agreement and in particular, but without limitation, subject
to the fulfilment of the conditions precedent set out in Clause 4, to consent to:

 

		a.	the change of flag of the Maltese Flag Ships from Greek to Maltese;
and

 

		b.	the discharge of the Greek Mortgages registered over the Maltese Flag
Ships; and

    	5

    	

    

		c.	the transfer of the technical management of the Ships “SEALAND
ILLINOIS” and “MAERSK KOBE” to the New Technical Manager as from 28th May, 2013,

 

subject to amendment
of the Principal Agreement in the manner more particularly set out in Clause 5.1.

 

	4.	Conditions

 

	4.1	The agreement of the Creditors contained in Clause 3.1 shall be expressly subject to the condition
that the Agent shall have received on or before the Effective Date in form and substance satisfactory to the Agent 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 Borrower and the Corporate Guarantors;

 

		b.	certified and duly legalised copies of resolutions passed at a meeting of the Board of Directors
of each of the Borrower and the Owners of the Maltese Flag Ships and certified and duly legalised copies of the resolutions passed
at a meeting of the shareholders of the Owners of the Maltese Flag Ships (and of any corporate shareholder thereof) evidencing
approval of this Agreement and of the New Security Documents and authorising appropriate officers or attorneys to execute the same
and to sign all notices required to be given under this Agreement on its behalf or other evidence of such approvals and authorisations
as shall be acceptable to the Agent;

 

		c.	all documents evidencing any other necessary action or approvals or consents with respect to this
Agreement and the New Security Documents;

 

		d.	the original of any power(s) of attorney issued in favour of any person executing this Agreement
or the New Security Documents on behalf of each of the Borrower, the Owners of the Maltese Flag Ships and the New Technical Manager;

 

		e.	evidence that:

 

		i.	each Maltese Flag Ship is registered in the name of the Owner thereof through the relevant Registry
under the laws and flag of Malta and that such Maltese Flag Ship and its Earnings, Insurances and Requisition Compensation (as
each such term is defined in the General Assignment relative thereto) are free of Encumbrances; and

 

		ii.	each Maltese Flag Ship maintains the Classification referred to in the
Maltese Mortgage relative thereto free of all overdue requirements and overdue recommendations
of the relevant Classification Society which would lead to the withdrawal of class; 

    	6

    	

    

		iii.	each Maltese Flag Ship is insured in accordance with the provisions
of the Maltese Mortgage relative thereto and all requirements of the relevant Security Documents
in respect of such insurance have been complied with (including without limitation, confirmation from the protection and indemnity
association or other insurer with which such Maltese Flag Ship is, or is to be, entered
for insurance or insured against protection and indemnity risks (including oil pollution risks) that any necessary declarations
required by the association or insurer for the removal of any oil pollution exclusion have been made and that any such exclusion
does not apply to such Maltese Flag Ship);

 

		iv.	each Maltese Mortgage has been registered against the relevant Maltese Flag Ship through the relevant
Registry under the laws and flag of Malta;

 

		v.	any fees and commissions payable from the Borrower to the Creditors pursuant to the terms of Clause 5.1
(Fees) of the Principal Agreement or any other provision of the Security Documents have been paid in full;

 

		f.	each of the New Security Documents duly executed by the respective parties thereto and, where appropriate,
duly registered in favour of the Lenders;

 

		g.	a copy of the DOC applicable to each Maltese Flag Ship
and of the SMC applicable to the New Technical Manager certified as true, complete and in effect by the Borrower’s lawyer;

 

		h.	copies of such ISM Code Documentation in respect of each Maltese
Flag Ship, as the Agent may by written notice to the Borrower have requested not later than two
(2) days before the Effective Date certified as true and complete in all material respects by the Borrower’s lawyer; 

 

		i.	copy of the ISSC of each Maltese Flag Ship
issued pursuant to the ISPS Code certified as true, complete and in effect by the Borrower’s
lawyer;

 

		j.	an opinion of the Lenders’ legal advisers on Maltese Law matters in relation to the Maltese
Flag Ships;

 

		k.	a copy, certified as a true and complete copy by the Borrower’s Lawyer, of the Technical
Management Agreements in respect of the m/vs “SEALAND ILLINOIS” and “MAERSK KOBE”; and

 

		l.	such further conditions precedent as the Agent may reasonably require.

    	7

    	

    

	5.	Variations to the Principal Agreement

 

	5.1	In consideration of the agreement of the Lenders and the Agent contained in Clause 3.1, the Borrower
and the Corporate Guarantors hereby jointly and severally agree with the Creditors that (subject to the satisfaction of the conditions
precedent contained in Clause 4) with effect from the Effective Date, 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 definition “Technical
Manager” in Clause 1.2 (Definitions) of
the Principal Agreement shall be amended to read as follows:

 

“Management
Agreement” means, in relation to each Ship, the agreement made or (as the context may require) to be made between the
Owner thereof or, as the case may be, Costamare and/or the relevant Manager providing for the appointment of such Manager as Commercial
Manager or, as the case may be, Technical Manager of such Ship subject to and upon the terms and conditions therein contained (together,
the “Management Agreements”);

 

“Technical
Manager” in relation to a Ship means Costamare or (through a sub-contract
made or to be made with Costamare or the Owner of such Ship and after prompt notice of the Borrower to the Agent) Shanghai
Costamare Shipmanagement Co. Ltd., a company incorporated and existing under the laws of P.R. of China or Ciel
Shipmanagement S.A., a company incorporated and existing under the laws of Liberia or V.
Ships Greece Ltd., of Bermuda or such other person as may from time to time be approved by the Lenders for the purpose
of acting as technical manager of any of the Ships, and includes their respective successors in title (together, the “Technical
Managers”);

 

		b.	with effect from the date hereof all
references in the Principal Agreement to:

 

		i.	“Manager’s Undertaking” and “Manager’s
Undertakings” shall be deemed to include the “New Technical Manager’s Undertakings”, as herein defined;

 

		ii.	“Mortgage” and “Mortgages” shall be deemed
to include the “Maltese Mortgages”, as herein defined; and

 

		iii.	“Technical Manager” and “Technical Managers”
shall be deemed to include the “New Technical Manager”, as herein defined;

 

		c.	with effect from the Effective Date all references in the Principal Agreement to “this
Agreement”, “hereunder” and the like in the Principal Agreement and “the Agreement”
in the Security Documents shall be construed as references to the Principal Agreement as amended and/or supplemented by this Agreement;
and

    	8

    	

    

		d.	the definition “Security Documents” with effect as from the date hereof shall
be deemed to include the Security Documents as amended and/or supplemented in pursuance to the terms hereof as well as the New
Security Documents and any document or documents (including if the context requires the Facility Agreement) that may now or hereafter
be executed as security for the repayment of the Outstanding Indebtedness payable to the Creditors
under the Principal Agreement (as hereby amended) and the Security Documents (as herein defined) as well as for the performance
by the Borrower and the other Security Parties of all obligations, covenants and agreements pursuant to the Principal Agreement,
this Agreement and/or the Security Documents.

 

	6.	Entire agreement and amendment

 

	6.1	The Principal Agreement, the New Security Documents, the other
Security Documents, and this Agreement 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.

 

	6.2	This 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 Agreement.

 

	7.	Continuance of Principal Agreement and the Security Documents

 

	7.1	Save for the alterations to the Principal Agreement made or deemed to be made pursuant to this
Agreement and such further modifications (if any) thereto as may be necessary to make the same consistent with the terms of this
Agreement the Principal Agreement shall remain in full force and effect and the security constituted by the Security Documents
executed by the Borrower and the other Security Parties shall continue and remain valid and enforceable.

 

		8.	Continuance and reconfirmation
of the Corporate Guarantees

 

	8.1	Each of the Corporate Guarantors hereby respectively confirms that, notwithstanding the variation
to the Principal Agreement contained herein, the provisions of each Corporate Guarantee executed by such Existing Corporate Guarantor
shall remain in full force and effect as guarantee of the obligations of the Borrower under the Principal Agreement as amended
hereby and in respect of all sums due to the Creditors under the Principal Agreement (as so amended) and the Security Documents.

 

		9.	Fees and expenses

 

	9.1	The Borrower agrees to pay to the Creditors upon demand on a full indemnity basis and from time
to time all reasonable and documented costs, charges and expenses

    	9

    	

    

(including legal fees)
incurred by the Creditors (or any of them) in connection with the negotiation, preparation, execution and enforcement or attempted
enforcement of this 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 New Security Documents and/or the other Security Documents.

 

	9.2	The Borrower and the Corporate Guarantors jointly and severally 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 Agreement and/or any document executed pursuant hereto.

 

	10.	Miscellaneous

 

	10.1	The provisions of Clause 15 (Assignment, Transfer and Lending Office) and 17.1 (Notices)
and 17.2 (Notices through the Agent) of the Principal Agreement (as such Clause is hereby amended) shall apply to
this Agreement as if the same were set out herein in full.

 

	10.2	No term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999
by a person who is not party to this Agreement.

 

	11.	Applicable law and jurisdiction

 

	11.1	This letter shall be governed by and construed in accordance with English law and the provisions
of Clause 18 (Governing Law and Jurisdiction) of the Principal Agreement as hereby amended shall extend and apply
to this Agreement as if the same were (mutatis mutandis) set out herein in full.

 

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

    	10

    	

    

Schedule 1

The
Lenders and their Commitments

 

	 	 	Commitment

(US$)
	Name	Address and fax number	Term Loan

 Facility	Revolving

 Facility
	
         

        Commerzbank
        Aktiengesellschaft

        (as
        legal successor of Deutsche Schiffsbank Aktiengesellschaft)
	
 

        Lending Office

        Domstraße 18 , 20095,
        Hamburg, 

        Federal Republic of Germany

         

        Address for Notices

        Commerzbank
        Aktiengesellschaft

        Domstraße 18, 20095,
        Hamburg, 

        Federal Republic of Germany

        Fax
        No.: +49 40 37699 - 649 

        email: anke.struebing@schiffsbank.com

        Attn:
        International Loans

         
	
         

        210,000,000
	
         

        90,000,000

	
         

        UniCredit
        Bank AG (formerly Bayerische Hypo-Und Vereinsbank Aktiengesellschaft)
	
         

        Lending Office

        UniCredit Bank AG,

        7 Heraklitou Street, 106 73 Athens,
        Greece

         

        Address for Notices

        UniCredit Bank AG,

        7 Heraklitou Street, 106 73 Athens,
        Greece

        Fax No.: +30 210 3640063

        e-mail: 
        vassilis.mantzavinos@unicreditgroup.gr

        Attn: Mr. Vassilis Mantzavinos

         
	
         

        210,000,000
	
         

        90,000,000

    	11

    	

    

	 	 	Commitment

(US$)
	Name	Address and fax number	Term Loan

 Facility	Revolving

 Facility
	         
Credit Suisse AG	
         

        Lending Office

        St. Alban-Graben 1, CH-4002 Basel,
        Switzerland

        Fax No. : 41 61 266 79 39

        e-mail:lydia.lampadaridou@credit-suisse.com

         

        Address for Notices

        St. Alban-Graben 1, CH-4002
        Basel, Switzerland

        Fax No. : 41 61 266 79 39

        e-mail: meike.maettig@credit-suisse.com

        Attn: Ms. Meike Mättig

        e-mail:lydia.lampadaridou@credit-suisse.com

        Attn:Ms. Lydia Lampadaridou

         
	
         

        140,000,000
	
         

        60,000,000

	         
HSH Nordbank AG	
         

        Lending Office

        Gerhart-Hauptmann-Platz 50,
        20095 Hamburg,

        Federal Republic of Germany

         

        Address for Notices

        Gerhart-Hauptmann-Platz 50, 20095
        Hamburg,

        Federal Republic of Germany

        Fax
        No.: +49 40/3333 610895

        Attn:
        Mrs. Stefanie Berger

        e-mail:stefanie.berger@hsh-nordbank.com

         
	         
105,000,000	         
45,000,000

    	12

    	

    

	 	 	Commitment

(US$)
	Name	Address and fax number	Term Loan

 Facility	Revolving

 Facility
	BNP Paribas S.A. (as legal successor of Fortis Bank S.A./N.V.)	
        Lending Office

        16 rue de Hanovre, ACI: CAT02A1, 75078,
        Paris, Cedex 02, France,

         

        Address for Notices

        16 rue de Hanovre, ACI: CAT02A1, 75078,
        Paris, Cedex 02, France,

        Fax No.: +33 (0) 1 42 984 355

        e-mail: tgmo.shipping@bnpparibas.com

        Attn: Transportation Group Middle Office
	35,000,000	15,000,000
	 	Total Commitment	700,000,000	300,000,000

    	13

    	

    

EXECUTION PAGE

 

THE BORROWER

 

	SIGNED by	)	 	 
	Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	COSTAMARE INC.,	)	 	 
	as Borrower	)	/s/
    Anastassis Gavrielides 	 
	in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

THE CREDITORS

 

	SIGNED by	)	 	 
	Mr. Aristeidis D. Vourdas	)	 	 
	for and on behalf of	)	 	 
	COMMERZBANK AKTIENGESELLSCHAFT,	)	 	 
	(as legal successor of	)	 	 
	Deutsche Schiffsbank Aktiengesellschaft),	)	 	 
	as joint Arranger, Security Agent, Swap Bank,	)	 	 
	Agent and Lender	)	/s/ Anastassis Gavrielides	 
	in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

    	14

    	

    

	SIGNED
    by	)	 	 
	Mrs. Anastasia Kerpinioti
    and Mr. Pericles Lycoudis	)	/s/ Anastasia Kerpinioti	 
	for and on behalf of	)	Attorney-in-fact	 
	UniCredit
    Bank AG	)	 	 
	(formerly
    Bayerische Hypo-Und	)	 	 
	Vereinsbank
    Aktiengesellschaft),	)	 	 
	as joint Arranger,	)	 	 
	Account Bank, Swap Bank
    and Lender	)	/s/ Pericles Lycoudis	 
	in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by	)	 	 
	Mr. Aristeidis D. Vourdas	)	 	 
	for and on behalf of	)	 	 
	Credit Suisse AG,	)	 	 
	(formerly Credit Suisse),  as Lender	)	/s/ Aristeidis D. Vourdas	 
	in the presence of:	)	Authorised Officer	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by	)	 	 
	Mr. Aristeidis D. Vourdas	)	 	 
	for and on behalf of	)	 	 
	BNP PARIBAS S.A.	)	 	 
	(as legal successor of Fortis Bank S.A./N.V.),	)	 	 
	as Lender	)	 	 
	in the presence of:	)	/s/ Aristeidis D. Vourdas	 
	 	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

    	15

    	

    

	SIGNED by	)	 	 
	Mr. Aristeidis D. Vourdas	)	 	 
	for and on behalf of	)	 	 
	HSH Nordbank AG,	)	 	 
	as Lender and Swap Bank	)	/s/ Aristeidis D. Vourdas	 
	in the presence of:	)	Attorney-in-fact 	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

 

THE EXISTING CORPORATE
GUARANTORS

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	ACHILLEAS MARITIME CORPORATION,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	ANGISTRI CORPORATION,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

    	16

    	

    

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	ALEXIA TRANSPORT CORP.,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	BULLOW INVESTMENTS INC.,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	CARAVOKYRA MARITIME CORPORATION,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	COSTACHILLE MARITIME CORPORATION,	)	/s/
Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

    	17

    	

    

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	FANAKOS MARITIME CORPORATION,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	FASTSAILING MARITIME CO.,	)	/s/
Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	FLOW SHIPPING CO.,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	KALAMATA SHIPPING CORPORATION,	)	/s/
Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

    	18

    	

    

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	MARATHOS SHIPPING INC.,	)	s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	MARINA MARITIME CORPORATION,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	MERTEN SHIPPING CO.,	)	/s/
Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	MIKO SHIPPING CO.,	)	/s/
Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

    	19

    	

    

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	NAVARINO MARITIME CORPORATION,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	TAKOULIS MARITIME CORPORATION,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

 

	SIGNED by Mr. Anastassis Gavrielides	)	 	 
	for and on behalf of	)	 	 
	WEST END SHIPPING CO. LTD.,	)	/s/ Anastassis Gavrielides	 
	of Liberia, in the presence of:	)	Attorney-in-fact	 

 

	Witness:	 	/s/ Efstratios Kalantzis	 
	Name:	Efstratios Kalantzis	 
	Address:	13 Defteras Merarchias Street	 
	 	185 35 Piraeus, Greece	 
	Occupation:	Attorney-at-Law	 

    	20

    	

    

SCHEDULE 2

 

List of Existing Corporate
Guarantors

 

Achilleas
Maritime Corporation

 

Angistri
Corporation

 

Alexia
Transport Corp.

 

Bullow
Investments Inc.

 

Caravokyra
Maritime Corporation

 

Costachille
Maritime Corporation

 

Fanakos
Maritime Corporation

 

Fastsailing
Maritime Co.

 

Flow
Shipping Co.

 

Kalamata
Shipping Corporation

 

Marathos
Shipping Inc.

 

Marina
Maritime Corporation

 

Merten
Shipping Co.

 

Miko
Shipping Co.

 

Navarino
Maritime Corporation

 

Takoulis
Maritime Corporation and

 

West
End Shipping Co. Ltd.

    	21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]