Document:

d1176605_ex4-18.htm

Exhibit 4.18

Third Supplemental Agreement

Date: 29 December 2010

 

	
1

	
Reference is made to the loan agreement dated 19 November 2007 (the "Original Agreement") made between Paragon Shipping Inc. as borrower (the "Borrower"), (ii) the banks and financial institutions listed therein as lenders (the "Lenders"), (iii) UniCredit Bank AG (formerly known as Bayerische Hypo- Und Vereinsbank AG) as swap bank (the "Swap Bank"), (iv) UniCredit Bank AG (formerly known as Bayerische Hypo- Und Vereinsbank AG) as agent (the "Agent") and arranger (the "Arranger") and (v) UniCredit Bank AG (formerly known as Bayerische Hypo- Und Vereinsbank AG) as security trustee (the "Security Trustee" and together with the Lenders, the Swap Bank, the Agent and the Arranger, the "Creditor Parties"), as amended and restated by a first supplemental agreement dated 25 February 2009 and a second supplemental agreement dated 24 March 2010 each made between (inter alios) the Borrower and the Creditor Parties (together the "Loan Agreement"), pursuant to which the Lenders agreed to make available to the Borrower a secured credit facility of up to Ninety million United States Dollars (US$90,000,000) upon the terms and conditions set out therein.

 

	
2

	
Words and expressions defined in the Loan Agreement shall have the same meanings when used herein.

 

	
3

	
The total amount standing to the credit of the Cash Collateral Account is Ten million United States Dollars (US$10,000,000) and the Borrower has requested the Creditor Parties' consent to the release of a part thereof in the amount of Eight million five hundred thousand United States Dollars (US$8,500,000) (the "Amount").

 

	
4

	
Following the Borrower's said request, the Creditor Parties hereby consent to the release of the Amount to the Borrower, on condition however that:

 

	
  

	
(a)

	
simultaneously with the release of the Amount, the Borrower shall prepay to the Agent a part of the Loan which is equal to the Amount; and

 

	
  

	
(b)

	
notwithstanding the provisions of clausg 8.12, the amount received by the Agent pursuant to paragraph 4(a) above shall be applied in prepayment of the Loan and the repayment instalments referred to in Clause 8.1 of the Loan Agreement in inverse order of their due dates for payment.

 

	
5

	
The Creditor Parties hereby confirm their consent to the arrangements set out in paragraph 4 above on the further conditions that:

 

	
  

	
(a)

	
the Borrower and each Security Party shall have confirmed their agreement and consent to the arrangements of this Agreement by counter-signing this Agreement by signatories acceptable to the Agent in all respects; and

  

  

  

 

	
  

	
(b)

	
there shall have been delivered to the Agent, such corporate authorisations or other evidence of the authority of the Borrower and the other Security Parties in relation to the execution of this Agreement, in a form acceptable to the Agent in all respects and such legal opinions on terms acceptable to the Majority Lenders from such lawyers as they may select,

 

and, with effect on and from the date when the Agent advises the Borrower that it is satisfied that the conditions referred to in paragraphs 5(a) and 5(b) above have been met, the Amount shall be released in accordance with the terms of paragraph 4 above (but subject to the conditions set out in paragraphs 4(a) and 4(b) above).

 

	
6

	
Following a further request by the Borrower, the Creditor Parties hereby agree that, notwithstanding the prepayment referred to in paragraph 4(b) above and the provisions of clause 8.14 of the Loan Agreement, the Borrower shall not be required, in connection with such prepayment, to reverse, offset, unwind or terminate one or more Designated Transactions under such clause 8.14.

 

	
7

	
For the avoidance of doubt, it is hereby agreed and understood that the agreement of the Creditor Parties contained in paragraph 6:

 

	
  

	
(a)

	
is without prejudice to the rights of the Creditor Parties under clause 8.14 of the Loan Agreement which may arise as a result of any other repayments or prepayments of the Loan, present or future, whether under the provisions of clause 8 of the Loan Agreement or under any other provision of the Loan Agreement; and

 

	
  

	
(b)

	
shall only apply to the prepayment referred to in paragraph 4 and to no other repayments or prepayments made, whether now or in the future, under the Loan Agreement.

 

	
8

	
No failure or delay on the part of any Creditor Party (whether as a result of the arrangements contained in this Agreement or otherwise) to exercise any power, right or remedy under the Loan Agreement or any of the other Finance Documents (including the rights of Creditor Parties under clause 8.14 of the Loan Agreement) and nothing contained in this Agreement shall operate as a waiver thereof, nor shall anything contained in this Agreement or any single or partial exercise by any Creditor Party (whether as a result of the arrangements contained in this Agreement or otherwise) of any power, right or remedy (including the rights of Creditor Parties under clause 8.14 of the Loan Agreement), preclude any other or further exercise thereof or the exercise of any other power, right or remedy of the Creditor Parties under the Loan Agreement, the other Finance Documents, at law or otherwise.

 

	
9

	
This Agreement is supplemental to the Loan Agreement and the Loan Agreement and this Agreement shall be read and construed together as one instrument. Consequently, this Agreement is a "Security Document" for the purposes of the Loan Agreement and failure by the Borrower to comply with its obligations under this Agreement shall constitute an Event of Default under the Loan Agreement.

  

  

  

 

	
10

	
Save as amended by this Agreement, all other terms of the Loan Agreement remain unchanged.

 

	
11

	
This Agreement and any non-contractual obligations in connection with this Agreement

 

Lenders

	
SIGNED by

	
)

	  	  
	
and by

	
)

	  	
Authorised Signatory

	
for and on behalf of

	
)

	  	  
	
UNICREDIT BANK AG (formerly known as

	
)

	  	  
	
BAYERISCHE HYPO-UND VEREINSBANK AG)

	
)

	  	  
	
as Lender

	
)

	  	
Authorized Signatory

Agent

	
SIGNED by

	
)

	  	  
	
and by

	
)

	  	
Authorised Signatory

	
for and on behalf of

	
)

	  	  
	
UNICREDIT BANK AG (formerly known as

	
)

	  	  
	
BAYERISCHE HYPO-UND VEREINSBANK AG)

	
)

	  	  
	
as Agent

	
)

	  	
Authorized Signatory

Arranger

	
SIGNED by

	
)

	  	  
	
and by

	
)

	  	
Authorised Signatory

	
for and on behalf of

	
)

	  	  
	
UNICREDIT BANK AG (formerly known as

	
)

	  	  
	
BAYERISCHE HYPO-UND VEREINSBANK AG)

	
)

	  	  
	
as Arranger

	
)

	  	
Authorized Signatory

Swap Bank

	
SIGNED by

	
)

	  	  
	
and by

	
)

	  	
Authorised Signatory

	
for and on behalf of

	
)

	  	  
	
UNICREDIT BANK AG (formerly known as

	
)

	  	  
	
BAYERISCHE HYPO-UND VEREINSBANK AG)

	
)

	  	  
	
as Swap Bank

	
)

	  	
Authorized Signatory

Security Trustee

	
SIGNED by

	
)

	  	  
	
and by

	
)

	  	
Authorised Signatory

	
for and on behalf of

	
)

	  	  
	
UNICREDIT BANK AG (formerly known as

	
)

	  	  
	
BAYERISCHE HYPO-UND VEREINSBANK AG)

	
)

	  	  
	
as Security Trustee

	
)

	  	
Authorized Signatory

Owners

	
EXECUTED as a DEED by

	
)

	  	  
	
for and on behalf of

	
)

	  	  
	
FRONTLINE MARINE COMPANY

	
)

	  	
Attorney-in-fact

	
as Owner

	
)

	  	  
	
in the presence of:

	
)

	  	  
	  	
)

	  	  

	  	  	  	  
	
Witness

	  	  	  
	
Name:

	  	  	  
	
Address:

	  	  	  
	
Occupation:

	  	  	  

	
EXECUTED as a DEED by

	
)

	  	  
	
for and on behalf of

	
)

	  	  
	
TRADE FORCE SHIPPING S.A.

	
)

	  	
Attorney-in-fact

	
as Owner

	
)

	  	  
	
in the presence of:

	
)

	  	  
	  	
)

	  	  

	  	  	  	  
	
Witness

	  	  	  
	
Name:

	  	  	  
	
Address:

	  	  	  
	
Occupation:

	  	  	  

	
EXECUTED as a DEED by

	
)

	  	  
	
for and on behalf of

	
)

	  	  
	
OPERA NAVIGATION CO.

	
)

	  	
Attorney-in-fact

	
as Owner

	
)

	  	  
	
in the presence of:

	
)

	  	  
	  	
)

	  	  

	  	  	  	  
	
Witness

	  	  	  
	
Name:

	  	  	  
	
Address:

	  	  	  
	
Occupation:

	  	  	  

	
EXECUTED as a DEED by

	
)

	  	  
	
for and on behalf of

	
)

	  	  
	
ALLSEAS MARINE S.A.

	
)

	  	
Director

	
as Owner

	
)

	  	  
	
in the presence of:

	
)

	  	  
	  	
)

	  	  

	  	  	  	  
	
Witness

	  	  	  
	
Name:

	  	  	  
	
Address:

	  	  	  
	
Occupation:d1176516_ex4-21.htm

Exhibit 4.21

SUPPLEMENTAL LETTER

 

	 To:	Paragon Shipping Inc. 
	 	Trust Company Complex 
	 	Ajeltake Road 
	 	Ajeltake Island 
	 	Majuro 
	 	The Marshall Islands MH96960 
	 	 
	From:	Bank of Scotland plc 
	 	Pentland House 
	 	8 Lochside Avenue 
	 	Edinburgh EH12 9DJ 
	 	Scotland 
	 	(acting in its capacity as Agent for the Lenders) 
	 	 
	 	 

Dear Sirs

                                            June 2009

	
1 

	
Background.

 

	
(A)

	
By a loan agreement dated 4 December 2007 (as amended and supplemented by a supplemental letter dated 20 May 2008 and a supplemental agreement dated 13 March 2009, the "Loan Agreement") made between (i) you as borrower, (ii) the banks and financial institutions listed therein as lenders (the "Lenders"), (iii) Bank of Scotland plc as swap bank and (iv) Bank of Scotland plc as agent (in such capacity referred to as the "Agent"), mandated lead arranger, underwriter and security trustee, the Lenders agreed to make available to you a secured revolving credit facility of (originally) up to US$89,000,000.

 

	
(B)

	
Pursuant to discussions between us, we have agreed to amend the manner in which the Working Capital of the Group is determined.

 

	
2

	
Agreement and amendments to the Loan Agreement.  With effect from the date on which this Letter is countersigned by you and the other Security Parties referred to below, the Loan Agreement shall be amended as follows:

 

	
(a)

	
by adding each of the following new definitions in Clause 1.1 thereof:

 

	
 

	
""Accounting Information"  means the annual audited consolidated financial statements of the Group to be provided by the Borrower to the Agent in accordance with Clause 11.6(a) of this Agreement or the quarterly unaudited consolidated accounts of the Group to be provided by the Borrower to the Agent in accordance with Clause 11.6(b) of this Agreement (as the context may require);";

 

	
 

	
""Current Assets"  means, the current assets of the Group (excluding derivative revaluations but including restricted cash) as stated in the most recent Accounting Information"; and

 

	
 

	
""Current Liabilities"  means, the current liabilities of the Group (excluding derivative revaluations) as stated in the most recent Accounting Information";" and

 

 

  

  

  

	
(b)

	
by construing all references in the Loan Agreement to "this Agreement", "hereunder" and the like and in the Finance Documents to the "Loan Agreement" as references to the Loan Agreement as amended and/or supplemented by this Letter.

 

	
3

	
Representations and Warranties.  The Borrower hereby represents and warrants to the Lenders that:

 

	
(a)

	
the representations and warranties contained in the Loan Agreement are true and correct on the date of this Letter as if all references therein to "this Agreement" were references to the Loan Agreement as supplemented by this Letter; and

 

	
(b)

	
this Letter comprises the legal, valid and binding obligations of the Borrower enforceable in accordance with its terms.

 

	
4

	
Loan Agreement and Finance Documents.  The Borrower hereby agrees with the Lenders that the provisions of the Loan Agreement and the Finance Documents shall be and are hereby re-affirmed and remain in full force and effect.

 

	
5

	
Notices.  Clause 28 (Notices) of the Loan Agreement shall extend and apply to this Letter as if the same were (mutatis mutandis) herein expressly set forth.

 

	
6

	
Governing Law.  This Letter shall be governed by and construed in accordance with English law and Clause 30 (Law and Jurisdiction) of the Loan Agreement shall extend and apply to this Letter as if the same were (mutatis mutandis) herein expressly set forth.

 

Please confirm your acceptance to the foregoing terms and conditions by signing the acceptance at the foot of this Letter.

Yours faithfully

 

 

	 	 
	 	 
	for and on behalf of	 
	BANK OF SCOTLAND plc	 
	(in its capacity as Agent for the Lenders) 	 
	 	 
	Accepted and agreed	 
	 	 
	 	 
	 	 
	 	 
	for and on behalf of 	 
	PARAGON SHIPPING INC.	 

 

 

Dated               June 2009

 

 

  

2

  

We hereby confirm and acknowledge that we have read and understood the terms and conditions of the above Letter and agree in all respects to the same and confirm that the Finance Documents (as that term is defined in the Loan Agreement) to which we are a party shall remain in full force and effect and shall continue to stand as security for the obligations of the Borrower under the Loan Agreement.

 

 

 

	 	 
	 	 
	for and on behalf of  	 
	IMPERATOR  I MARITIME COMPANY	 
	 	 
	 	 
	 	 
	 	 
	 	 
	for and on behalf of 	 
	CANYON I NAVIATION CORP.	 
	 	 
	 	 
	 	 
	 	 
	 	 
	Director 	 
	for and on behalf of 	 
	ALLSEAS MARINE S.A.	 
	 	 

 

 

Dated               June 2009

 

 

 

 

  

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00185-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00185-of-00352.parquet"}]]