Document:

d1377680_ex4-42.htm

Exhibit 4.42

 

 

F28.113

DATED 28 FEBRUARY 2013

LICHTENSTEIN SHIPPING COMPANY LIMITED

(as borrower)

-and-

ALPHA BANK A.E.

(as lender)

	
 

FIFTH SUPPLEMENTAL AGREEMENT

TO SECURED LOAN FACILITY AGREEMENT

DATED 18 AUGUST 2008 AS AMENDED AND SUPPLEMENTED BY (i) A FIRST

SUPPLEMENTAL AGREEMENT DATED 23 FEBRUARY 2009

(ii) A SECOND SUPPLEMENTAL AGREEMENT DATED 3 APRIL 2009 (iii) A SIDE

LETTER DATED 2 JULY 2009 (iv) A THIRD SUPPLEMENTAL AGREEMENT DATED

25 NOVEMBER 2009 AND (v) A FOURTH SUPPLEMENTAL AGREEMENT DATED 14

OCTOBER 2011

 

STEPHENSON HARWOOD

  

  

  

CONTENTS

	
 

	
 

	
Page

	 	 	 
	
1

	
Interpretation

	
2

	 	 	 
	
2

	
Conditions

	
3

	 	 	 
	
3

	
Representations and Warranties

	
5

	 	 	 
	
4

	
Amendments to Loan Agreement and Guarantee

	
5

	 	 	 
	
5

	
Confirmation and Undertaking

	
10

	 	 	 
	
6

	
Further Assurance

	
11

	 	 	 
	
7

	
Miscellaneous

	
11

	 	 	 
	
8

	
Notices, Law and Jurisdiction

	
11

	 	 	 
	
9

	
Costs and Expenses

	
11

 

 

  

  

  

FIFTH SUPPLEMENTAL AGREEMENT

Dated: 28 February 2013

BETWEEN:

	
(1)

	
LICTHTENSTEIN SHIPPING COMPANY LIMITED, a company incorporated under the laws of the Republic of Liberia whose registered address is at 80, Broad Street, Monrovia, Liberia (the "Borrower"); and

	
(2)

	
ALPHA BANK A.E., acting through its office at 89 Akti Miaouli, GR 185 38 Piraeus, Greece (the "Lender").

SUPPLEMENTAL TO a secured loan agreement dated 18 August 2008 (the "Original Loan Agreement") as amended and supplemented by (i) a first supplemental agreement dated 23 February 2009 (the "First Supplemental Agreement"), (ii) a second supplemental agreement dated 3 April 2009 (the "Second Supplemental Agreement"), (iii) a side letter dated 2 July 2009 (the "Side Letter"), (iv) a third supplemental agreement dated 25 November 2009 (the "Third Supplemental Agreement") and (v) a fourth supplemental agreement dated 14 October 2011 (the "Fourth Supplemental Agreement" and together with the Original Loan Agreement, the First Supplemental Agreement, the Second Supplemental Agreement, the Side Letter, the Third Supplemental Agreement and the Fourth Supplemental Agreement and as the same may be amended, supplemented, novated and/or replaced from time to time, the "Loan Agreement") each made between, amongst others, the Borrower, as borrower and the Lender, as lender on the terms and subject to the conditions of which the Lender has advanced to the Borrower an aggregate amount not exceeding thirty nine million Dollars ($39,000,000) (the "Loan").

WHEREAS:

	
(A)

	
The Lender and the Borrower have agreed to amend clause 5.1 (Repayment of Loan) of the Loan Agreement on the terms and subject to the conditions contained in this Fifth Supplemental Agreement.

	
(B)

	
The Borrower and the Lender have agreed for the Borrower to open a retention account in the name of the Borrower with the Lender designated "Lichtenstein Shipping Company Limited — Retention Account" or as otherwise may be designated from time to time.

	
(C)

	
The Borrower has requested and the Lender has agreed, that:

  

  

  

	
  

	
(i)

	
the Collateral Guarantor be released from the Loan Agreement and any Security Documents to which it is a party; and

	
  

	
(ii)

	
all references to the "Collateral Vessel" be deleted from the Loan Agreement and the Security Documents.

	
(D)

	
The Borrower and the Lender have also agreed to extend the application of the Margin at the rate of three per cent (3%) per annum, applicable during the currency of the period commencing on 26 October 2009 and ending on 28 February 2012 pursuant to the terms of the Fourth Supplemental Agreement, from 1 March 2012 and for the remainder of the Facility Period.

	
(E)

	
The Lender is willing to accede to the requests set out in Recitals (A), (B) and (C) above and the Lender and the Borrower have agreed to amend the Loan Agreement and the Security Documents (as applicable) on the terms and subject to the conditions set forth in this Fifth Supplemental Agreement.

	
(F)

	
At the date of this Fifth Supplemental Agreement the outstanding amount of the Loan is twenty seven million Dollars ($27,000,000).

IT IS AGREED THAT:

1           Interpretation

	
  

	
1.1

	
In this Fifth Supplemental Agreement:

"Effective Date" means the date of this Fifth Supplemental Agreement.

"Fifth Supplemental Deed of Confirmation" means the deed of confirmation to be executed by the Guarantor in favour of the Lender in form and substance acceptable to the Lender in all respects.

"New Security Documents" means this Fifth Supplemental Agreement, the Fifth Supplemental Deed of Confirmation and any other agreement or document which may at any time be executed by any person as additional security for the payment of all or any part of the Indebtedness and "New Security Document" means any one of them.

  

2

  

"Retention Account" means a bank account to be opened in the name of the Borrower with the Lender and designated "Lichtenstein Shipping Company Limited — Retention Account".

	
  

	
1.2

	
Unless otherwise defined, all words and expressions defined in the Loan Agreement shall have the same meaning when used in this Fifth Supplemental Agreement unless the context otherwise requires, and clause 1.2 of the Loan Agreement shall apply to the interpretation of this Fifth Supplemental Agreement as if it was set out in full.

2           Conditions

	
  

	
2.1

	
As conditions for the agreement of the Lender to the request specified in Recital (C) above, the Borrower shall deliver or cause to be delivered to or to the order of the Lender the following documents and evidence:

	
  

	
2.1.1

	
Officer's bringdown certificates — Borrower and Guarantor A certificate from a duly authorised officer of each of the Borrower and the Guarantor confirming that none of the documents delivered to the Lender pursuant to Schedule 1, Part I, Paragraphs 1(a), (c), (d) and (g) of the Original Loan Agreement, clauses 2.1.2, 2.1.3 and 2.1.4 of the First Supplemental Agreement, clauses 2.1.3 and 2.1.4 of the Second Supplemental Agreement, clauses 2.1.1, 2.1.3 and 2.1.4 of the Third Supplemental Agreement and clauses 2.1.1, 2.1.3 and 2.1.4 of the Fourth Supplemental Agreement have been amended or modified in any way since the date of their delivery to the Lender, or copies, certified by a duly authorised officer of each of the Borrower and the Guarantor as true, complete, accurate and neither amended nor revoked, of any documents which have been amended or modified.

	
  

	
2.1.2

	
Officer's certificates A certificate of a duly authorised officer of each Security Party certifying that each copy document relating to it specified in Clause 2.1.4 and 2.1.5 is correct, complete and in full force and effect and setting out the names of the directors, officers and shareholders of that Security Party and the proportion of shares held by each shareholder.

 

 

  

3

  

 

	
  

	
2.1.3

	
Board and shareholder resolutions The original resolution of the directors and the shareholders of each Security Party (together, where appropriate, with signed waivers of notice of any directors' or shareholders' meetings) approving, and authorising or ratifying the execution of, the New Security Documents (as applicable) and any document to be executed by the Security Party in question pursuant to the New Security Documents.

 

	
  

	
2.1.4

	
Power of attorney A legalised power of attorney of each of the Security Parties under which the New Security Documents (as applicable) and any documents required pursuant to any such New Security Document is to be executed by the Security Party in question.

	
  

	
2.1.5

	
Goodstanding certificates A certificate of good standing in respect of each of the Security Parties.

	
  

	
2.1.6

	
New Security Documents The New Security Documents together with all other documents required by any of them.

	
  

	
2.1.7

	
Mandates such duly signed forms of mandate, and/or other evidence of the opening of the Retention Account, as the Lender may require.

	
  

	
2.1.8

	
Legal opinions Confirmation satisfactory to the Lender that all legal opinions required by the Lender will be given substantially in the form required by the Lender.

	
  

	
2.1.9

	
Process agent Evidence that the process agent referred to in clause 21.5 of the Loan Agreement has accepted its appointment as agent for service of process in relation to any proceedings before the English courts in connection with the New Security Documents.

	
  

	
2.1.10

	
Other authorisations A copy of any other consent, licence, approval, authorisation or other document, opinion or assurance which the Lender considers to be necessary or desirable (if it has notified the Borrower accordingly) in connection with the entry into and performance of the

  

4

  

transactions contemplated by the New Security Documents or for the validity and enforceability of the New Security Documents.

	
  

	
2.2

	
If the Lender agrees, in its sole discretion, to waive any conditions under Clause 2.1 prior to the Effective Date, the Borrower undertakes to deliver all outstanding documents and evidence to or to the order of the Lender no later than the date specified by the Lender, which however, shall not be taken as a waiver of the Lender's right to require production of all the documents and evidence required by Clause 2.1.

	
  

	
2.3

	
All documents and evidence delivered to the Lender pursuant to this Clause shall:

	
  

	
2.3.1

	
be in form and substance acceptable to the Lender;

	
  

	
2.3.2

	
be accompanied, if required by the Lender, by translations into the English language, certified in a manner acceptable to the Lender; and

	
  

	
2.3.3

	
if required by the Lender, be certified, notarised, legalised or attested in a manner acceptable to the Lender.

3            Representations and Warranties

Each of the representations and warranties contained in clause 11 of the Loan Agreement shall be deemed repeated by the Borrower at the Effective Date, by reference to the facts and circumstances then pertaining, as if references to the Security Documents included this Fifth Supplemental Agreement.

4            Amendments to Loan Agreement

With effect from the Effective Date:

	
  

	
4.1

	
the definitions contained in Clause 1.1 (other than the definition of "Effective Date") of this Fifth Supplemental Agreement shall be added to clause 1.1 of the Loan Agreement in alphabetical order;

	
  

	
4.2

	
the following definition of "Accounts" shall be added in clause 1.1 of the Loan Agreement in the requisite alphabetical order as follows:-

  

5

  

"'Accounts' means the Earnings Account and the Retention Account, and "Account" means each either of them.";

	
  

	
4.3

	
the definition of the term "Margin", as is set out in clause 1.1 of the Loan Agreement, shall be substituted as follows:-

"'Margin' means:-

	
  

	
(a)

	
commencing on the date of this Agreement and until 2 April 2009 (inclusive), one point sixty-five per cent (1.65%) per annum;

	
  

	
(b)

	
commencing on 3 April 2009 and until 25 October 2009 (inclusive), two point twenty five per cent (2.25%) per annum; and

	
  

	
(c)

	
commencing on 26 October 2009 and throughout the remainder of the Facility Period, three point zero per cent (3.00%) per annum.";

	
  

	
4.4

	
the following definition of "Outstanding Loan" shall be added in clause 1.1 of the Loan Agreement in the requisite alphabetical order as follows:-

"'Outstanding Loan' means the outstanding amount of the Loan on 28 February 2013 being twenty seven million Dollars ($27,000,000).";

	
  

	
4.5

	
the definition of "Security Documents", as set forth in clause 1.1 of the Loan Agreement, shall be construed to include the New Security Documents;

	
  

	
4.6

	
clause 5.1 of the Loan Agreement shall be deleted and replaced with the following clause 5.1:-

"5.1 Repayment of Loan The Borrower agrees to repay the Outstanding Loan to the Lender by twenty five (25) consecutive quarterly instalments, the first twenty four such repayment instalments (1st—24th), each in the sum of seven hundred and fifty thousand Dollars ($750,000) and the twenty fifth (25th) and last such repayment instalment in the sum of nine million Dollars ($9,000,000) (consisting of an instalment of seven hundred and fifty thousand Dollars ($750,000) and a balloon

  

6

  

payment of eight million two hundred and fifty thousand Dollars ($8,250,000) (the "Balloon Payment")), the first instalment falling due on 28 February 2013 and subsequent instalments falling due at consecutive intervals of three calendar months thereafter.";

	
  

	
4.7

	
clause 10.1 of the Loan Agreement shall be read and construed as including the New Security Documents;

	
  

	
4.8

	
clause 10.2 of the Loan Agreement shall be deleted and replaced with the following clause 10.2:-

"10.2 Earnings and Retention Accounts  The Borrower shall maintain the Accounts with the Lender for the duration of the Facility Period free of Encumbrances and rights of set off other than those created by or under the Finance Documents. Interest shall accrue on a daily basis on any balance from time to time on the Accounts at a rate of interest determined by the Lender in its discretion as the rate of interest payable to its customers on deposits in the same currency and of similar amount and maturity, and shall be credited to the appropriate Account.";

	
  

	
4.9

	
the following clause is added as new clause 10.4 of the Loan Agreement and all other clauses are renumbered accordingly:-

"10.4 Transfers to Retention Account On the day in each calendar month during the Facility Period commencing on 28 February 2013 (or, if there is no such day, on the last Business Day of that month), the Borrower shall procure that there is transferred from the Earnings Account to the Retention Account:

	
  

	
10.4.1

	
one-third of the amount of the Repayment Instalment due on the next Repayment Date (which shall be deemed to be the day for that transfer if that day is a Repayment Date); and

	
  

	
10.4.2

	
the amount of interest due on the next Interest Payment Date (which shall be deemed to be the day for that transfer if that day is an Interest Payment Date) divided by the number of months between the last Interest Payment Date (or, if none, the first Drawdown Date) and that next Interest Payment Date,

and the Borrower irrevocably authorises the Lender to make those transfers.";

 

  

7

  

 

	
  

	
4.10

	
the following clause is added as new clause 10.5 of the Loan Agreement and all other clauses are renumbered accordingly:-

 

"10.5 Additional payments to Retention Account If for any reason the amount standing to the credit of the Earnings Account is insufficient to make any transfer to the Retention Account required by Clause 10.4 (Transfers to Retention Account), the Borrower shall, without demand, procure that there is credited to the Retention Account, on the date on which the relevant amount would have been transferred from the Earnings Account, an amount equal to the amount of the shortfall.";

	
  

	
4.11

	
clause 10.4 of the Loan Agreement shall be deleted and replaced with the following clause:-

"10.6 Application of Retention Account The Borrower shall procure that there is transferred from the Retention Account to the Lender:

	
  

	
10.6.1

	
on each Repayment Date, the amount of the Repayment Instalment then due; and

	
  

	
10.6.2

	
on each Interest Payment Date, the amount of interest then due,

and the Borrower irrevocably authorises the Lender to make those transfers.";

	
  

	
4.12

	
clause 10.5 of the Loan Agreement shall be deleted and replaced with the following clause:-

"10.7 Borrower's obligations not affected If for any reason the amount standing to the credit of the Retention Account is insufficient to pay any Repayment Instalment or to make any payment of interest when due, the Borrower's obligation to pay that Repayment Instalment or to make that payment of interest shall not be affected.";

	
  

	
4.13

	
clause 10.6 of the Loan Agreement shall be deleted and replaced with the following clause:-

"10.8 Release of surplus Any amount remaining to the credit of the Earnings Account following the making of any transfer required by Clause 10.4 ((Transfers to Retention Account)) shall (unless a Default shall have occurred and be continuing) be released to or to the order of the Borrower.";

 

  

8

  

 

	
  

	
4.14

	clause 10.7 of the Loan Agreement shall be deleted and replaced with the following clause:-

"10.9 Restriction on withdrawal During the Facility Period no sum may be withdrawn from the Accounts (except in accordance with this Clause 10) without the prior written consent of the Lender.";

	
  

	
4.15

	
clause 10.8 of the Loan Agreement shall be deleted and replaced with the following clause:-

"10.10 Relocation of Accounts At any time following the occurrence and during the continuation of a Default, the Lender may without the consent of the Borrower but after giving notice to the Borrower relocate either or both of the Accounts to any other branch of the Lender, without prejudice to the continued application of this Clause 10 and the rights of the Lender under the Finance Documents.";

	
  

	
4.16

	
clause 10.9 of the Loan Agreement shall be deleted and replaced with the following clause:-

"10.11 Application after acceleration From and after the giving of notice to the Borrower by the Lender under Clause 13.2 (Acceleration), the Borrower shall procure that all sums from time to time standing to the credit of either of the Accounts are immediately transferred to the Lender for application in accordance with Clause 10.12 (General application of moneys) and the Borrower irrevocably authorises the Lender to make those transfers.";

	
  

	
4.17

	
clause 10.10 of the Loan Agreement shall be deleted and replaced with the following clause:-

"10.12 General application of moneys The Borrower, subject to Clause 10.13 (Application of moneys on sale or Total Loss), irrevocably authorises the Lender to apply all sums which the Lender may receive:

	
  

	
10.12.1

	
pursuant to a sale or other disposition of the Vessel or any right, title or interest in the Vessel; or

	
  

	
10.12.2

	
by way of payment of any sum in respect of the Insurances, Earnings, Charter Rights or Requisition Compensation; or

  

9

  

	
  

	
10.12.3

	
by way of transfer of any sum from either of the Accounts; or

	
  

	
10.12.4

	
otherwise arising under or in connection with any Security Document,

in or towards satisfaction, or by way of retention on account, of the Indebtedness, in such manner as the Lender may determine.";

	
  

	
4.18

	
the wording "Clause 10.12" in lines 7 and 20 of clause 10.12 of the Loan Agreement shall be deleted and replaced with the wording "Clause 10.14";

	
  

	
4.19

	
the Collateral Guarantor is released from all its obligations under the Loan Agreement and the Security Documents to which it is a party;

	
  

	
4.20

	
all references to the "Collateral Vessel" and "Collateral Guarantor" shall be deleted from the Loan Agreement and the Security Documents;

	
  

	
4.21

	
all references to "this Agreement" (howsoever defined in the Loan Agreement and the Security Documents) shall be references to the Loan Agreement as amended and supplemented by this Fifth Supplemental Agreement; and

	
  

	
4.22

	
all references in the Finance Documents to the Loan Agreement (however it may be defined) shall be read and construed as the Loan Agreement as amended and supplemented by this Fifth Supplemental Agreement.

All other terms and conditions of the Loan Agreement and the other Security Documents shall remain unaltered and in full force and effect.

5             Confirmation and Undertaking

	
  

	
5.1

	
The Borrower confirms that all of its respective obligations under or pursuant to each of the Security Documents to which it is a party remain in full force and effect, despite the amendments to the Loan Agreement made in or pursuant to this Fifth Supplemental Agreement, as if all references in any of the Security Documents to the Loan Agreement (however described) were references to the Loan Agreement as amended and supplemented by this Fifth Supplemental Agreement.

 

  

10

  

 

	
  

	
5.2

	The definition of any term defined in any of the Security Documents shall, to the extent necessary, be modified to reflect the amendments to the Loan Agreement made in this Fifth Supplemental Agreement.

6             Further Assurance

The Borrower covenants that from time to time at the request of the Lender it will execute and deliver to the Lender or procure the execution and delivery to the Lender of all such documents as the Lender shall deem necessary or desirable in its absolute discretion for giving full effect to this Fifth Supplemental Agreement and for perfecting and protecting the value of or enforcing any rights or securities granted to the Lender under or pursuant to the Loan Agreement and/or this Fifth Supplemental Agreement and/or the Security Documents.

7             Miscellaneous

	
  

	
7.1

	
Clauses 20.1 (No oral variations), 20.5 (Counterparts) and 20.6 (Contracts (Rights of Third Parties) Act 1999) of the Loan Agreement shall (mutatis mutandis) apply to this Fifth Supplemental Agreement.

	
  

	
7.2

	
With effect from the Effective Date, this Fifth Supplemental Agreement shall be construed with and shall constitute an instrument supplemental to the Loan Agreement. Save as otherwise provided herein and as hereby expressly varied and supplemented, the Loan Agreement shall remain valid and binding and in full force and effect after the Effective Date.

8             Notices, Law and Jurisdiction

The provisions of clauses 17 and 21 of the Loan Agreement shall apply to this Fifth Supplemental Agreement as if they were set out in full and as if references to the Loan Agreement were references to this Fifth Supplemental Agreement and references to the Borrower were references to the Security Parties.

9             Costs and Expenses

The Security Parties shall, on demand of the Lender and upon a full indemnity basis, reimburse the Lender for all costs and expenses (including legal fees and disbursements plus any value added tax payable thereon) incurred by the Lender in connection with the

  

11

  

preparation, negotiation and execution of this Fifth Supplemental Agreement and any other documents required.

IN WITNESS of which the parties to this Fifth Supplemental Agreement have executed this Fifth Supplemental Agreement as a deed the day and year first before written.

	
SIGNED and DELIVERED

	
)

	
as a DEED

	
)

	
by /s/ Alexandros Tsirikos

	
)

	
duly authorised attorney-in-fact

	
)

	
for and on behalf of

	
)

	
LICTHTENSTEIN SHIPPING COMPANY LIMITED

	
)

	
in the presence of:-

	
)

	
CHRISTODOULOS V. VARTZIS

                SOLICITOR

STEPHENSON HARWOOD LLP

2 FILELLINON STR.&AKTI MIAOULI

PIRAEUS 185 36 - TEL. 210 42 95 160

          SRA NO. 3 3 0 4 0 1 3

 

	
 

	
SIGNED and DELIVERED

	
)

	
as a DEED

	
)

	
by  /s/ Constantinos Flokos

	
)

	
and by Christina Aroni

	
)

	
duly authorised attorneys-in-fact

	
)

	
for and on behalf of

	
)

	
ALPHA BANK A.E.

	
)

	
in the presence of:-

	
)

	
CHRISTODOULOS V. VARTZIS

              SOLICITOR

STEPHENSON HARWOOD LLP

2 FILELLINON STR.&AKTI MIAOULI

PIRAEUS 185 36 - TEL. 210 42 95 160

      SRA NO. 3 3 0 4 0 1 3

 

	
 

SKNYC1:1377680.1

 

 

12d1377718_ex4-43.htm

Exhibit 4.43

 

 

 

AMENDED AND RESTATED LOAN AGREEMENT

THIS AMENDED AND RESTATED LOAN AGREEMENT (this "Agreement") is entered into between Top Ships Inc., a Marshall Islands corporation (the "Borrower") and Laurasia Trading Ltd., a Marshall Islands corporation (the "Lender"), effective as of August 15, 2012.

W I T N E S S E T H   T H A T :

WHEREAS, the Borrower and Lender have previously entered into a Loan Agreement dated August 6, 2010, as amended and supplemented by a Supplemental Agreement dated February 15, 2011 and a Second Supplemental Agreement dated January 20, 2012, and a Loan Agreement dated February 15, 2011, as amended and supplemented by a Supplemental Agreement dated January 20, 2012 (collectively, the "Original Loan Agreements"), made between the Borrower as borrower and the Lender as lender relating to credit facilities of an aggregate principal amount of $4,000,000 (four million U.S. Dollars) advanced by the Lender to the Borrower (together, the "Original Loans");

WHEREAS, each of the Borrower and the Lender desires to amend and restate the Original Loan Agreements to, among other things, (i) reduce by $750,000 the aggregate principal amount outstanding under the Original Loans and consolidate the Original Loans into a single credit facility, with principal amount outstanding of $3,250,000 as of the date hereof (the "Loan"), and (ii) extend the period of repayment of the Loan to August 15, 2013, in consideration for (x) the payment of an extension fee in the amount of $350,000 and (y) the assignment of sums payable under the Time Charter Party dated as of July 9, 2010, as amended, by and between Japan III Shipping Co. Ltd and Daeyang Shipping Co. Ltd. pursuant to an Assignment of Receivables in the form attached hereto as Exhibit A (the "Assignment");

WHEREAS, Japan III Shipping Co. Ltd, a wholly-owned subsidiary of the Borrower, has executed and delivered the Assignment to the Lender; and

WHEREAS, each of the Borrower and the Lender acknowledges and agrees that (i) this Agreement represents, among other things, an amendment, restatement, renewal, extension, consolidation and modification of the Original Loan Agreements; and (ii) the provisions of the Original Loan Agreements, to the extent amended, restated, renewed, extended, consolidated and modified hereby, are hereby superseded and replaced by the provisions hereof; and (iii) this Agreement does not extinguish the existing indebtedness arising under the Original Loan Agreements.

NOW THEREFORE, in consideration of the premises set forth above, and for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the undersigned hereby agree as follows:

  

1

  

1.           Definitions

1.1           "Banking" or "Business Day" means any day on which the banks generally and foreign exchange markets in Greece and the U.S. are open for business.

1.2           "Default" or "Event of Default" means any of the events specified in Section 9 whether or not any requirement for the giving of notice or the lapse of time or both or the happening of any other condition has been satisfied.

1.3           "Loan" means the credit facility in principal amount of U.S. $3,250,000 (three million two hundred fifty thousand U.S. Dollars) as of the date hereof.

1.4           "Repayment Date" means the date on which the principal amount of the Loan is to be repaid in accordance with the provisions of Section 4 of this Agreement.

2.           Purpose. The Lender has heretofore made the Loan available to the Borrower to be used as bridge loans of the Borrower, to repay debt and for working capital purposes.

3.           Amendment and Restatement of the Original Loan Agreements. The Lender, relying upon each of the representations and warranties set out in Section 8, and the other terms and conditions herein contained, hereby agrees with the Borrower to amend, restate, renew, extend, consolidate and modify the Original Loan Agreements as set forth herein.

4.           Repayment.

4.1           The Borrower undertakes to repay the Loan, including the principal amount outstanding, accrued interest and fees due to the Lender (including, for the avoidance of doubt, accrued interest and fees incurred pursuant to the Original Loan Agreements), by August 15, 2013, in cash, shares or a combination of the two, at the option of the Lender.

4.2           In case repayment or part repayment is made in shares, the number of shares will be calculated at the dollar amount of the liability as of the Repayment Date divided by U.S. $4.00. Such figure will be adjusted accordingly in the case of a stock split or reverse stock split.

5.           Mandatory Prepayment.

5.1           In case of a successful equity offering the Borrower is obliged to repay the Loan fully in cash as set forth in Section 4 of this Agreement.

5.2           In case of change of control of the Borrower, the Borrower is obliged to immediately repay the Loan as set forth in Section 4 of this Agreement.

6.           Interest Rate; Default Interest.

6.1           The rate of interest applicable to the Loan shall be eight per cent (8%) per annum on all amounts due.

  

2

  

6.2           In the event of failure by the Borrower to settle the Loan on the appointed date, the Borrower shall pay default interest on such amount on demand from the date of such default up to the date of actual payment (notwithstanding an earlier judgment obtained for such sums due) at the rate of 2.5% over the applicable interest rate. Any interest not paid when due shall be compounded every three months.

7.           Payments.

7.1           All payments to be made by the Borrower shall be made at the free disposal of the Lender in freely transferable currency, by remitting funds to the account of the Lender or at such account as the Lender may have specified for such purpose.

7.2           All payments by the Borrower under this Agreement (whether in respect of principal, interest, or otherwise) shall be made in full, without any set-off, counterclaim or retention and free and clear of and without any deduction or withholding in respect of duties, taxes, charges, levies, impost duties or fees of any nature.

7.3           In the event that the Borrower or the Lender is required by law to make any such deduction or withholding from any payment then the Borrower shall forthwith pay to the Lender of the full amount which would have been received hereunder had no deduction or withholding been made. The obligations set forth in this Section shall survive the termination of this Agreement and the repayment of the Loan.

8.           Representations and Warranties of the Borrower.  The Borrower represents and warrants that:

8.1           This Agreement constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms. All consents, licenses, approvals, registrations, authorizations or declarations in the jurisdiction to which the Borrower is subject required to enable it to borrow hereunder and lawfully to enter into and perform and discharge its duties and liabilities under this Agreement have been obtained or made and are in full force and effect.

8.2           The signing and delivery of this Agreement and performance of any of the transactions contemplated in it will not contravene or constitute a default under any provision contained in any agreement, instrument, law, judgment, order, licence, permit or consent by which the Borrower or any of its assets is bound or affected.

8.3           No condition, event or act has occurred and is continuing or would result from the making of the Loan which constitutes an Event of Default or a Default;

8.4           The Borrower is not in default under any agreement to which it is a party or by which it may be bound and no litigation, arbitration or administrative proceedings are presently current or pending, or to the knowledge of the Borrower, threatened, which in any such case would have an adverse effect upon the Borrower to perform and observe the obligations and provisions binding upon him under this Agreement.

  

3

  

9.           Default.  On the occurrence of any of the events specified below the Lender may, by giving written notice cancel this Agreement and/or demand immediate repayment of the whole outstanding balance of the Loan and all accrued interest, and all costs and expenses and any other moneys due hereunder and the Lender may exercise its rights under any security which it holds:

(a)           If the Borrower fails to fulfill payment obligations arising hereunder and such failure continues to be unremedied for five days;

(b)           If the Borrower fails to observe or perform any of its obligations under this Agreement and such default continues to be unremedied for five days;

(c)           Any representation, warranty or statement which is made or deemed to have been made by the Borrower in this Agreement or in any certificate, statement, or notice provided under or in connection with this Agreement proves to be incorrect in any respect which the Lender deems material;

(d)           If the Borrower fails to fulfill its obligations in respect of any other indebtedness for borrowed money to the extent that such indebtedness becomes repayable or capable of being declared repayable prior to its stated maturity;

(e)           If an order is made or resolution passed for the liquidation or the winding up of the Borrower other than for the purposes of amalgamation or reconstruction agreed to in writing by the Lender or if the Borrower makes or seeks to make any composition or arrangement with its creditors;

(f)           If an encumbrancer takes possession of, or trustee, administrator, receiver or other similar officer is appointed in respect of all or any part of the business or assets of the Borrower or distress or any form of execution is levied or enforced upon any property of the Borrower;

(g)           If the Borrower ceases or threatens to cease to carry on its business or substantially the whole of its business; or

(h)           If the Borrower becomes or is declared insolvent or bankrupt.

10.           Fees.

10.1           The Borrower shall pay to the Lender an extension fee of U.S. $350,000 (three hundred fifty thousand U.S. Dollars). Payment of the extension fee shall be made on the date of the repayment of the Loan. The extension fee shall bear interest at the rate provided herein from the effective date of this Agreement.

10.2           The Borrower shall pay all legal fees and expenses incurred in connection with the preparation, negotiation and conclusion of this Agreement.

  

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11.           Stamp Duties.  The Borrower shall pay any and all stamp, registration and similar taxes and charges of whatsoever nature which may be payable or determined to be payable on, or in connection with, the execution, registration, notarisation, performance or enforcement of this Agreement. The Borrower shall indemnify the Lender against any and all liabilities with respect to or resulting from delay or omission on the part of the Borrower to pay any such taxes.

12.           No Waiver.  Time shall be of the essence of this Agreement but no failure to exercise nor any delay in exercising on the part of the Lender any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power, privilege or remedy prevent any further or other exercise thereof or the exercise of any other right, power, privilege or remedy. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law.

13.           Severance.  If at any time any one or more provisions hereof is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

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

a)           be in writing delivered personally or by fax or e-mail;

b)           be deemed to have been received, in the case of fax or e-mail, at the time of dispatch as per transmission report (provided that if the date of despatch is not a Business Day it shall be deemed to have been received at the opening of business on the next such Business Day), and in the case of a letter when delivered or served personally; and

c)           be sent:

(i)           if to the Borrower

Top Ships Inc.

1, Vas. Sofias & Meg. Alexandrou Str.

151 24 Marousi

Greece

Tel. + 30 210 8128181

Fax + 30 210 6141275

e-mail:atsirikos@topships.com

(ii)           if to be sent to the Lender

c/o Chrysses Demetriades & CO LLC

284 Arch. Makarios Ill Avenue

Fortuna Court, Block B, 2nd floor

3105 Limassol

Cyprus

  

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Tel. + 357 25 800000

Fax + 357 25

e-mail: mm@demetriades.com

or to such other person, address, fax number or e-mail as is notified by a party (as the case may be) to the other party to this Agreement.

15.           Assignment.

15.1           Without prior written approval of the Lender (which the Lender may refuse at its absolute discretion) the Borrower shall not assign or transfer any rights and obligations under this Agreement.

15.2           The Lender may at any time at its discretion without the prior consent of the Borrower assign or transfer in whole or in part to a third party any rights, accessory rights and claims already existing or in future arising under this Agreement.

16.           Confidentiality.

16.1           Each of the parties hereto agree and undertake to keep confidential any documentation and any confidential information concerning the business, affairs, etc. which comes into its possession during this Agreement and not to use any such documentation, information for any purpose other than for which it was provided.

16.2           The Borrower acknowledges and accepts that the Lender may be required by law or that it may be appropriate for the Lender to disclose information and deliver documentation relating to the Borrower and the transactions and matters in relation to this Agreement to governmental or regulatory agencies and authorities.

16.3           The Borrower acknowledges and accepts that in case of occurrence of any of the Events of Default the Lender may disclose information and deliver documentation relating to the Borrower and the transactions and matters in relation to this Agreement to third parties (including in particular any technical advisors, accountants, any legal advisors) to the extend that this is necessary for the enforcement or the contemplation of enforcement of the Lender's rights or for any other purpose for which in the opinion of the Lender, such disclosure should be useful or appropriate for the interests of the Lender or otherwise and the Borrower expressly authorises any such disclosure and delivery.

16.4           The Borrower acknowledges and accepts that the Lender may be prohibited or it may be inappropriate for the Lender to disclose information to the Borrower by reason of law or duties of confidentiality owed or to be owed to other persons.

17.           Law and Jurisdiction.

17.1           This Agreement shall be governed by and construed in accordance with the laws of Cyprus.

  

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17.2           The Borrower agrees, for the benefit of the Lender, that any legal action or proceedings arising out of or in connection with this Agreement against the Borrower or any of its assets may be brought to the non-exclusive jurisdiction of the Courts of Cyprus. The Borrower irrevocably and unconditionally submits to the jurisdiction of such courts and irrevocably designate and appoints Messrs Chrysses Demetriades & Co. LLC of 284 Arch. Makarios III Ave., Fortuna Court, Block B, 3105 Limassol, Cyprus, as its anticletos for service of process in respect of proceedings before such courts and undertake to maintain throughout the term of the Security Period an agent (anticletos) in Cyprus for such purpose. The submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the Lender to take proceedings against the Borrower in the courts of any other competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not.

[Signature Page Follows]

  

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IN WITNESS whereof the parties to this Agreement have caused this Agreement to be executed and delivered as of the day and year first above written.

SIGNED for and on behalf of:

	
 

	
Top Ships Inc.

	
 

	
 

	
 

	
 

	
By:

	
/s/ Andreas Louka

	
 

	
 

	
Name:

	
Andreas Louka

	
 

	
Title:

	
Attorney-in-fact

Witness:

Signature:

Full name:

Address:

Occupation:

	
 

	
Laurasia Trading Ltd.

	
 

	
 

	
 

	
 

	
By:

	
/s/ Dimosthenis Eleftheriadis

	
 

	
 

	
Name:

	
Dimosthenis Eleftheriadis

	
 

	
Title:

	
Director

Witness:

Signature:

Full name:

Address:

Occupation:

 

 

 

 

SKNYC1:1377718.1

 

 

8

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