Document:

exv4w43

EXHIBIT 4.43

Private & confidential

Dated: 9th May, 2011

FBB-FIRST BUSINESS BANK S.A.

(as lender)

- and -

GRAND SPARTOUNTA INC.

(as Borrower)

- and -

NEWLEAD HOLDINGS LTD. and

NEWLEAD PROSPERITY INC.

(as Corporate Guarantors)

- and -

NEWLEAD BULKERS S.A.

(as Manager)

- and -

NEWLEAD BULKER HOLDINGS INC.

(as Pledgor)

 

 

 

SECOND SUPPLEMENTAL AGREEMENT

in relation to a Loan Agreement

dated 2nd July, 2010

for a loan facility of up to US$24,150,000

 

 

 

Theo V. Sioufas & Co.

Law Offices

Piraeus

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	CLAUSE	 	HEADINGS	 	PAGE
	 	1.	 	 	Definitions
	 	 	3	 
	 	2.	 	 	Representations and warranties
	 	 	5	 
	 	3.	 	 	Agreement of the Bank
	 	 	7	 
	 	4.	 	 	Conditions
	 	 	8	 
	 	5.	 	 	Variations to the Principal Agreement
	 	 	10	 
	 	6.	 	 	Entire agreement and amendment
	 	 	25	 
	 	7.	 	 	Continuance of Principal Agreement and the Security Documents
	 	 	26	 
	 	8.	 	 	Fees and expenses
	 	 	26	 
	 	9.	 	 	Miscellaneous
	 	 	26	 
	 	10.	 	 	Applicable law and jurisdiction
	 	 	27	 

 

 

THIS AGREEMENT is made this 9th day of May, 2011

B E T W E E N

	(1)	 	FBB-FIRST BUSINESS BANK S.A., a bank incorporated in the Republic of Greece with its head
office at 91 Michalakopoulou Street, 11528 Athens, Greece, acting through its office at 62,
Notara and Sotiros Dios streets, 185 35 Piraeus, Greece (the “Bank” which expression shall
include its successors and assigns);

	(2)	 	GRAND SPARTOUNTA INC., a company incorporated in the Republic of The Marshall
Islands, having its registered office at Trust Company Complex, Ajeltake Island, Majuro,
Marshall Islands MH 96960 (hereinafter called the “Borrower”, which expression shall include
its successors);

	(3)	 	NEWLEAD HOLDINGS LTD., a company duly incorporated under the laws of Bermuda whose registered
office is at Canon’s Court, 22 Victoria Street, Hamilton, Bermuda, which is listed and trading
in the NASDAQ Stock Exchange, New York (hereinafter called the “Newlead Corporate Guarantor”,
which expressions shall include its successors in title);

	(4)	 	NEWLEAD PROSPERITY INC., a company organised and existing under the laws of the
Republic of The Marshall Islands and having its registered office at Trust Company Complex,
Ajeltake Island, Majuro, Marshall Islands MH 96960 (the “Collateral Corporate Guarantor”,
which expression shall include its successors and together with the Newlead Corporate
Guarantor hereinafter together called the “Corporate Guarantors” and “Corporate Guarantor”
either of them);

	(5)	 	NEWLEAD BULKERS S.A., a company duly incorporated under the laws of the Republic of
Liberia having its registered office at 80 Broad Street, Monrovia, Liberia and an office
established in Greece (83 Akti Miaouli and Flessa Street, GR 185.38 Piraeus) pursuant to the
Greek laws 89/67, 378/68, 27/75 and 814/79 (the “Manager”, which expression shall include its
successors in title); and

	(6)	 	NEWLEAD BULKER HOLDINGS INC., a company incorporated in the Republic of The Marshall
Islands, having its registered office at Trust Company Complex, Ajeltake Island, Majuro,
Marshall Islands MH 96960 (the “Pledgor” which expression shall include its successors)

AND IS SUPPLEMENTAL to a loan agreement dated 2nd July, 2010 made between (1) the Bank,
as lender and (2) the Borrower, as borrower, as amended and/or supplemented by a First Supplemental
Agreement thereto dated 15th October, 2010 and made between (inter alios) the Bank, the
Borrower and the Newlead Corporate Guarantor (the “Principal Agreement”), on the terms and
conditions of which the Bank has advanced to the Borrower a secured loan facility of up to Twenty
four million one hundred fifty thousand United States Dollars (US$24,150,000) (the “Loan”) for the
purposes therein specified (the Principal Agreement as hereby amended and as the same may
hereinafter be further amended and/or supplemented is hereinafter called the “Loan Agreement”).

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W H E R E A S :

	(A)	 	the Borrower, the Corporate Guarantors, the Pledgor and the Manager hereby jointly and
severally acknowledge and confirm that:

	 	(a)	 	the Bank has advanced to the Borrower the full amount of the Loan in the
principal amount of Twenty four million one hundred fifty thousand United States
Dollars (US$24,150,000) in one advance; and
	 
	 	(b)	 	as the date hereof the amount of twenty one million seven hundred fifty
thousand United States Dollars (US$21,750,000) remains outstanding;

	(B)	 	pursuant to a Corporate Guarantee dated 16th July, 2010 and granted by the Newlead
Corporate Guarantor as amended and/or supplemented by a Guarantee Supplement and Amendment
dated 15th October 2010 (the “Newlead Corporate Guarantee”) the Newlead Corporate
Guarantor irrevocably and unconditionally guaranteed the due and timely repayment of the Loan
and interest and default interest accrued thereon and the performance of all the obligations
of the Borrower under the Principal Agreement and the Security Documents executed in
accordance thereto; and

	(C)	 	The Borrower and (inter alia) Newlead Corporate Guarantor have requested the Bank to consent
to:

	 	(a)	 	the amendment of the shareholders structure of the Borrower by adding the
Pledgor, a corporation directly and fully-owned by the Newlead Corporate Guarantor,
which in turn will be the sole shareholder of the Borrower;
	 
	 	(b)	 	the transfer by the Newlead Corporate Guarantor to the Pledgor of all its
right, title and interest in the authorised and issued share capital of the Borrower;
	 
	 	(c)	 	the amendment of Clauses 5.1 (h), 5.2 (j), 5.3(a)(i), 5.3(b) and 5.3(d)(i) as
provided in the Newlead Guarantee Supplement and Amendment No. 2 (as hereinafter
defined);
	 
	 	(d)	 	the waiver to the covenants of the Borrower under Clause 8.2 (a) of the
Principal Agreement for the period starting from the date hereof until the
31st December, 2012;

	 	 	and the Bank has agreed so to do against:

	 	(aa)	 	an increase in loan margin to four per cent (4%) per annum for the whole
Security Period;
	 
	 	(bb)	 	the Collateral Corporate Guarantor executing and delivering in favour of the
Bank an irrevocable and unconditional Guarantee (the “Collateral Corporate Guarantee”)
in security of all the obligations of the Borrower under the Principal Agreement and
the Security Documents and, in security of Collateral Corporate Guarantor’s obligations
under the Collateral Guarantee,

2

 

	 	 	 	the Collateral Corporate Guarantor will sign, execute and deliver and, where
appropriate, register in favour of the Bank (inter alia):

	 	(i)	 	a second preferred Liberian ship mortgage (hereinafter referred
to as the “Collateral Mortgage”) on the Collateral Vessel (as hereinafter
defined);
	 
	 	(ii)	 	a second priority General Assignment (the “Collateral General
Assignment”) of the Earnings, Insurances and Requisition Compensation in
respect of the Collateral Vessel in favour of the Bank;
	 
	 	(iii)	 	a second priority Account Pledge Agreement to be entered
into between the Collateral Owner and the Bank for the creation of a second
priority pledge over the Collateral Guarantor Earnings Account (as hereinafter
defined) (the “Collateral Account Pledge Agreement”); and
	 
	 	(iv)	 	a letter of undertaking and subordination (the “Collateral
Manager’s Undertaking”) executed by the Manager whereby the Manager shall
(inter alia) subordinate any and all claims it may have against the Collateral
Corporate Guarantor and/or the Collateral Vessel to the claims of the Bank
hereunder and the Security Documents,

	 	 	 	all in form and substance satisfactory to the Bank as well as all notices and other
documents relevant to such Collateral Mortgage, Collateral Account Pledge Agreement,
Collateral Manager’s Undertaking and Collateral General Assignment, all in form and
substance satisfactory to the Bank; and
	 
	 	(cc)	 	the amendment of the Principal Agreement in the manner set forth herein

	 	 	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:
	 
	 	 	“Additional Security Documents” means the Collateral Corporate Guarantee, the Collateral
General Assignment, the Collateral Account Pledge Agreement, the Collateral Manager’s
Undertaking, the Collateral Mortgage, the Shares Pledge Agreement, the Spartounta Mortgage
Amendment No. 1 and the Newlead Guarantee Supplement and Amendment No. 2;

3

 

	 	 	“Effective Date” means the date hereof (or such later date as the Bank may agree) upon
which all the conditions contained in Clause 4 shall have been satisfied and this Agreement
shall become effective;
	 
	 	 	“Collateral Corporate Guarantee” means a guarantee and/or indemnity given or, as the
context may require, to be given by the Collateral Corporate Guarantor in form and substance
satisfactory to the Bank as security for the Outstanding Indebtedness and any and all other
obligations of the Borrower under the Loan Agreement;
	 
	 	 	“Collateral General Assignment” means in relation to the Collateral Vessel, the second
priority deed of Assignment of the Earnings, Insurances and Requisition Compensation (as
such terms are therein defined) to be executed by the Collateral Corporate Guarantor in
favour of the Bank, in form and substance as the Bank shall require as the same may from
time to time be supplemented and/or amended;
	 
	 	 	“Collateral Mortgage” means the second preferred Liberian Islands ship mortgage on the
Collateral Vessel executed or (as the context may require) to be executed by the Collateral
Corporate Guarantor in favour of the Bank in form satisfactory to the Bank;
	 
	 	 	“Collateral Account Pledge Agreement” means an agreement to be entered into between the
Collateral Corporate Guarantor and the Bank for the creation of a second priority pledge
over the Collateral Guarantor Earnings Account in favour of the Bank, in form and substance
as the Bank may approve or require as the same may from time to time be amended and/or
supplemented;
	 
	 	 	“Collateral Earnings Account” means the interest bearing account opened or, as the context
may require to be opened with the Bank at the Lending Branch in the name of the Collateral
Corporate Guarantor or such other account with any other branch or any other bank, as may be
required by and at the discretion of the Bank, to which (inter alia) all Earnings of the
Collateral Vessel are to be paid in accordance with the provisions of the Prosperity Loan
Agreement and includes any sub-accounts thereof and any other account designated in writing
by the Bank to be the Earnings Account in relation to such Vessel for the purposes of the
Prosperity Loan Agreement;
	 
	 	 	“Collateral Manager’s Undertaking” means a letter of undertaking and subordination executed
by the Manager whereby the Manager shall (inter alia) subordinate any and all claims it may
have against the Collateral Corporate Guarantor and/or the Collateral Vessel to the claims
of the Bank hereunder and the Security Documents,
	 
	 	 	“Collateral Vessel” means the bulk carrier “NEWLEAD PROSPERITY”, built by Tianjin Xingang
Shipbuilding Heavy Industries Co., Ltd. in China in 2003 and which upon delivery to the
Collateral Corporate Guarantor shall be lawfully registered under the laws and flag of the
Republic of Liberia in the ownership of the Corporate Guarantor r and propelled by one oil
internal combustion engine of 7,650 KW together with all her boats, engines, machinery
tackle outfit spare gear fuel consumable and
other stores belongings and appurtenances whether on board or ashore and whether now owned
or

4

 

	 	 	hereafter acquired and all the additions, improvements and replacements in or on the
above described vessel;
	 
	 	 	“Loan Agreement” means the Principal Agreement as hereby amended and as the same may from
time to time be further amended and/or supplemented;
	 
	 	 	“Newlead Guarantee Supplement and Amendment No. 2 “ means the Supplement and Amendment No. 2
to the Newlead Corporate Guarantee, to be executed by the Newlead Corporate Guarantor, in
form acceptable to the Bank;
	 
	 	 	“Prosperity Loan Agreement” means the Loan Agreement entered or to be entered into (A) the
Collateral Corporate Guarantor, as borrower and (B) the Bank, as lender in relation to a
loan facility of up to $12,000,000;
	 
	 	 	“Shares Pledge Agreement” in relation to the Borrower means the pledge agreement to be
executed by the Pledgor in favour of the Bank, whereby the Pledgor shall pledge all the
authorised and issued share capital of the Borrower, in form satisfactory to the Bank; and
	 
	 	 	“Spartounta Mortgage Amendment No. 1” means the Amendment No. 1 to the first preferred
Liberian Naval mortgage registered over the Liberian flag m/v “NEWLEAD SPARTOUNTA” owned by
the Borrower in favour of the Bank, whereby the said first mortgage shall be amended,
executed or (as the context may require) to be executed by the Borrower in favour of the
Bank in form satisfactory to the Bank;
	 
	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, the Corporate Guarantors, the Pledgor and the Manager hereby jointly and
severally represent and warrant to the Bank 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”

5

 

	 	 	were references to the Principal Agreement as amended and supplemented by this Agreement.
	 
	2.2	 	In addition to the above the Borrower, the Manager, the Pledgor and the Corporate Guarantors
hereby jointly and severally represent and warrant to the Bank as at the date of this
Agreement that:

	 	a.	 	each of the corporate Security Parties is duly formed, is validly existing and
in good standing under the laws of the place of its incorporation has full power to
carry on its business as it is now being conducted and to enter into and perform its
obligations under the Principal Agreement, this Agreement and the Additional security
Documents and has complied with all statutory and other requirements relative to its
business;
	 
	 	b.	 	all necessary licences, consents and authorities, governmental or otherwise
under this Agreement and the Principal Agreement, this Agreement and the Additional
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 and the Additional Security Documents or otherwise perform its
obligations hereunder;
	 
	 	c.	 	this Agreement constitutes and each of the Additional 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 Additional 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 action, suit or proceeding is pending or threatened against any of the
Borrower, the Manager, the Pledgor and the Corporate Guarantors or their respective
assets before any court, board of arbitration or administrative agency which could or
might result in any material adverse change in the business or condition (financial or
otherwise) of the Borrower, the Manager, the Pledgor or the Corporate Guarantors;
	 
	 	f.	 	none of the Borrower, the Pledgor, the Manager 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; and
	 
	 	g.	 	the Collateral Vessel on the Effective Date will be:

6

 

	 	(i)	 	in the absolute and free from Encumbrances (other than in
favour of the Bank) ownership of the owner thereof who will on and after her
delivery be the sole legal and beneficial owner of such Vessel;
	 
	 	(ii)	 	registered in the name of the owner thereof through the Ships
Registry of Monrovia under the laws and flag of Liberia;
	 
	 	(iii)	 	operationally seaworthy and in every way fit for service;
	 
	 	(iv)	 	classed with a Classification Society member of IACS, which has
been approved by the Bank in writing and such classification is and will be
free of all requirements and recommendations of such Classification Society;
	 
	 	(v)	 	insured in accordance with the provisions of the Prosperity
Loan Agreement and the relevant Mortgage; and
	 
	 	(vi)	 	managed by the Manager;

	2.3	 	The representations and warranties of the Borrower, the Manager, the Pledgor and the
Corporate Guarantors in this Agreement shall survive the execution of this Agreement and shall
be deemed to be repeated at the commencement of each Interest Period.
	 
	3.	 	Agreement of the Bank
	 
	3.1	 	The Bank, relying upon each of the representations and warranties set out in Clause 2 hereby
agrees 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 amendment of the shareholders structure of the Borrower by adding the
Pledgor, a corporation directly and fully-owned by the Newlead Corporate Guarantor,
which in turn will be the sole shareholder of the Borrower;
	 
	 	  b.	 	the transfer by the Newlead Corporate Guarantor to the Pledgor of all its
right, title and interest in the authorised and issued share capital of the Borrower;
and
	 
	 	  c.	 	the amendment of Clauses 5.1 (h), 5.2 (j), 5.3(a)(i), 5.3(b) and 5.3(d)(i) as
provided in the Newlead Guarantee Supplement and Amendment No. 2 executed or to be
executed on the date hereof by the Newlead Corporate Guarantor;
	 
	 	  d.	 	the waiver to the covenants of the Borrower under Clause 8.2 (a) of the
Principal Agreement for the period starting from the date hereof until the
31st December, 2012; and
	 
	 	  e.	 	the amendment of the Principal Agreement as set out in Clause 5 hereof.

7

 

	4.	 	Conditions
	 
	4.1	 	The agreement of the Bank contained in Clause 3.1 shall be expressly subject to the
fulfilment of the conditions set out in this Clause and further subject to the condition that
the Bank shall have received on or before the Effective Date in form and substance
satisfactory to the Bank and its legal advisers:

	 	  (a)	 	a duly certified true copy of the Articles of Incorporation and By-Laws or the
Memorandum and Articles of Association, or of any other constitutional documents, as
the case may be, of the Pledgor and the Collateral Corporate Guarantor;
	 
	 	  (b)	 	a certificate of good standing or equivalent document issued by the competent
authorities of the place of its incorporation in respect of the Borrower and the other
corporate Security Parties;
	 
	 	  (c)	 	certified and duly legalised copies of resolutions passed at separate meetings
of the Directors and the shareholders of the Pledgor and the Collateral Corporate
Guarantor (and of any corporate shareholder thereof) evidencing approval of this
Agreement and of such of the Additional Security Documents to which is or is to be a
party and authorising appropriate officers or attorneys to execute the same and to sign
all notices required to be given under this Agreement on its behalf or other evidence
of such approvals and authorisations as shall be acceptable to the Bank;
	 
	 	  (d)	 	the original of any power(s) of attorney issued in favour of any person
executing this Agreement or any of the Additional Security Documents on behalf of the
Pledgor and the Collateral Corporate Guarantor;
	 
	 	  (e)	 	a recent certificate of incumbency of the Pledgor and the Collateral Corporate
Guarantor signed by the secretary or a director thereof, stating the officers and the
directors and the shareholders of each of them;
	 
	 	  (f)	 	all documents evidencing any other necessary action or approvals or consents
with respect to this Agreement and the Additional Security Documents;
	 
	 	  (g)	 	such favourable legal opinions from lawyers acceptable to the Bank and its
legal advisors on such matters concerning the laws of Liberia or Marshall Islands and
such other relevant jurisdiction as the Bank shall require;
	 
	 	  (h)	 	evidence that the Collateral Vessel is on her delivery to the Collateral
Corporate Guarantor:

	 	(aa)	 	in the absolute and free from Encumbrances (save those in
favour of the Bank) ownership of the Collateral Corporate Guarantor who is the
sole legal and beneficial owner of the Vessel;

8

 

	 	(bb)	 	registered in the name of the Collateral Corporate Guarantor at
the port of Monrovia under the laws and flag of Liberia;
	 
	 	(cc)	 	operationally seaworthy and in every way fit for service;
	 
	 	(dd)	 	insured in accordance with the provisions of the Prosperity
Loan Agreement and the relevant Mortgage;
	 
	 	(ff)	 	managed by the Approved Manager; and
	 
	 	(gg)	 	in full compliance with the ISM Code and the ISPS Code.

	 	(i)	 	each of the Additional Security Documents duly executed by the respective
parties thereto and, where appropriate, duly registered in favour of the Bank;
	 
	 	(j)	 	evidence satisfactory to the Bank that the Collateral Mortgage has been duly
registered on the Collateral Vessel as a second preferred Liberian ship Mortgage in
favour of the Bank in accordance with the laws of Liberia;
	 
	 	(k)	 	all necessary confirmation by the Collateral Vessel’s insurers that they will
issue their letters of undertaking and endorse notices of assignment and loss payable
clauses on the insurances, satisfactory to the Bank in its sole discretion;
	 
	 	(l)	 	payment of any and all fees payable by the Borrower in accordance with Clause
9. hereof;
	 
	 	(m)	 	certificates of Incumbency issued by the appropriate officer of each of the
Borrower, the Newlead Corporate Guarantor and the Manager confirming that:

	 	(i)	 	the Minutes of the Meeting of the Board of Directors duly
convened and held on 2nd day of July, 2010 by all the members of the
Board of Directors of the Borrower and Minutes of the Extraordinary Meeting of
the Shareholders of the Borrower duly convened and held on 2nd day
of July, 2010 at 18:30,
	 
	 	(ii)	 	the written resolutions adopted on 2nd day of July,
2010 by all the members of the Board of Directors of the Newlead Corporate
Guarantor and
	 
	 	(iii)	 	the Minutes of the Meeting of the Board of Directors of the
Manager duly convened and held on 2nd day of July, 2010,

	 	 	 	remain in full force as of the date hereof and have not been amended or rescinded
and that the any power of attorney issued by each corporate Security Party on
2nd July, 2010 authorising appropriate officers or attorneys to (inter
alia) sign, execute and deliver any supplementary and/or

9

 

	 	 	 	amendatory agreement of the Principal Agreement or other evidence of such approvals
and authorisations as shall be acceptable to the Bank; and
	 
	 	(n)	 	any and all other documents evidencing the transfer by the Newlead Corporate
Guarantor to the Pledgor of all its right, title and interest in the authorised and
issued share capital of the Borrower;
	 
	 	(o)	 	the original share certificates of the Borrower issued in the name of the
Pledgor;
	 
	 	(p)	 	if the Bank so requires, a report signed by an independent firm of marine
insurance brokers appointed by the Bank at the expense of the Corporate Guarantor
confirming the adequacy of the Insurances maintained on the Collateral Vessel;
	 
	 	(q)	 	certified true copy of the Management Agreement in respect of the Collateral
Vessel;
	 
	 	(r)	 	evidence from the Classification Society of the Collateral Vessel that such
Vessel is classed with the Classification with the Classification Society, and remains
free from any requirements or recommendations affecting her class;
	 
	 	(s)	 	evidence that the trading certificates of the Collateral Vessel are valid and
in force;
	 
	 	(t)	 	if the Bank so requires, a satisfactory to the Bank physical condition survey
report on the Collateral Vessel together with a comprehensive record inspection from a
surveyor appointed by the Bank, at the Corporate Guarantor’s expense;
	 
	 	(u)	 	two (2) valuations of the Collateral Vessel, at the Corporate Guarantor’s
expense, as at a date determined by the Bank but in any event before the date hereof,
prepared on the basis specified in Clause 8.2 of the Principal Agreement by major
shipbrokers appointed and/or approved by the Bank in form and substance satisfactory to
the Bank in its sole discretion; and
	 
	 	(v)	 	a copy of the Bareboat Charterparty (as defined in the Prosperity Loan
Agreement) certified as true and complete by the legal counsel of the Corporate
Guarantor;

	5.	 	Variations to the Principal Agreement
	 
	 	 	In consideration of the agreement of the Bank contained in Clause 3.1, the Borrower and the
Corporate Guarantor hereby jointly and severally agree with the Bank that (subject to the
satisfaction of the conditions precedent contained in Clause 4), the provisions of the
Principal Agreement shall be varied and/or amended and/or supplemented as follows:

10

 

	5.1	 	With effect from the Effective Date the following definitions shall be inserted
in Clause 1.2 of the Principal Agreement in alphabetical order to read as follows:
	 
	 	 	“Additional Security Documents” means the Collateral Corporate Guarantee, the
Collateral General Assignment, the Collateral Account Pledge Agreement, the
Collateral Manager’s Undertaking, the Collateral Mortgage and the Shares Pledge
Agreement;
	 
	 	 	“Collateral Account Pledge Agreement” means an agreement to be entered into
between the Collateral Corporate Guarantor and the Bank for the creation of a second
priority pledge over the Collateral Earnings Account in favour of the Bank, in form
and substance as the Bank may approve or require as the same may from time to time
be amended and/or supplemented;
	 
	 	 	“Collateral Corporate Guarantee” means a guarantee and/or indemnity given or, as the
context may require, to be given by the Collateral Corporate Guarantor in form and
substance satisfactory to the Bank as security for the Outstanding Indebtedness and
any and all other obligations of the Borrower under the Loan Agreement;
	 
	 	 	“Collateral Corporate Guarantor” means NEWLEAD PROSPERITY INC., a company
organised and existing under the laws of the Republic of The Marshall Islands and
having its registered office at Trust Company Complex, Ajeltake Island, Majuro,
Marshall Islands MH 96960;
	 
	 	 	“Collateral Earnings Account” means the interest bearing account opened or, as the
context may require to be opened with the Bank at the Lending Branch in the name of
the Collateral Corporate Guarantor or such other account with any other branch or
any other bank, as may be required by and at the discretion of the Bank, to which
(inter alia) all Earnings of the Collateral Vessel are to be paid in accordance with
the provisions of the Prosperity Loan Agreement and includes any sub-accounts
thereof and any other account designated in writing by the Bank to be the Earnings
Account in relation to such Vessel for the purposes of the Prosperity Loan
Agreement;
	 
	 	 	“Collateral General Assignment” means in relation to the Collateral Vessel, the
second priority deed of Assignment of the Earnings, Insurances and Requisition
Compensation (as such terms are therein defined) to be executed by the Collateral
Corporate Guarantor in favour of the Bank, in form and substance as the Bank shall
require as the same may from time to time be supplemented and/or amended;
	 
	 	 	“Collateral Manager’s Undertaking” means a letter of undertaking and
subordination executed by the Manager whereby the Manager shall (inter alia)
subordinate any and all claims it may have against the Collateral Corporate
Guarantor and/or the Collateral Vessel to the claims of the Bank hereunder and the
Security Documents,

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	 	 	“Collateral Mortgage” means the second preferred Liberian Islands ship mortgage on
the Collateral Vessel executed or (as the context may require) to be executed by the
Collateral Corporate Guarantor in favour of the Bank in form satisfactory to the
Bank;
	 
	 	 	“Collateral Vessel” means the bulk carrier “NEWLEAD PROSPERITY”, built by
Tianjin Xingang Shipbuilding Heavy Industries Co., Ltd. in China in 2003 and which
upon delivery to the Collateral Corporate Guarantor shall be lawfully registered
under the laws and flag of the Republic of Liberia in the ownership of the Corporate
Guarantor r and propelled by one oil internal combustion engine of 7,650 KW together
with all her boats, engines, machinery tackle outfit spare gear fuel consumable and
other stores belongings and appurtenances whether on board or ashore and whether now
owned or hereafter acquired and all the additions, improvements and replacements in
or on the above described vessel;
	 
	 	 	“Newlead Guarantee Supplement and Amendment No. 2” means the Supplement and Amendment
No. 2 to the Newlead Corporate Guarantee, to be executed by the Newlead Corporate
Guarantor, in form acceptable to the Bank.
	 
	 	 	“Pledgor” means Newlead Bulker Holdings Inc., a company incorporated
in the Republic of The Marshall Islands, having its registered office at Trust
Company Complex, Ajeltake Island, Majuro, Marshall Islands MH 96960, who shall
execute, the Shares Pledge Agreement;
	 
	 	 	“Prosperity Loan Agreement” means the Loan Agreement entered or to be entered into
(A) the Collateral Corporate Guarantor, as borrower and (B) the Bank, as lender in
relation to a loan facility of up to $12,000,000;”
	 
	 	 	“Shares Pledge Agreement” in relation to the Borrower means the pledge agreement to
be executed by the Pledgor in favour of the Bank, whereby the Pledgor shall pledge
all the authorised and issued share capital of the Borrower, in form satisfactory to
the Bank;
	 
	 	 	“Spartounta Mortgage Amendment No. 1” means the Amendment No. 1 to the first
preferred Liberian Naval mortgage registered over the “NEWLEAD SPARTOUNTA” owned by
the Borrower in favour of the Bank, whereby the said first mortgage shall be
amended, executed or (as the context may require) to be executed by the Borrower in
favour of the Bank in form satisfactory to the Bank;
	 
	5.2	 	With effect as from the date hereof, the following definitions set out in
Clause 1.2 of the Principal Agreement shall be deleted and shall be replaced as
follows:
	 
	 	 	“Corporate Guarantor(s)” means the Newlead Corporate Guarantor, the Collateral
Corporate Guarantor and any other person nominated by the Borrower and acceptable to
the Bank which may give a Corporate Guarantee;
	 
	 	 	“Corporate Guarantee(s)” means the Collateral Corporate Guarantee, the Newlead
Corporate Guarantee and or any guarantee given or, as the context may require, to be
given by a Corporate Guarantor in form and substance satisfactory to the Bank as a

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	 	 	security for the Outstanding Indebtedness and any and all other obligations of the
Borrower under this Agreement;”
	 
	 	 	“Margin” means as from the 4th April 2011 and until the end of the
Security Period four per cent (4.0%) per annum; and
	 
	 	 	“Mortgages” means the (a) first preferred Liberian mortgage of the Borrower’s Vessel
executed by the Borrower in favour of the Bank as amended and/or supplemented by the
Spartounta Mortgage Amendment No. 1 and (b) the Collateral Mortgage and “Mortgage”
means either of them;”
	 
	 	 	“Newlead Corporate Guarantee” means the irrevocable and unconditional guarantee
dated 16th July 2010 as amended by a Guarantee Supplement and Amendment
dated 15th October 2010 executed by the Newlead Corporate Guarantor as
security for (inter alia) the Outstanding Indebtedness and any and all other
obligations of the Borrower under the Loan Agreement and the Security Documents as
amended and/ or supplemented by the Guarantee Supplement and Amendment;
	 
	 	 	“Security Documents” means this Agreement, the Mortgages, the Additional Security
Documents, the General Assignment, the Guarantees, the Manager’s Undertakings, the
Shares Pledge Agreement, the documents listed in Clause 11.1 and any and every other
document as may have been or shall from time to time after the date of this
Agreement be executed to guarantee and/or to secure the whole or any part of the
Outstanding Indebtedness and/or any and all other obligations of the Borrower to the
Bank pursuant to this Agreement (whether or not any such document also secures
moneys from time to time owing pursuant to any other document or agreement);
	 
	 	 	“Vessels” means together:

	 	(i)	 	the bulk carrier “NEWLEAD SPARTOUNTA”, built Italy by
Fincantieri Margnera in 1989, presently lawfully registered under the laws and
flag of the Republic of Liberia in the ownership of the Borrower, and propelled
by one oil internal combustion engine of 17,800 HP together with all her boats,
engines, machinery tackle outfit spare gear fuel consumable and other stores
belongings and appurtenances whether on board or ashore and whether now owned
or hereafter acquired and all the additions, improvements and replacements in
or on the above described vessel (the “Borrower’s Vessel”); and
	 
	 	(ii)	 	the bulk carrier “NEWLEAD PROSPERITY”, built by Tianjin Xingang
Shipbuilding Heavy Industries Co., Ltd. in China in 2003 and which upon
delivery to the Collateral Corporate Guarantor shall be lawfully registered
under the laws and flag of the Republic of Liberia in the ownership of the
Corporate Guarantor r and propelled by one oil internal combustion engine of
7,650 KW together with all her boats, engines, machinery tackle outfit spare
gear fuel consumable and other stores belongings and appurtenances whether on
board or ashore and whether now owned or hereafter acquired and all the

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	 	 	 	additions, improvements and replacements in or on the above described vessel
(the “Collateral Vessel”);

	 	 	 	and “Vessel” means either of them;

	5.3.	 	With effect as from the Effective Date, Clause 4.3 (Compulsory Prepayment in case of Total
Loss or sale of the Vessel) of the Principal Agreement shall be deleted in its entirety and
shall be substituted by the following:

	 	“4.3 (A) Compulsory Prepayment in case of Total Loss or sale of the Borrower’s
Vessel

	 	 	 	(a) Total Loss
	 
	 	 	 	On the Borrower’s Vessel becoming a Total Loss or suffering damage or being involved
in an incident which in the reasonable opinion of the Bank may result in such Vessel
being subsequently determined to be a Total Loss:

	 	(i)	 	prior to the advancing of the Commitment, the obligation of the
Bank to advance the Commitment shall immediately cease and the Commitment shall
be reduced to zero; or
	 
	 	(ii)	 	in case the Commitment has been already advanced, the Borrower
shall prepay the Outstanding Indebtedness the latest on the date falling one
hundred eighty (180) days after that on which the Total Loss occurred or, if
earlier, on the date upon which the insurance proceeds in respect of such Total
Loss are or Requisition Compensation is received by the Borrower (or the Bank
pursuant to the Security Documents) and any surplus of such insurance proceeds
shall be applied by the Bank in accordance with the provisions of clause 4.3 of
the Loan Agreement in or towards prepayment of the Outstanding Indebtedness.

	 	 	 	For the purpose of this Agreement:

	 	(aa)	 	an actual total loss of a Vessel shall be
deemed to have occurred at the actual date and time such Vessel was
lost but in the event of the date of the loss being unknown then the
actual total loss shall be deemed to have occurred on the date on which
such Vessel was last reported;
	 
	 	(bb)	 	a constructive total loss shall be deemed to
have occurred at the earlier of (a) date and time notice of abandonment
of a Vessel has been given to the insurers of such Vessel and (b) date
and time claim for insurance indemnity has been submitted to the
insurers of such Vessel and in any case no later than sixty (60) days
from the date of occurrence of the total loss and regardless of whether
notice of abandonment of such Vessel has been given to the insurers of
such Vessel or claim for insurance indemnity has been submitted to the
insurers of such Vessel;

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	 	(cc)	 	a compromised or arranged total loss shall be
deemed to have occurred on the date on which a binding agreement as to
such compromised or arranged total loss has been entered into by the
insurers of a Vessel and the Owner and in any case no later than sixty
(60) days from the date of occurrence of the total loss and regardless
of whether claim for insurance indemnity has been submitted to the
insurers of such Vessel or a binding agreement as to such total loss
has been entered into by the insurers of such Vessel and the Owner;
	 
	 	(dd)	 	requisition for title or other compulsory
acquisition of a Vessel shall be deemed to have occurred on the date
upon which the relevant requisition for title or other compulsory
acquisition occurs; and
	 
	 	(ee)	 	hijacking, theft, condemnation, capture,
seizure, detention, arrest, or confiscation of such Vessel by any
government or by any person acting or purporting to act on behalf of
any government, which deprives the Borrower of the use of such Vessel
for more than thirty (30) days shall be deemed to occur upon the expiry
of the period of thirty (30) days after the date upon which the
relevant hijacking, theft, condemnation, capture, seizure, detention,
arrest or confiscation occurred.

	 	(b)	 	Sale or other disposal of the Borrower’s Vessel
	 
	 	 	 	In case of sale or other disposal of the Borrower’s Vessel, immediately upon
completion of such sale or other disposal, the Borrower shall prepay the
Outstanding Indebtedness and any surplus of such proceeds shall be applied
by the Bank in accordance with the provisions of clause 4.3 of the
Prosperity Loan Agreement towards prepayment of the Outstanding Indebtness
(as defined in the Prosperity Loan Agreement.

	 	(B)	 	Compulsory Prepayment in case of sale or other disposal of the Collateral
Vessel

	 	(a)	 	Total Loss
	 
	 	 	 	In case of Total Loss or sale or other disposal of the Collateral Vessel,
the insurance or, as the case may be, sale or other disposal proceeds of
such Vessel shall be applied by the Bank in accordance with the provisions
of clause 4.3 of the Prosperity Loan Agreement in or towards prepayment of
the Outstanding Indebtedness (as defined in the Prosperity Loan Agreement)
and any surplus of such proceeds shall be applied by the Bank in accordance
with the provisions of clause 4.3 in or towards prepayment of the
Outstanding Indebtedness.
	 
	 	(b)	 	Sale of other disposal of the Collateral Vessel

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	 	 	 	In case the Borrower is requesting the Bank to discharge the Collateral
Mortgage, the Bank will consider such request subject to (a) prepayment to
the Bank of an amount to be agreed between the Bank and the Collateral
Corporate Guarantor, which amount will be applied by the Bank in or towards
prepayment of the Outstanding Indebtedness and (b) provision to the Bank, to
the satisfaction of the Bank, such further security for the Outstanding
Indebtedness as shall be acceptable to the Bank at its discretion.

	5.4	 	With effect from the Effective Date the following shall be added at the end of para (a) of
Clause 8.2 of the Principal Agreement:
	 
	 	 	“Provided however that subject to no Default then existing this covenant shall not be
applicable to the Borrower throughout the period terminating on the 31st December
2012”
	 
	5.5	 	With effect from the Effective Date sub para (i) of para (a) (Financial Covenants of the
Newlead Corporate Guarantor) of Clause 8.6 (Additional Financial Covenants — Compliance
Certificate) shall be deleted and replaced by the following:
	 
	 	 	“at least 10% of the total issued share capital of the Newlead Corporate Guarantor
is directly or indirectly held Messrs. Michael Zolotas and Nikolaos Fistes throughout the
Security Period.”;
	 
	5.6	 	With effect from the date of execution of the Principal Agreement the following Schedule
shall be appended as Schedule 3 of the Principal Agreement (which shall be made an integral
part thereof) and which shall read as follows:

“SCHEDULE 3

INSURANCE REQUIREMENTS

This Schedule is an integral part of the Agreement to which it is attached.

	1.	 	DEFINITIONS
	 
	1.1	 	Words and expressions used in this Schedule shall have the meanings given thereto in the
agreement to which this Schedule is attached and the following expressions shall have the
meanings listed below:
	 
	 	 	“Approved Brokers” means such firm of insurance brokers, appointed by the Owner, as may from
time to time be approved by the Bank in writing for the purposes of this Schedule;
	 
	 	 	“Excess Risks” means the proportion of claims for general average salvage and salvage
charges not recoverable under the hull and machinery policies in respect of the Vessel in
consequence of her insured value being less than the value at which the Vessel is assessed
for the purpose of such claims;
	 
	 	 	“Insurance Requirements” means all the terms and conditions in this Schedule or any other
provision concerning Insurances in any other Clause of the agreement to which this Schedule

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	 	 	is attached and all such terms and conditions are an integral part of the agreement to which
they are attached;
	 
	 	 	“Insurances” in respect of a Vessel means all policies and contracts of insurance
(including, without limitation, all entries of such Vessel in a protection and indemnity,
war risks or other mutual insurance association) which are from time to time in place or
taken out or entered into by or for the benefit of the Owner owning such Vessel (whether in
the sole name of its Owner or in the joint names of its Owner and the Bank) in respect of
such Vessel and its earnings or otherwise howsoever in connection with such Vessel and all
benefits of such policies and/or contracts (including all claims of whatsoever nature and
return of premiums);
	 
	 	 	“Loss Payable Clauses” means the provisions regulating the manner of payment of sums
receivable under the Insurances which are to be incorporated in the relevant insurance
document, such Loss Payable Clauses to be in the forms set out in paragraph 4 of this
Schedule, or such other form as the Bank may from time to time agree in writing;
	 
	 	 	“Owner” means the owner of a Vessel which should be insured and be maintained insured
pursuant to these Insurance Requirements in accordance with any agreement to which these
Insurance Requirements are attached;
	 
	 	 	“Protection and Indemnity Risks” means the usual risks covered by an English protection and
indemnity association including the proportion (if any) not recoverable in the case of
collision under the ordinary collision clause; and
	 
	 	 	“Protection and Indemnity Risks” means the usual risks (including oil pollution and freight,
demurrage and defence cover) covered by a protection and indemnity association which is a
member of the International Group of P&I Clubs (including, without limitation, the
proportion (if any) of any sums payable to any other person or persons in case of collision
which are not recoverable under the hull and machinery policies by reason of the
incorporation therein of Clause 1 of the Institute Time Clauses (Hulls) (1/10/83) or the
Institute Amended Running Down Clause (1/10/71) or (with respect to insurances commencing on
or after (1/11/95)) the Institute Time Clauses (1/11/95) which may be insured by entry with
such association or any equivalent provision); and
	 
	 	 	“War Risks” includes excess risks, the risk of war and terrorism excluded from protection
and indemnity with a separate limit, mines, blocking and trapping, missing vessel,
confiscation and all risks excluded by Clause 24 of the Institute Time Clauses (Hulls)
(1/11/95).
	 
	2.	 	INSURANCES TO BE EFFECTED AND MAINTAINED
	 
	2.1	 	The insurance which must be effected and maintained in accordance with the provisions of the
agreement to which these Insurance Requirements are attached should be in the name of the
Owner and as follows:

	 	(a)	 	Hull and Machinery 

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	 	 	 	insurance against fire and usual marine risks on an agreed value basis, on a full
cover/all risks basis according to English or American Hull Clauses with a
reasonable deductible and upon such terms as shall from time to time be approved in
writing by the Bank; and
	 
	 	(b)	 	War Risks Insurance 
	 
	 	 	 	insurance against War risks according to the London Institute War Clauses, on an
agreed value basis attaching also the so called war protection clauses. In this
case crew war liabilities insurance shall also have to be effected separately; and
	 
	 	(c)	 	Increased Value 
	 
	 	 	 	increased Value insurance (Total Loss only, including Excess Liabilities) as per the
applicable English or American Institute Clauses (Disbursement/Increased Value/
Excess Liabilities) up to an amount not exceeding the Insurance Amount specified in
Clause 3.3 below; and
	 
	 	(d)	 	Protection and Indemnity 
	 
	 	 	 	insurance against protection and indemnity risks for the full value and tonnage of
the Vessel insured (as approved in writing by the Bank) according to the relevant
rules and deductibles provided thereof for all risks including Pollution (and if the
Vessel is passenger ship including liability towards third parties which is not
covered by the War Risk Insurance) insured by P+I Clubs, members of the
International Group of Protection and Indemnity Associations. If any risks are
excluded or the deductibles as provided by the rules have been altered, the written
consent of the Bank shall have to be previously required. In case that crew
liabilities (including without limitation loss of life, injury or illness) have been
entirely excluded from the association cover or insured on a deductible excess
basis, (always subject to the prior written consent of the Bank) such liabilities
shall have to be further insured separately with other underwriters acceptable to
the Bank and upon such terms as shall from time to time be approved in writing by
the Bank; and
	 
	 	(e)	 	FD & D Insurance 
	 
	 	 	 	Freight, Demurrage and Defense insurance as per the terms and conditions of a mutual
club or association acceptable to the Bank; and
	 
	 	(f)	 	Pollution Liability Insurance 
	 
	 	 	 	an extra insurance in respect of excess Oil Pollution Liability (including -if the
Vessel insured is a tanker- the Civil Liability Convention certificate) including
full cover of pollution risks for the amount up to the maximum commercially
available limit and upon such terms as shall be commercially available and accepted
by the Bank; and

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	 	(g)	 	USA Pollution Risk Insurance 
	 
	 	 	 	(in case that the Vessel is scheduled to operate within or nearby USA jurisdiction)
to cover and keep such Vessel covered with an extra insurance in respect of oil
pollution liability for an amount and upon such terms as required by international
and national law regulations and shall from time to time be required by the Bank;
and
	 
	 	 	 	Mortgagee’s Interest Insurance — Mortgagee’s Additional Perils (Pollution)
Interest Insurance 
	 
	 	 	 	(i) a Mortgagee’s Interest Insurance (herein “MII”), which the Mortgagee may from
time to time effect in respect of the Vessel upon such terms as it shall deem
desirable and in an amount of not less than 110% of the Loan (ii) if the Bank so
requires, a Mortgagee’s Interest Additional Perils (Pollution) insurance (herein
“MAPI”), which the Bank may from time to time effect in respect of the Vessel upon
such terms as it shall deem desirable and in an amount of not less than 110% of the
Loan, including mortgagee’s asset protection (pollution) cover or other similar
insurance in respect of any pollution claims against the Vessel upon such terms as
shall from time to time be determined by the Bank, provided, however, that
the Bank shall in its absolute discretion appoint and instruct in respect of any
such MII and such MAPI the insurance brokers in respect of each such Insurance. and
(iii) any other insurance cover which the Bank, after notice to the Owner of the
Vessel, may from time to time effect in respect of the Vessel and/or in respect of
its interest or potential third party liability as mortgagee of the Vessel as it
shall deem desirable and reasonable having regard to any limitations in respect of
amount or extent of cover which may from time to time be applicable to any of the
Insurances; and
	 
	 	(h)	 	Other Insurance 
	 
	 	 	 	insurance in respect of such other matters of whatsoever nature and howsoever
arising in respect of which the Bank would at any time require at their discretion
the Vessel to be insured.

	3.	 	TERMS AND OBLIGATIONS FOR EFFECTING AND MAINTAINING INSURANCES
	 
	3.1	 	The Insurances to be effected in such currency as the Bank may approve and through the
Approved Brokers (other than the mortgagee’s interest insurance which shall be effected
through brokers nominated by the Bank) and with such insurance companies and/or underwriters
as shall from time to time be approved in writing by the Bank, provided, however, that
the insurances against war risks, protection and indemnity, FD & D cover or other mutual
insurance risks may be effected by the entry of the Vessel with such war, protection and
indemnity or other mutual insurance associations as shall from time to time be approved in
writing by the Bank.
	 
	3.2	 	The Insurances to be effected and maintained free of cost and expense to the Bank and in the
sole name of the Owner or, if so required by the Bank, in the joint names of the Owner and the

19

 

	 	 	Bank (but without liability on the part of the Bank for premiums or calls). All insurances to
be in form and substance and under terms satisfactory to the Bank and with insurers acceptable
to the Bank.
	 
	3.3	 	Unless otherwise agreed in writing by the Bank:

	 	  (a)	 	The amount in respect of which the Insurances should be effected shall be an
amount (Insurance Amount) which will be (aa) in respect of Hull and Machinery Insurance
the greater of the Market Value of the Vessel insured for the time being and 125% of an
amount (the “Amount of Debt”) equal to (i) the Loan if the agreement to which these
Insurance Requirements are attached is a Loan Agreement or (ii) the Maximum Limit of
the Facility if the agreement to which these Insurance Requirements are attached is an
Overdraft Facility or a Facility for Issue of Guarantees or Letters of Credit; and (bb)
in respect of Protection and Indemnity, FD&D, and Mortgagee’s Interest Insurance.
	 
	 	  (b)	 	In case that the Amount of Debt is secured by more than one Vessels the above
percentages should be covered by the aggregate of the Insurances in respect of all such
Vessels.
	 
	 	  (c)	 	In case that the Vessel insured secures by its Insurances Amounts of Debt under
more than one agreements then the above percentages apply to the aggregate of all the
Amounts of Debt under all the agreements.

	3.4	 	Any person which is obliged under the agreement to which these Insurance Requirements are
attached to effect and maintain the Insurances, it will be obliged and it hereby undertakes,
jointly and severally with any other person having the same obligation to (and will ensure
that the Owner, if it is a different person shall):

	 	  (a)	 	procure and ensure that the Approved Brokers and/or the Club Managers, as the
case may be, shall send to the Bank a letter of undertaking in respect of the
Insurances in form and substance satisfactory to the Bank and Notice of Cancellation as
per Clause 4(d) below. The Approved Brokers’ Letter of Undertaking shall be compatible
with
the form recommended by Lloyd’s Insurance Brokers Committee, or any subsequent LIBC
form. Such brokers to further undertake to give immediate notice of any insurance
being subject to the Condition Survey Warranty (J.H.II5) and/or Structural
Conditions Warranty (J.H.722) and/or the Classification Clause (Hulls) 29/6/89, 30
days prior to the attachment date of any insurance bearing any of these warranties;
	 
	 	  (b)	 	(if any of the Insurances form part of a fleet cover), procure that the
Approved Brokers shall undertake to the Bank that they shall neither set off against
any claims in respect of the Vessel insured any premiums due in respect of other
vessels under such fleet cover or any premiums due for other insurances, nor cancel the
insurance for reasons of non-payment of premiums for other vessels under such fleet
cover or of premiums for such other insurances, and shall undertake to issue a separate
policy in respect of the Vessel insured if and when so requested by the Bank;

20

 

	 	(c)	 	punctually pay all premiums, calls, contributions or other sums payable in
respect of all Insurances and produce all relevant receipts or other evidence of
payment when so required by the Bank;
	 
	 	(d)	 	at least fourteen (14) days before the Insurances expire, notify the Bank of
the names of the brokers and/or the war risks and protection and indemnity risks
associations proposed to be employed by the Owner for the purposes of the renewal of
such Insurances and of the amounts in which such Insurances are proposed to be renewed
and the risks to be covered and, subject to compliance with any requirements of the
Bank under the Insurance Requirements, procure that appropriate instructions for the
renewal of such Insurances on the terms so specified are given to the Approved Brokers
and/or to the approved war risks and protection and indemnity risks associations at
least ten (10) days before the relevant Insurances expire, and that the Approved
Brokers and/or the approved war risks and protection and indemnity risks associations
will at least seven (7) days before such expiry (or within such shorter period as the
Bank may from time to time agree) confirm in writing to the Bank as and when such
renewals have been effected in accordance with the instructions so given;
	 
	 	(e)	 	arrange for the execution and delivery of such guarantees or indemnities as may
from time to time be required by any protection and indemnity or war risks association;
	 
	 	(f)	 	deposit with the Approved Brokers (or procure the deposit of) all slips, cover
notes, policies, certificates of entry or other instruments of insurance from time to
time issued and procure that the interest of the Bank shall be endorsed thereon by
incorporation of the relevant Loss Payable Clause and by means of a notice of
assignment (signed by the Owner) in the form set out in Paragraph 4 of this Schedule or
in such other form as may from time to time be agreed in writing by the Bank, and that
the Bank shall be furnished with pro forma copies thereof and a letter or letters of
undertaking from the Approved Brokers in such form as shall from time to time be
required by the Bank;
	 
	 	(g)	 	procure that any protection and indemnity and/or war risks associations and/or
Hull and Machinery and/or any other insurance company or underwriters in which the
Vessel insured is for the time being entered and/or insured shall endorse the relevant
Loss Payable Clause on the relevant certificate of entry or policy and shall furnish
the Bank with a copy of such certificate of entry or policy and a letter or letters of
undertaking in such form as shall from time to time be required by the Bank;
	 
	 	(h)	 	(if so requested by the Bank, but at the cost of the Owner) furnish the Bank
from time to time with a detailed report signed by an independent firm of marine
insurance brokers appointed by the Bank dealing with the Insurances maintained on the
Vessel insured and stating the opinion of such firm as to the adequacy thereof;

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	 	(i)	 	do all things necessary and provide all documents, evidence and information to
enable the Bank to collect or recover any moneys which shall at any time become due in
respect of the Insurances;
	 
	 	(j)	 	ensure that the Vessel insured shall not be employed otherwise than in
conformity with the terms of the Insurances (including any warranties express or
implied therein) without first obtaining the consent of the insurers to such employment
and complying with such requirements as to extra premium or otherwise as the insurers
may prescribe;
	 
	 	(k)	 	apply all sums receivable under the Insurances which are paid to the Owner in
accordance with the Loss Payable Clauses in repairing all damage and/or in discharging
the liability in respect of which such sums shall have been received;
	 
	 	(l)	 	(in case that the Vessel is scheduled to operate or operates within or nearby
USA jurisdiction) make all the Protection & Indemnity Club US Voyage Quarterly
Declarations for each quarter in time and send copies of same to the Bank; and
	 
	 	(m)	 	Fleet Cover is permitted only subject to the prior written approval of the
Bank, to the conditions set out in 3.4(b) above and the Bank’ prior express written
approval of fleet aggregate deductibles.

	4.	 	LOSS PAYABLE CLAUSES AND CANCELLATION CLAUSE
	 
	4.1	 	The Loss Payable Clauses to be attached to the relevant Insurances should be substantially in
the following form:
	 
	 	 	(A) Hull and Machinery (Marine and War Risks)

It is noted that by a Deed of General Assignment and a first priority
statutory ... ship Mortgage
and a Deed of covenant supplemental thereto, both dated .... ...., granted by ..., of.... (the
“Owner”) in favour of FBB-First Business Bank S.A., acting for the time being through its
office at 62, Notara & Sotiros Dios Streets, 185 35 Piraeus, Greece (the “Mortgagees”) all the
Owner’s rights, title and interest in and
to all policies and contracts of insurance from time to time taken out or entered into by or for
the benefit of the Owner in respect of its Liberian flag m/v “[l]” (the “Vessel”) and
accordingly:

	 	(a)	 	all claims hereunder in respect of an actual or constructive or compromised or
arranged total loss, and all claims in respect of a major casualty (that is to say any
casualty to the Vessel in respect whereof the claim or the aggregate of the claims
against all insurers, before adjustment for any relevant franchise or deductible,
exceeds Five hundred thousand Dollars ($500,000) or the equivalent thereof in any
other currency) shall be paid in full to FBB-First Business Bank S.A., acting
for the time being through its office at 62, Notara & Sotiros Dios Streets, 185 35
Piraeus, Greece (the “Mortgagee”), or to its order; and

22

 

	 	(a)	 	all other claims hereunder shall be paid in full to the Owner or to its order,
unless and until the Mortgagee shall have notified the insurers hereunder to the
contrary, whereupon all such claims shall be paid to the Mortgagee, or to its order.
	 
	 	(B)	 	Protection and Indemnity Risks

	 	 	Payment of any recovery which [l], of [l] (the “Owner”) is entitled to make out
of the funds of the Association in respect of any liability, costs or expenses incurred by
the Owner, shall be made to the Owner or to its order, unless and until the Association
receives notice to the contrary from FBB-First Business Bank S.A., acting for the
time being through its office at 62, Notara & Sotiros Dios Streets, 185 35 Piraeus, Greece
(the “Mortgagee”), in which event all recoveries shall thereafter be paid to the Mortgagee,
or to its order; provided that no liability whatsoever shall attach to the Association, its
managers or its agents for failure to comply with the latter obligation until the expiry of
two clear business days from the receipt of such notice.
	 
	4.2	 	Notice of Cancellation 
	 
	 	 	The Owner to procure that Notice of Cancellation of Insurances be given to the Mortgagee
along the following terms:
	 
	 	 	Notice of Cancellation of Insurances will be given to FBB-First Business Bank S.A.,
acting for the time being through its office at 62, Notara & Sotiros Dios Streets, 185 35
Piraeus, Greece, (the “Mortgagee”) in any of the following cases:

	 	(a)	 	immediately if any material changes are proposed to be made in the terms of the
Insurances or if the insurers cease to be insurers for any purposes connected with the
Insurances;
	 
	 	(b)	 	not later than fourteen (14) days prior to the expiry of any of the Insurances
if instructions have not been received for the renewal thereof and, in the event of
instructions being received to renew, of the details thereof;
	 
	 	(c)	 	immediately if any instructions or notices are received by insurers with regard
to the cancellation or invalidity of any of the Insurances aforesaid; and
	 
	 	(d)	 	immediately if the insurers give notice of their intention to cancel the
Insurances, provided that the insurers will not exercise any rights of cancellation by
reason of unpaid premiums without giving the Mortgagee fourteen (14) days, from the
receipt of such notice in which to remit the sums due.

	4.3	 	Notice of Assignment 
	 
	 	 	The Notice of Assignment shall be in the following form:

23

 

Form of Notice of Assignment — First Mortgage

(for attachment by way of endorsement to the Policy)

[l], of [l] (the “Owner”) the owner of the m/v “[l]” registered under
[l] flag, (the “Vessel”) HEREBY GIVE NOTICE that by a Deed of General Assignment made
the [l] day of [l], and entered into by us with FBB-First Business Bank
S.A. (the “Mortgagee”) there has been assigned by us to the Mortgagee, as first
Mortgagee and first Assignee of the Vessel all rights, title and interest in and to all
policies and contracts of insurance from time to time taken out or entered into by or for
the benefit of the Owner, including, but not limited to, the insurances constituted by the
Policy whereon this notice is endorsed and the Owner has authorised the Mortgagee to have
access and/or obtain any copies of the Policy(ies), certificate(s) of entry and/or other
information from the insurers.

Dated [l], 2011

For and on behalf of

The Owner

By: ____________________

Attorney-in-fact”

	5.7	 	With effect from the date hereof Clause 16.4 of the Principal Agreement shall be read as
follows:

	 	“16.4 Mr. Panagiotis-Peter Kallifidas, an attorney at law, presently of 83 Akti
Miaouli and Flessa Street, 185 38 Piraeus, Greece, is hereby appointed by each of the
Security Parties as agent to accept service (hereinafter “Process Agent in Greek
proceedings”) upon whom any judicial process in respect of proceedings in Greece may be
served and any process notice, judicial or extra-judicial request, demand for payment,
payment order, foreclosure proceedings, notarial announcement of claim, notice,
request, demand or other communication under this Agreement or any of the Security
Documents. In the event that the Process Agent in Greek proceedings (or any substitute
process agent notified to the Bank in accordance with the foregoing) cannot be found at
the address specified above (or, as the case may be, notified to the Bank), which will
be conclusively proved by a deed of a process server to the effect that the Process
Agent in Greek proceedings was not found at such address, any process notice, judicial
or extra-judicial request, demand for payment, payment order, foreclosure proceedings,
notarial announcement of claim or other
communication to be sent to any Security Party may be validly notified in accordance
with the relevant provisions of the Hellenic Code on Civil Procedure.”

	5.8	 	With effect as from the Effective Date all references in the Principal Agreement and the
Security Documents to:

	 	(a)	 	“Corporate Guarantor” and to “Owner” shall be deemed to include
the Collateral Corporate Guarantor;
	 
	 	(b)	 	“this Agreement”, “hereunder” and the like and in the Security
Documents to the “Agreement” shall be construed as references to the Principal
Agreement as amended and/or supplemented by this Agreement; and

24

 

	 	(c)	 	“General Assignment”, “Insurances”, “Earnings”, “Mortgage” and
“Vessel” shall be constued as references to the Vessels as herein defined;
	 
	 	(d)	 	“Grandunion” and “Grandunion Corporate Guarantee” as well as
the definition thereof shall be deleted; and
	 
	 	(e)	 	“this Agreement”, “hereunder” and the like and in the Security
Documents to the “Loan Agreement” as references to the Principal Agreement as
amended and/or supplemented by this Agreement.

	5.9	 	With effect from the Effective Date all obligations imposed upon the Borrower in relation to
the Borrower’s Vessel under the Principal Agreement shall be deemed to be imposed upon the
Collateral Corporate Guarantor as owner of the Collateral Vessel.
	 
	5.10	 	The definition “Security Documents” with effect as from the date hereof shall be construed as
references to the Security Documents as amended and/or supplemented by this Agreement and
shall be deemed to include the Additional Security Documents and any document or documents
(including if the context requires the Loan Agreement) that may now or hereafter be executed
as security for the repayment of the Loan, interest thereon and any other moneys payable by
the Borrower under the Principal Agreement and the Security Documents (as herein defined) as
well as for the performance by the Borrower and the other Security Parties (as herein defined)
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 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
	 
	 	 	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.

25

 

	8.	 	Continuance and reconfirmation of the Newlead Corporate Guarantee
	 
	 	 	The Newlead Corporate Guarantor hereby confirms that, notwithstanding the variation to the
Principal Agreement contained herein, the provisions of the Newlead Corporate Guarantee
executed by the Newlead 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 Bank under the Principal Agreement (as so amended) and
the Security Documents.
	 
	9.	 	Fees and expenses
	 
	9.1	 	The Borrower and the Corporate Guarantors jointly and severally covenant and agree to pay and
discharge all upon demand on a full indemnity basis and from time to time all costs, charges
and expenses (including legal fees) incurred by the Bank 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 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 13 (Assignment, Participation and Lending Branch) and Clause
15.1 (Notices) of the Principal Agreement shall apply to this Agreement as if the same
were set out herein in full.
	 
	11.	 	Applicable law and jurisdiction
	 
	11.1	 	This Agreement shall be governed by and construed in accordance with English law and Clause
16 (Applicable Law and Jurisdiction) of the Principal Agreement shall extend and apply
to this Agreement as if the same were (mutatis mutandis) herein expressly set forth.
	 
	11.2	 	Mr. Panagiotis-Peter Kallifidas, an attorney at law, presently of 83 Akti Miaouli and Flessa
Street, 185 38 Piraeus, Greece, is hereby appointed by each of the Security Parties as agent
to accept service (hereinafter “Process Agent in Greek proceedings”) upon whom any judicial
process in respect of proceedings in Greece may be served and any process notice, judicial or
extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial
announcement of claim, notice, request, demand or other communication under this Agreement or
any of the Security Documents. In the event that the Process Agent in Greek proceedings (or
any substitute process agent notified to the Bank in accordance with the foregoing) cannot be
found at the address specified above (or, as the case may be, notified to the

26

 

	 	 	Bank), which
will be conclusively proved by a deed of a process server to the effect that the Process Agent
in Greek proceedings was not found at such address, any process notice, judicial or
extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial
announcement of claim or other communication to be sent to any Security Party may be validly
notified in accordance with the relevant provisions of the Hellenic Code on Civil Procedure.
	 
	11.3	 	In this Clause 11 “proceedings” means proceedings of any kind, including an application for a
provisional or protective measure.

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

27

 

EXECUTION PAGE

	 	 	 	 	 	 	 	 	 

	THE BORROWER
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Panagiotis-Peter Kallifidas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	Grand Spartounta Inc.,

	 	 	)	 	 	 	 	/s/ Panagiotis-Peter Kallifidas
	 

	 	 	 	 	 	 	 	 
	of The Marshall Islands, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-Fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

	 	 	 	 	 	 	 	 	 

	THE CORPORATE GUARANTORS
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Panagiotis-Peter Kallifidas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NewLead Holdings Ltd.,

	 	 	)	 	 	 	 	/s/ Panagiotis-Peter Kallifidas
	 

	 	 	 	 	 	 	 	 
	of Bermuda, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

	 	 	 	 	 	 	 	 	 

	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Panagiotis-Peter Kallifidas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NEWLEAD PROSPERITY INC.,

	 	 	)	 	 	 	 	/s/ Panagiotis-Peter Kallifidas
	 

	 	 	 	 	 	 	 	 
	of Marshall Islands, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-fact

28

 

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

	 	 	 	 	 	 	 	 	 

	THE MANAGER
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Panagiotis-Peter Kallifidas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	Newleads Bulkers S.A.,

	 	 	)	 	 	 	 	/s/ Panagiotis-Peter Kallifidas
	 

	 	 	 	 	 	 	 	 
	of Liberia, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-Fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

	 	 	 	 	 	 	 	 	 

	THE PLEDGOR
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Panagiotis-Peter Kallifidas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	Newlead Bulker Holdings Inc.,

	 	 	)	 	 	 	 	/s Panagiotis-Peter Kallifidas
	 

	 	 	 	 	 	 	 	 
	of the Marshall Islands, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-Fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

	 	 	 	 	 	 	 	 	 

	THE BANK
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Nikolaos Vougioukas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	FBB-FIRST BUSINESS BANK S.A.

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	/s/ Nikolaos Vougioukas
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Attorney-in-Fact

29

 

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

30exv4w44

EXHIBIT 4.44

Private & confidential

Dated: 8th November, 2010

EMPORIKI BANK OF GREECE S.A.

(as lender)

- and -

GRAND MARKELA INC.

(as Borrower)

- and -

NEWLEAD HOLDINGS LTD.

(as Corporate Guarantor and Pledgor)

- and -

NEWLEAD BULKERS S.A.

(as Approved Manager)

 

 

FIFTH SUPPLEMENTAL AGREEMENT

in relation to a Loan Agreement

dated 29th November, 2006

for a loan facility of up to US$14,750,000

 

 

Theo V. Sioufas & Co.

Law Offices

Piraeus

 

 

TABLE OF CONTENTS

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

 

 

THIS AGREEMENT is made this 8th day of November, 2010

B E T W E E N

	(1)	 	EMPORIKI BANK OF GREECE S.A., a banking societe anonyme duly incorporated under the laws of
Greece, having its registered office at 11 Sofokleous Street, Athens, Greece, acting for the
purposes of this Agreement through its office at 1 Korai Street, Athens, Greece (the “Bank”
which expression shall include its successors and assigns);
	 
	(2)	 	GRAND MARKELA INC., a company incorporated in the Republic of Liberia, having
its registered office at 80 Broad Street, Monrovia, Liberia, as borrower (hereinafter called
the “Borrower”, which expression shall include its successors); and
	 
	(3)	 	NEWLEAD HOLDINGS LTD., a company duly incorporated under the laws of Bermuda, having its
registered office at Canon’s Court, 22 Victoria Street, Hamilton, Bermuda and listed and
trading in the NASDAQ Stock Exchange, New York (hereinafter called the “Corporate Guarantor”
and sometimes the “Pledgor”, which expressions shall include its successors in title); and
	 
	(4)	 	NEWLEAD BULKERS S.A., a company duly incorporated under the laws of the Republic of
Liberia having its registered office at 80 Broad Street, Monrovia, Liberia and an office
established in Greece (83 Akti Miaouli and Flessa Street, GR 185.38 Piraeus) pursuant to the
Greek laws 89/67, 378/68, 27/75 and 814/79 (the “Approved Manager”, which expression shall
include its successors in title);

AND IS SUPPLEMENTAL to a loan agreement dated 29th November, 2006 made between (1) the
Bank, as lender and (2) the Borrower, as borrower, as amended and/or supplemented by:

	(a)	 	a First Supplemental Agreement dated 7th August, 2009 and made between (inter
alios) the Bank and the Borrower (the “First Supplemental Agreement”);
	 
	(b)	 	a Second Supplemental Agreement dated 9th April, 2010 and made between (inter
alios) the Bank, the Borrower and the Approved Manager (the “Second Supplemental Agreement”);
and
	 
	(c)	 	a Third Supplemental Agreement dated 2nd July, 2010 and made between (inter alios)
the Bank, the Borrower, the Corporate Guarantor and the Approved Manager, (the “Third
Supplemental Agreement”) and
	 
	(d)	 	a Fourth Supplemental Agreement dated 8th September, 2010 and made between (inter
alios) the Bank, the Borrower, the Corporate Guarantor and the Approved Manager, (the “Fourth
Supplemental Agreement”)

on the terms and conditions of which the Bank has advanced to the Borrower a secured multi-currency
loan facility of up to Fourteen million seven hundred fifty thousand United States
Dollars (US$14,750,000) or the equivalent thereof in an Optional Currency (the “Loan”) for

1

 

the
purposes therein specified (the said Loan Agreement as amended and/or supplemented by the First
Supplemental Agreement, the Second Supplemental Agreement, the Third Supplemental Agreement and the
Fourth Supplemental Agreement is hereinafter called the “Principal Agreement”) (the Principal
Agreement as hereby amended and as the same may hereinafter be further amended and/or supplemented
is hereinafter called the “Loan Agreement”).

W H E R E A S :

	(A)	 	the Borrower, the Corporate Guarantor and the Approved Manager hereby jointly and severally
acknowledge and confirm that (a) the Bank has advanced to the Borrower the full amount of the
Loan in the principal amount of United States Dollars Fourteen million seven hundred fifty
thousand (US$14,750,000) in one advance and (b) as the date hereof the amount of
(US$9,800,000) (US Dollars nine million eight hundred thousand) remains outstanding;
	 
	(B)	 	pursuant to a Corporate Guarantee dated 2nd July, 2010 and granted by the
Corporate Guarantor (the “Corporate Guarantee”) the Corporate Guarantor irrevocably and
unconditionally guaranteed the due and timely repayment of the Loan and interest and default
interest accrued thereon and the performance of all the obligations of the Borrower under the
Principal Agreement and the Security Documents executed in accordance thereto;
	 
	(C)	 	pursuant to a Shares Pledge Agreement dated 2nd July, 2010 executed by the
Pledgor, as Pledgor, in favour of the Bank, the Pledgor pledged all the issued share capital
of the Borrower in favour of the Bank (the “Shares Pledge Agreement”); and
	 
	(D)	 	the Borrower, the Approved Manager and the Corporate Guarantor have requested the Bank to
consent to the amendment of the Principal Agreement as set out in Clause 5 hereof and the Bank
has 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:
	 
	 	 	“Effective Date” means the date, not being later than 2nd July, 2010 (or such
later date as the Bank may agree) upon which all the conditions contained in Clause 4 shall
have been satisfied and this Agreement shall become effective; and

2

 

	 	 	“Loan Agreement” means the Principal Agreement as hereby amended and as the same may from
time to time be further amended and/or supplemented.
	 
	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, the Corporate Guarantor and the Approved Manager hereby jointly and severally
represent and warrant to the Bank 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, the Approved Manager and the Corporate Guarantor
hereby jointly and severally represent and warrant to the Bank as at the date of this
Agreement that:

	 	a.	 	each of the corporate Security Parties is duly formed, is validly existing and
in good standing under the laws of the place of its incorporation has full power to
carry on its business as it is now being conducted and to enter into and perform its
obligations under the Principal Agreement and this Agreement and 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 and the Principal Agreement 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 the legal, valid and binding obligations of the
Security Parties thereto enforceable in accordance with its terms;

3

 

	 	d.	 	the execution and delivery of, and the performance of the provisions of this
Agreement 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 action, suit or proceeding is pending or threatened against any of the
Borrower, the Approved Manager and the Corporate Guarantor or its assets before any
court, board of arbitration or administrative agency which could or might result in any
material adverse change in the business or condition (financial or otherwise) of the
Borrower, the Approved Manager or the Corporate Guarantor; and
	 
	 	f.	 	none of the Borrower, the Approved Manager and the Corporate Guarantor 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 Bank
	 
	3.1	 	The Bank, relying 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 the amendment of the Principal Agreement as set out in Clause 5
hereof and the Bank has agreed so to do conditionally upon terms that (inter alia) the
Principal Agreement shall be amended in the manner hereinafter set out.
	 
	4.	 	Conditions
	 
	4.1	 	The agreement of the Bank contained in Clause 3.1 shall be expressly subject to the
fulfilment of the conditions set out in this Clause and further subject to the condition that
the Bank shall have received on or before the Effective Date in form and substance
satisfactory to the Bank 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 Guarantor;
	 
	 	b.	 	certificates of Incumbency issued by the appropriate officer of each corporate
Security Party confirming that:

	 	(i)	 	the written resolutions adopted on 31st August, 2010
by all the members of the Board of Directors of the Borrower and Minutes of the
Extraordinary Meeting of the Shareholders of the Borrower duly convened and
held on 1st day of September, 2010,

4

 

	 	(ii)	 	the written resolutions adopted on 31st day of
August, 2010 by all the members of the Board of Directors of the Corporate
Guarantor and
	 
	 	(iii)	 	the Minutes of the Meeting of the Board of Directors of the
Approved Manager duly convened and held on 15th day of March, 2010,

	 	 	 	remain in full force as of the date hereof and have not been amended or rescinded
and that the any power of attorney issued by each corporate Security Party on
1st September, 2010 authorising appropriate officers or attorneys to
(inter alia) sign, execute and deliver any supplementary and/or amendatory agreement
of the Loan Agreement or other evidence of such approvals and authorisations as
shall be acceptable to the Bank;

	 	c.	 	the Corporate Guarantee shall be amended as provided in the Guarantee
Supplement and Amendment thereto signed by the parties thereto on the date hereof;
	 
	 	d.	 	all documents evidencing any other necessary action or approvals or consents
with respect to this Agreement; and
	 
	 	e.	 	such favourable legal opinions from lawyers acceptable to the Bank and its
legal advisors on such matters concerning the laws of Bermuda and such other relevant
jurisdiction as the Bank shall require.

	5.	 	Variations to the Principal Agreement
	 
	5.1	 	In consideration of the agreement of the Bank contained in Clause 3.1, the Borrower and the
Corporate Guarantor hereby jointly and severally agree with the Bank 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 from the Effective Date clause 8.1(a) of the Principal Agreement
shall be amended to read as follows:

	 	 	 	“(a) Financial Statements: prepare or procure to be prepared
and furnished to the Bank, in form and substance satisfactory to the Bank, with
(i) annual, audited (by auditors acceptable to the Bank) consolidated financial
and cash flow statements (including balance sheet and profit and loss accounts)
of the Guarantor (including the Borrower) as soon as practicable but not later
than 180 days after the end of the financial year to which they relate,
prepared in accordance with GAAP together with a Compliance Certificate to be
provided by the Guarantor and signed by one director of the Guarantor,
setting out (in reasonable detail) computations as to compliance with Clause
5.3 (Additional Financial covenants-Compliance Certificate) of the Corporate
Guarantee as at the date at which those financial and cash flow statements
were drawn up and (ii) as soon as the same become available, but in any
event within 90 days

5

 

	 	 	 	after the end of each financial half-year, the
Borrower’s semi-annual management accounts for that financial half-year and
the Guarantor’s semi-annual interim Financial Statement for that financial
half-year and (iii) as soon as practically the same become available, but in
any event within 90 days after the end of each financial quarter, the
Corporate Guarantor’s quarterly financial statements ;”;

	 	b.	 	with effect from the Effective Date all references in the Principal Agreement
to “this Agreement”, “hereunder” and the like and in the Security Documents to the
“Loan Agreement” or the “Agreement” shall be construed as references to the Principal
Agreement as amended and/or supplemented by this Agreement; and
	 
	 	c.	 	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 any document or documents (including if the context
requires the Loan Agreement) that may now or hereafter be executed as security for the
repayment of the Loan, interest thereon and any other moneys payable by the Borrower
under the Principal Agreement and the Security Documents (as herein defined) as well as
for the performance by the Borrower and the other Security Parties (as herein defined)
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 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
	 
	 	 	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 Guarantee

6

 

	 	 	The Corporate Guarantor hereby confirms that, notwithstanding the variation to the Principal
Agreement contained herein, the provisions of the Corporate Guarantee executed by the
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 Bank under the Principal Agreement (as so amended) and the Security Documents.
	 
	9.	 	Fees and expenses
	 
	9.1	 	The Borrower and the Corporate Guarantor jointly and severally covenant and agree to pay and
discharge all upon demand on a full indemnity basis and from time to time all costs, charges
and expenses (including legal fees) incurred by the Bank 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 Security Documents.
	 
	9.2	 	The Borrower and the Corporate Guarantor 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 13 (Assignment, Participation and Lending Branch) and Clause
15.1 (Notices) of the Principal Agreement shall apply to this Agreement as if the same
were set out herein in full.
	 
	11.	 	Applicable law and jurisdiction
	 
	11.1	 	This Agreement shall be governed by and construed in accordance with Hellenic Law and in
particular with the provisions of (i) Act of the Monetary Committee under Serial No. 187/1978
(as amended), (ii) the provisions of L.D. dated 17.7/13.8.1923 on “Special Provisions on
Societes Anonymes” and (iii) the special terms set out in the resolutions of the Bank of
Greece or any other competent Authority. Moreover, the Borrower hereby acknowledges and
declares that it is fully familiar with the General Transaction Terms of the Bank and it is
hereby agreed that the said General Transaction Terms shall be deemed an integral part of this
Agreement.
	 
	11.2	 	For the exclusive benefit of the Bank, each of the Borrower and the Corporate Guarantor
hereby (i) irrevocably submits to the non exclusive jurisdiction of the Courts of Piraeus in
Greece and (ii) agrees that any summons, writ, judicial or extra-judicial notice, protest,
payment order, order for payment, order for enforcement, announcement of claim or other legal
process issued against it in Greece shall be served upon the Process Agent, who is hereby
authorised to accept such service,

7

 

	 	 	which shall be deemed to be good service on each of the
Borrower and the Corporate Guarantor.

	 	(a)	 	The submission to the jurisdiction of the Courts of Piraeus shall not (and
shall not be construed so as to) limit the right of the Bank to take proceedings
against the Borrower and/or the Corporate Guarantor in the courts of any other
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.
	 
	 	(b)	 	The parties further agree that subject to sub-Clause 16.2(b) the Courts of
Piraeus shall have exclusive jurisdiction to determine any claim which the Borrower may
have against the Bank arising out of or in connection with this Agreement and each of
the Borrower and the Corporate Guarantor hereby waives any objections to proceedings
with respect to this Agreement in such courts on the grounds of venue or inconvenient
forum.

	11.3	 	If it is decided by the Bank that any such proceedings should be commenced in any other
country, then any objections as to the jurisdiction or any claim as to the inconvenience of
the forum is hereby waived by each of the Borrower and the Corporate Guarantor and it is
agreed and undertaken by each of the Security Parties to instruct lawyers in that country to
accept service of legal process and not to contest the validity of such proceedings as far as
the jurisdiction of the court or courts involved is concerned and each of the Security Parties
agrees that any judgement or order obtained in an English court shall be conclusive and
binding on the Security Parties (and each of them) and shall be enforceable without review in
the courts of any other jurisdiction.
	 
	11.4	 	Mr. Panagiotis-Peter Kallifidas, an attorney at law, presently of 83 Akti Miaouli and Flessa
Street, 185 38 Piraeus, Greece, is hereby appointed by the Borrower as agent to accept service
(hereinafter “Process Agent”) upon whom any judicial process in respect of proceedings in
Greece may be served and any process notice, judicial or extra-judicial request, demand for
payment, payment order, foreclosure proceedings, notarial announcement of claim, notice,
request, demand or other communication under this Agreement or any of the Security Documents.
In the event that the Process Agent (or any substitute process agent notified to the Bank in
accordance with the foregoing) cannot be found at the address specified above (or, as the case
may be, notified to the Bank), which will be conclusively proved by a deed of a process server
to the effect that the Process Agent was not found at such address, any process notice,
judicial or extra-judicial request, demand for payment,
payment order, foreclosure proceedings, notarial announcement of claim or other
communication to be sent to any Security Party may be validly notified in accordance with
the relevant provisions of the Hellenic Code on Civil Procedure.
	 
	11.5	 	In this Clause 10 “proceedings” means proceedings of any kind, including an application for a
provisional or protective measure.

8

 

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

9

 

EXECUTION PAGE

	 	 	 	 	 	 	 	 	 

	THE BORROWER
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Michail Livanos

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	Grand Markela Inc.,

	 	 	)	 	 	 	 	/s/ Michail Livanos
	 

	 	 	 	 	 	 	 	 
	of Liberia, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-Fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

	 	 	 	 	 	 	 	 	 

	THE CORPORATE GUARANTOR/PLEDGOR
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Panagiotis-Peter Kallifidas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NewLead Holdings Ltd.,

	 	 	)	 	 	 	 	/s/ Panagiotis-Peter Kallifidas
	 

	 	 	 	 	 	 	 	 
	of Bermuda, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

10

 

	 	 	 	 	 	 	 	 	 

	THE APPROVED MANAGER
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mr. Panagiotis-Peter Kallifidas

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	Newleads Bulkers S.A.,

	 	 	)	 	 	 	 	/s/ Panagiotis-Peter Kallifidas
	 

	 	 	 	 	 	 	 	 
	of Liberia, in the presence of:

	 	 	)	 	 	 	 	Attorney-in-Fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

	 	 	 	 	 	 	 	 	 

	THE BANK
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	Mrs. Christina Margelou

	 	 	)	 	 	 	 	/s/ Christina Margelou
	 

	 	 	 	 	 	 	 	 
	and Mrs. Chrysoula Voulgari

	 	 	)	 	 	 	 	Attorney-in-Fact
	for and on behalf of

	 	 	)	 	 	 	 	 
	EMPORIKI BANK OF GREECE S.A.

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	/s/ Chrysoula Voulgari
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Attorney-in-Fact

	 	 	 	 	 

	Witness:

	 	/s/ Efstratios Kalantzis
	 	 
	 

	 	 	 	 
	Name: Efstratios Kalantzis	 	 
	Address:

	 	13 Defteras Merarchias Str.	 	 
	 

	 	Piraeus, Greece	 	 
	Occupation: Attorney-at-law	 	 

11

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