Document:

d897508_ex4-7.htm

    EXHIBIT
4.7

    

    FORM OF
SUBORDINATED SECURITY DEBT INDENTURE

    

    

    EUROSEAS
LTD.

    

    

    SUBORDINATED
INDENTURE

    

    

    Dated as
of ______, 20__

    

    

    --------------------------------

    

    [Name of
Trustee]

    

    Trustee

    

     

     

    
      	 

    

     

    TABLE
OF CONTENTS

    

    
      	
              ARTICLE I

            	
              DEFINITIONS
      AND INCORPORATION BY REFERENCE

            	
              1

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      1.1

            	
              Definitions

            	
              1

            
	 
      	
              Section
      1.2

            	
              Other
      Definitions

            	
              5

            
	 
      	
              Section
      1.3

            	
              Incorporation
      by Reference of Trust Indenture Act

            	
              6

            
	 
      	
              Section
      1.4

            	
              Rules
      of Construction

            	
              6

            
	 
      	 
      	 
      
	
              ARTICLE
      II

            	
              THE
      SECURITIES

            	
              7

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      2.1

            	
              Issuable
      in Series

            	
              7

            
	 
      	
              Section
      2.2

            	
              Establishment
      of Terms of Series of Securities

            	
              7

            
	 
      	
              Section
      2.3

            	
              Execution
      and Authentication

            	
              9

            
	 
      	
              Section
      2.4

            	
              Registrar
      and Paying Agent

            	
              10

            
	 
      	
              Section
      2.5

            	
              Paying
      Agent to Hold Money in Trust

            	
              10

            
	 
      	
              Section
      2.6

            	
              Securityholder
      Lists

            	
              11

            
	 
      	
              Section
      2.7

            	
              Transfer
      and Exchange

            	
              11

            
	 
      	
              Section
      2.8

            	
              Mutilated,
      Destroyed, Lost and Stolen Securities

            	
              11

            
	 
      	
              Section
      2.9

            	
              Outstanding
      Securities

            	
              12

            
	 
      	
              Section
      2.10

            	
              Treasury
      Securities

            	
              13

            
	 
      	
              Section
      2.11

            	
              Temporary
      Securities

            	
              13

            
	 
      	
              Section
      2.12

            	
              Cancellation

            	
              13

            
	 
      	
              Section
      2.13

            	
              Defaulted
      Interest

            	
              13

            
	 
      	
              Section
      2.14

            	
              Global
      Securities

            	
              13

            
	 
      	
              Section
      2.15

            	
              CUSIP
      Numbers

            	
              15

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      III

            	
              REDEMPTION

            	
              15

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      3.1

            	
              Notice
      to Trustee

            	
              15

            
	 
      	
              Section
      3.2

            	
              Selection
      of Securities to be Redeemed

            	
              15

            
	 
      	
              Section
      3.3

            	
              Notice
      of Redemption

            	
              15

            
	 
      	
              Section
      3.4

            	
              Effect
      of Notice of Redemption

            	
              16

            
	 
      	
              Section
      3.5

            	
              Deposit
      of Redemption Price

            	
              16

            
	 
      	
              Section
      3.6

            	
              Securities
      Redeemed in Part

            	
              16

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      IV

            	
              COVENANTS

            	
              16

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      4.1

            	
              Payment
      of Principal and Interest

            	
              16

            
	 
      	
              Section
      4.2

            	
              SEC
      Reports

            	
              17

            
	 
      	
              Section
      4.3

            	
              Compliance
      Certificate

            	
              17

            
	 
      	
              Section
      4.4

            	
              Stay,
      Extension and Usury Laws

            	
              17

            
	 
      	
              Section
      4.5

            	
              Corporate
      Existence

            	
              17

            
	 
      	
              Section
      4.6

            	
              Taxes

            	
              18

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      V

            	
              SUCCESSORS

            	
              18

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      5.1

            	
              When
      Company May Merge, Etc

            	
              18

            
	 
      	
              Section
      5.2

            	
              Successor
      Corporation Substituted

            	
              18

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      VI

            	
              DEFAULTS
      AND REMEDIES

            	
              20

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      6.1

            	
              Events
      of Default

            	
              20

            
	 
      	
              Section
      6.2

            	
              Acceleration
      of Maturity; Rescission and Annulment

            	
              21

            
	 
      	
              Section
      6.3

            	
              Collection
      of Indebtedness and Suits for Enforcement by Trustee

            	
              21

            
	 
      	
              Section
      6.4

            	
              Trustee
      May File Proofs of Claim

            	
              22

            
	 
      	
              Section
      6.5

            	
              Trustee
      May Enforce Claims Without  Possession of
    Securities

            	
              22

            
	 
      	
              Section
      6.6

            	
              Application
      of Money Collected

            	
              23

            
	 
      	
              Section
      6.7

            	
              Limitation
      on Suits

            	
              23

            
	 
      	
              Section
      6.8

            	
              Unconditional
      Right of Holders to Receive Principal and Interest

            	
              23

            
	 
      	
              Section
      6.9

            	
              Restoration
      of Rights and Remedies

            	
              24

            
	 
      	
              Section
      6.10

            	
              Rights
      and Remedies Cumulative

            	
              24

            
	 
      	
              Section
      6.11

            	
              Delay
      or Omission Not Waiver

            	
              24

            
	 
      	
              Section
      6.12

            	
              Control
      by Holders

            	
              24

            
	 
      	
              Section
      6.13

            	
              Waiver
      of Past Defaults

            	
              25

            
	 
      	
              Section
      6.14

            	
              Undertaking
      for Costs

            	
              25

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      VII

            	
              TRUSTEE

            	
              25

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      7.1

            	
              Duties
      of Trustee

            	
              25

            
	 
      	
              Section
      7.2

            	
              Rights
      of Trustee

            	
              27

            
	 
      	
              Section
      7.3

            	
              Individual
      Rights of Trustee

            	
              27

            
	 
      	
              Section
      7.4

            	
              Trustee’s
      Disclaimer

            	
              27

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              Section
      7.5

            	
              Notice
      of Defaults

            	
              28

            
	 
      	
              Section
      7.6

            	
              Reports
      by Trustee to Holders

            	
              28

            
	 
      	
              Section
      7.7

            	
              Compensation
      and Indemnity

            	
              28

            
	 
      	
              Section
      7.8

            	
              Replacement
      of Trustee

            	
              29

            
	 
      	
              Section
      7.9

            	
              Successor
      Trustee by Merger, etc

            	
              30

            
	 
      	
              Section
      7.10

            	
              Eligibility;
      Disqualification

            	
              30

            
	 
      	
              Section
      7.11

            	
              Preferential
      Collection of Claims Against Company

            	
              30

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      VIII

            	
              SATISFACTION
      AND DISCHARGE; DEFEASANCE

            	
              30

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      8.1

            	
              Satisfaction
      and Discharge of Indenture

            	
              30

            
	 
      	
              Section
      8.2

            	
              Application
      of Trust Funds; Indemnification

            	
              31

            
	 
      	
              Section
      8.3

            	
              Legal
      Defeasance of Securities of any Series

            	
              32

            
	 
      	
              Section
      8.4

            	
              Covenant
      Defeasance

            	
              33

            
	 
      	
              Section
      8.5

            	
              Repayment
      to Company

            	
              35

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      IX

            	
              AMENDMENTS
      AND WAIVERS

            	
              35

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      9.1

            	
              Without
      Consent of Holders

            	
              35

            
	 
      	
              Section
      9.2

            	
              With
      Consent of Holders

            	
              35

            
	 
      	
              Section
      9.3

            	
              Limitations

            	
              36

            
	 
      	
              Section
      9.4

            	
              Compliance
      with Trust Indenture Act

            	
              37

            
	 
      	
              Section
      9.5

            	
              Revocation
      and Effect of Consents

            	
              37

            
	 
      	
              Section
      9.6

            	
              Notation
      on or Exchange of Securities

            	
              37

            
	 
      	
              Section
      9.7

            	
              Trustee
      Protected

            	
              37

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      X

            	
              MISCELLANEOUS

            	
              37

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      10.1

            	
              Trust
      Indenture Act Controls

            	
              37

            
	 
      	
              Section
      10.2

            	
              Notices

            	
              38

            
	 
      	
              Section
      10.3

            	
              Communication
      by Holders with Other Holders

            	
              38

            
	 
      	
              Section
      10.4

            	
              Certificate
      and opinion as to Conditions Precedent

            	
              39

            
	 
      	
              Section
      10.5

            	
              Statements
      Required in Certificate or opinion

            	
              39

            
	 
      	
              Section
      10.6

            	
              Rules
      by Trustee and Agents

            	
              39

            
	 
      	
              Section
      10.7

            	
              Legal
      Holidays

            	
              39

            
	 
      	
              Section
      10.8

            	
              No
      Recourse Against Others

            	
              39

            
	 
      	
              Section
      10.9

            	
              Counterparts

            	
              40

            
	 
      	
              Section
      10.10

            	
              Governing
      Laws

            	
              40

            
	 
      	
              Section
      10.11

            	
              No
      Adverse Interpretation of Other Agreements

            	
              40

            
	 
      	
              Section
      10.12

            	
              Successors

            	
              40

            
	 
      	
              Section
      10.13

            	
              Severability

            	
              40

            
	 
      	
              Section
      10.14

            	
              Table
      of Contents, Headings, Etc

            	
              40

            
	 
      	
              Section
      10.15

            	
              Securities
      in a Foreign Currency or in ECU

            	
              40

            
	 
      	
              Section
      10.16

            	
              Judgment
      Currency

            	
              41

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      XI

            	
              SINKING
      FUNDS

            	
              42

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      11.1

            	
              Applicability
      of Article

            	
              42

            
	 
      	
              Section
      11.2

            	
              Satisfaction
      of Sinking Fund Payments with Securities

            	
              42

            

    

    
      	 
      	
              Section
      11.3

            	
              Redemption
      of Securities for Sinking Fund

            	
              43

            

    

     

    
       

      
        	 

      

       

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Indenture
dated as of _________, 20__ between Euroseas Ltd., a company organized under the
laws of the Marshall Islands (the “Company”) and [Name of Trustee], a
__________________ (the “Trustee”).  Each party agrees as follows for
the benefit of the other party and for the equal and ratable benefit of the
Holders of the Securities issued under this Indenture.

    

    Each
party agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Securities issued under this
Indenture.

    

    
       

      
        	 

      

       

    

    

    ARTICLE
I

    DEFINITIONS
AND INCORPORATION BY REFERENCE

    

    Section
1.1 Definitions.

    

    “Additional
Amounts” means any additional amounts which are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the
Company in respect of certain taxes imposed on Holders specified therein and
which are owing to such Holders.

    

    “Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlled by” and “under
common control with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities or by agreement or otherwise.

    

    “Agent”
means any Registrar, Paying Agent or Service Agent.

    

    “Authorized
Newspaper” means a newspaper in an official language of the country of
publication customarily published at least once a day for at least five days in
each calendar week and of general circulation in the place in connection with
which the term is used. If it shall be impractical in the opinion of the Trustee
to make any publication of any notice required hereby in an Authorized
Newspaper, any publication or other notice in lieu thereof that is made or given
by the Trustee shall constitute a sufficient publication of such
notice.

    

    “Bearer
Security” means any Security, including any interest coupon appertaining
thereto, that does not provide for the identification of the Holder
thereof.

    

    “Board of
Directors” means the Board of Directors of the Company or any duly authorized
committee thereof.

    

    “Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been adopted by the Board of
Directors or pursuant to authorization by the Board of Directors and to be in
full force and effect on the date of the certificate and delivered to the
Trustee.

    

    “Business
Day” means a day (other than Saturday or Sunday) on which the Depository and
banks in the City of New York, and banks in the city in which the Corporate
Trust Office of the Trustee is located, is open for business.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    “Certificated
Securities” means Securities in the form of physical, certificated Securities in
registered form.

    

    “Company”
means the party named as such above until a successor replaces it and thereafter
means the successor.

    

    “Company
Order” means a written order signed in the name of the Company by two Officers,
one of whom must be the Company’s principal executive officer, principal
financial officer or principal accounting officer.

    

    “Company
Request” means a written request signed in the name of the Company by its
Chairman of the Board, a President or a Vice President, and by its Chief
Financial Officer, its Secretary or an Assistant Secretary, and delivered to the
Trustee.

    

    “Corporate
Trust Office” means the office of the Trustee at which at any
particular  time its corporate  trust business shall be
principally administered.

    

    “Debt” of
any Person as of any date means, without duplication, all indebtedness of such
Person in respect of borrowed money, including all interest, fees and expenses
owed in respect thereto (whether or not the recourse of the lender is to the
whole of the assets of such Person or only to a portion thereof), or evidenced
by bonds, notes, debentures or similar instruments.

    

    “Default”
means any event which is, or after notice or passage of time would be, an Event
of Default.

    

    “Depository”
means, with respect to the Securities of any Series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated
as Depository for such Series by the Company, which Depository shall be a
clearing agency registered under the Exchange Act; and if at any time there is
more than one such Person, “Depository” as used with respect to the Securities
of any Series shall mean the Depository with respect to the Securities of such
Series.

    

    “Discount
Security” means any Security that provides for an amount less than the stated
Principal amount thereof to be due and payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 6.2.

    

    “Dollars”
means the currency of The United States of America.

    

    “ECU”
means the European Currency Unit as determined by the Commission of the European
Union.

    

    “Event of
Default” see Section 6.1.

    

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

    

    “Foreign
Currency” means any currency or currency unit issued by a government other than
the government of The United States of America.

    

    “Foreign
Government Obligations” means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that
issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    or (ii)
obligations of a Person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable or
redeemable at the option of the issuer thereof.

    

    “Global  Security”
or “Global  Securities” means a Security or Securities, as the case
may be, in the form established pursuant to Section 2.2 evidencing all or part
of a Series of Securities, issued to the Depository for such Series or its
nominee, and registered in the name of such Depository or nominee.

    

    “Holder”
or “Securityholder” means a Person in whose name a Security is registered or the
holder of a Bearer Security.

    

    “Indenture”
means this Indenture as amended from time to time and shall include the form and
terms of particular Series of Securities established as contemplated
hereunder.

    

    “Maturity,”
when used with respect to any Security or installment of Principal thereof,
means the date on which the Principal of such Security or such installment of
Principal becomes due and payable as therein or herein provided, whether at the
Stated Maturity or by declaration of acceleration, call for redemption, notice
of option to elect repayment or otherwise.

    

    “Officer”
means the Chairman of the Board, the President, any Vice-President, the
Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of
the Company.

    

    “Officers’
Certificate” means a certificate signed by two Officers, one of whom must be the
Company’s principal executive officer, principal financial officer or principal
accounting officer.

    

    “Opinion
of Counsel” means a written opinion of legal counsel who is reasonably
acceptable to the Trustee. Such legal counsel may be an employee of or counsel
to the Company.

    

    “Participants”
means those Persons designated as participants by the Depositary.

    

    “Person”
means any individual,  corporation,  partnership, joint
venture, association, limited liability company, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

    

    “Principal”
of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on, and any Additional Amounts in respect of, the
Security.

    

    “Responsible
Officer” means any officer of the Trustee in its Corporate Trust Office and also
means, with respect to a particular corporate trust matter, any other officer to
whom any corporate trust matter is referred because of his or her knowledge of
and familiarity with a particular subject.

    

    “SEC”
means the Securities and Exchange Commission.

    

    “Security”
or “Securities” means the debentures, notes or other debt instruments of the
Company of any Series authenticated and delivered under this
Indenture.

    

    “Series”
or “Series of Securities” means each series of debentures, notes or other debt
instruments of the Company created pursuant to Sections 2.1 and 2.2
hereof.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    “Significant
Subsidiary” means (i) any direct or indirect Subsidiary of the Company that
would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of
Regulation S-X, promulgated pursuant to the Securities Act of 1933, as amended,
as such regulation is in effect on the date hereof, or (ii) any group of direct
or indirect Subsidiaries of the Company that, taken together as a group, would
be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation
S-X, promulgated pursuant to the Securities Act of 1933, as amended, as such
regulation is in effect on the date hereof.

    

    “Stated
Maturity” when used with respect to any Security or any installment of Principal
thereof or interest thereon, means the date specified in such Security as the
fixed date on which the Principal of such Security or such installment of
Principal or interest is due and payable.

    

    “Subsidiary”
of any specified Person means any corporation of which at least a majority of
the outstanding stock having by the terms thereof ordinary voting power for the
election of directors of such corporation (irrespective of whether or not at the
time stock of any other class or classes of such corporation shall have or might
have voting power by reason of the happening of any contingency) is at the time
directly or indirectly owned by such Person, or by one or more other
Subsidiaries, or by such Person and one or more other Subsidiaries.

    

    “TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in
effect on the date of this Indenture; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the
extent required by any such amendment, the Trust Indenture Act as so
amended.

    

    “Trustee”
means the Person named as the “Trustee” in the first paragraph of this
instrument until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Trustee” shall mean or
include each Person who is then a Trustee hereunder, and if at any time there is
more than one such Person, “Trustee” as used with respect to the Securities of
any Series shall mean the Trustee with respect to Securities of that
Series.

    

    “U.S.
Government Obligations” means securities which are (i) direct obligations of The
United States of America for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of The United States of America the payment of
which is unconditionally guaranteed as a full faith and credit obligation by The
United States of America, and which in the case of (i) and (ii) are not callable
or redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation evidenced by such
depository receipt.

    

    Section
1.2 Other
Definitions.

    

    
      	
              TERM

            	
              DEFINED
      IN SECTION

            
	 	 
	
              “Bankruptcy
      Law”

            	
              6.1

            
	
              “Custodian”

            	
              6.1

            
	
              “Event
      of Default”

            	
              6.1

            
	
              “Journal”

            	
              10.15

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
              TERM

            	
              DEFINED
      IN SECTION

            
	 	 
	
              “Judgment
      Currency”

            	
              10.16

            
	
              “Legal
      Holiday”

            	
              10.7

            
	
              “Mandatory
      Sinking Fund Payment”

            	
              11.1

            
	
              “Market
      Exchange Rate”

            	
              10.15

            
	
              “New
      York Banking Day”

            	
              10.16

            
	
              “Optional
      Sinking Fund Payment”

            	
              11.1

            
	
              “Paying
      Agent”

            	
              2.4

            
	
              “Registrar”

            	
              2.4

            
	
              “Required
      Currency”

            	
              10.16

            
	
              “Service
      Agent”

            	
              2.4

            
	
              “Successor
      Person”

               

            	
              5.1

            

    

    Section
1.3 Incorporation
by Reference of Trust Indenture Act.

    

    Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

    

    “Commission”
means the SEC.

    

    “Indenture
Securities” means the Securities.

    

    “Indenture
Securityholder” means a Securityholder.

    

    “Indenture
to be Qualified” means this Indenture.

    

    “Indenture
Trustee” or “institutional trustee” means the Trustee.

    

    “Obligor”
on the indenture securities means the Company and any successor obligor upon the
Securities.

    

    All other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA and not
otherwise defined herein are used herein as so defined.

    

    Section
1.4 Rules of
Construction.

    

    Unless
the context otherwise requires:

    

    (a) a
term has the meaning assigned to it;

    

    (b) an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;

    

    (c) references
to “generally accepted accounting principles” shall mean generally accepted
accounting principles in effect as of the time when and for the period as to
which such accounting principles are to be applied;

    

    (d) “or”
is not exclusive;

    

    (e) words
in the singular include the plural, and in the plural include the singular;
and

    
      
         

      

      
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    (f) provisions
apply to successive events and transactions.

     

    
      
        	 

      

       

    

    ARTICLE
II

    THE
SECURITIES

    

    Section
2.1 Issuable in
Series.

    

    The
aggregate principal amount of Securities that may be authenticated and delivered
under this Indenture is unlimited. The Securities may be issued in one or more
Series. All Securities of a Series shall be identical except as may be set forth
in a Board Resolution, a supplemental indenture or an Officers’ Certificate
detailing the adoption of the terms thereof pursuant to the authority granted
under a Board Resolution. In the case of Securities of a Series to be issued
from time to time, the Board Resolution, Officers’ Certificate or supplemental
indenture may provide for the method by which specified terms (such as interest
rate, maturity date, record date or date from which interest shall accrue) are
to be determined. Securities may differ between Series in respect of any
matters, provided that all Series of Securities shall be equally and ratably
entitled to the benefits of the Indenture.

    

    Section
2.2 Establishment
of Terms of Series of Securities.

    

    At or
prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection 2.2.1 and
either as to such Securities within the Series or as to the Series generally in
the case of Subsections 2.2.2 through 2.2.20) by a Board Resolution, a
supplemental indenture or an Officers’ Certificate pursuant to authority granted
under a Board Resolution:

    

    2.2.1 the
title, designation, aggregate Principal amount and authorized denominations of
the Securities of the Series;

    

    2.2.2 the
price or prices, (expressed as a percentage of the aggregate Principal amount
thereof) at which the Securities of the Series will be issued;

    

    2.2.3 the
date or dates on which the Principal of the Securities of the Series is
payable;

    

    2.2.4 the
rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any
commodity, commodity index, stock exchange index or financial index) at which
the Securities of the Series shall bear interest, if any, the date or dates from
which such interest, if any, shall commence and be payable and any regular
record date for the interest payable on any interest payment date;

    

    2.2.5 any
optional or mandatory sinking fund provisions or conversion or exchangeability
provisions upon which Securities of the Series shall be redeemed or
purchased;

    

    2.2.6 the
date, if any, after which and the price or prices at which the Securities of the
Series may be optionally redeemed or must be mandatorily redeemed and any other
terms and provisions of optional or mandatory provisions;

    

    
      
         

      

      
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    2.2.7 if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be
issuable;

    

    2.2.8 if
other than the full Principal amount, the portion of the Principal amount of the
Securities of the Series that shall be payable upon declaration of acceleration
pursuant to Section 6.2 or provable in bankruptcy;

    

    2.2.9 any
addition to or change in the Events of Default which applies to any Securities
of the Series and any change in the right of the Trustee or the requisite
Holders of such Securities to declare the Principal amount thereof due and
payable pursuant to Section 6.2;

    

    2.2.10 the
currency or currencies, including composite currencies, in which payments of
Principal of, premium or interest, if any, on the Securities of the Series will
be payable, if other than the currency of the United States of
America;

    

    2.2.11 if
payments of Principal of, premium or interest, if any, on the Securities of the
Series will be payable, at the Company’s election or at the election of any
Holder, in a currency other than that in which the Securities of the Series are
stated to be payable, the period or periods within which, and the terms and
conditions upon which, the election may be made;

    

    2.2.12 if
payments of interest, if any, on the Securities of the Series will be payable,
at the Company’s election or at the election of any Holder, in cash or
additional securities, and the terms and conditions upon which the election may
be made;

    

    2.2.13 if
denominated in a currency or currencies other than the currency of the United
States of America, the equivalent price of the Securities of the Series in the
currency of the United States of America for purposes of determining the voting
rights of Holders of the Securities of the Series;

    

    2.2.14 if
the amount of payments of Principal, premium or interest may be determined with
reference to an index, formula or other method based on a coin or currency other
than that in which the Securities of the Series are stated to be payable, the
manner in which the amounts will be determined;

    

    2.2.15 any
restrictive covenants or other material terms relating to the Securities of the
Series, which may not be inconsistent with the Indenture;

    

    2.2.16 whether
the Securities of the Series will be issued in the form of Global Securities or
certificates in registered or bearer form;

    

    2.2.17 any
terms with respect to subordination;

    

    2.2.18 any
listing on any securities exchange or quotation system;

    

    2.2.19 additional
provisions, if any, related to defeasance and discharge of the offered debt
securities; and

    

    2.2.20 the
applicability of any guarantees.

    

    All
Securities of any one Series need not be issued at the same time and may be
issued from time to time, consistent with the terms of this Indenture, if so
provided by or pursuant to the Board Resolution, supplemental indenture or
Officers’ Certificate referred to above, and the authorized
Principal

    
      
         

      

      
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    amount of
any Series may not be increased to provide for issuance of additional Securities
of such Series, unless otherwise provided in such Board Resolution, supplemental
Indenture or Officers’ Certificate.

    

    Section
2.3 Execution and
Authentication.

    

    Two
Officers shall sign the Securities for the Company by manual or facsimile
signature.

    

    If an
Officer whose signature is on a Security no longer holds that office at the time
the Security is  authenticated,  the Security shall
nevertheless be valid.

    

    A
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent. The signature shall be conclusive evidence
that the Security has been authenticated under this Indenture.

    

    The
Trustee shall at any time, and from time to time, authenticate Securities for
original issue in the Principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the
Trustee of a Company  Order.  Such Company Order may
authorize authentication and delivery pursuant to oral or electronic
instructions from the Company or its duly authorized agent or agents, which oral
instructions shall be promptly confirmed in writing. Each Security shall be
dated the date of its authentication unless otherwise provided by a Board
Resolution, a supplemental indenture hereto or an Officers’
Certificate.

    

    The
aggregate Principal amount of Securities of any Series outstanding at any time
may not exceed any limit upon the maximum Principal amount for such Series set
forth in the Board Resolution, supplemental indenture hereto or Officers’
Certificate delivered pursuant to Section 2.2, except as provided in Section
2.8.

    

    Prior to
the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.2) shall be fully protected in relying on: (a) the Board
Resolution, supplemental indenture hereto or Officers, Certificate establishing
the form of the Securities of that Series or of Securities within that Series
and the terms of the Securities of that Series or of Securities within that
Series, (b) an Officers’ Certificate complying with Section 10.4, and (c) an
Opinion of Counsel complying with Section 10.4.

    

    The
Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if the Trustee in
good faith by its board of directors or trustees, executive committee or a trust
committee of directors and/or vice-presidents shall determine that such action
would expose the Trustee to personal liability to Holders of any then
outstanding Series of Securities.

    

    The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company or
an Affiliate.

    

    Section
2.4 Registrar and
Paying Agent.

    

    The
Company shall maintain, with respect to each Series of Securities, at the place
or places specified with respect to such Series pursuant to Section 2.2, an
office or agency where Securities

    
      
         

      

      
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    of such
Series may be presented or surrendered for payment (“Paying Agent”), where
Securities of such Series may be surrendered for registration of transfer or
exchange (“Registrar”) and where notices and demands to or upon the Company in
respect of the Securities of such Series and this Indenture may be served
(“Service Agent”). The Registrar shall keep a register with respect to each
Series of Securities and to their transfer and exchange. The Company will give
prompt written notice to the Trustee of the name and address, and any change in
the name or address, of each Registrar, Paying Agent or Service Agent. If at any
time the Company shall fail to maintain any such required Registrar, Paying
Agent or Service Agent or shall fail to furnish the Trustee with the name and
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands.

    

    The
Company may also from time to time designate one or more co-registrars,
additional Paying Agents or additional Service Agents and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligations to
maintain a Registrar, Paying Agent and Service Agent in each place so specified
pursuant to Section 2.2 for Securities of any Series for such purposes. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the name or address of any such co-registrar,
additional Paying Agent or additional Service Agent. The term “Registrar”
includes any co-registrar; the term “Paying Agent” includes any additional
paying agent; and the term “Service Agent” includes any additional service
agent.

    

    The
Company hereby appoints the Trustee the initial Registrar, Paying Agent and
Service Agent for each Series unless another Registrar, Paying Agent or Service
Agent, as the case may be, is appointed prior to the time Securities of that
Series are first issued.

    

    Section
2.5 Paying Agent
to Hold Money in Trust.

    

    The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of Principal of or interest on the Series of
Securities, and will notify the Trustee of any Default by the Company in making
any such payment. While any such Default continues, the Trustee may require a
Paying Agent to pay all money held by it to the Trustee. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of Securityholders of any Series of Securities all money
held by it as Paying Agent.

    

    Section
2.6 Securityholder
Lists.

    

    The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA Section 312(a).
If the Trustee is not the Registrar, the Company shall furnish to the Trustee at
least ten days before each interest payment date and at such other times as the
Trustee may request in writing a list, in such form and as of such date as the
Trustee may reasonably require, of the names and addresses of Securityholders of
each Series of Securities.

     

    
      
         

      

      
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    Section
2.7 Transfer and
Exchange.

     

    Where
Securities of a Series are presented to the Registrar or a co-registrar with a
request to register a transfer or to exchange them for an equal Principal amount
of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are met. To permit
registrations of transfers and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request. No service charge shall be made for any
registration of transfer or exchange (except as otherwise expressly permitted
herein), but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in
connection  therewith  (other than any such transfer tax or
similar governmental charge payable upon exchanges pursuant to Sections 2.11,
3.6 or 9.6).

    

    Neither
the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning at
the opening of business fifteen days immediately preceding the mailing of a
notice of redemption of Securities of that Series selected for redemption and
ending at the close of business on the day of such mailing, or (b) to register
the transfer of or exchange Securities of any Series selected, called or being
called for redemption as a whole or the portion being redeemed of any such
Securities selected, called or being called for redemption in part.

    

    Section
2.8 Mutilated,
Destroyed, Lost and Stolen Securities.

    

    If any
mutilated Security is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a new Security
of the same Series and of like tenor and Principal amount and bearing a number
not contemporaneously outstanding.

    

    If there
shall be delivered to the Company and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
Agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and Principal
amount and bearing a number not contemporaneously outstanding.

    

    In case
any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a
new Security, pay such Security.

    

    Upon the
issuance of any new Security under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.

    

    Every new
Security of any Series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of that Series duly issued hereunder.

    

    The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities.

    

     

    
      
         

      

      
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    Section
2.9 Outstanding
Securities.

     

    The
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not
outstanding.

    

    If a
Security is replaced pursuant to Section 2.8, it ceases to be outstanding until
the Trustee receives proof satisfactory to it that the replaced Security is held
by a bona fide purchaser.

    

    If the
Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
thereof) holds on the Maturity of Securities of a Series money sufficient to pay
such Securities payable on that date, then on and after that date such
Securities of the Series cease to be outstanding and interest on them ceases to
accrue.

    

    A
Security does not cease to be outstanding because the Company or an Affiliate
holds the Security.

    

    In
determining whether the Holders of the requisite Principal amount of outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, the Principal amount of a Discount Security that
shall be deemed to be outstanding for such purposes shall be the amount of the
Principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 6.2.

    

    Section
2.10 Treasury
Securities.

    

    In
determining whether the Holders of the required Principal amount of Securities
of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver Securities of a Series owned by the Company or an
Affiliate shall be disregarded, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver only Securities of a Series
that the Trustee knows are so owned shall be so disregarded.

    

    Section
2.11 Temporary
Securities.

    

    Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary securities upon a Company Order. Temporary
Securities shall be substantially in the form of definitive Securities but may
have variations that the Company considers appropriate for temporary Securities.
without unreasonable delay, the Company shall prepare and the Trustee upon
request shall authenticate definitive Securities of the same Series and date of
Maturity in exchange for temporary Securities. Until so exchanged, temporary
securities shall have the same rights under this Indenture as the definitive
Securities.

    

    Section
2.12 Cancellation.

    

    The
Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. The
Trustee shall cancel all Securities surrendered for transfer, exchange, payment,
replacement or cancellation and shall destroy such canceled Securities (subject
to the record retention requirement of the Exchange Act) and deliver a
certificate of such destruction to the Company, unless the Company otherwise
directs. The Company may not issue new Securities to replace Securities that it
has paid or delivered to the Trustee for cancellation.

    
      
         

      

      
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    Section
2.13 Defaulted
Interest.

    

    If the
Company defaults in a payment of interest on a Series of Securities, it shall
pay the defaulted interest, plus, to the extent permitted by law, any interest
payable on the defaulted interest, to the Persons who are Securityholders of the
Series on a subsequent special record date. The Company shall fix the record
date and payment date. At least 30 days before the record date, the Company
shall mail to the Trustee and to each Securityholder of the Series a notice that
states the record date, the payment date and the amount of interest to be paid.
The Company may pay defaulted interest in any other lawful manner.

    

    Section
2.14 Global
Securities.

    

    2.14.1 Terms
of Securities.  A Board Resolution, a supplemental indenture hereto or
an Officers’ Certificate shall establish whether the Securities of a Series
shall be issued in whole or in part in the form of one or more
Global  Securities and the Depository for such Global Security or
Securities.

    

    2.14.2 Transfer
and Exchange.  Notwithstanding any provisions to the contrary
contained in Section 2.7 of the Indenture and in addition thereto, any Global
Security shall be exchangeable pursuant to Section 2.7 of the Indenture for
Securities registered in the names of Holders other than the Depository for such
Security or its nominee only if (i) such Depository notifies the Company that it
is unwilling or unable to continue as Depository for such Global Security or if
at any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor
Depository within 90 days of such event, (ii) the Company executes and delivers
to the Trustee an Officers’ Certificate to the effect that such Global Security
shall be so exchangeable or (iii) an Event of Default with respect to the
Securities represented by such Global Security shall have happened and be
continuing. Any Global Security that is exchangeable pursuant to the preceding
sentence shall be exchangeable for Securities registered in such names as the
Depository shall direct in writing in an aggregate Principal amount equal to the
principal amount of the Global Security with like tenor and terms.

    

    Except as
provided in this Section 2.14.2, a Global Security may not be transferred except
as a whole by the Depository with respect to such Global Security to a nominee
of such Depository, by a nominee of such Depository to such Depository or
another nominee of such Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such a successor Depository.

    

    2.14.3 Legend.  Any
Global Security issued hereunder shall bear a legend in substantially the
following form:

    

    “This
Security is a Global Security within the meaning of the Indenture hereinafter
referred to and is registered in the name of the Depository or a nominee of the
Depository. This Security is exchangeable for Securities registered in the name
of a Person other than the Depository or its nominee only in the limited
circumstances described in the Indenture, and may not be transferred except as a
whole by the Depository to a nominee of the Depository, by a nominee of the
Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a
successor Depository.”

    

    
      
         

      

      
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    2.14.4 Acts
of Holders.  The Depository, as a Holder, may appoint agents and
otherwise authorize Participants to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action which a Holder
is entitled to give or take under the Indenture.

    

    2.14.5 Payments.  Notwithstanding
the other provisions of this Indenture, unless otherwise specified as
contemplated by Section 2.2, payment of the Principal of and interest, if any,
on any Global Security shall be made to the Holder thereof at their registered
office.

    

    2.14.6 Consents,
Declaration and Directions.  Except as provided in Section 2.14.5, the
Company, the Trustee and any Agent shall treat a Person as the Holder of such
Principal amount of outstanding Securities of such Series represented by a
Global Security as shall be specified in a written statement of the Depositary
with respect to such Global Security, for purposes of obtaining any consents,
declarations, waivers or directions required to be given by the Holders pursuant
to this Indenture.

    

    Section
2.15 CUSIP
Numbers.

    

    The
Company in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption
as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other elements of identification printed on
the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers.

    

    
       

      
        	 

      

       

    ARTICLE
III

    REDEMPTION

    

    Section
3.1 Notice to
Trustee.

    

    The
Company may, with respect to any Series of Securities, reserve the right to
redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at
such time and on such terms as provided for in such Securities. If a Series of
Securities is redeemable and the Company wants or is obligated to redeem prior
to the Stated Maturity thereof all or part of the Series of Securities pursuant
to the terms of such Securities, it shall notify the Trustee of the redemption
date and the Principal amount of Series of Securities to be redeemed. The
Company shall give the notice at least 45 days before the redemption date (or
such shorter notice as may be acceptable to the Trustee).

    

    Section
3.2 Selection of
Securities to be Redeemed.

    

    Unless
otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, if less than all the
Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate. The Trustee shall make the selection from Securities of
the Series outstanding not previously called for redemption. The Trustee may
select for redemption portions of the Principal of Securities of the Series that
have denominations larger than $1,000. Securities of the Series and portions of
them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or,
with respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2.7, the minimum Principal denomination for each Series
and integral multiples thereof. Provisions of this Indenture
that

    
      
         

      

      
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    apply to
Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.

    

    Section
3.3 Notice of
Redemption.

    

    Unless  otherwise  indicated
for a particular  Series by Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate, at least 30 days but not more than 60 days
before a redemption date, the Company shall mail a notice of redemption by
first-class mail to each Holder whose Securities are to be redeemed and if any
Bearer Securities are outstanding, publish on one occasion a notice in an
Authorized Newspaper.

    

    The
notice shall identify the Securities of the Series to be redeemed and shall
state:

    

    (a) the
redemption date;

    

    (b) the
redemption price;

    

    (c) the
name and address of the Paying Agent;

    

    (d) that
Securities of the Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

    

    (e) that
interest on Securities of the Series called for redemption ceases to accrue on
and after the redemption date; and

    

    (f) any
other information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.

    

    At the
Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at its expense.

    

    Section
3.4 Effect of
Notice of Redemption.

    

    Once
notice of redemption is mailed or published as provided in Section 3.3,
Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. A notice of redemption may not be
conditional. Upon surrender to the Paying Agent, such Securities shall be paid
at the redemption price plus accrued interest to the redemption
date.

    

    Section
3.5 Deposit of
Redemption Price.

    

    On or
before the redemption date, the Company shall deposit with the Paying Agent
money sufficient to pay the redemption price of and accrued interest, if any, on
all Securities to be redeemed on that date.

    

    Section
3.6 Securities
Redeemed in Part.

    

    Upon
surrender of a Security that is redeemed in part, the Trustee shall authenticate
for the Holder a new Security of the same Series and the same Maturity equal in
Principal amount to the unredeemed portion of the Security
surrendered.

     

    
      
         

      

      
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    ARTICLE
IV

    COVENANTS

    

    Section
4.1 Payment of
Principal and Interest.

    

    The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will duly and punctually pay the Principal of and interest,
if any, on the Securities of that Series in accordance with the terms of such
Securities and this Indenture.

    

    Section
4.2 SEC
Reports.

    

    The
Company shall deliver to the Trustee within 15 days after it files them with the
SEC copies of the annual reports and of the information, documents, and other
reports (or copies of such portions of any of the foregoing as the SEC may by
rules and regulations prescribe) which the Company is required to file with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall
comply with the other provisions of TIA Section 314(a).

    

    Section
4.3 Compliance
Certificate.

    

    The
Company shall deliver to the Trustee, within 90 days after the end of each
fiscal year of the Company, an Officers Certificate signed by two of the
Company’s Officers stating that a review of the activities of the Company and
its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture,  and further stating,  as to each such Officer
signing such certificate, that to the best of his knowledge the Company has
kept, observed, performed and fulfilled each and every covenant contained in
this Indenture and is not in default in the performance or observance of any of
the terms, provisions and conditions hereof (or, if a Default or Event of
Default shall have occurred, describing all such Defaults or Events of Default
of which he may have knowledge).

    

    The
Company will, so long as any of the Securities are outstanding, deliver to the
Trustee, forthwith upon becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect
thereto.

    

    Section
4.4 Stay,
Extension and Usury Laws.

    

    The
Company covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture or the Securities; and the Company (to the extent
it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law and covenants that it will not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
has been enacted.

    

    Section
4.5 Corporate
Existence.

    

    Subject
to Article V, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other

    
      
         

      

      
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    existence
of each Significant Subsidiary in accordance with the respective organizational
documents of each Significant Subsidiary and the rights (charter and statutory),
licenses and franchises of the Company and its Significant Subsidiaries;
provided, however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence of
any Significant Subsidiary, if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries taken as a whole and that the loss thereof is
not adverse in any material respect to the Holders.

    

    Section
4.6 Taxes.

    

    The
Company  shall,  and shall cause each of
its  Significant Subsidiaries  to, pay prior to
delinquency  all taxes,  assessments and governmental
levies, except as contested in good faith and by appropriate
proceedings.

    

    
       

      
        	 

      

       

    

    

    ARTICLE
V

    SUCCESSORS

    

    Section
5.1 When Company
May Merge, Etc.

    

    The
Company shall not consolidate with or merge into any other Person in a
transaction in which we are not the surviving entity, or convey, transfer or
lease all or substantially all of its properties and assets to any Person (a
“Successor Person”), unless:

    

    (a) the
Successor Person (if any) is a corporation, partnership, trust or other entity
organized and validly existing under the laws of the Marshall Islands or any
U.S. domestic jurisdiction and expressly assumes the Company’s obligations on
the Securities and under this Indenture; and

    

    (b) immediately
after giving effect to the transaction, no Default or Event of Default, shall
have occurred and be continuing.

    

    The
Company shall deliver to the Trustee prior to the consummation of the proposed
transaction an Officers’ Certificate to the foregoing effect and an Opinion of
Counsel stating that the proposed transaction and such supplemental indenture
comply with this Indenture.

    

    Section
5.2 Successor
Corporation Substituted.

    

    Upon any
consolidation or merger, or any sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Company in accordance with Section
5.1, the Successor Person formed by such consolidation or into or with which the
Company is merged or to which such sale, lease, conveyance or other disposition
is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture with the same effect as if such
Successor Person has been named as the Company herein; provided, however, that
the predecessor company in the case of a sale, lease, conveyance or other
disposition shall not be released from the obligation to pay the Principal of
and interest, if any, on the Securities.

    

     

    
      
         

      

      
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      ARTICLE
VI

      DEFAULTS
AND REMEDIES

    

    

    Section
6.1 Events of
Default.

    

    “Event of
Default,” wherever used herein with respect to Securities of any Series, means
any one of the following events, unless in the establishing Board Resolution,
supplemental indenture or Officers’ Certificate, it is provided that such Series
shall not have the benefit of said Event of Default:

    

    (a) Default
in the payment of any interest on any Security of that Series when it becomes
due and payable, and continuance of such Default for a period of 30 days (unless
the entire amount of such payment is deposited by the Company with the Trustee
or with a Paying Agent prior to the expiration of such period of 30 days);
or

    

    (b) Default
in the payment of the Principal of any Security of that Series at its Maturity;
or

    

    (c) Default
in the deposit of any sinking fund payment, when and as due in respect of any
Security of that Series; or

    

    (d) Default
in the performance or breach of any covenant of the Company in this Indenture,
which Default continues uncured for a period of 60 days after there has been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in Principal amount of
the outstanding Securities of that Series a written notice specifying such
Default or breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; or

    

    (e) Default
under any Debt of the Company (including a Default with respect to Securities of
any Series other than that Series) or any Subsidiary, whether such Debt now
exists or shall hereafter be created, if (A) such Default results from the
failure to pay any such Debt when it becomes due and (B) such Debt is not
discharged or such acceleration is not rescinded or annulled within 30 days
after written notice to the Company by the holder or holders of such Debt in the
manner provided for in the applicable debt instrument; provided, that if the
Default with respect to such Debt is remedied or cured by the Company or waived
by the holders of such Debt before entry of judgment in favor of the relevant
trustee, then the Event of Default under this Indenture will be deemed likewise
to have been remedied, cured or waived; or

    

    (f) the
Company pursuant to or within the meaning of any Bankruptcy Law:

    

    (i) commences
a voluntary case,

    

    (ii) consents
to the entry of an order for relief against it in an involuntary
case,

    

    (iii) consents
to the appointment of a Custodian of it or for all or substantially all of its
property,

    

    (iv) makes
a general assignment for the benefit of its creditors, or

    

    (v) generally
is unable to pay its Debts as the same become due; or

    

    
      
         

      

      
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    (g) a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

    

    (i) is
for relief against the Company or any of its Significant Subsidiaries in an
involuntary case,

    

    (ii) appoints
a Custodian of the Company or any of its Significant Subsidiaries or for all or
substantially all of its property, or

    

    (iii) orders
the liquidation of the Company or any of its Significant Subsidiaries, and the
order or decree remains unstayed and in effect for 60 days; or

    

    (h) any
other Event of Default provided with respect to Securities of that Series, which
is specified in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate, in accordance with Section 2.2.18.

    

    No Event
of Default with respect to a particular Series of Securities (except with
respect to subsections (f) and (g) above) necessarily constitutes an Event of
Default with respect to any other Series of Securities.

    

    The term
“Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law
for the relief of debtors. The term “Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.

    

    Section
6.2 Acceleration
of Maturity; Rescission and Annulment.

    

    If an
Event of Default with respect to Securities of any Series at the time
outstanding occurs and is continuing, then in every such case the Trustee or the
Holders of not less than 25% in Principal amount of the outstanding Securities
of that Series may declare the Principal amount (or, if any Securities of that
Series are Discount Securities, such portion of the Principal amount as may be
specified in the terms of such Securities) of and accrued and unpaid interest,
if any, on all of the Securities of that Series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such Principal amount (or specified
amount) and accrued and unpaid interest, if any, shall become immediately due
and payable.

    

    The
Holders of not less than a majority in Principal amount of the outstanding
Securities of that Series, by written notice to the Trustee, may rescind any
declaration of acceleration of such Securities of that Series and its
consequences if all existing Events of Default (other than the nonpayment of
Principal of or interest on such Securities that shall have become due by such
declaration) shall have been cured or waived.

    

    Section
6.3 Collection of
Indebtedness and Suits for Enforcement by Trustee.

    

    If an
Event of Default with respect to any Securities of any Series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders of Securities of such Series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.

     

    
      
         

      

      
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    Section
6.4 Trustee May
File Proofs of Claim.

     

    In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization,  arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the Principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue Principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,

    

    (a) to
file and prove a claim for the whole amount of Principal and interest owing and
unpaid in respect of the Securities and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and of the Holders allowed
in such judicial proceeding, and

    

    (b) to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.7.

    

    Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

    

    Section
6.5 Trustee May
Enforce Claims Without  Possession of Securities.

    

    All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after
provision  for the  payment of
the  reasonable  compensation,  expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

    

    Section
6.6 Application
of Money Collected.

    

    Any money
collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of Principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid: and

    

    First: To
the payment of all amounts due the Trustee under Section 7.7;

    

    Second:
To the payment of the amounts then due and unpaid for Principal of and interest
on the Securities in respect of which or for the benefit of which such money has
been collected, ratably, without preference or priority of any kind, according
to the amounts due and payable on such Securities for Principal and interest,
respectively; and

    

    
      
         

      

      
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    Third: To
the Company.

    

    Section
6.7 Limitation on
Suits.

    

    No Holder
of any Security of any Series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder, unless

    

    (a) such
Holder has previously given written notice to the Trustee of a continuing Event
of Default with respect to the Securities of that Series;

    

    (b) the
Holders of not less than 25% in Principal amount of the outstanding Securities
of that Series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

    

    (c) such
Holder or Holders have offered to the Trustee reasonable indemnity against the
costs, expenses and liabilities to be incurred in compliance with such
request;

    

    (d) the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

    

    (e) no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in Principal amount of
the outstanding Securities of that Series; it being understood and intended that
no one or more of such Holders shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all such Holders.

    

    Section
6.8 Unconditional
Right of Holders to Receive Principal and Interest.

    

    Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the Principal
of and interest, if any, on such Security on the Stated Maturity or Stated
Maturities expressed in such Security (or, in the case of redemption, on the
redemption date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such
Holder.

    

    Section
6.9 Restoration
of Rights and Remedies.

    

    If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

    

    Section
6.10 Rights and
Remedies Cumulative.

    

    Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and

    
      
         

      

      
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    remedy
shall, to the extent permitted by law, be cumulative and in addition to every
other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

    

    Section
6.11 Delay or
Omission Not Waiver.

    

    No delay
or omission of the Trustee or of any Holder of any Securities to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may
be.

    

    Section
6.12 Control by
Holders.

    

    The
Holders of a majority in Principal amount of the outstanding Securities of any
Series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee, with respect to the Securities of such
Series, provided that

    

    (a) such
direction shall not be in conflict with any rule of law or with this
Indenture,

    

    (b) the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and

    

    (c) subject
to the provisions of Section 6.1, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith shall, by a Responsible
Officer of the Trustee, determine that the proceeding so directed would involve
the Trustee in personal liability.

    

    Section
6.13 Waiver of
Past Defaults.

    

    The
Holders of not less than a majority in Principal amount of the outstanding
Securities of any Series may on behalf of the Holders of all the Securities of
such Series waive any past Default hereunder with respect to such Series and its
consequences, except a Default in the payment of the Principal of or interest on
any Security of such Series (provided, however, that the Holders of a majority
in Principal amount of the outstanding Securities of any Series may rescind an
acceleration and its consequences, including any related payment Default that
resulted from such acceleration). Upon any such waiver, such Default shall cease
to exist, and any Event of Default arising therefrom shall be deemed to have
been cured, for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent
thereon.

    

    Section
6.14 Undertaking
for Costs.

    

    All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not

    
      
         

      

      
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    apply to
any suit instituted by the Company, to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in Principal amount of the outstanding Securities of any Series,
or to any suit instituted by any Holder for the enforcement of the payment of
the Principal of or interest on any Security on or after the Stated Maturity or
Stated Maturities expressed in such Security (or, in the case of redemption, on
the redemption date).

     

    
       

      
        	 

      

       

    

    ARTICLE
VII

    TRUSTEE

    

    Section
7.1 Duties of
Trustee.

    

    (a) If
an Event of Default has occurred and is continuing, the Trustee shall exercise
the rights and powers vested in it by this Indenture and use the same degree of
care and skill in their exercise as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs.

    

    (b) Except
during the continuance of an Event of Default:

    

    (i) The
Trustee  need perform only those duties that are specifically set
forth in this Indenture and no others.

    

    (ii) in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon Officers’ Certificates or Opinions of Counsel furnished to the
Trustee and conforming to the requirements of this Indenture; however, in the
case of any such Officers’ Certificates or Opinions of Counsel which by any
provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers’ Certificates and Opinions of Counsel to
determine whether or not they conform to the requirements of this
Indenture.

    

    (c) The
Trustee may not be relieved from liability for its own its own willful negligent
action, its own negligent failure to act or misconduct, except
that:

    

    (i) This
paragraph does not limit the effect of paragraph (b) of this
section.

    

    (ii) The
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts.

    

    (iii) The
Trustee shall not be liable with respect to any action taken, suffered or
omitted to be taken by it with respect to Securities of any Series in good faith
in accordance with the direction of the Holders of a majority in Principal
amount of the outstanding Securities of such Series relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this
Indenture with respect to the Securities of such Series.

    

    (d) Every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraph (a), (b) and (c) of this Section.

    

    
      
         

      

      
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    (e) The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or
expense.

    

    (f) The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company. Money held in trust by the
Trustee need not be segregated from other funds except to the extent required by
law.

    

    (g) No
provision of this Indenture shall require the Trustee to risk its own funds or
otherwise incur any financial liability in the performance of any of its duties,
or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk is not reasonably assured to it.

    

    (h) The
Paying Agent, the Registrar and any authenticating agent shall be entitled to
the protections, immunities and standard of care as are set forth in paragraphs
(a), (b) and (c) of this Section with respect to the Trustee.

    

    Section
7.2 Rights of
Trustee.

    

    (a) The
Trustee may rely on and shall be protected in acting or refraining from acting
as a result of its reasonable belief that any document was genuine and had been
signed or presented by the proper Person. The Trustee need not investigate any
fact or matter stated in the document.

    

    (b) Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel. The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such Officers’
Certificate or Opinion of Counsel.

    

    (c) The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of any agent appointed with due care; provided that such agent
agree as a condition to its engagement that it shall be responsible to the
Company for its own misconduct or negligence. No Depository shall be deemed an
agent of the Trustee and the Trustee shall not be responsible for any act or
omission by any Depository.

    

    (d) The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or
powers.

    

    (e) The
Trustee may consult with counsel and the advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon.

    

    (f) The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders
of Securities unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction.

    

    Section
7.3 Individual
Rights of Trustee.

    

    The
Trustee in its individual or any other capacity may become the owner or pledgee
of securities and may otherwise deal with the Company or an Affiliate with the
same rights it would have if it were not Trustee. Any Agent may do the same with
like rights. The Trustee is also subject to Sections 7.10 and 7.11.

    

    
      
         

      

      
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    Section
7.4 Trustee’s
Disclaimer.

    

    The
Trustee makes no representation as to the validity or adequacy of this Indenture
or the Securities, it shall not be accountable for the Company’s use of the
proceeds from the Securities, and it shall not be responsible for any statement
in the Securities other than its authentication.

    

    Section
7.5 Notice of
Defaults.

    

    If a
Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if it is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Securityholder of the Securities of that
Series and, if any Bearer Securities are outstanding, publish on one occasion in
an Authorized Newspaper, notice of a Default or Event of Default within 90 days
after it occurs or, if later, after a Responsible Officer of the Trustee has
knowledge of such Default or Event of Default. Except in the case of a Default
or Event of Default in payment of Principal of or interest on any Security of
any Series, the Trustee may withhold the notice if and so long as its corporate
trust committee or a committee of its Responsible Officers in good
faith  determines  that  withholding the notice is
in the interests of Securityholders of that Series.

    

    Section
7.6 Reports by
Trustee to Holders.

    

    Within 60
days after May 15 in each year, the Trustee shall transmit by mail to all
Securityholders, as their names and addresses appear on the register kept by the
Registrar and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in accordance
with, and to the extent required under, TIA Section 313.

    

    A copy of
each report at the time of its mailing to Securityholders of any Series shall be
filed with the SEC and each stock exchange on which the Securities of that
Series are listed. The Company shall promptly notify the Trustee when Securities
of any Series are listed on any stock exchange.

    

    Section
7.7 Compensation
and Indemnity.

    

    The
Company shall pay to the Trustee from time to time reasonable compensation for
its services. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the
Trustee upon request for all reasonable out-of-pocket expenses incurred by it.
Such expenses shall include the reasonable compensation and expenses of the
Trustee’s agents and counsel.

    

    The
Company shall indemnify the Trustee (including the cost of defending itself)
against any loss, liability or expense incurred by it except as set forth in the
next paragraph in the performance of its duties under this Indenture as Trustee
or Agent. The Trustee shall notify the Company promptly of any claim for which
it may seek indemnity. The Company shall defend the claim and the Trustee shall
cooperate in the defense. The Trustee may have separate counsel and the Company
shall pay the reasonable fees and expenses of such counsel. The Company need not
pay for any settlement made without its consent, which consent shall not be
unreasonably withheld. This indemnification shall apply to officers, directors,
employees, shareholders and agents of the Trustee.

    

    The
Company need not reimburse any expense or indemnify against any loss liability
incurred by the Trustee or by any officer, director, employee, shareholder or
agent of the Trustee through negligence or bad faith.

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    To secure
the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series on all money or property held or collected
by the Trustee, except that held in trust to pay Principal and interest on
particular Securities of that Series.

    

    When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.1(f) or (g) occurs, the expenses and the
compensation  for the services are intended
to  constitute  expenses of administration under any
Bankruptcy Law.

    

    Section
7.8 Replacement
of Trustee.

    

    A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

    

    The
Trustee may resign with respect to the Securities of one or more Series by so
notifying the Company. The Holders of a majority in Principal amount of the
Securities of any Series may remove the Trustee with respect to that Series by
so notifying the Trustee and the Company. The Company may remove the Trustee
with respect to Securities of one or more Series if:

    

    (a) the
Trustee fails to comply with Section 7.10;

    

    (b) the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered
with respect to the Trustee under any Bankruptcy Law;

    

    (c) a
Custodian or public officer takes charge of the Trustee or its property;
or

    

    (d) the
Trustee becomes incapable of acting.

    

    If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company shall promptly appoint a successor Trustee. Within
one year after the successor Trustee takes office, the Holders of a majority in
Principal amount of the then outstanding Securities may appoint a successor
Trustee to replace the successor Trustee appointed by the Company.

    

    If a
successor Trustee with respect to the Securities of any one or more Series does
not take office within 60 days after the retiring Trustee resigns or is removed,
the retiring Trustee, the Company or the Holders of at least 10% in Principal
amount of the Securities of the applicable Series may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

    

    If the
Trustee with respect to the Securities of any one or more Series fails to comply
with Section 7.10, any Securityholder of the applicable Series may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

    

    A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Immediately after that, the retiring
Trustee shall transfer all property held by it as Trustee to the successor
Trustee subject to the lien provided for in Section 7.7, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee with respect
to each Series of Securities for which it is acting as Trustee under this
Indenture. A successor Trustee shall mail a notice of its succession to each
Securityholder of each such Series and, if any Bearer Securities are
outstanding, publish such notice on one occasion in an Authorized Newspaper.
Notwithstanding replacement of the Trustee pursuant to this Section 7.8,
the

    
      
         

      

      
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    Company’s
obligations under Section 7.7 hereof shall continue for the benefit of the
retiring trustee with respect to expenses and liabilities incurred by it prior
to such replacement.

    

    Section
7.9 Successor
Trustee by Merger, etc.

    

    If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor
Trustee.

    

    Section
7.10 Eligibility;
Disqualification.

    

    This
Indenture  shall always have a Trustee who satisfies the requirements
of TIA Section 310(a)(1), (2) and (5). The Trustee shall always have a combined
capital and surplus of at least $25,000,000 as set forth in its most recent
published annual report of condition. The Trustee shall comply with TIA Section
310(b).

    

    Section
7.11 Preferential
Collection of Claims Against Company.

    

    The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall
be subject to TTA Section 311(a) to the extent indicated.

    

    
       

      
        	 

      

       

    ARTICLE
VIII

    SATISFACTION
AND DISCHARGE; DEFEASANCE

    

    Section
8.1 Satisfaction
and Discharge of Indenture.

    

    This
Indenture shall upon Company Order cease to be of further effect (except as
hereinafter provided in this Section 8.1), and the Trustee, at the expense of
the Company,  shall execute proper
instruments  acknowledging satisfaction and discharge of this
Indenture, when

    

    (a) either

    

    (i) all
Securities theretofore authenticated and delivered (other than Securities that
have been destroyed, lost or stolen and that have been replaced or paid) have
been delivered to the Trustee for cancellation; or

    

    (ii) all
such Securities not theretofore delivered to the Trustee for cancellation have
become due and payable, or

    

    (1) have
become due and payable, or

    

    (2) will
become due and payable at their Stated Maturity within one year, or

    

    (3) are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name,
and at the expense, of the Company, or

    

    
      
         

      

      
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    (4) are
deemed paid and discharged pursuant to section 8.3, as applicable; and the
Company, in the case of (1), (2) or (3) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust an amount sufficient for the
purpose of paying and discharging the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for Principal and
interest to the date of such deposit (in the case of Securities which have
become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;

    

    (b) the
Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

    

    (c) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Indenture have been complied
with.

    

    Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company
to the Trustee under Section 7.7, and, if money shall have been deposited with
the Trustee pursuant to clause (a) of this Section, the provisions of Sections
2.4, 2.7, 2.8, 8.1 8.2 and 8.5 shall survive.

    

    Section
8.2 Application
of Trust Funds; Indemnification.

    

    (a) Subject
to the provisions of Section 8.5, all money deposited with the Trustee pursuant
to Section 8.1, all money and U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all
money received by the Trustee in respect of U.S. Government Obligations or
Foreign Government Obligations deposited with the Trustee pursuant to Section
8.3 or 8.4, shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal and interest for whose payment such money has been deposited with or
received by the Trustee or to make Mandatory Sinking Fund Payments or analogous
payments as contemplated by Sections 8.3 or 8.4.

    

    (b) The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against U.S. Government obligations or Foreign
Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest
and Principal received in respect of such obligations other than any payable by
or on behalf of Holders.

    

    (c) The
Trustee shall deliver or pay to the Company from time to time upon Company
Request any U.S. Government obligations or Foreign Government obligations or
money held by it as provided in Sections 8.3 or 8.4 which, in the opinion of a
nationally recognized firm of independent certified public accountants expressed
in a written certification thereof delivered to the Trustee, are then in excess
of the amount thereof which then would have been required to be deposited for
the purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received. This provision shall not
authorize the sale by the Trustee of any U.S. Government Obligations or Foreign
Government Obligations held under this Indenture.

    

    Section
8.3 Legal
Defeasance of Securities of any Series.

    

    Unless
this Section 8.3 is otherwise specified, pursuant to Section 2.2.19, to be
inapplicable to Securities of any Series, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the outstanding Securities of
such Series on the 91st day after the date of the deposit referred to in
subparagraph (d) hereof, and the provisions of this Indenture, as it relates to
such

    
      
         

      

      
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    outstanding
Securities of such Series, shall no longer be in effect (and the Trustee, at the
expense of the Company, shall, at Company Request, execute proper instruments
acknowledging the same), except as to:

    

    (a) the
rights of Holders of Securities of such Series to receive, from the trust funds
described in subparagraph (d) hereof, (i) payment of the principal of and each
installment of Principal of and interest on the outstanding Securities of such
Series on the Stated Maturity of such Principal or installment of Principal or
interest and (ii) the benefit of any Mandatory Sinking Fund Payments applicable
to the Securities of such Series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities of
such Series;

    

    (b) the
provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

    

    (c) the
rights, powers, trust and immunities of the Trustee hereunder;

    

    provided
that, the following conditions shall have been satisfied:

    

    (i) the
Company shall have deposited or caused to be deposited irrevocably with the
Trustee as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for and dedicated solely to the
benefit of the Holders of such Securities W in the case of Securities of such
Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest and
Principal in respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on such
Trustee), not later than one day before the due date of any payment of money, an
amount in cash, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge each installment of Principal
(including mandatory sinking fund or analogous payments) of and interest, if
any, on all the Securities of such Series on the dates such installments of
interest or Principal are due;

    

    (ii) such
deposit will not result in a breach or violation of, or constitute a Default
under, this Indenture or any other agreement or instrument to which the Company
is a party or by which it is bound;

    

    (iii) no
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the 91st day after such date;

    

    (iv) the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that (i) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling, or (ii)
since the date of execution of this Indenture, there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
Securities of such Series will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit, defeasance and discharge and
will be subject to Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred;

    

    (v) the
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by the Company with the intent of preferring the
Holders of the

    
      
         

      

      
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    Securities
of such Series over any other creditors of the Company or with the intent of
defeating, hindering, delaying or defrauding any other creditors of the
Company;

    

    (vi) such
deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as
amended), or such trust shall be qualified under such Act or exempt from
regulation thereunder; and

    

    (vii) the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to the defeasance contemplated by this Section have been complied
with.

    

    Section
8.4 Covenant
Defeasance.

    

    Unless
this Section 8.4 is otherwise specified pursuant to Section 2.2.19 to be
inapplicable to Securities of any Series, on and after the 91st day after the
date of the deposit referred to in subparagraph (a) hereof, the Company may omit
to comply with any term, provision or condition set forth under Sections 4.2,
4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional covenants contained in a
supplemental indenture hereto for a particular Series of Securities or a Board
Resolution or an Officers’ Certificate delivered pursuant to Section 2.2.19 (and
the failure to comply with any such covenants shall not constitute a Default or
Event of Default under Section 6.1) and the occurrence of any event described in
clause (e) of Section 6.1 shall not constitute a Default or Event of Default
hereunder, with respect to the Securities of such Series, provided that the
following conditions shall have been satisfied:

    

    (a) With
reference to this Section 8.4, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as
trust funds in trust, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities (i) in the case of Securities
of such Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest and
Principal in respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on such
Trustee), not later than one day before the due date of any payment of money, an
amount in cash, sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification
thereof delivered to the Trustee, to pay Principal and interest, if any, on and
any mandatory sinking fund in respect of the Securities of such Series on the
dates such installments of interest or Principal are due;

    

    (b) Such
deposit will not result in a breach or violation of, or constitute a Default
under, this Indenture or any other agreement or instrument to which the Company
is a party or by which it is bound;

    

    (c) No
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the 91st day after such date;

    

    (d) the
Company shall have delivered to the Trustee an Opinion of Counsel confirming
that Holders of the Securities of such Series will not recognize income, gain or
loss for federal income tax purposes as a result of such deposit and defeasance
and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such deposit and
defeasance had not occurred;

    

    
      
         

      

      
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    (e) the
Company shall have delivered to the Trustee an Officers’ Certificate stating the
deposit was not made by the Company with the intent of preferring the Holders of
the Securities of such Series over any other creditors of the Company or with
the intent of defeating, hindering, delaying or defrauding any other creditors
of the Company; and

    

    (f) The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the defeasance contemplated by this Section have been complied
with.

    

    Section
8.5 Repayment to
Company.

    

    The
Trustee and the Paying Agent shall pay to the Company upon request any money
held by them for the payment of Principal and interest that remains unclaimed
for two years. After that, Securityholders entitled to the money must look to
the Company for payment as general creditors unless an applicable abandoned
property law designates another Person.

    

    
       

      
        	 

      

      
 

    

    ARTICLE
IX

    AMENDMENTS
AND WAIVERS

    

    Section
9.1 Without
Consent of Holders.

    

    The
Company and the Trustee may amend or supplement this Indenture or the Securities
of one or more Series without the consent of any Securityholder:

    

    (a) to
cure any ambiguity, defect or inconsistency;

    

    (b) to
comply with Article V;

    

    (c) to
provide for uncertificated Securities in addition to or in place of Certificated
Securities;

    

    (d) to
make any change that does not adversely affect the rights of any
Securityholder;

    

    (e) to
provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture;

    

    (f) to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more Series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee; or

    

    (g) to
comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA.

    

    Section
9.2 With Consent
of Holders.

    

    The
Company and the Trustee may enter into a supplemental indenture with the written
consent of the Holders of at least a majority in Principal amount of the
outstanding Securities of all Series

    
      
         

      

      
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    affected
by such supplemental indenture,  taken together as one class
(including consents obtained in connection with a tender offer or exchange offer
for the Securities of such Series), for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Indenture
or of any supplemental indenture or of modifying in any manner the rights of the
Securityholders of each such Series. Except as provided in Section 6.13, the
Holders of at least a majority in Principal amount of the outstanding Securities
of all Series affected by such waiver by notice to the Trustee, taken together
as one class (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such Series) may waive compliance by the
Company with any provision of this Indenture or the Securities with respect to
such Series.

    

    It shall
not be necessary for the consent of the Holders of Securities under this Section
9.2 to approve the particular form of any proposed supplemental indenture or
waiver, but it shall be sufficient if such consent approves the substance
thereof. After a supplemental indenture or waiver under this section becomes
effective, the Company shall mail to the Holders of Securities affected thereby
and, if any Bearer Securities affected thereby are outstanding, publish on one
occasion in an Authorized Newspaper, a notice briefly describing the
supplemental indenture or waiver. Any failure by the Company to mail or publish
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture or waiver.

    

    Section
9.3 Limitations.

    

    Without
the consent of each Securityholder affected, an amendment or waiver may
not:

    

    (a) change
the amount of Securities whose Holders must consent to an amendment, supplement
or waiver;

    

    (b) reduce
the rate of or change the interest payment time on any Security or alter the
redemption provisions with respect thereto or the price at which the Company is
required to offer to purchase the Securities;

    

    (c) reduce
the Principal or change the Stated Maturity of any Security or reduce the amount
of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;

    

    (d) reduce
the Principal amount of Discount Securities payable upon acceleration of the
Maturity thereof;

    

    (e) waive
a Default or Event of Default in the payment of the Principal of or interest, if
any, on any Security (except a rescission of acceleration of the Securities of
any Series by the Holders of at least a majority in Principal amount of the
outstanding Securities of such Series and a waiver of the payment Default that
resulted from such acceleration);

    

    (f) make
the Principal of or interest, if any, on any Security payable in any currency
other than that stated in the Security;

    

    (g) make
any change in Sections 6.8, 6.13, 9.3 (this sentence), 10.15 or 10.16;
or

    

    (h) waive
a redemption payment with respect to any Security or change any of the
provisions with respect to the redemption of any Securities.

     

    
      
         

      

      
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    Section
9.4 Compliance
with Trust Indenture Act.

     

    Every
amendment to this Indenture or the Securities of one or more Series shall be set
forth in a supplemental indenture hereto that complies with the TIA as then in
effect.

    

    Section
9.5 Revocation
and Effect of Consents.

    

    Until an
amendment or waiver becomes effective, a consent to it by a Holder of a Security
is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same Debt as the consenting Holder’s
Security, even if notation of the consent is not made on any Security. However,
any such Holder or subsequent Holder may revoke the consent as to his Security
or portion of a Security if the Trustee receives the notice of revocation before
the date the amendment or waiver becomes effective.

    

    Any
amendment or waiver once effective shall bind every Securityholder of each
Series affected by such amendment or waiver unless it is of the type described
in any of clauses (a) through (g) of Section 9.3. in that case, the amendment or
waiver shall bind each Holder of a Security who has consented to it and every
subsequent Holder of a Security or portion of a Security that evidences the same
Debt as the consenting Holder’s Security.

    

    Section
9.6 Notation on
or Exchange of Securities.

    

    The
Trustee may place an appropriate notation about an amendment or waiver on any
Security of any Series thereafter authenticated. The Company in exchange for
Securities of that Series may issue and the Trustee shall authenticate upon
request new Securities of that Series that reflect the amendment or
waiver.

    

    Section
9.7 Trustee
Protected.

    

    In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 7.1) shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture.  The Trustee shall sign all
supplemental indentures, except that the Trustee need not sign any supplemental
indenture that adversely affects its rights.

    

    
       

      
        	 

      

       

    ARTICLE
X

    MISCELLANEOUS

    

    Section
10.1 Trust
Indenture Act Controls.

    

    If any
provision of this Indenture limits, qualifies, or conflicts with another
provision which is required or deemed to be included in this Indenture by the
TIA, such required or deemed provision shall control.

    

    Section
10.2 Notices.

    

    Any
notice or communication by the Company or the Trustee to the other is duly given
if in writing and delivered in person or mailed by first-class
mail:

    

     

    
      
         

      

      
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    if to the
Company:

    
Euroseas
Ltd.

    Aethrion
Center

    40 Ag.
Konstantinou Street

    151 24
Maroussi Greece

    

    

    if to the
Trustee:

    

    [Name of
Trustee]

    [Address]

    

    

    Attention:______________

    

    

    The
Company or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.

    

    Any
notice or communication to a Securityholder shall be mailed by first-class mail
to his address shown on the register kept by the Registrar and, if any Bearer
Securities are outstanding, published in an Authorized Newspaper. Failure to
mail a notice or communication to a Securityholder of any Series or any defect
in it shall not affect its sufficiency with respect to other Securityholders of
that or any other Series.

    

    If a
notice or communication is mailed or published in the manner provided above,
within the time prescribed, it is duly given, whether or not the Securityholder
receives it.

    

    If the
Company mails a notice or communication to Securityholders, it mail a copy to
the Trustee and each Agent at the same time.

    

    Section
10.3 Communication by Holders
with Other Holders.

    

    Securityholders
of any Series may communicate pursuant to TIA Section 312(b) with other
Securityholders of that Series or any other Series with respect to their rights
under this Indenture or the Securities of that Series or all Series. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA Section 312(c).

    

    Section
10.4 Certificate
and opinion as to Conditions Precedent.

    

    Upon any
request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee:

    

    (a) an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

    

    (b) an
Opinion of Counsel stating that, in the opinion of counsel, all such conditions
precedent have been complied with.

    

    Section
10.5 Statements
Required in Certificate or opinion.

    
      
         

      

      
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    Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
and shall include:

    

    (a) a
statement that the Person making such certificate or opinion has read such
covenant or condition;

    

    (b) a
brief statement as to the nature and scope of the examination or
investigation  upon which the statements or
opinions  contained in such certificate or opinion are
based;

    

    (c) a
statement that, in the opinion of such Person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been complied with;
and

    

    (d) a
statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.

    

    Section
10.6 Rules by
Trustee and Agents.

    

    The
Trustee may make reasonable rules for action by or a meeting of Securityholders
of one or more Series. Any Agent may make reasonable rules and set reasonable
requirements for its functions.

    

    Section
10.7 Legal
Holidays.

    

    Unless
otherwise provided by Board Resolution, Officers’ Certificate or supplemental
indenture for a particular Series, a “Legal Holiday” is any day that is not a
Business Day. If a payment date is a Legal Holiday at a place of payment,
payment may be made at that place on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period.

    

    Section
10.8 No Recourse
Against Others.

    

    A
director, officer, employee or stockholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder by accepting a Security
waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

    

    Section
10.9 Counterparts.

    

    This
Indenture may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

    

    Section
10.10 Governing
Laws.

    

    THIS
INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK EXCLUDING (TO THE GREATEST EXTENT POSSIBLE) ANY RULE OF LAW THAT WOULD
CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF
NEW YORK.

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    Section
10.11 No Adverse
Interpretation of Other Agreements.

    

    This
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company or a Subsidiary. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

    

    Section
10.12 Successors.

    

    All
agreements of the Company in this Indenture and the Securities shall bind its
successor. All agreements of the Trustee in this Indenture shall bind its
successor.

    

    Section
10.13 Severability.

    

    In case
any provision in this Indenture or in the Securities shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

    

    Section
10.14 Table of
Contents, Headings, Etc.

    

    The Table
of Contents, Cross Reference Table, and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.

    

    Section
10.15 Securities
in a Foreign Currency or in ECU.

    

    Unless
otherwise specified in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate delivered pursuant to Section 2.2 of this Indenture with
respect to a particular Series of Securities, whenever for purposes of this
Indenture any action may be taken by the Holders of a specified percentage in
aggregate Principal amount of Securities of all Series or all Series affected by
a particular action at the time outstanding and, at such time, there are
outstanding Securities of any Series which are denominated in a coin or currency
other than Dollars (including ECUs), then the Principal amount of Securities of
such Series which shall be deemed to be outstanding for the purpose of taking
such action shall be that amount of Dollars that could be obtained for such
amount at the Market Exchange Rate at such time. For purposes of this Section
10.15, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York
City for cable transfers of that currency as published by the Federal Reserve
Bank of New York; provided, however, in the case of ECUs, Market Exchange Rate
shall mean the rate of exchange determined by the Commission of the European
Union (or any successor thereto) as published in the Official Journal of the
European union (such publication or any successor publication, the “Journal”).
If such Market Exchange Rate is not available for any reason with respect to
such currency, the Trustee shall use, in its sole discretion and without
liability on its part, such quotation of the Federal Reserve Bank of New York
or, in the case of ECUs, the rate of exchange as published in the Journal, as of
the most recent available date, or quotations or, in the case of ECUs, rates of
exchange from one or more major banks in The City of New York or in the country
of issue of the currency in question or, in the case of ECUs, in Luxembourg or
such other quotations or, in the case of ECUs, rates of exchange as the Trustee,
upon consultation with the Company, shall deem appropriate. The provisions of
this paragraph shall apply in determining the equivalent Principal amount in
respect of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms
of this Indenture.

    

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    All
decisions and determinations of the Trustee regarding the Market Exchange Rate
or any alternative determination provided for in the preceding paragraph shall
be in its sole discretion and shall, in the absence of manifest error, be
conclusive to the extent permitted by law for all purposes and irrevocably
binding upon the Company and all Holders.

    

    Section
10.16 Judgment
Currency.

    

    The
Company agrees, to the fullest extent that it may effectively do so under
applicable law, that (a) if for the purpose of obtaining judgment in any court
it is necessary to convert the sum due in respect of the Principal of or
interest or other amount on the Securities of any Series (the “Required
Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the day on which final
unappealable judgment is entered, unless such day is not a New York Banking Day,
then, the rate of exchange used shall be the rate at which in accordance with
normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such tender
or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of the
foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a
Legal Holiday in The City of New York on which banking institutions are
authorized or required by law, regulation or executive order to
close.

    

    
       

      
        	 

      

       

    

    

    ARTICLE
XI

    SINKING
FUNDS

    

    Section
11.1 Applicability of
Article.

    

    The
provisions of this Article shall be applicable to any sinking fund for the
retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this
Indenture.

    

    The
minimum amount of any sinking fund payment provided for by the terms of the
Securities of any Series is herein referred to as a “Mandatory Sinking Fund
Payment” and any other amount provided for by the terms of Securities of such
Series is herein referred to as an “Optional Sinking Fund Payment.” If provided
for by the terms of Securities of any Series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 11.2. Each
sinking fund payment shall be applied to the redemption of Securities of any
Series as provided for by the terms of the securities of such
Series.

    

     

    

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    Section
11.2 Satisfaction
of Sinking Fund Payments with Securities.

     

    The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of any Series to be made pursuant to the terms of such
Securities (1) deliver outstanding Securities of such Series to which such
sinking fund payment is applicable (other than any of such Securities previously
called for mandatory sinking fund redemption) and (2) apply as credit Securities
of such Series to which such sinking fund payment is applicable and which have
been redeemed either at the election of the Company pursuant to the terms of
such Series of Securities (except pursuant to any mandatory sinking fund) or
through the application of permitted Optional Sinking Fund Payments or other
optional redemptions pursuant to the terms of such Securities, provided that
such Securities have not been previously so credited. Such Securities shall be
received by the Trustee, together with an Officers’ Certificate with respect
thereto, not later than 15 days prior to the date on which the Trustee begins
the process of selecting Securities for redemption, and shall be credited for
such purpose by the Trustee at the price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly. If as a result of the delivery or
credit of Securities in lieu of cash payments pursuant to this Section 11.2, the
Principal amount of Securities of such Series to be redeemed in order to exhaust
the aforesaid cash payment shall be less than $100,000, the Trustee need not
call Securities of such Series for redemption, except upon receipt of a Company
Order that such action be taken, and such cash payment shall be held by the
Trustee or a Paying Agent and applied to the next succeeding sinking fund
payment, provided, however, that the Trustee or such Paying Agent shall from
time to time upon receipt of a Company Order pay over and deliver to the Company
any cash payment so being held by the Trustee or such Paying Agent upon delivery
by the Company to the Trustee of Securities of that Series purchased by the
Company having an unpaid Principal amount equal to the cash payment required to
be released to the Company.

    

    Section
11.3 Redemption
of Securities for Sinking Fund.

    

    Not less
than 45 days (unless otherwise indicated in the Board Resolution, supplemental
indenture hereto or Officers’ Certificate in respect of a particular Series of
Securities) prior to each sinking fund payment date for any Series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing Mandatory Sinking Fund Payment for
that Series pursuant to the terms of that Series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting of Securities of that
Series pursuant to Section 11.2., and the optional amount, if any, to be added
in cash to the next ensuing Mandatory Sinking Fund Payment, and the Company
shall thereupon be obligated to pay the amount therein specified. Not less than
30 days (unless otherwise indicated in the Board Resolution, Officers’
Certificate or supplemental indenture in respect of a particular Series of
Securities) before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 3.2 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 3.3. Such notice having been duly given, the redemption of such
Securities shall stated in Sections 3.4, 3.5 and 3.6.

    

    [The
Remainder of this page is intentionally left blank.]

    

    
       

      
        	 

      

       

    

    
 

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed as of the day and year first above written.

    

    
      	 
      	
               Euroseas
      Ltd.

               

            
	 
      	 
      
	 
      	
              By:

            	
              /s/
      [TBD]

            	 
      	 
      
	 
      	
              Name:
      [TBD]

            	 
      
	 
      	
              Its:
      [Chief Accounting Officer and Company Secretary]

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              [Name
      of Trustee]

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      	 
      	 
      
	 
      	
              Name:

            	 
      	 
      
	 
      	
              Its:

            	 
      	 
      

    

    

     

    

    
      
         

      

      
        38Acquisition Agreement - GKB clean - 2/26/08 (591729).DOC

Exhibit 10.1

ACQUISITION AGREEMENT

 

ACQUISITION AGREEMENT (this “Agreement”), dated as of February 29, 2008, is by and among AEGEAN EARTH AND MARINE CORPORATION, a Cayman Islands exempted company (the “Company”), AEGEAN EARTH S.A., a Greek corporation (“Aegean”), JOSEPH BRANDON CLANCY and KONSTANTINOS POLITES, the two (2) sole stockholders of Aegean (the “Aegean Stockholders”). Each of the parties to this Agreement is individually referred to herein as a “Party” and collectively, as the “Parties.”

WHEREAS, the Company is subject to the reporting requirements of the Securities and Exchange Commission (the “SEC”), pursuant to Section 12(g) of the Securities Act of 1933, as amended (the “Securities Act”);

 

WHEREAS, the Company is authorized to issue (i) 78,125,000 ordinary shares, par value $0.00064 per share (the “Ordinary Shares”), of which as of February 29, 2008, there were issued and outstanding two million (2,000,000) Ordinary Shares; and (ii) 20,000,000 blank check preferred shares, par value $0.00064 per share (the “Preferred Shares”), of which as of February 29, 2008, no Preferred Shares were issued and outstanding;

WHEREAS, Empedos is mainly active in the field of public and private technical constructions operations, mainly in Greece, either alone or through joint ventures established for the construction of major public and private technical projects and has recently extended operations into the Balkans and specifically Romania where, pursuant to a joint venture, it is involved with three (3) projects;

WHEREAS, on May 19, 2006, certain creditors of Empedos filed an application with the Court of Appeals of Athens (the “Court”), for the placement of Empedos under Article 36 of the Law 1892/90;

WHEREAS, Empedos Technical-Industrial-Commercial-Tourist-Shipping-Public Company A.E, a Greek commercial corporation (“Empedos,” and, together with Aegean, collectively, the “Targets”), pursuant to a Private Regulation and Limitation of Debts Agreement (in the form annexed hereto as Exhibit A) (agreement of creditors and company) (Article 44, L. 1892/1990) (the “Work-Out Agreement”) and the provisions of the Article 44 of the Law 1892/90, filed with the Court on September 12, 2007, a work-out plan which, among other things, if and when approved by the Court (i) reduces Empedos’ outstanding indebtedness; and (ii) approves the purchase by Access America Investment, L.P. (“AAI”), from Empedos, of up to 70% of the then issued and outstanding Empedos Shares (as defined below) when so purchased, which AAI has the right (in whole or in part) to assign to Aegean following the Aegean Acquisition (as defined below), and will so assign;

WHEREAS, Aegean is a newly formed Greek corporation which has 6,000 shares of its capital stock outstanding (the “Aegean Shares”), of which the two (2) Aegean Stockholders own as follows:  Mr. Clancy 3,000 Aegean Shares and Mr. Polites 3,000 Aegean Shares;

 

WHEREAS, the Aegean Shareholders and the Company have agreed that the Company will acquire (the “Aegean Acquisition”), pursuant to the terms and subject to the conditions set forth herein, all of the issued and outstanding Aegean Shares from the Aegean Shareholders for an aggregate of 500,000 newly issued, restricted Ordinary Shares (the “Company Aegean Acquisition Shares”), resulting in Aegean becoming a wholly-owned subsidiary of the Company;

WHEREAS, the Company will attempt to sell in a private placement (the “A Financing”) $7,500,000 aggregate principal amount of the Company’s units (the “Units”) at a purchase price $1,500 per Unit;  each Unit consisting of: (i) 500 shares of the Company’s 6% Series A Convertible Preference Shares, having such terms and conditions set forth substantially in Exhibit B hereto (the “Company A Shares”); and (ii) 500 Ordinary Shares. 

WHEREAS, the $7.5 million of gross proceeds raised in the A Financing will be used for the purchase of Empedos Shares in the Empedos Acquisition (both defined below) and Empedos shall use the proceeds as follows:  (i) approximately $5,358,200 will be deposited in a special bank account at the Bank of Pireaus (the “Bank”) as security for ensuring the obligations owed by Empedos to IKA for unpaid social security contributions (which deposit amount shall not exceed in the aggregate 3,800,000 Euros) (the “IKA Guarantee”), which IKA Guarantee funds will then be applied to the purchase of Empedos Shares (as defined below); (ii) approximately $2,141,800 to be used by Aegean to fund the Empedos Acquisition (as defined below) and (iii) the balance, if any, as so determined by the Company (including, but not limited to, fees and expenses relating to this A Financing and other transactions contemplated herein);  

WHEREAS, following the closing of the A Financing and the Aegean Acquisition, pursuant to a Memorandum of Understanding, dated February 29, 2008, by and among Aegean, Empedos, AAI, and Mr. Panajiotis Goritsas, a stockholder and executive officer of Empedos (the “Memorandum of Understanding”), (i) Aegean will purchase from Empedos shares of Empedos common stock (the “Empedos Shares”), resulting in the Company, through Aegean, owning seventy (70%) percent of the then issued and outstanding Empedos Shares (the “Empedos Acquisition” and collectively with the Aegean Acquisition, the “Acquisitions”), and (ii) no later than the sixty (60) days following the Court of Appeals approval of the Article 44 Agreement (the “Court Approval”) Mr. Goritsas shall purchase for Three Million Euro (€3.000.000)  1,500,000 Ordinary Shares in the Company (the “Goritsas Investment”), which Three Million Euro (€3.000.000) will be transferred to Aegean, who will then use the Three Million Euro (€3.000.000) to effectuate the purchase of twenty (20%) percent of the then issued and outstanding Empedos Shares, resulting in the Company, following the completion of the Empedos Acquisition and the Goritsas Investment owning in the aggregate approximately 90% of the then issued and outstanding Empedos Shares. 

WHEREAS, no later than 270 days following the date of the Empedos Acquisition, Empedos shall either merge with Aegean or the remaining issued and outstanding Empedos 

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Shares shall be acquired by Aegean so that Empedos shall become a wholly-owned subsidiary of Aegean or is the survivor of the Aegean/Empedos merger (the “Aegean/Empedos Merger”);

WHEREAS, immediately following the closing of the last to occur of the Aegean Acquisition, the Empedos Acquisition, the Goritsas Investment and the A Financing (collectively, the “Transactions”) and, assuming the Aegean/Empedos Merger, (i) Aegean will be a wholly-owned subsidiary of the Company and Empedos will be wholly-owned by Aegean  or the survivor of the Aegean/Empedos Merger, (ii) the Company will have issued and outstanding on a fully-diluted basis (a) $7.5 million stated value of Preference Shares owned by investors in the A Financing; (b) 8,750,000  Ordinary Shares owned as follows:  (1) 2,000,000 (22.9%) owned by the shareholders of the Company prior to the Transactions, (2) 2,500,000 (28.6%) owned by the Purchasers; (3) 500,000 (5.7%) owned by the Aegean Shareholders; (4) 2,500,000 (28.6%) owned by AAI by virtue of its bridge financing; (5) 1,000,000 (11.4%) owned by Mr. Goritsas (who will be the Chief Executive Officer of Empedos) pursuant to the Goritsas Investment; and (6) options to purchase 250,000 (2.9%)Ordinary Shares owned by Frank DeLape, the Executive Chairman of the Company; and (c) up to 1,000,000 Ordinary Shares issued to holders of Empedos Shares pursuant to the Aegean/Empedos Merger.

WHEREAS, all of the parties have deemed it in their respective best interests to effectuate the Transactions and the Board of Directors of each corporate party has approved this Agreement and the Transactions relevant to each such corporate party.

 

NOW THEREFORE, the parties agree as follows:

 

ARTICLE I

 

Aegean Acquisition

 

SECTION 1.01. Exchange by Aegean Stockholders. Subject to and in accordance with the terms and conditions set forth herein, including but not limited to the Closing conditions set forth in Section_5.01 hereof, at the Closing (as defined in Section 1.02), each of the two (2) Aegean Stockholders shall sell, transfer, convey, assign and deliver to the Company all of the issued and outstanding Aegean Shares free and clear of any and all Liens (as defined below), in exchange for 500,000 Company Aegean Acquisition Shares, all as provided in Schedule 1.01 annexed hereto.

 

SECTION 1.02. Closing. The closing of the Aegean Acquisition (the “Closing”) shall take place at such place and time as the Parties may mutually determine provided, that all conditions to the Closing set forth in this Agreement have been satisfied or waived by such date (the “Closing Date”).

 

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ARTICLE II

 

Representations and Warranties of the Aegean Stockholders

Each of the Aegean Stockholders and Aegean hereby severally (and not jointly) represent and warrant to the Company, as follows:

 

SECTION 2.01. Good Title. Each Aegean Stockholder is the record and beneficial owner, and has good title to its Aegean Shares, with the right and authority to sell and deliver such Aegean Shares as provided herein. Upon delivery of any certificate or certificates duly assigned, representing the same as herein contemplated and/or upon registering of the Company as the new owner of such Aegean Shares in the share register of the Company, the Company will receive good title to such Aegean Shares, free and clear of all liens, security interests, pledges, equities and claims of any kind, voting trusts, stockholder agreements and other encumbrances (collectively, “Liens”).

 

SECTION 2.02. Organization. Each Aegean Stockholder that is an entity is duly organized and validly existing in its jurisdiction of organization.

 

SECTION 2.03. Power and Authority. Each Aegean Stockholder that is an entity has the legal power and authority to execute and deliver this Agreement and to perform its obligations hereunder. All acts required to be taken by the Aegean Stockholder to enter into this Agreement and to carry out the Transactions have been properly taken. This Agreement constitutes a legal, valid and binding obligation of the Aegean Stockholder, enforceable against such Aegean Stockholder in accordance with the terms hereof.

 

SECTION 2.04. No Conflicts. The execution and delivery of this Agreement by each Aegean Stockholder and the performance by each Aegean Stockholder of its obligations hereunder in accordance with the terms hereof: (i) will not require the consent of any third party or any federal, state, local or foreign government or any court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign (“Governmental Entity”) under any statutes, laws, ordinances, rules, regulations, orders, writs, injunctions, judgments, or decrees (collectively, “Laws”); (ii) will not violate any Laws applicable to such Aegean Stockholder and (iii) will not violate or breach any contractual obligation to which such Aegean Stockholder is a party.

 

SECTION 2.05. No Finder's Fee. Neither Aegean Stockholder has created any obligation for any finder's, investment banker's or broker's fee in connection with the Aegean Acquisition and/or other transactions contemplated herein or elsewhere. 

 

SECTION 2.06. Purchase Entirely for Own Account. The Company Aegean Acquisition Shares proposed to be acquired by the Aegean Stockholders hereunder will be acquired for investment for its own account, and not with a view to the resale or distribution of any part thereof, and the Aegean Stockholders have no present intention of selling or otherwise distributing the Company Aegean Acquisition Shares, except in compliance with applicable securities laws.

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SECTION 2.07. Available Information. Each Aegean Stockholder has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of investment in the Company.

 

SECTION 2.08. Non-Registration. Each Aegean Stockholder understands that the Company Aegean Acquisition Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and, if issued in accordance with the provisions of this Agreement, will be issued by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Aegean Stockholder's representations as expressed herein.

 

SECTION 2.09. Restricted Securities. Each Aegean Stockholder understands that the Company Aegean Acquisition Shares are “restricted securities” under the Securities Act inasmuch as this Agreement contemplates that, if acquired by the Aegean Stockholder pursuant hereto, the Company Aegean Acquisition Shares would be acquired in a transaction not involving a public offering. Each Aegean Stockholder further acknowledges that if the Company Aegean Acquisition Shares are issued to the Aegean Stockholders in accordance with the provisions of this Agreement, such Company Aegean Acquisition Shares may not be resold without registration under the Securities Act or the existence of an exemption therefrom. Each Aegean Stockholder represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

 

SECTION 2.10. Legends. (a) It is understood that the Company Aegean Acquisition Shares will bear the following legend or one that is substantially similar to the following legend:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AVAILABLE EXEMPTIONS FROM SUCH REGISTRATION, PROVIDED THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF COUNSEL (WHICH OPINION IS REASONABLY SATISFACTORY TO THE COMPANY) CONFIRMING THE AVAILABILITY OF SUCH EXEMPTION. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES TO THE EXTENT PERMITTED BY APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 

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(b) It is further understood that the Company Aegean Acquisition Shares shall also bear any legend required by the “blue sky” laws of any state to the extent such laws are applicable to the securities represented by the certificate so legended.

 

SECTION 2.11. Accredited Investor. Each Aegean Stockholder is an “accredited investor” within the meaning of Rule 501 under the Securities Act and was not organized for the specific purpose of acquiring the Company Aegean Acquisition Shares.

 

SECTION 2.12. Organization, Standing and Power. Aegean is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized and has the corporate power and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to conduct its businesses as presently conducted, other than such franchises, licenses, permits, authorizations and approvals the lack of which, individually or in the aggregate, has not had and would not reasonably be expected to have a material adverse effect on the Company, a material adverse effect on the ability of Aegean to perform its obligations under this Agreement or on the ability of Aegean to consummate the transactions contemplated hereby (a “Material Adverse Effect”). Aegean is duly qualified to do business in each jurisdiction where the nature of its business or its ownership or leasing of its properties make such qualification necessary except where the failure to so qualify would not reasonably be expected to have a Material Adverse Effect. Aegean has delivered to the Company true and complete copies of the memorandum and articles of association of the Company and such other constituent instruments of Aegean as may exist, each as amended to the date of this Agreement (as so amended, the “Aegean Constituent Instruments”), and the comparable charter, organizational documents and other constituent instruments as amended through the date of this Agreement.

 

SECTION 2.13. Subsidiaries.  Aegean has no subsidiaries and does not own, directly or indirectly, any capital stock, membership interest, partnership interest, joint venture interest or other equity interest in any person.

 

SECTION 2.14. Capital Structure. The authorized capital stock of Aegean consists of 6,000 shares, 10 Euro par value, of which 6,000 shares are issued and outstanding. Except as set forth above, no shares of capital stock or other voting securities of Aegean are issued, reserved for issuance or outstanding. All outstanding shares of the capital stock of Aegean are duly authorized, validly issued, fully paid and nonassessable and not subject to or issued in violation of any purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any applicable laws, rules and/or regulations and/or any Contract (as defined in Section 2.16) to which Aegean or the Aegean Stockholders are a party or otherwise bound. There are not any bonds, debentures, notes or other indebtedness of Aegeam having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of Aegean Shares may vote. There are not any options, warrants, rights, convertible or exchangeable securities, “phantom” stock rights, stock appreciation rights, stock-based performance units, commitments, Contracts, arrangements or undertakings of any kind to which Aegean and/or the Aegean Stockholder is a party or by which any of them is bound.  There are not any outstanding contractual obligations of Aegean to repurchase, redeem or otherwise acquire any shares of capital stock of Aegean.

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SECTION 2.15. Authority; Execution and Delivery; Enforceability. Aegean has all requisite corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. The execution and delivery by Aegean of this Agreement and the consummation Aegean of the transactions contemplated hereby have been duly authorized and approved by the Board of Directors of Aegean and no other corporate proceedings on the part of Aegean are necessary to authorize this Agreement and the transactions contemplated hereby. When executed and delivered, this Agreement will be enforceable against Aegean in accordance with its terms.

 

SECTION 2.16 No Conflicts; Consents.

 

(a)  The execution and delivery by Aegean of this Agreement does not, and the consummation of the transactions contemplated hereby and compliance with the terms hereof and thereof will not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or result in the creation of any Lien upon any of the properties or assets of Aegean under, any provision of (i) the Aegean Constituent Instruments, (ii) any material contract, lease, license, indenture, note, bond, agreement, permit, concession, franchise or other instrument (a “Contract ”) to which Aegean is a party or by which any of its properties or assets is bound or (iii) subject to the filings and other matters referred to in Section 2.16(b), any material judgment, order or decree (“Judgment”) or material Law applicable to Aegean or its properties or assets.

 

(b)  No material consent, approval, license, permit, order or authorization (“Consent”) of, or registration, declaration or filing with, or permit from, any Governmental Entity is required to be obtained or made by or with respect to Aegean or in connection with the execution, delivery and performance of this Agreement or the consummation of the transactions contemplated hereby.

 

SECTION 2.17. Taxes.

 

(a)  Aegean has timely filed, or has caused to be timely filed on its behalf, all Tax Returns required to be filed by it, and all such Tax Returns are true, complete and accurate All Taxes shown to be due on such Tax Returns, or otherwise owed, have been timely paid. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of Aegean know of no basis for any such claim.

 

(b)  Aegean Financial Statements reflect an adequate reserve for all Taxes payable by Aegean (in addition to any reserve for deferred Taxes to reflect timing differences between book and Tax items) for all Taxable periods and portions thereof through the date of such financial statements. No deficiency with respect to any Taxes has been proposed, asserted or assessed against Aegean, and no requests for waivers of the time to assess any such Taxes are pending, except to the extent any such deficiency or request for waiver, individually or in the aggregate, has not had and would not reasonably be expected to have a Material Adverse Effect.

 

7

(c) For purposes of this Agreement:

 

“Taxes” includes all forms of taxation, whenever created or imposed, and whether of the United States, or elsewhere, and whether imposed by a local, municipal, governmental, state, foreign, federal or other Governmental Entity, or in connection with any agreement with respect to Taxes, including all interest, penalties and additions imposed with respect to such amounts.

 

“Tax Return” means all federal, state, local, provincial and foreign Tax returns, declarations, statements, reports, schedules, forms and information returns and any amended Tax return relating to Taxes.

 

SECTION 2.18. Benefit Plans. Aegean does not have or maintain any collective bargaining agreement or any bonus, pension, profit sharing, deferred compensation, incentive compensation, stock ownership, stock purchase, stock option, phantom stock, retirement, vacation, severance, disability, death benefit, hospitalization, medical or other plan, arrangement or understanding (whether or not legally binding) providing benefits to any current or former employee, officer or director of Aegean. There are not any severance or termination agreements or arrangements between Aegean and any of its current or former employee, officer or director.

 

SECTION 2.19. Litigation. There is no action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or threatened in writing against or affecting the Aegean and/or any of its Stockholders or any of its properties before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility (“Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Aegean Shares or (ii) could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. Neither Aegean, nor any director or officer thereof (in his or her capacity as such), is or has been the subject of any Action involving a claim or violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.

 

SECTION 2.20. Compliance with Applicable Laws. Aegean is in compliance with all applicable Laws, including those relating to occupational health and safety and the environment. Aegean has not received any written communication during the past two years from a Governmental Entity that alleges that the Company is not in compliance in any material respect with any applicable Law. This Section 2.20 does not relate to matters with respect to Taxes, which are the subject of Section 2.17.

 

SECTION 2.21. Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial advisor or other person is entitled to any broker's, finder's, financial advisor's or other similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of Aegean.

 

SECTION 2.22. Contracts. There are no Contracts that are material to the business, properties, assets, condition (financial or otherwise), results of operations or prospects of 

8

Aegean. Aegean is not in violation of or in default under (nor does there exist any condition which upon the passage of time or the giving of notice would cause such a violation of or default under) any Contract to which it is a party or by which it or any of its properties or assets is bound.

 

SECTION 2.23. Title to Properties. Except as set forth on Schedule 2.23, Aegean does not own any real property. Aegean has sufficient title to, or valid leasehold interests in, all of its properties and assets used in the conduct of its businesses. All such assets and properties, other than assets and properties in which Aegean has leasehold interests, are free and clear of all Liens and except for Liens that, in the aggregate, do not and will not materially interfere with the ability of Aegean to conduct business as currently conducted.

SECTION 2.24. Financial Statements. Prior to the Closing, Aegean will deliver (which delivery may be waived or postponed or in whole in part by the Company) to the Company all audited and unaudited financial statements required by the rules and regulations of the Securities and Exchange Commission (the “SEC”) (the “Aegean Financial Statements”). The Aegean Financial Statements will have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods indicated and in respect of interim periods subject to year end adjustments. The Aegean Financial Statements will fairly present in all material respects the financial condition and operating results of Aegean, as of the dates, and for the periods, indicated therein. Aegean will not have any material liabilities or obligations, contingent or otherwise, not disclosed in the financial statements other than (i) liabilities incurred in the ordinary course of business subsequent to December 31, 2007 as set forth on Schedule 2.24, and (ii) obligations under contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected in the Aegean Financial Statements, which, in both cases, individually and in the aggregate would not be reasonably expected to result in a Material Adverse Effect.

 

SECTION 2.25. Insurance. Schedule 2.25 sets forth a list and description of all insurance policies existing as of the date hereof providing insurance coverage of any nature to Aegean. All such policies are sufficient for Aegean to continue its business on terms consistent with market for Aegean’s line of business, are in full force and effect and are enforceable in accordance with their terms, free of any right of termination on the part of any insurance carrier. No claims have been made on any such policies.

 

ARTICLE III

Representations and Warranties of the Company

The Company represents and warrants to Aegean that the Company, except as set forth in the reports, schedules, forms, statements and other documents filed by Company with the SEC and publicly available prior to the date of this Agreement (the “Filed Company SEC Documents”) as follows:

 

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SECTION 3.01. Organization, Standing and Power. Company is duly incorporated, validly existing and in good standing under the laws of the Cayman Islands and has full corporate power and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to conduct its businesses as presently conducted, other than such franchises, licenses, permits, authorizations and approvals the lack of which, individually or in the aggregate, has not had and would not reasonably be expected to have a material adverse effect on Company, a material adverse effect on the ability of Company to perform its obligations under this Agreement or on the ability of Company to consummate the Transactions (a “Company Material Adverse Effect”). Company is duly qualified to do business in each jurisdiction where the nature of its business or their ownership or leasing of its properties make such qualification necessary and where the failure to so qualify would reasonably be expected to have a Company Material Adverse Effect. Company has delivered to the Company true and complete copies of the Articles of Association of the Company, as amended to the date of this Agreement (as so amended, the “Company Charter”).

 

 

SECTION 3.02. Capital Structure. The authorized share capital of Company consists of 75,000,000 Ordinary Shares, $0.00064 par value per share, and 20,000,000 Preference Shares, $0.00064 par value. As of the date hereof (i) 2,000,000 shares of Ordinary Shares are issued and outstanding, (ii) no shares of Preference Shares are outstanding and (iii) no shares of Ordinary Shares or Preference Shares are held by Company in its treasury. Except as set forth above, no ordinary shares or other voting securities of Company were issued, reserved for issuance or outstanding. All outstanding ordinary shares of Company are, and all such shares that may be issued prior to the date hereof will be when issued, duly authorized, validly issued, fully paid and nonassessable.

 

SECTION 3.04. Authority; Execution and Delivery; Enforceability. The execution and delivery by the Company of this Agreement and the consummation by the Company of the Transactions have been duly authorized and approved by the Board of Directors of the Company and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement and the Transactions. This Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with the terms hereof.

 

SECTION 3.05. No Conflicts; Consents.

 

(a)  The execution and delivery by Company of this Agreement, does not, and the consummation of Transactions and compliance with the terms hereof and thereof will not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any person under, or result in the creation of any Lien upon any of the properties or assets of Company under, any provision of (i) Company Charter, (ii) any material Contract to which Company is a party or by which any of its properties or assets is bound or (iii) subject to the filings and other matters referred to in Section 3.05(b), any material Judgment or 

10

material Law applicable to Company or its properties or assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually or in the aggregate, have not had and would not reasonably be expected to have a Company Material Adverse Effect.

 

(b) No Consent of, or registration, declaration or filing with, or permit from, any Governmental Entity is required to be obtained or made by or with respect to Company in connection with the execution, delivery and performance of this Agreement or the consummation of the Transactions, other than the (A) filing with the SEC of a 14f-1 Notice and (B) filing with the SEC of reports under Sections 13 and 16 of the Exchange Act, and (C) filings under state “blue sky” laws, as may be required in connection with this Agreement and the Transactions.

 

SECTION 3.06. SEC Documents. Company has filed all reports, schedules, forms, statements and other documents required to be filed by Company with the SEC since December 31, 2006, pursuant to Sections 13(a), 14 (a) and 15(d) of the Exchange Act.

 

ARTICLE IV

Deliveries

 

SECTION 4.01. Deliveries of the Aegean Stockholders.

 

(a)

Concurrently herewith each Aegean Stockholder is delivering to the Company this Agreement executed by each Aegean Stockholder.

(b)

At or prior to the Closing, each Aegean Stockholder shall deliver to the Company:

 

(i) 

certificates representing its Aegean Shares as set forth on Schedule  1.01 (which in the aggregate shall constitute all of the issued and outstanding Aegean Shares); 

 

(ii) 

duly executed stock powers for transfer by each Aegean Stockholder of its Aegean Shares to the Company.

(c)

executed copies of the Memorandum of Understanding; 

(d)

a description of the Aegean business satisfactory to the Company; and

(e)

audited (by an accounting firm that is licensed by the PCAOB to audit financial statements for U.S. public companies), unaudited financial statements, pro-forma financial statements and notes thereto (collectively, the “Aegean Financial Statements”) of Aegean, as required by the rules and regulations of the SEC, which Aegean Financial Statements shall be filed as an exhibit to a Current Report on Form 8-K of the Company and which 8-K shall include all disclosures and other information required by the SEC rules and regulations and shall be prepared and ready to be filed with the SEC on the date of closing of the Aegean Acquisition. 

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SECTION 4.02. Deliveries of the Company.

 

(a) Concurrently herewith, the Company is delivering:

 

(i) to each Aegean Stockholder and to Aegean, a copy of this Agreement executed by Company;

 

(b) a form of Current Report on Form 8-K, which is substantially in the form to be filed, which includes the financial statements and pro forma financial statements required by the Form 8-K, together with a signed audit report of the independent accountants for the Company.

 

ARTICLE V

 

Conditions to Closing of the Aegean Acquisition

SECTION 5.01. Aegean Stockholders Conditions Precedent. The obligations of the Aegean Stockholders and Aegean to enter into and complete the Closing is subject, at the option of the Aegean Stockholders and Aegean, to the fulfillment on or prior to the Closing Date of the following conditions.

 

(a) Representations, Warranties and Covenants. The representations and warranties of the Company contained in this Agreement shall be true in all material respects on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date. The Company shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be performed or complied with by the Company on or prior to the Closing Date. 

 

(b) Litigation. No action, suit or proceeding shall have been instituted before any court or governmental or regulatory body or instituted or threatened by any governmental or regulatory body to restrain, modify or prevent the carrying out of the Transactions or to seek damages or a discovery order in connection with such Transactions, or which has or may have, in the reasonable opinion of the Aegean or the Aegean Stockholders, a materially adverse effect on the assets, properties, business, operations or condition (financial or otherwise) on the Company.

 

SECTION 5.02. Company Conditions Precedent. The obligations of the Company to enter into and complete the Closing is subject, at the option of the Company, to the fulfillment on or prior to the Closing Date of the following conditions, any one or more of which may be waived or postponed by the Company in writing.

 

(a) Representations, Warranties and Covenants. The representations and warranties of the Aegean Stockholders contained in this Agreement shall be true in all material respects on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date. The Aegean Stockholders shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be performed or complied with by the Aegean Stockholders on or prior to the Closing Date. The Aegean 

12

Stockholders shall have delivered to the Company, if requested, a certificate, dated the Closing Date, to the foregoing effect. 

 

 (b) Litigation. No action, suit or proceeding shall have been instituted before any court or governmental or regulatory body or instituted or threatened by any governmental or regulatory body to restrain, modify or prevent the carrying out of the Transactions or to seek damages or a discovery order in connection with such Transactions, or which has or may have, in the reasonable opinion of the Company, a materially adverse effect on the assets, properties, business, operations or condition (financial or otherwise) of Aegean.

 

(c) No Material Adverse Change. There shall not have been any occurrence, event, incident, action, failure to act, or transaction since December 31, 2007 which has had or is reasonably likely to cause a Company Material Adverse Effect on Aegean.

 

(d) Deliveries. The deliveries specified in Section 4.01, Section 4.03 and Section 4.04 shall have been made by the Aegean Stockholders, Mr. Goritsas and Empedos respectively, provided, however, that the Company may at its sole discretion waiver or postpone any required deliveries.

 

(e) Audited Financial Statements and Form 10 Disclosures. The Aegean Stockholders with reasonable assurances that the Company will be able to comply with its obligation to file a current report on Form 8-K within four (4) business days following the Closing containing the requisite audited consolidated financial statements of the Company and the requisite Form 10-type disclosure regarding the Company. 

 

(f) Satisfactory Completion of Due Diligence. The Company shall have completed its legal, accounting and business due diligence of Aegean and the Aegean Stockholders and the results thereof shall be satisfactory to the Company in its sole and absolute discretion.

 

(g) Delivery of Audit Report and Financial Statements. The Company shall have received completed Aegean Financial Statements and shall have received an audit report from an independent audit firm that is registered with the Public Company Accounting Oversight Board related to the Aegean Financial Statement. The form and substance of the Financial Statements and opinion shall be satisfactory to the Company in its sole and absolute discretion.

 

(h) Delivery of Greek Counsel Legal Opinion. The Company shall have received an opinion from the legal counsel for the Aegean and the Aegean Stockholders that is satisfactory to the Company.

(i) Special Bank Account Opened.  A special bank account at the Bank of Pireaus will have been opened for the IKA Guarantee.

(j) Delivery of Executed Memorandum of Understanding. The Company shall have received a fully executed copy of the Memorandum of Understanding.

 

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ARTICLE VI

COVENANTS

SECTION 6.01. Filing of 8-K and Press Release. Company shall file, within four (4) business day of the Closing Date, a current report on Form 8-K with the SEC disclosing the terms of this Agreement and other requisite disclosure regarding the Transactions and to the extent that the Aegean Stockholders have provided the Aegean Financial Statements including the requisite audited consolidated financial statements of the Company and the requisite Form 10 disclosure regarding the Company. 

SECTION 6.02.  Blue Sky Laws. Company shall take any action (other than qualifying to do business in any jurisdiction in which it is not now so qualified) required to be taken under any applicable state securities laws in connection with the issuance of Company Aegean Acquisition Shares in connection with this Agreement.

 

SECTION 6.03. Public Announcements. Company, Aegean and the Aegean Stockholders will consult with each other before issuing, and provide each other the opportunity to review and comment upon, any press release or other public statements with respect to the Agreement and the Transactions and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable Law, court process or by obligations pursuant to any listing agreement with any national securities exchange.

 

SECTION 6.04. Fees and Expenses. All fees and expenses incurred in connection with this Agreement shall be paid by the Party incurring such fees or expenses, whether or not this Agreement is consummated.

 

SECTION 6.05. Continued Efforts. Each Party shall use commercially reasonable efforts to (a) take all action reasonably necessary to consummate the Transactions, and (b) take such steps and do such acts as may be necessary to keep all of its representations and warranties true and correct as of the Closing Date with the same effect as if the same had been made, and this Agreement had been dated, as of the Closing Date.

 

 

SECTION 6.06. Exclusivity. Aegean or Aegean Stockholders shall not (i) solicit, initiate, or encourage the submission of any proposal or offer from any person relating to the acquisition of any shares or other voting securities of Aegean or Aegean Stockholders, or any assets of Aegean or Aegean Stockholders(including any acquisition structured as a merger, consolidation, share exchange or other business combination), (ii) participate in any discussions or negotiations regarding, furnish any information with respect to, assist or participate in, or facilitate in any other manner any effort or attempt by any person to do or seek any of the foregoing, or (iii) take any other action that is inconsistent with the Transactions and that has the effect of avoiding the Closing contemplated hereby. The Aegean Stockholders and Aegean shall notify the Company immediately if any person makes any proposal, offer, inquiry, or contact with respect to any of the foregoing.

  

14

SECTION 6.07. Furnishing of Information. As long as either Aegean Stockholder owns the Company Aegean Acquisition Shares, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as either Aegean Stockholder owns Company Aegean Acquisition Shares, if the Company is not required to file reports pursuant to such laws, it will prepare and furnish to the Aegean Stockholders and make publicly available in accordance with Rule 144(c) promulgated by the SEC pursuant to the Securities Act, such information as is required for the Aegean Stockholder to sell the Company Aegean Acquisition Shares under Rule 144.

 

 

 

SECTION 6.08. Access. Each Party shall permit representatives of each other Party to have full access to all premises, properties, personnel, books, records (including Tax records), contracts, and documents of or pertaining to such Party.

 

SECTION 6.09. Preservation of Business. From the date of this Agreement until the Closing Date, each of Aegean and the Company shall operate their respective business only in the ordinary and usual course of business consistent with past practice (provided, however, that Aegean shall not issue any securities without the prior written consent of the Company), and shall use reasonable commercial efforts to (a) preserve intact their respective business organization, (b) preserve the good will and advantageous relationships with customers, suppliers, independent contractors, employees and other Persons material to the operation of their respective business, and (c) not permit any action or omission which would cause any of their respective representations or warranties contained herein to become inaccurate or any of their respective covenants to be breached in any material respect.

 

 

ARTICLE VII

 

Miscellaneous

 

SECTION 7.01. Notices. All notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given upon receipt by the Parties at the following addresses (or at such other address for a Party as shall be specified by like notice):

 

If to the Company, to:

c/o Nautilus Global Partners

700 Gemini, Suite 100 

Houston, Texas 77056

Attention:  Joe Rozelle

Telephone:  (713) 600-8888

15

If to Aegean, to:

Tenarou 51

PO Box 73050 

Ano Glyfada

16562 Greece

Telephone 30-210-960-0200

 

If to Aegean Stockholders at.

Tenarou 51

PO Box 73050 

Ano Glyfada

16562 Greece

Telephone 30-210-960-0200

If to Empedos, to:

Issiodou, 22

10674 Athens 

Greece

Telephone 30-210-7426-711

If to Mr. Goritsas, to:

Issiodou, 22

10674 Athens 

Greece

Telephone 30-210-7426-711

 

SECTION 7.02. Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company, Aegean and the Aegean Stockholders holding a majority of the Company Aegean Acquisition Shares. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either Party to exercise any right hereunder in any manner impair the exercise of any such right. No consideration shall be offered or paid to either Aegean Stockholder to amend or consent to a waiver or modification of any provision of any transaction document unless the same consideration is also offered to the other Aegean Stockholder who then hold Company Aegean Acquisition Shares.

 

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SECTION 7.03. Termination.

 

(a) Termination of Agreement. The Parties may terminate this Agreement as provided below:

 

(i) The Company, the Aegean Stockholders and Aegean may terminate this Agreement by mutual written consent at any time prior to the Closing;

 

(ii) The Company may terminate this Agreement by giving written notice to the Aegean and the Aegean Stockholders at any time prior to the Closing (A) in the event the Aegean or any of the Aegean Stockholders have breached any material representation, warranty, or covenant contained in this Agreement in any material respect, the Company has notified Aegean and/or the Aegean Stockholders of the breach, and the breach has continued without cure for a period of twenty days after the notice of breach, or (B) if the Closing shall not have occurred on or before   March 31, 2008 by reason of the failure of any condition precedent hereof (unless the failure results primarily from the Company itself breaching any representation, warranty, or covenant contained in this Agreement); and

 

(iii) Aegean and the Aegean Stockholders may terminate this Agreement by giving written notice to the Company at any time prior to the Closing (A) in the event the Aegean or the Aegean Stockholders has breached any material representation, warranty, or covenant contained in this Agreement in any material respect, and Aegean or the Aegean Stockholders has notified the Company of the breach, and the breach has continued without cure for a period of twenty days after the notice of breach or (B) if the Closing shall not have occurred on or before March 31, 2008, by reason of the failure of any condition precedent hereof (unless the failure results primarily from the Aegean or the Aegean Stockholders themselves breaching any representation, warranty, or covenant contained in this Agreement).

 

(b) Effect of Termination. If any Party terminates this Agreement pursuant to Section 7.03(a) above, all rights and obligations of the Parties hereunder shall terminate without any Liability of any Party to any other Party.

 

SECTION 7.04. Replacement of Securities. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. If a replacement certificate or instrument evidencing any Shares is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

 

SECTION 7.05. Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Aegean Stockholders, Aegean and the Company will be entitled to specific performance under this Agreement. The 

17

Parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

SECTION 7.06. Independent Nature of Aegean Stockholders' Obligations and Rights. The obligations of each Aegean Stockholder under this Agreement are several and not joint with the obligations of the other Aegean Stockholder, and no Aegean Stockholder shall be responsible in any way for the performance of the obligations of the other Aegean Stockholder under this Agreement. The decision of each Aegean Stockholder to acquire the Company Aegean Acquisition Shares pursuant to this Agreement has been made by such Aegean Stockholder independently of any other Aegean Stockholder. Nothing contained herein, and no action taken by any Aegean Stockholder pursuant hereto, shall be deemed to constitute the Aegean Stockholders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Aegean Stockholders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated herein. Each Aegean Stockholder acknowledges that no other Aegean Stockholder has acted as agent for such Aegean Stockholder in connection with making its investment hereunder and that no Aegean Stockholder will be acting as agent of such Aegean Stockholder in connection with monitoring its investment in the Company Aegean Acquisition Shares or enforcing its rights under this Agreement. Each Aegean Stockholder shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Aegean Stockholder to be joined as an additional party in any proceeding for such purpose. Each of the Company, Aegean and Aegean Stockholders acknowledge that each of the Aegean Stockholders has been provided with this same Agreement for the purpose of closing a transaction with multiple Aegean Stockholders and not because it was required or requested to do so by any Aegean Stockholder.

 

SECTION 7.07. Limitation of Liability. Notwithstanding anything herein to the contrary, each of the Company, Aegean and the Aegean Stockholders acknowledge and agree that the liability of a Stockholder arising directly or indirectly, under any transaction document of any and every nature whatsoever shall be satisfied solely out of the assets of such Aegean Stockholder, and that no trustee, officer, other investment vehicle or any other affiliate of such Aegean Stockholder or any investor, shareholder or holder of shares of beneficial interest of such Aegean Stockholder shall be personally liable for any liabilities of such Aegean Stockholder.

 

SECTION 7.08. Interpretation. When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”.

 

SECTION 7.09. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the Transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other 

18

provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that Transactions contemplated hereby are fulfilled to the extent possible.

 

SECTION 7.10. Counterparts; Facsimile Execution. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties. Facsimile execution and delivery of this Agreement is legal, valid and binding for all purposes.

 

SECTION 7.11. Entire Agreement; Third Party Beneficiaries. This Agreement, (a) constitutes the entire agreement, and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the Transactions and (b) are not intended to confer upon any person other than the Parties any rights or remedies.

 

SECTION 7.12. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof, except to the extent the laws of Nevada are mandatorily applicable to the Transactions.

 

SECTION 7.13. Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the Parties without the prior written consent of the other Parties. Any purported assignment without such consent shall be void. Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

19

The Parties hereto have executed and delivered this Acquisition Agreement as of the date first above written.

 For Entities:

				
	 

	 

	 

	 

	AEGEAN EARTH AND MARINE CORPORATION

	 

  

	 

  

	 

  

	 

	By:  

	 /s/ Joseph R. Rozelle

	 

	

Name: Thomas W. Colligan

	 

	Title: Principal Executive Officer

 

				
	 

	 

	 

	 

	AEGEAN EARTH S.A. ____________

	 

  

	 

  

	 

  

	 

	By:  

	 /s/ Joseph B. Clancy

	 

	

Name: Peter Wang

	 

	Title: Director

				
	 
	 
	 

	 
	 

	 
	 
	 

	 
	 
	 

	 
	 

	 
	 

For Individuals

			
	 

  

	 

  

	 

  /s/ Joseph B. Clancy

	 

	By:  

	By:  Joseph Brandon Clancy

			
	 

  

	 

  

	 

  /s/ K.E. “Gus” Polites

	 

	By:  

	By:  Gus Polites

[Signature Page to Acquisition Agreement]

 

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