Document:

-- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.10

Private & Confidential

 

 

     Dated 23 May 2008 
_______________________ 

 

 

 

 

SUPPLEMENTAL AGREEMENT 

  relating
  to a 

  loan of US$28,000,000 

to

MARATHASSA SHIPPING CORPORATION 

provided by

THE ROYAL BANK OF SCOTLAND PLC 

 

 

 

	
Contents	
	 	 	 
	
Clause 		 		
Page 	
	 	 	 	 	 
	
1 		 		
Definitions 		 		
1 	
	 	 	 	 	 
	
2 		 		
Agreement of the Bank 		 		
3 	
	 	 	 	 	 
	
3 		 		
Amendments 		 		
3 	
	 	 	 	 	 
	
4 		 		
Representations and warranties 		 		
5 	
	 	 	 	 	 
	
5 		 		
Conditions 		 		
6 	
	 	 	 	 	 
	
6 		 		
Confirmation 		 		
7 	
	 	 	 	 	 
	
7 		 		
Expenses 		 		
7 	
	 	 	 	 	 
	
8 		 		
Miscellaneous and notices 		 		
8 	
	 	 	 	 	 
	
9 		 		
Applicable law 		 		
8 	
	 	 	 
	 	 	 
	
Schedule 1 Documents and evidence required as conditions subsequent 		 		
10 	
	 	 	 
	
Schedule 2 Form of Corporate Guarantee 		 		
12 	

THIS SUPPLEMENTAL AGREEMENT is dated 23 May 2008 and made BETWEEN:  

	(1) 	MARATHASSA
          SHIPPING CORPORATION, a corporation
          incorporated in the Republic of Liberia with its registered office
    at 80 Broad Street, Monrovia, Liberia (the “Borrower”);    
	 	 
	(2) 	SAFETY
          MANAGEMENT OVERSEAS S. A. , a
          corporation incorporated in the Republic of Panama with its registered
          office at Edificio Torre Universal, Piso 12, Avenida Federico Boyd,
    P. O. Box 8807, Panama, Republic of Panama (the “Manager”); and 
	 	 
	(3) 	THE
          ROYAL BANK OF SCOTLAND PLC of
    5-10 Great Tower Street, London EC3P 3HX, England (the “Bank”)   .
	 	 
	WHEREAS:
	 	 
	(A) 	this Agreement is supplemental
        to a loan agreement dated 16 February 2005 made between (1) the Borrower
        and (2) the Bank (the “Principal
        Agreement”) relating to a multi-currency loan of Twenty
        eight million Dollars ($28,000,000) advanced by the Bank to the Borrower,
        of which the principal amount outstanding at the date hereof is $22,270,000;
    and 
	 	 
	 	(B) this Agreement sets out
        the terms and conditions upon which the Bank provides, at the request
    of the Borrower, its consent to: 
	 	 
	 	(a) 	the transfer
        of the legal and beneficial ownership of all the shares of the Borrower
    to the Corporate Guarantor (as defined below);
	 	 	 
	 	(b) 	the Listing (as defined
    below);
	 	 	 
	 	(c) 	the change of the ultimate
        beneficial ownership of certain of the shares in the Borrower as a result
    of, and in order to facilitate, the Listing;
	 	 	 
	 	(d) 	the consent to the substitution
        of the Management Agreement by a new management agreement in respect
    of the Ship; 
	 	 	 
	 	(e) 	certain amendments to
        the terms and conditions applicable to the Loan and the Principal Agreement
    agreed to by the Borrower and the Bank; and 
	 	 	 
	 	(f) 	certain consequential
        changes to the Principal Agreement required in connection with the above
    and agreed to by the Borrower and the Bank. 
	 	 
	NOW IT IS
    HEREBY AGREED as follows: 
	 	 
	1 	Definitions
	 	 
	1.1 	Defined
    expressions 
	 	 
	 	Words and expressions
        defined in the Principal Agreement shall unless the context otherwise
        requires or unless otherwise defined herein, have the same meanings when
    used in this Agreement. 
	 	 
	1.2 	Definitions 
	 	 
	 	In this Agreement,
    unless the context otherwise requires: 
	 	 
	 	“Conditions
          Date”  means the earlier
    of (a) 15 July 2008 and (b) 30 days after the Listing has taken place;
	 	 
	 	“Corporate
          Guarantee”  means the
          guarantee executed or (as the context may require) to be executed by
          the Corporate Guarantor in favour of the Bank in the form set out in
    schedule 2; 
	 	 

 

1 

	 	
“Corporate Guarantor” means Safe Bulkers, Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall
Islands MH96960 and includes its successors in title;	
	 
	 	
“Effective Date” means the date when the Listing has taken place;	
	 
	 	
“Government Entity” means and includes (whether having a distinct legal personality or not) any national or local government
authority, board, commission, department, division, organ, instrumentality, court or agency and any association, organisation or institution of which any of the foregoing is a member or to whose jurisdiction any of the foregoing is subject or in
whose activities any of the foregoing is a participant;	
	 
	 	
“Indebtedness” means any obligation for the payment or repayment of money, whether as principal or as surety and whether
present or future, actual or contingent;	
	 
	 	
“Listing” means the successful completion of the initial public offering of approximately 20% of the shares of the Corporate
Guarantor, and the listing of the shares of the Corporate Guarantor on the New York Stock Exchange;	
	 
	 	
“Loan Agreement” means the Principal Agreement as amended by this Agreement;	
	 
	 	
“Relevant Documents” means, together, this Agreement and the Corporate Guarantee;	
	 
	 	
“Relevant Parties” means, together, the Borrower, the Manager and the Corporate Guarantor; and	
	 
	 	
“Supplemental Parties” means, together, each of the parties to this Agreement (other than the Bank) or, where the context so
requires or permits, means any of them.	
	 
	
1.3      		
Principal Agreement	
	 
	 	
References in the Principal Agreement to “this Agreement” shall, with effect from the Effective Date and unless the context otherwise requires, be references to the Principal Agreement as amended by this
Agreement and words such as “herein”, “hereof”, “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the Principal Agreement, shall be construed accordingly.	
	 
	
1.4      		
Headings	
	 
	 	
Clause headings and the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Agreement.	
	 
	
1.5      		
Construction of certain terms	
	 
	 	
In this Agreement, unless the context otherwise requires:	
	 
	
1.5.1      		
references to clauses and schedules are to be construed as references to clauses of, and schedules to, this Agreement and references to this Agreement includes its schedules;	
	 
	
1.5.2      		
references to (or to any specified provision of) this Agreement or any other document shall be construed as references to this Agreement, that provision or that document as in force for the time being and as amended in
accordance with terms thereof, or, as the case may be, with the agreement of the relevant parties;	
	 
	
1.5.3      		
references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline
(whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;	
	 
	
1.5.4      		
words importing the plural shall include the singular and vice versa;	
	 
	 
	 
	 
	 
	
  2 

	 

	1.5.5 	references
    to a time of day are to London time; 
	 	 
	1.5.6 	references to a person
        shall be construed as references to an individual, firm, company, corporation,
    unincorporated body of persons or any Government Entity; 
	 	 
	1.5.7	 references to a “guarantee”   include
        references to an indemnity or other assurance against financial loss
        including, without limitation, an obligation to purchase assets or services
        as a consequence of a default by any other person to pay any Indebtedness
        and
“guaranteed”   shall
be construed accordingly; and 
	 	 
	1.5.8 	references to any enactment
        shall be deemed to include references to such enactment as re- enacted,
    amended or extended. 
	 	 
	2 	Agreement of the Bank 
	 	 
	 	The Bank, relying upon the
        representations and warranties on the part of the Borrower contained
        in clause 4, agrees with the Borrower that, subject to the terms and
        conditions of this Agreement and with effect on the Effective Date, the
    Bank consents and agrees to: 
	 	 
	2.1	 the matters and transactions
        described in paragraphs (a), (b) (c) and (d) of the Recitals to this
    Agreement; and 
	 	 
	2.2	 the amendment of the
    Principal Agreement on the terms set out in clause 3. 
	 	 
	3	 Amendments
	 	 
	3.1	 Amendments to Principal
    Agreement 
	 	 
	 	The Principal Agreement shall,
        with effect on and from the Effective Date, be (and it is hereby) amended
        in accordance with the following provisions (and the Principal Agreement
        (as so amended) will continue to be binding upon each of the parties
    hereto upon such terms as so amended): 
	 	 
	3.1.1	 by deleting the existing
        definition of “Management
        Agreement”  in clause
        1.2 and by inserting the following definitions of “Conditions
        Date”,  “Corporate
        Guarantee”,
“Corporate Guarantor”  “Hadjioannou
Family”,
“Management Agreement”  and “Supplemental
Agreement”  in the correct alphabetical
order in clause 1.2: 
	 	 
	 	“Conditions
            Date”  has the meaning
            given to it in the Supplemental Agreement; 

       “Corporate
            Guarantee”  means
            the corporate guarantee executed or (as the context may require)
            to be executed by the Corporate Guarantor in favour of the Bank in
            the form set out in schedule 2 to the Supplemental Agreement; 

       “Corporate
            Guarantor”  means
            Safe Bulkers, Inc. of Trust Company Complex, Ajeltake Road, Ajeltake
            Island, Majuro, Marshall Islands MH96960 and includes its successors
            in title;

       “Hadjioannou
            Family”  means Mr
            Polys V. Hadjioannou, Mr Nikolaos V. Hadjioannou, Ms Eleni V. Hadjioannou
            and Ms Maria V. Hadjioannou and their direct lineal descendants;

       “Management
            Agreement”  means,
            together, the agreement made or (as the context may require) to be
            made between the Corporate Guarantor and the Manager and the agreement
            made, or (as the context may require) to be made between the Borrower
            and the Manager, providing (inter alia) for the Manager to manage
            the Ship, as amended and supplemented from time to time; and 

       “Supplemental
            Agreement”  means
            the agreement dated 23 May 2008 supplemental to this Agreement made
            between (inter alios)
    (1) the Borrower and (2) the Bank;”; 

	 	 
	 	 

 

 3 

	
3.1.2      		
by inserting the words “the Supplemental Agreement, the Corporate Guarantee“, after the words “this Agreement,” in the first line of the definition of “Security Documents” in clause 1.2;	
	 
	
3.1.3      		
by inserting the words “the Corporate Guarantor”, after the words “the Borrower,” in the first line of the definition of “Security Party” in clause 1.2;	
	 
	
3.1.4      		
by deleting the definition of “Margin” in clause 1.2 and by inserting in its place the following new definition of
“Margin”:	
	 
	 	
“Margin” means zero point seven five per cent (0.75%) per annum;”;	
	 
	
3.1.5      		
by deleting the definition of “Security Requirement” in clause 1.2 and by inserting in its place the following new definition
of “Security Requirement”:	
	 
	 	
““Security Requirement” means the amount in Dollars (as certified by the Bank whose certificate shall, in the absence of
manifest error, be conclusive and binding on the Borrower and the Bank) which shall be equal to one hundred and twenty per cent (120%) of (i) the Loan (or the Equivalent Amount in Dollars when the Loan or part thereof is denominated in an Optional
Currency) and (ii) the cost (if any) (as certified by the Bank whose certificate shall, in the absence of manifest error, be conclusive and binding on the Borrower and the Bank) of terminating any Transaction entered into pursuant to the Master Swap
Agreement;”;	
	 
	
3.1.6      		
by deleting clause 8.1.1 and by inserting in its place the following new clause 8.1.1:	
	 
	 	
“8.1.1 		Due incorporation
	 
	 	 	
the Borrower and each of the other Security Parties are duly incorporated and validly existing in good standing under the laws of their respective countries of incorporation as limited liability companies or, as the
case may be, corporations and have power to carry on their respective businesses as they are now being conducted and to own their respective property and other assets;”;	
	 
	
3.1.7      		
by:	
	 
	 	
(a)      		
deleting the existing clause 9.3.13 in its entirety and renumbering existing clauses 9.3.14 and 9.3.15 accordingly; and	
	 
	 	
(b)      		
inserting the following new clause 8.2.13 immediately after the existing clause 8.2.12 and renumbering the existing clauses 8.2.13 and 8.2.14 accordingly:	
	 
	 	 	
“8.2.13 Shareholdings	
	 
	 	 	 	the Borrower is a wholly-owned direct
    Subsidiary of the Corporate Guarantor and no less than 75% of all the issued
    share capital of the Corporate Guarantor are ultimately beneficially owned
    (whether directly or indirectly) by the Hadjioannou Family; and”; 
	 
	
3.1.8      		
by deleting the words “during the three year period starting from the date of this Agreement exceed one hundred and four per cent (104%) of the Security Requirement during that period or, at any time thereafter
exceed one hundred and four point seventeen per cent (104.17%) of the Security Requirement during that period” in the first, second, third and fourth lines of clause 9.2.7 and by inserting in its place the words “exceed the Security
Requirement”;	
	 
	
3.1.9      		
by adding the following words at the end of clause 11.1.3 after the words “9.2, 9.3 or 9.4”:	
	 
	 	
“or the Corporate Guarantor commits any breach of or omits to observe any of the obligations or undertakings expressed to the assumed by it under clauses 5.1.4, 5.1.5, 5.2 or 5.3 of the Corporate
Guarantee”;	
	 
	
  4 

	 

	3.1.10        	by deleting
        clause 11.1.27 in its entirety and by inserting in its place the following
        new clauses 11.1.27, 11.1.28, and 11.1.29 and 11.1.30 and by renumbering
    the existing clause 11.1.28 as clause 11.1.31: 
	 	 
	 	“11.1.27	 Shareholdings:
        there is any change in the legal and/or ultimate beneficial ownership
        of any of the shares of the Borrower or the Corporate Guarantor which
    results in: 
	 	 
	 	 	(a)     	the Borrower ceasing
        at any time to be a wholly-owned direct Subsidiary of the Corporate Guarantor;
    or 
	 	 	 	 
	 	 	(b) 	the Hadjioannou Family
        becoming at any time the ultimate beneficial owners of less than 51%
    of the total issued share capital of the Corporate Guarantor; or 
	 	 	 	 
	 	 	(c) 	any person, or persons
        acting in concert (other than the Hadjioannou Family), having control
        of the Corporate Guarantor at any time (and for the purposes of this
        paragraph (c) “control ”  shall
        have the meaning given to it in the definition of “Subsidiary”   in
    clause 1.2); or
	 	 	 	 
	 	11.1.28      	Change
          of CEO: Mr Polys V. Hadjioannou
          ceases to be the Chief Executive Officer of the Corporate Guarantor
    at any time; or 
	 	 	 
	 	11.1.29 	Listing: the
        shares of the Corporate Guarantor are de-listed or suspended from, or
        cease to trade (whether temporarily for longer than 3 consecutive days
    or permanently) on, the New York Stock Exchange; or 
	 	 	 
	 	11.1.30 	Conditions:
        the Bank has not received the documents and evidence specified in schedule
    1 to the Supplemental Agreement by the Conditions Date; or”. 
	 	 	 
	3.2	 Continued
    force and effect 
	 	 	 
	 	 	Save as amended
        by this Agreement, the provisions of the Principal Agreement and the
        other Security Documents shall continue in full force and effect and
        the Principal Agreement and this Agreement shall be read and construed
    as one instrument. 
	 	 	 
	4	 Representations
          and warranties 4.1 Primary
    representations and warranties 
	 	 
	 	The Borrower
    represents and warrants to the Bank that: 
	 	 
	4.1.1 	Existing
    representations and warranties 
	 	 
	 	the representations
        and warranties set out in clause 8 of the Principal Agreement were true
        and correct on the date of the Principal Agreement and are true and correct,
        including to the extent that they may have been or shall be amended by
        this Agreement, as if made at the date of this Agreement with reference
    to the facts and circumstances existing at such date; 
	 	 
	4.1.2 	Corporate
    power 
	 	 
	 	each of the Relevant
        Parties has power to execute, deliver and perform its obligations under
        the Relevant Documents to which it is or is to be a party; all necessary
        corporate, shareholder and other action has been taken by each of the
        Relevant Parties to authorise the execution, delivery and performance
    of the Relevant Documents to which it is or is to be a party; 
	 	 
	4.1.3 	Binding
    obligations 
	 	 
	 	the Relevant
        Documents to which it is or is to be a party constitute valid and legally
        binding obligations of each of the Relevant Parties enforceable in accordance
    with their terms; 
	 	 	 
	 	 	 

 

 5 

	
      4.1.4      	
	
No conflict with other obligations	
	

	 	 
	
	
the execution, delivery and performance of the
Relevant Documents to which it is or is to be a party by each of the Relevant
Parties will not (i) contravene any existing law, statute, rule or regulation
or any  judgment, decree or permit to which any of the Relevant Parties is subject, (ii) conflict
with, or result in any breach of any of the terms of, or constitute a default
under, any agreement or other instrument
to which any of the Relevant Parties is a party or is subject or by which any
of the Relevant Parties or any of its property is bound or (iii) contravene or
conflict with any provision of the constitutional documents of any of the Relevant
Parties or (iv) result in the creation or imposition of or oblige any of the
Relevant Parties to create any Encumbrance on any of their undertakings, assets,
rights or revenues of any of the Relevant Parties; 
	

	 	 
	
      4.1.5      	
	
No filings required	
	

	
	
it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of any of the Relevant Documents that they or any other instrument be notarised, filed, recorded, registered or enrolled
in any court, public office or elsewhere in any Relevant Jurisdiction or that any stamp, registration or similar tax or charge be paid in any Relevant Jurisdiction on or in relation to the Relevant Documents and each of the Relevant Documents is in
proper form for its enforcement in the courts of the Relevant Jurisdiction;	
	

	 	 
	
      4.1.6      	
	
Choice of law	
	

	
	
the choice of English law to govern the Relevant Documents and the submissions by the Relevant Parties to the non-exclusive jurisdiction of the English courts are valid and binding; and	
	

	 	 
	
      4.1.7      	
	
Consents obtained	
	

	
	
every consent, authorisation, licence or approval of, or registration or declaration to, governmental or public bodies or authorities or courts required by any of the Relevant Parties in connection with the execution,
delivery, validity, enforceability or admissibility in evidence of the Relevant Documents to which it is or is to be a party or the performance by each Relevant Party of its obligations under such document has been obtained or made and is in full
force and effect and there has been no default in the observance of any conditions or restrictions (if any) imposed in, or in connection with, any of the same.	
	

	 	 
	
      4.2      	
	
Repetition of representations and warranties	
	

	
	
Each of the representations and warranties contained in clause 4.1 of this Agreement and clause 8 of the Principal Agreement (as amended by this Agreement) shall be deemed to be repeated by the Borrower on the
Effective Date as if made with reference to the facts and circumstances existing on such day.	
	

	 	 
	
      5      	
	
Conditions	
	 
	

	
      5.1      	
	
Documents and evidence	
	

	
	
The agreement of the Bank referred to in clause 2 shall be subject to the receipt by the Bank or its duly authorised representative of the documents and evidence specified in schedule 1 in form and substance
satisfactory to the Bank. The Borrower agrees with the Bank that failure by the Borrower to deliver such documents or evidence to the Bank by the Conditions Date, will constitute an Event of Default under the Principal Agreement.	
	

	 	 
	
      5.2      	
	
General conditions precedent	
	

	
	
The agreement of the Bank referred to in clause 2 shall be further subject to:	
	

	

  6 

	

	5.2.1	 the representations
        and warranties in clause 4 being true and correct on the Effective Date
        as if each was made with respect to the facts and circumstances existing
    at such time; and 
	 	 
	5.2.2	 no Default having occurred
    and continuing at the time of the Effective Date. 
	 	 
	5.3	 Waiver of conditions
    precedent 
	 	 
	 	The conditions specified
        in this clause 5 are inserted solely for the benefit of the Bank and
    may be waived by the Bank in whole or in part with or without conditions. 
	 	 
	6	 Confirmation 
	 	 
	6.1	 Security Documents 
	 	 
	 	The Borrower acknowledges
    and agrees, for the avoidance of doubt, that: 
	 	 
	6.1.1	 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 Agreement; and 
	 	 
	6.1.2	 with effect from the
        Effective Date, references to “the Agreement” or “the
        Loan Agreement” in any of the other Security Documents to which
        it is a party shall henceforth be references to the Principal Agreement
    as amended by this Agreement and as from time to time hereafter amended. 
	 	 
	7	 Expenses 
	 	 
	7.1	 Expenses 
	 	 
	 	The Borrower agrees to pay
        to the Bank on a full indemnity basis on demand all expenses (including
    legal and out-of-pocket expenses) incurred by the Bank: 
	 	 
	7.1.1	 in connection with
        the negotiation, preparation, execution and, where relevant, registration
        of this Agreement and the Corporate Guarantee and of any amendment or
        extension of, or the granting of any waiver or consent under, this Agreement
    and the Corporate Guarantee; 
	 	 
	7.1.2	 in contemplation of,
        or otherwise in connection with, the enforcement of, or preservation
        of any rights under this Agreement and the Corporate Guarantee or otherwise
        in respect of the monies owing and obligations incurred under this Agreement
    and the Corporate Guarantee, 
	 	 
	 	together with interest at
        the rate referred to in clause 3.4 of the Principal Agreement from the
        date on which such expenses were incurred to the date of payment (as
    well after as before judgement). 
	 	 
	7.2	 Value Added Tax 
	 	 
	 	All expenses payable pursuant
        to this clause 7 shall be paid together with value added tax or any similar
    tax (if any) properly chargeable thereon. 
	 	 
	7.3	 Stamp and other duties 
	 	 
	 	The Borrower agrees to pay
        to the Bank on demand all stamp, documentary, registration or other like
        duties or taxes (including any duties or taxes payable by the Bank) imposed
        on or in connection with this Agreement and shall indemnify the Bank
        against any liability arising by reason of any delay or omission by the
    Borrower to pay such duties or taxes. 
	 	 
	 	 

 

 

 7 

	8	 Miscellaneous
    and notices 
	 	 
	8.1	 Notices 
	 	 
	 	Every notice, request, demand
    or other communication under this Agreement shall: 
	 	 
	8.1.1	 be in writing, delivered
        personally or by first-class prepaid letter (airmail if available) or
    telefax or other means of telecommunication in permanent written form; 
	 	 
	8.1.2	 be deemed to have been
        received, subject as otherwise provided in the relevant Security Document,
        in the case of a letter, when delivered personally or three (3) days
        after it has been put into the post and, in the case of a facsimile transmission
        or other means of telecommunication in permanent written form, at the
        time of despatch (provided that if the date of despatch is not a business
        day in the country of the addressee or, if the time of despatch is after
        the close of business in the country of the addressee, it shall be deemed
        to have been received at the opening of business on the next such business
    day); and 
	 	 
	8.1.3	 be sent: 
	 	 
	 	(a)	 if to the Supplemental
    Parties or any of them: 
	 	 	 
	 	 	32 Karamanli Avenue 

      166 05
    Voula 

    Greece 
	 	 	 
	 	 	Fax No: +30 210 8956900 

      Attention:
    George Papadopoulos 
	 	 	 
	 	(b)	 if to the Bank at: 
	 	 	 
	 	 	The Shipping Business Centre
        

    5-10 Great Tower Street 

    London, EC3P 3HX 

    England
	 	 	 
	 	 	Fax: +44 207 085 7132 

      Attention:
    Shipping Business Centre 
	 	 	 
	8.2	 Counterparts 
	 	 
	 	This Agreement
        may be executed in any number of counterparts and by the different parties
        on separate counterparts, each of which when so executed and delivered
        shall be an original but all counterparts shall together constitute one
    and the same instrument. 
	 	 
	9	 Applicable
    law 
	 	 
	9.1	 Law 
	 	 
	 	This Agreement
    is governed by, and shall be construed in accordance with, English law. 
	 	 
	9.2 	Submission
    to jurisdiction 
	 	 
	 	Each of the Supplemental
        Parties agrees, for the benefit of the Bank, that any legal action or
        proceedings arising out of or in connection with this Agreement against
        any of their assets may be brought in the English courts. Each of the
        Supplemental Parties irrevocably and unconditionally submits to the jurisdiction
        of such courts and irrevocably designates, appoints and empowers Mr.
        Savvas Savvides at present of 24 Exeter Road, London N14 5JY England
        to receive for it and on its behalf, service of process issued out of
        the English courts in any such legal action or proceedings and each of
    the Supplemental Parties further undertakes that, 
	 	 
	 	 
	 	 

 

 

 

 8 

	 	in the event that such individual
        passes away or cannot be found, each of the Supplemental Parties hereby
        irrevocably and unconditionally authorises the Bank to designate, appoint
        and empower, on each of the Supplemental Parties’ behalf, Messrs
        Cheeswrights or Messrs Saville & Co. at their then principal place
        of business in London, as substitute process agents of Mr. Savvas Savvides
        for the purposes of this clause. The submission to such jurisdiction
        shall not (and shall not be construed so as to) limit the right of the
        Bank to take proceedings against any of the Supplemental Parties in the
        courts of any other competent jurisdiction nor shall the taking of proceedings
        in any one or more jurisdictions preclude the taking of proceedings in
        any other jurisdiction, whether concurrently or not. Each of the Supplemental
        Parties further agrees that only the courts of England and not those
        of any other state shall have jurisdiction to determine any claim which
        any of the Supplemental Parties may have against the Bank arising out
    of or in connection with this Agreement. 
	 	 
	9.3	 Contracts (Rights
    of Third Parties) Act 1999 
	 	 
	 	No term of this
        Agreement is enforceable under the Contracts (Rights of Third Parties)
    Act 1999 by a person who is not a party to this Agreement. 
	 	 

IN WITNESS whereof the parties to this Agreement have caused this Agreement to be duly executed as a deed on the date first above written.  

 

 

 

9 

Schedule 1 

Documents and evidence required as conditions subsequent 

(referred to in clause 5.1) 

	
1      		
Corporate authorisations	
	 
	 	
In relation to each of the Relevant Parties:	
	 
	 	
(a)      		
Constitutional documents	
	 
	 	 	
copies certified by an officer of each of the Relevant Parties, as a true, complete and up to date copies, of all documents which contain or establish or relate to the constitution of that party or a secretary's
certificate confirming that there have been no changes or amendments to the constitutional documents certified copies of which were previously delivered to the Bank pursuant to the Principal Agreement;	
	 
	 	
(b)      		
Resolutions	
	 
	 	 	
copies of resolutions of each of its board of directors and, if required following advice by the Bank’s counsel, its shareholders approving this Agreement and the other Relevant Documents and the terms and
conditions hereof and thereof and authorising the signature, delivery and performance of each such party's obligations thereunder, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date of this Agreement) by an
officer of such Relevant Party as:	
	 
	 	 	
(1)      		
being true and correct;	
	 
	 	 	
(2)      		
being duly passed at meetings of the directors of such Relevant Party and, as the case may be, of the shareholders of such Relevant Party each duly convened and held;	
	 
	 	 	
(3)      		
not having been amended, modified or revoked; and	
	 
	 	 	
(4)      		
being in full force and effect,	
	 
	 	 	
together with originals or certified copies of any powers of attorney issued by any party pursuant to such resolutions; and	
	 
	 	
(c)      		
Certificate of incumbency	
	 
	 	 	
a list of directors and officers of each Relevant Party specifying the names and positions of such persons, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date of this Agreement)
by an officer of such Relevant Party to be true, complete and up to date;	
	 
	
2      		
Consents	
	 
	 	
a certificate (dated no earlier than five (5) Banking Days prior to the date of this Agreement) from an officer of each of the Relevant Parties stating that no consents, authorisations, licences or approvals are
necessary for such Relevant Party to authorise, or are required by each of the Relevant Parties or any other party (other than the Bank) in connection with, the execution, delivery, and performance of this Agreement and the other Relevant Documents
to which such Relevant Party is or is to be a party;	
	 
	 
	 
	 
	 
	
  10 

	 

	3	 Corporate
    Guarantee 
	 	 
	 	the Corporate Guarantee (together
        with any other documents and/or letters to be executed and/or delivered
    to the Bank pursuant thereto) duly executed; 
	 	 
	4	 Legal opinions 
	 	 
	 	such legal opinions in relation
        to the laws of the Republic of Liberia, the Republic of the Marshall
        Islands and the Republic of Panama and any other legal opinions as the
    Bank shall in its absolute discretion require;
	 	 
	5	 Listing evidence
    that the Listing has taken place; and 
	 	 
	6	 Process agent 
	 	 
	 	a letter from each Relevant
        Party's agent for receipt of service of proceedings accepting its appointment
        under this Agreement and the other Relevant Documents to which such Relevant
    Party is or is to be a party as such Relevant Party’s process agent. 
	 	 
	 	 

 

 

 

11 

Schedule 2 

Form of Corporate Guarantee 

 

 

 

 

12 

	
EXECUTED as a DEED 		
      ) 	
	 	
	
by 		
      ) 	
	 	
	
for and on behalf of 		
      ) 	
	 	
	
MARATHASSA SHIPPING CORPORATION 		
      ) 	
	
Attorney-in-fact 		 
	
as Borrower 		
      ) 	
	 	
	
in the presence of: 		
      ) 	
	 	
	 	 	 
	 	 	 
	 	 	 
	Witness 

Name: 

Address: 

Occupation: 	 	 
	 	 	 

 

	EXECUTED as
        a DEED  	)  
	 
	by  	)  
	 
	for and on
        behalf of  	)  
	 
	SAFETY
          MANAGEMENT OVERSEAS S.A.  	)  
	Attorney-in-fact  	 
	as Manager  	)  
	 
	in the presence
        of:  	)  
	 
	 	 	 
	 	 	 
	 	 	 
	Witness 

      Name: 

      Address: 

      Occupation: 	 	 
	 	 	 

 

	EXECUTED as
        a DEED  	)  
	 
	by  	)  
	 
	for and on
        behalf of  	)  
	 
	THE ROYAL
          BANK OF SCOTLAND PLC  	)  
	Attorney-in-fact  	 
	as Bank  	)  
	 
	in the presence
        of:  	)  
	 
	 	 	 
	 	 	 
	 	 	 
	Witness 

      Name: 

      Address: 

      Occupation: 	 	 
	 	 	 

 

13c52273_ex10-15.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.15

Private & Confidential

 

	
      Dated 23 May 2008         

 

 

 

SUPPLEMENTAL AGREEMENT 

relating to a 

loan of (originally) US$30,400,000

to 

MARINOUKI SHIPPING CORPORATION

provided by 

THE ROYAL BANK OF SCOTLAND PLC

 

 

 

 

	 	

Contents 

	
Clause		 		 		 		
Page	
	 	 	 	 	 
	
1		 		
Definitions		 		
1	
	 	 	 	 	 
	
2		 		
Agreement of the Bank		 		
3	
	 	 	 	 	 
	
3		 		
Amendments		 		
3	
	 	 	 	 	 
	
4		 		
Representations and warranties		 		
5	
	 	 	 	 	 
	
5		 		
Conditions		 		
6	
	 	 	 	 	 
	
6		 		
Confirmation		 		
7	
	 	 	 	 	 
	
7		 		
Expenses		 		
7	
	 	 	 	 	 
	
8		 		
Miscellaneous and notices		 		
7	
	 	 	 	 	 
	
9		 		
Applicable law		 		
8	
	 
	 	
	
Schedule 1 Documents and evidence required as conditions subsequent		 		
10	
	 	 	 
	
Schedule 2 Form of Corporate Guarantee		 		
12	

THIS SUPPLEMENTAL AGREEMENT is dated 23 May 2008 and made BETWEEN:

	
(1)      		
MARINOUKI SHIPPING CORPORATION, a corporation incorporated in the Republic of Liberia with its registered office at 80 Broad Street, Monrovia, Liberia (the
“Borrower”);

	
	 
	
(2)      		
SAFETY MANAGEMENT OVERSEAS S.A., a corporation incorporated in the Republic of Panama with its registered office at Edificio Torre Universal, Piso 12,
Avenida Federico Boyd, P.O. Box 8807, Panama, Republic of Panama (the “Manager”); and

	
	 
	
(3)      		
THE ROYAL BANK OF SCOTLAND PLC of 5-10 Great Tower Street, London EC3P 3HX, England (the “Bank”).

	
	 

WHEREAS:

	
(A)      		
this Agreement is supplemental to a loan agreement dated 1 March 2006 made between (1) the Borrower and (2) the Bank (the “Original
Agreement”) as supplemented by a supplemental letter dated 24 April 2008 (the “Supplemental Letter” and,
together with the Original Agreement, the “Principal Agreement”) relating to a multi-currency loan of (originally) Thirty million four hundred thousand
Dollars ($30,400,000) (which was increased by $4,000,000 pursuant to the Supplemental Letter), advanced by the Bank to the Borrower, of which the principal amount outstanding at the date hereof is $32,620,000; and

	
	 
	
(B)      		
this Agreement sets out the terms and conditions upon which the Bank provides, at the request of the Borrower, its consent to:

	
	 
	 	
(a)      		
the transfer of the legal and beneficial ownership of all the shares of the Borrower to the Corporate Guarantor (as defined below);

	
	 
	 	
(b)      		
the Listing (as defined below);

	
	 
	 	
(c)      		
the change of the ultimate beneficial ownership of certain of the shares in the Borrower as a result of, and in order to facilitate, the Listing;

	
	 
	 	
(d)      		
the consent to the substitution of the Management Agreement by a new management agreement in respect of the Ship;

	
	 
	 	
(e)      		
certain amendments to the terms and conditions applicable to the Loan and the Principal Agreement agreed to by the Borrower and the Bank; and

	
	 
	 	
(f)      		
certain consequential changes to the Principal Agreement required in connection with the above and agreed to by the Borrower and the Bank.

	
	 

NOW IT IS HEREBY AGREED as follows:

	
1      		
Definitions

	
	 
	
1.1      		
Defined expressions

	
	 
	 	
Words and expressions defined in the Principal Agreement shall unless the context otherwise requires or unless otherwise defined herein, have the same meanings when used in this Agreement.

	
	 
	
1.2      		
Definitions

	
	 
	 	
In this Agreement, unless the context otherwise requires:

	
	 
	 	
“Conditions Date” means the earlier of (a) 15 July 2008 and (b) 30 days after the Listing has taken
place;

	
	 

1

	 	
“Corporate Guarantee” means the guarantee executed or (as the context may require) to be executed by the
Corporate Guarantor in favour of the Bank in the form set out in schedule 2;

	
	 
	 	
“Corporate Guarantor” means Safe Bulkers, Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 and includes its successors in title;

	
	 
	 	
“Effective Date” means the date when the Listing has taken place;

	
	 
	 	
“Government Entity” means and includes (whether having a distinct legal personality or not) any national or
local government authority, board, commission, department, division, organ, instrumentality, court or agency and any association, organisation or institution of which any of the foregoing is a member or to whose jurisdiction any of the foregoing is
subject or in whose activities any of the foregoing is a participant;

	
	 
	 	
“Indebtedness” means any obligation for the payment or repayment of money, whether as principal or as surety
and whether present or future, actual or contingent;

	
	 
	 	
“Listing” means the successful completion of the initial public offering of approximately 20% of the shares
of the Corporate Guarantor, and the listing of the shares of the Corporate Guarantor on the New York Stock Exchange;

	
	 
	 	
“Loan Agreement” means the Principal Agreement as amended by this Agreement;

	
	 
	 	
“Relevant Documents” means, together, this Agreement and the Corporate Guarantee;

	
	 
	 	
“Relevant Parties” means, together, the Borrower, the Manager and the Corporate Guarantor; and

	
	 
	 	
“Supplemental Parties” means, together, each of the parties to this Agreement (other than the Bank) or, where
the context so requires or permits, means any of them.

	
	 
	
1.3      		
Principal Agreement

	
	 
	 	
References in the Principal Agreement to “this Agreement” shall, with effect from the Effective Date and unless the context otherwise requires, be references to the Principal Agreement as
amended by this Agreement and words such as “herein”, “hereof”, “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the Principal Agreement, shall be construed
accordingly.

	
	 
	
1.4      		
Headings

	
	 
	 	
Clause headings and the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Agreement.

	
	 
	
1.5      		
Construction of certain terms

	
	 
	 	
In this Agreement, unless the context otherwise requires:

	
	 
	
1.5.1      		
references to clauses and schedules are to be construed as references to clauses of, and schedules to, this Agreement and references to this Agreement includes its schedules;

	
	 
	
1.5.2      		
references to (or to any specified provision of) this Agreement or any other document shall be construed as references to this Agreement, that provision or that document as in force for the time being
and as amended in accordance with terms thereof, or, as the case may be, with the agreement of the relevant parties;

	
	 
	
1.5.3      		
references to a “regulation” include any present or future regulation, rule, directive, requirement, request
or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

	
	 
	
1.5.4      		
words importing the plural shall include the singular and vice versa;

	
	 

2

	
1.5.5      		
references to a time of day are to London time;

	
	 
	
1.5.6      		
references to a person shall be construed as references to an individual, firm, company, corporation, unincorporated body of persons or any Government Entity;

	
	 
	
1.5.7      		
references to a “guarantee” include references to an indemnity or other assurance against financial loss
including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and “guaranteed” shall be construed accordingly; and

	
	 
	
1.5.8      		
references to any enactment shall be deemed to include references to such enactment as reenacted, amended or extended.

	
	 
	
2      		
Agreement of the Bank

	
	 
	 	
The Bank, relying upon the representations and warranties on the part of the Borrower contained in clause 4, agrees with the Borrower that, subject to the terms and conditions of this Agreement and with
effect on the Effective Date, the Bank consents and agrees to:

	
	 
	
2.1      		
the matters and transactions described in paragraphs (a), (b), (c) and (d) of the Recitals to this Agreement; and

	
	 
	
2.2      		
the amendment of the Principal Agreement on the terms set out in clause 3.

	
	 
	
3      		
Amendments

	
	 
	
3.1      		
Amendments to Principal Agreement

	
	 
	 	
The Principal Agreement shall, with effect on and from the Effective Date, be (and it is hereby) amended in accordance with the following provisions (and the Principal Agreement (as so amended) will
continue to be binding upon each of the parties hereto upon such terms as so amended):

	
	 
	
3.1.1      		
by deleting the existing definition of “Management Agreement” in clause 1.2 and by inserting the following
definitions of “Conditions Date”, “Corporate Guarantee”,
“Corporate Guarantor” “Hadjioannou Family”,
“Management Agreement”, “Supplemental Agreement” and
“Supplemental Letter” in the correct alphabetical order in clause 1.2:

	
	 
	 	
““Conditions Date” has the meaning given to it in the Supplemental Agreement;

	
	 
	 	
“Corporate Guarantee” means the corporate guarantee executed or (as the context may require) to be executed
by the Corporate Guarantor in favour of the Bank in the form set out in schedule 2 to the Supplemental Agreement;

	
	 
	 	
“Corporate Guarantor” means Safe Bulkers, Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 and includes its successors in title;

	
	 
	 	
“Hadjioannou Family” means Mr Polys V. Hadjioannou, Mr Nikolaos V. Hadjioannou, Ms Eleni V. Hadjioannou and
Ms Maria V. Hadjioannou and their direct lineal descendants;

	
	 
	 	
“Management Agreement” means, together, the agreement made or (as the context may require) to be made between
the Corporate Guarantor and the Manager and the agreement made, or (as the context may require) to be made between the Borrower and the Manager, providing (inter alia) for the Manager to manage the Ship, as amended and supplemented from time to
time;

	
	 
	 	
“Supplemental Agreement” means the agreement dated 23 May 2008 supplemental to this Agreement made between
(inter alios) (1) the Borrower and (2) the Bank; and

	
	 

3

	 	
“Supplemental Letter” means the letter dated 24 April 2008 supplemental to this Agreement issued by the Bank
and agreed to by the Borrower;”;

	
	 
	
3.1.2      		
by inserting the words “the Supplemental Letter, the Supplemental Agreement, the Corporate Guarantee”, after the words “this Agreement,” in the first line of the definition of
“Security Documents” in clause 1.2;
	
	 
	
3.1.3      		
by inserting the words “the Corporate Guarantor”, after the words “the Borrower,” in the first line of the definition of “Security
Party” in clause 1.2;
	
	 
	
3.1.4      		
by deleting the definition of “Margin” in clause 1.2 and by inserting in its place the following new
definition of “Margin”:
	
	 
	 	
““Margin” means zero point seven five per cent (0.75%) per annum;”;

	
	 
	
3.1.5      		
by deleting the definition of “Security Requirement” in clause 1.2 and by inserting in its place the
following new definition of “Security Requirement”:
	
	 
	 	
““Security Requirement” means the amount in Dollars (as certified by the Bank whose certificate shall,
in the absence of manifest error, be conclusive and binding on the Borrower and the Bank) which shall be equal to one hundred and twenty per cent (120%) of (i) the Loan (or the Equivalent Amount in Dollars when the Loan or part thereof is
denominated in an Optional Currency) and (ii) the cost (if any) (as certified by the Bank whose certificate shall, in the absence of manifest error, be conclusive and binding on the Borrower and the Bank) of terminating any Transaction entered into
pursuant to the Master Swap Agreement;”;

	
	 
	
3.1.6      		
by deleting clause 8.1.1 and by inserting in its place the following new clause 8.1.1:
	
	 	 
	 	 	 
	 	“8.1.1 	Due incorporation 
	 	 	 
	 	 	the Borrower and each of the other
      Security Parties are duly incorporated and validly existing in good standing
      under the laws of their respective countries of incorporation as limited
      liability companies or, as the case may be, corporations and have power
      to carry on their respective businesses as they are now being conducted
    and to own their respective property and other assets;”; 
	 	 	 
	3.1.7	 by:	 
	 
	 	(a)  	deleting the existing clause 9.3.13 in its
      entirety and renumbering existing clauses 9.3.14 and 9.3.15 accordingly;
    and
	 	 	

	 	(b)  	inserting the following new clause 8.2.12
      immediately after the existing clause 8.2.11 and renumbering the existing
    clauses 8.2.12 and 8.2.13 accordingly:
	 
	 	“8.2.12	Shareholdings 
	 	 	 
	 	 	the Borrower is a wholly-owned
      direct Subsidiary of the Corporate Guarantor and no less than 75% of all
      the issued share capital of the Corporate Guarantor are ultimately beneficially
    owned (whether directly or indirectly) by the Hadjioannou Family; and”; 
	 
	3.1.8  	by deleting the words “one hundred
    and four per cent (104%) of” in the second line of clause 9.2.7;
	 	 	 	 
	3.1.9 	by adding the following words at the end
    of clause 11.1.3 after the words “9.2, 9.3 or 9.4”:
	 	 
	 	“or the Corporate Guarantor
      commits any breach of or omits to observe any of the obligations or undertakings
      expressed to the assumed by it under clauses 5.1.4, 5.1.5, 5.2 or 5.3 of
    the Corporate Guarantee”;
	 

4

	3.1.10	 	by deleting
      clause 11.1.27 in its entirety and by inserting in its place the following
      new clauses 11.1.27, 11.1.28, and 11.1.29 and 11.1.30 and by renumbering
    the existing clause 11.1.28 as clause 11.1.31:
	 	 	 	 	 
	 		 	
“11.1.27		 		
Shareholdings:
there is any change in the legal and/or ultimate beneficial ownership of any
of the shares of the Borrower or the Corporate Guarantor which results in:	
	 		 	 		 		 
	 		 	 		 		
(a)		 		
the Borrower ceasing at any time to be a wholly-owned
direct Subsidiary of the
Corporate Guarantor; or 
	 		 	 		 		 		 		 
	 		 	 		 		
(b)		 		
the Hadjioannou Family becoming at any time the
ultimate beneficial owners of less than 51% of the total issued share capital
of the Corporate Guarantor; or	
	 		 	 		 		 		 		 
	 		 	 		 		
(c)		 		
any person, or persons acting in concert (other than the Hadjioannou Family), having
control of the Corporate Guarantor at any time (and for the purposes of  this
paragraph (c) “control” shall have the meaning given to it in the definition
of “ Subsidiary” in
clause 1.2); or 
	 		 	 		 		 		 		 
	 	 	11.1.28   	 	Change of CEO:
      Mr Polys V. Hadjioannou ceases to be the Chief Executive Officer of the
    Corporate Guarantor at any time; or
	 	 	 	 	 	 	 
	 	 	11.1.29  	 	Listing:
      the shares of the Corporate Guarantor are de-listed or suspended from,
      or cease to trade (whether temporarily for longer than 3 consecutive days
    or permanently) on, the New York Stock Exchange; or
	 	 	 	 	 	 	 
	 	 	11.1.30 	 	Conditions:
      the Bank has not received the documents and evidence specified in schedule
    1 to the Supplemental Agreement by the Conditions Date; or”.
	 	 	 	 	 	 	 
	3.2  	 	Continued
    force and effect
	 	 	 
	 	 	Save as amended
      by this Agreement, the provisions of the Principal Agreement and the other
      Security Documents shall continue in full force and effect and the Principal
    Agreement and this Agreement shall be read and construed as one instrument.
	 	 	 
	4      	 	Representations
    and warranties
	 	 	 
	4.1  	 	Primary
    representations and warranties
	 	 	 
	 	 	The Borrower
    represents and warrants to the Bank that:
	 	 	 
	4.1.1 	 	Existing representations
    and warranties
	 	 	 
	 	 	the representations
      and warranties set out in clause 8 of the Principal Agreement were true
      and correct on the date of the Principal Agreement and are true and correct,
      including to the extent that they may have been or shall be amended by
      this Agreement, as if made at the date of this Agreement with reference
    to the facts and circumstances existing at such date;
	 	 	 
	4.1.2  	 	Corporate
    power
	 	 	 
	 	 	each of the
      Relevant Parties has power to execute, deliver and perform its obligations
      under the Relevant Documents to which it is or is to be a party; all necessary
      corporate, shareholder and other action has been taken by each of the Relevant
      Parties to authorise the execution, delivery and performance of the Relevant
    Documents to which it is or is to be a party;
	 	 	 
	4.1.3	 	Binding obligations
	 	 	 
	 	 	the Relevant
      Documents to which it is or is to be a party constitute valid and legally
      binding obligations of each of the Relevant Parties enforceable in accordance
    with their terms;

5

	
4.1.4      		
No conflict with other obligations

	
	 
	 	
the execution, delivery and performance of the Relevant Documents to which it is or is to be a party by each of the Relevant Parties will not (i) contravene any existing law, statute, rule or regulation
or any judgment, decree or permit to which any of the Relevant Parties is subject, (ii) conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which any of the Relevant
Parties is a party or is subject or by which any of the Relevant Parties or any of its property is bound or (iii) contravene or conflict with any provision of the constitutional documents of any of the Relevant Parties or (iv) result in the creation
or imposition of or oblige any of the Relevant Parties to create any Encumbrance on any of their undertakings, assets, rights or revenues of any of the Relevant Parties;

	
	 
	
4.1.5      		
No filings required

	
	 
	 	
it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of any of the Relevant Documents that they or any other instrument be notarised, filed, recorded,
registered or enrolled in any court, public office or elsewhere in any Relevant Jurisdiction or that any stamp, registration or similar tax or charge be paid in any Relevant Jurisdiction on or in relation to the Relevant Documents and each of the
Relevant Documents is in proper form for its enforcement in the courts of the Relevant Jurisdiction;

	
	 
	
4.1.6      		
Choice of law

	
	 
	 	
the choice of English law to govern the Relevant Documents and the submissions by the Relevant Parties to the non-exclusive jurisdiction of the English courts are valid and binding; and

	
	 
	
4.1.7      		
Consents obtained

	
	 
	 	
every consent, authorisation, licence or approval of, or registration or declaration to, governmental or public bodies or authorities or courts required by any of the Relevant Parties in connection with
the execution, delivery, validity, enforceability or admissibility in evidence of the Relevant Documents to which it is or is to be a party or the performance by each Relevant Party of its obligations under such document has been obtained or made
and is in full force and effect and there has been no default in the observance of any conditions or restrictions (if any) imposed in, or in connection with, any of the same.

	
	 
	
4.2      		
Repetition of representations and warranties

	
	 
	 	
Each of the representations and warranties contained in clause 4.1 of this Agreement and clause 8 of the Principal Agreement (as amended by this Agreement) shall be deemed to be repeated by the Borrower
on the Effective Date as if made with reference to the facts and circumstances existing on such day.

	
	 
	
5      		
Conditions

	
	 
	
5.1      		
Documents and evidence

	
	 
	 	
The agreement of the Bank referred to in clause 2 shall be subject to the receipt by the Bank or its duly authorised representative of the documents and evidence specified in schedule 1 in form and
substance satisfactory to the Bank. The Borrower agrees with the Bank that failure by the Borrower to deliver such documents or evidence to the Bank by the Conditions Date, will constitute an Event of Default under the Principal
Agreement.

	
	 
	
5.2      		
General conditions precedent

	
	 
	 	
The agreement of the Bank referred to in clause 2 shall be further subject to:

	
	 
	
5.2.1      		
the representations and warranties in clause 4 being true and correct on the Effective Date as if each was made with respect to the facts and circumstances existing at such time; and

	
	 

6

	
5.2.2      		
no Default having occurred and continuing at the time of the Effective Date.

	
	 
	
5.3      		
Waiver of conditions precedent

	
	 
	 	
The conditions specified in this clause 5 are inserted solely for the benefit of the Bank and may be waived by the Bank in whole or in part with or without conditions.

	
	 
	
6      		
Confirmation

	
	 
	
6.1      		
Security Documents

	
	 
	 	
The Borrower acknowledges and agrees, for the avoidance of doubt, that:

	
	 
	
6.1.1      		
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
Agreement; and

	
	 
	
6.1.2      		
with effect from the Effective Date, references to “the Agreement” or “the Loan Agreement” in any of the other Security Documents to which it is a party shall henceforth be
references to the Principal Agreement as amended by this Agreement and as from time to time hereafter amended.

	
	 
	
7      		
Expenses

	
	 
	
7.1      		
Expenses

	
	 
	 	
The Borrower agrees to pay to the Bank on a full indemnity basis on demand all expenses (including legal and out-of-pocket expenses) incurred by the Bank:

	
	 
	
7.1.1      		
in connection with the negotiation, preparation, execution and, where relevant, registration of this Agreement and the Corporate Guarantee and of any amendment or extension of, or the granting of any
waiver or consent under, this Agreement and the Corporate Guarantee;

	
	 
	
7.1.2      		
in contemplation of, or otherwise in connection with, the enforcement of, or preservation of any rights under this Agreement and the Corporate Guarantee or otherwise in respect of the monies owing and
obligations incurred under this Agreement and the Corporate Guarantee,

	
	 
	 	
together with interest at the rate referred to in clause 3.4 of the Principal Agreement from the date on which such expenses were incurred to the date of payment (as well after as before
judgement).

	
	 
	
7.2      		
Value Added Tax

	
	 
	 	
All expenses payable pursuant to this clause 7 shall be paid together with value added tax or any similar tax (if any) properly chargeable thereon.

	
	 
	
7.3      		
Stamp and other duties

	
	 
	 	
The Borrower agrees to pay to the Bank on demand all stamp, documentary, registration or other like duties or taxes (including any duties or taxes payable by the Bank) imposed on or in connection with
this Agreement and shall indemnify the Bank against any liability arising by reason of any delay or omission by the Borrower to pay such duties or taxes.

	
	 
	
8      		
Miscellaneous and notices

	
	 
	
8.1      		
Notices

	
	 
	 	
Every notice, request, demand or other communication under this Agreement shall:

	
	 

7

	
8.1.1      		
be in writing, delivered personally or by first-class prepaid letter (airmail if available) or telefax or other means of telecommunication in permanent written form;
	
	 
	
8.1.2      		
be deemed to have been received, subject as otherwise provided in the relevant Security Document, in the case of a letter, when delivered personally or three (3) days after it has been put into the post
and, in the case of a facsimile transmission or other means of telecommunication in permanent written form, at the time of despatch (provided that if the date of despatch is not a business day in the country of the addressee or, if the time of
despatch is after the close of business in the country of the addressee, it shall be deemed to have been received at the opening of business on the next such business day); and
	
	 
	
8.1.3      		
be sent:
	
	 

	 	(a) if to the
    Supplemental Parties or any of them:
	 	 	 
	 		 		
32 Karamanli Avenue	
	 		 		
166 05 Voula		 		 		 		 	
	 		 		
Greece		 		 		 		 	
	 	
	 		 		
Fax No:		 		
      +30 210 8956900 

	 		 		
Attention:		 		
      George Papadopoulos 

	 	
	 	(b) if
    to the Bank at:	 		 		 		 	
	 	
	 		 		
The Shipping Business Centre	
	 		 		
5-10 Great Tower Street	
	 		 		
London, EC3P 3HX	
	 		 		
England		 		 		 		 	
	 	
	 		 		
Fax:		 		
      +44 207 085 7132 

	 		 		
Attention:		 		
      Shipping Business Centre 

	
8.2      		
Counterparts

	
	 
	 	
This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts, each of which when so executed and delivered shall be an original but all counterparts
shall together constitute one and the same instrument.

	
	 
	
9      		
Applicable law

	
	 
	
9.1      		
Law

	
	 
	 	
This Agreement is governed by, and shall be construed in accordance with, English law.

	
	 
	
9.2      		
Submission to jurisdiction

	
	 
	 	
Each of the Supplemental Parties agrees, for the benefit of the Bank, that any legal action or proceedings arising out of or in connection with this Agreement against any of their assets may be brought
in the English courts. Each of the Supplemental Parties irrevocably and unconditionally submits to the jurisdiction of such courts and irrevocably designates, appoints and empowers Mr. Savvas Savvides at present of 24 Exeter Road, London N14 5JY
England to receive for it and on its behalf, service of process issued out of the English courts in any such legal action or proceedings and each of the Supplemental Parties further undertakes that, in the event that such individual passes away or
cannot be found, each of the Supplemental Parties hereby irrevocably and unconditionally authorises the Bank to designate, appoint and empower, on each of the Supplemental Parties’ behalf, Messrs Cheeswrights or Messrs Saville & Co. at
their then principal place of business in London, as substitute process agents of Mr. Savvas Savvides for the purposes of this clause. The submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the Bank to
take proceedings against any of the Supplemental Parties in the courts of any other competent jurisdiction nor shall the taking of proceedings in any one or more

	
	 

8

	 	jurisdictions preclude the taking of proceedings
        in any other jurisdiction, whether concurrently or not. Each of the Supplemental
        Parties further agrees that only the courts of England and not those
        of any other state shall have jurisdiction to determine any claim which
        any of the Supplemental Parties may have against the Bank arising out
    of or in connection with this Agreement. 
	 	 
	9.3    	Contracts
            (Rights of Third Parties) Act 1999

	 	 
	 	No term of this Agreement is enforceable
        under the Contracts (Rights of Third Parties) Act 1999 by a person who
    is not a party to this Agreement. 
	 	 
	IN WITNESS whereof
        the parties to this Agreement have caused this Agreement to be duly executed
    as a deed on the date first above written.

 

 

9

Schedule 1 

Documents and evidence required as conditions subsequent

(referred to in clause 5.1) 

	
1      		
Corporate authorisations

	
	 
	 	
In relation to each of the Relevant Parties:

	
	 
	 	
(a)      		
Constitutional documents

	
	 
	 	 	
copies certified by an officer of each of the Relevant Parties, as a true, complete and up to date copies, of all documents which contain or establish or relate to the constitution of that party or a
secretary’s certificate confirming that there have been no changes or amendments to the constitutional documents certified copies of which were previously delivered to the Bank pursuant to the Principal Agreement;

	
	 
	 	
(b)      		
Resolutions

	
	 
	 	 	
copies of resolutions of each of its board of directors and, if required following advice by the Bank’s counsel, its shareholders approving this Agreement and the other Relevant Documents and the
terms and conditions hereof and thereof and authorising the signature, delivery and performance of each such party’s obligations thereunder, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date of this
Agreement) by an officer of such Relevant Party as:

	
	 
	 	 	
(1)      		
being true and correct;

	
	 
	 	 	
(2)      		
being duly passed at meetings of the directors of such Relevant Party and, as the case may be, of the shareholders of such Relevant Party each duly convened and held;

	
	 
	 	 	
(3)      		
not having been amended, modified or revoked; and

	
	 
	 	 	
(4)      		
being in full force and effect,

	
	 
	 	 	
together with originals or certified copies of any powers of attorney issued by any party pursuant to such resolutions; and

	
	 
	 	
(c)      		
Certificate of incumbency

	
	 
	 	 	
a list of directors and officers of each Relevant Party specifying the names and positions of such persons, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date of
this Agreement) by an officer of such Relevant Party to be true, complete and up to date;

	
	 
	
2      		
Consents

	
	 
	 	
a certificate (dated no earlier than five (5) Banking Days prior to the date of this Agreement) from an officer of each of the Relevant Parties stating that no consents, authorisations, licences or
approvals are necessary for such Relevant Party to authorise, or are required by each of the Relevant Parties or any other party (other than the Bank) in connection with, the execution, delivery, and performance of this Agreement and the other
Relevant Documents to which such Relevant Party is or is to be a party;

	
	 
	
3      		
Corporate Guarantee

	
	 
	 	
the Corporate Guarantee (together with any other documents and/or letters to be executed and/or delivered to the Bank pursuant thereto) duly executed;

	
	 

10

	
4      		
Legal opinions

	
	 
	 	
such legal opinions in relation to the laws of the Republic of Liberia, the Republic of the Marshall Islands and the Republic of Panama and any other legal opinions as the Bank shall in its absolute
discretion require;

	
	 
	
5      		
Listing

	
	 
	 	
evidence that the Listing has taken place; and

	
	 
	
6      		
Process agent

	
	 
	 	
a letter from each Relevant Party’s agent for receipt of service of proceedings accepting its appointment under this Agreement and the other Relevant Documents to which such Relevant Party is or is
to be a party as such Relevant Party’s process agent.

	
	 

11

Schedule 2 

Form of Corporate Guarantee
 

 

 

12

	
EXECUTED as a DEED		 		
)		 		 	
	
by		 		
)		 		 	
	
for and on behalf of		 		
)		 		 		 
	
MARINOUKI SHIPPING CORPORATION		 		
)		 		
Attorney-in-fact	
	
as Borrower		 		
)		 		 	
	
in the presence of:		 		
)		 		 	
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	Witness 

    Name: 

    Address: 

    Occupation:	 	 	 	 

 

	
EXECUTED as a DEED		 		
)		 		 	
	
by		 		
)		 		 	
	
for and on behalf of		 		
)		 		 		 
	
SAFETY MANAGEMENT OVERSEAS S.A.		 		
)		 		
Attorney-in-fact	
	
as Manager		 		
)		 		 	
	
in the presence of:		 		
)		 		 	
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	Witness 

    Name: 

    Address: 

    Occupation:	 	 	 	 

 

	
EXECUTED as a DEED		 		
)		 		 	
	
by		 		
)		 		 	
	
for and on behalf of		 		
)		 		 		 
	
THE ROYAL BANK OF SCOTLAND PLC		 		
)		 		
Attorney-in-fact	
	
as Bank		 		
)		 		 	
	
in the presence of:		 		
)		 		 	
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	Witness 

    Name: 

    Address: 

    Occupation:	 	 	 	 

 

13

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